Allowed

Bank of Maharashtra v. Ms Aryan Enterprises

DRT21 Aug 2026OA/157/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant Bank's application for recovery of Rs. 26,96,696/- as outstanding dues from a cash credit facility. Directed the defendant to pay the principal, future interest at 9% p.a. with a charge over hypothecated inventory and receivables.

What did the court decide?

Defendant directed to pay Rs. 26,96,696/- plus 9% p.a. future interest; Bank entitled to sell hypothecated assets.

Bank of Maharashtra versus Ms Aryan Enterprises — Banking and Recovery | DRT (2026)

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Presented on: 05.02.2025 Registered on: 06.03.2025 Decided on: 21.08.2026 Duration: Y M D 01 06 16

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 157/2025

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TOTAL CLAIM AMOUNT – Rs. 26,96,696/-

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Bank of Maharashtra, (A Government of India Undertaking) having its Central Office at Lokmangal, Shivaji Nagar, Pune, and amongst other branches a branch at Savedi, Tq. Ahmednagar, Dist. Ahmednagar, Through its Authorized Officer, Shri. Jyotiranjan Samantaray, Age: 38 years, Occ.: Service as Branch Manager, R/o.: Savedi, Tq. and Dist. Ahmednagar.

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Versus

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… Applicant

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M/s. Aryan Enterprises Through its Proprietor Shri. Atish Keshavrao Gaikwad Age: Major, Occupation: Business, R/o. : Row House No. 3, R/o.: Plot No. 54/25, Ashtavinayak Colony, Bhistbag Road, Savedi, Ahmednagar.

…Defendant

(OA No.157/2025)

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[AMBADAS]

APPEARANCES

For the Applicant Mr. Sharad V. Natu -Advocate For Defendant Ex-parte

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JUDGMENT

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Delivered on 21.08.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 26,96,696/- (Rupees Twenty Six Lacs, Ninety Six Thousand, Six Hundred and Ninety Six only), along with further interest from the date of filing of the Original Application, i.e., 05.02.2025, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The applicant bank states that Defendant approached the applicant bank seeking financial assistance. Upon scrutiny of the submitted documents, the applicant bank sanctioned Cash Credit facility of Rs. 20,00,000/- vide sanction letter dated 26.07.2021.

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The agreed rate of interest for the aforesaid loan facility was

(OA No.157/2025)

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[AMBADAS]

@9.70% p.a. with monthly rests. The defendant also agreed to pay

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an additional interest by way of liquidated damages in case of default in repayment.

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Thereafter, the Defendant again approached the applicant bank for enhancement of said cash credit facility. Upon scrutiny of the submitted documents, the applicant bank enhanced the Cash Credit facility to Rs. 25,00,000/- vide sanction letter dated 19.08.2022.

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letters, demand promissory notes, hypothecation agreements, letter of proprietorship etc., in favour of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendant executed hypothecation agreement thereby hypothecating inventory and receivables.

(OA No.157/2025)

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[AMBADAS]

The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the sanction letter. Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendant became irregular and classified as NPA on 11.05.2023. Therefore, on 12.05.2023 the applicant bank issued legal Notice to the defendant. The defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was served through paper publication. Hence, the defendant was proceeded ex-parte as per Order dated 22.06.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Shri. Jyotiranjan Samantaray, Manager of the

(OA No.157/2025)

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[AMBADAS]

applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-16 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendant failed to appear and did not contest the application, I find no reason to disbelieve the unrebutted evidence of the applicant Bank. Therefore, the applicant Bank is entitled for the reliefs as claimed.

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The applicant Bank has claimed charge over hypothecated property.

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The applicant Bank has claimed future interest @9.70%p.a. on the aforesaid loan facility from the date of filing i.e. 05.02.2025 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future

(OA No.157/2025)

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[AMBADAS]

interest is granted @9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 151/2025 is allowed with

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costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 26,96,696/- (Rupees Twenty Six Lacs, Ninety Six Thousand, Six Hundred and Ninety Six only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 05.02.2025 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecation of inventory and receivables vide documents at Annexure A-5 & A-13 in the list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell hypothecated assets/ articles/goods etc., to recover its dues.

(OA No.157/2025)

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[AMBADAS]

(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendant.

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.21.08.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.157/2025)

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[AMBADAS]

Bank of Maharashtra v. Ms Aryan Enterprises

Case brief

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Bank of Maharashtra v. Ms Aryan Enterprises

Case brief

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