Allowed

Canara Bank v. Mr.Sandip Dattatray Midgule

DRT14 Jul 2026OA/218/2024

Case brief

AI extract

What is this about?

In an ex-parte recovery proceeding, the Tribunal allowed an application filed by Canara Bank for the repayment of cash credit and GECL amounts, adjudging future interest at modified rates while dismissing claims for hypothecated asset realization and specific costs.

What did the court decide?

Recovery of Rs.37,95,877/- with 9% interest and Rs.1,27,532/- with 8.70% interest; issuance of Recovery Certificate.

Canara Bank versus Mr.Sandip Dattatray Midgule — Insolvency and Bankruptcy | DRT (2026)

¶1

Presented on .. 12.12.2023 Registered on .. 29.06.2024 Decided on .. 14.07.2026 Duration .. Y—M—D 02--07--02

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 218/2024.

¶3

Canara Bank,

¶4

A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at 112 JC Road, Bangalore and branch office at S.No. 16/1/A, Vishwaparvati Building, Om Chowk, Bijleenagar, Chinchwad, Pune 411 033.

¶5

… Applicant

¶6

Versus

¶7

Mr. Sandip Dattatray Midgule, Age 42 years, Occ. Business, Proprietor of Yashwant Arts,

¶8

Shop No.1, Barne Complex, Kalewadi Fata, Near Karad Bank, Pimpri Road, Pune 411 057.

¶9

Also at – Anand Classic, FL B/18, S.No. 14/1, Bhavaninagar, Thergaon, Pune 411033

¶10

… Defendant

¶11

Appearances :-

¶12

For Applicant Advocate Prajakta Zende i/b Veena Kori. For Defendant Ex parte.

¶13

Sanap ( OA No. 218/2024 ) 1 of 5

¶14

Total Claim Amount – Rs.39,23,410/-

¶15

JUDGMENT (Delivered on 14^th July, 2026)

¶16

The Applicant Bank has filed the present application for recovery of the sum of Rs.39,23,410/- together with future interest for Open Cash Credit @10.05% per annum; for GECL @8.70% per annum and for GECL @9.25% per annum from the date of filing of Application till realization of the entire dues from the defendant.

¶17

Brief facts of the application are as under :-

¶18

The defendant is engaged in Flex printing and advertisement business and he approached the applicant Bank requesting loan facilities. As per the loan applications of the defendant, the applicant Bank sanctioned the following loan facilities to the defendant.

¶19

Name of facility Amount Rs. Date of Sanction

¶20

1 Cash Credit 30,00,000/30.12.2019 2 GECL 3,38,000/16.06.2020 3 GECL 5,00,000/25.10.2021

¶21

In order to secure the aforesaid loan facilities, the defendant has executed necessary loan and security documents along with deed of hypothecation in favour of the applicant Bank.

¶22

Sanap ( OA No. 218/2024 ) 2 of 5

¶23

The defendant has also executed Balance and Security Confirmation Letter on 07.07.2022 and thereby confirmed the balance outstanding in loan accounts.

¶24

The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Hence, on 28.09.2023, the applicant Bank has classified the accounts of the defendant as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 07.11.2023, the applicant Bank issued legal Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶25

The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendant as per Order dated 12.03.2026 passed below Application (Exhibit-1).

¶26

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Ms. Priya Sharma, Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-22 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

¶27

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

¶28

Sanap ( OA No. 218/2024 ) 3 of 5

¶29

Since the defendant failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

¶30

The applicant Bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets, therefore, the relief in terms of hypothecated assets cannot be granted.

¶31

The applicant Bank has claimed expenses and cost of typing, notice and xeroxing of Rs.25,000/-, which cannot be granted. However, on calculating the particulars of the claim given by the applicant Bank, it appears that the applicant Bank has not added the said charges in the total claim amount, therefore, no question arises to deduct the same from total claim amount.

¶32

The applicant Bank has claimed future interest for Open Cash Credit @10.05% per annum; for GECL @8.70% per annum and for GECL @9.25% per annum from the date of filing of the Application till full realization of the dues. However, considering the facts of the case, I am of the opinion that if future interest is granted for Open Cash Credit @9% per annum; for GECL @8.70% per annum and for GECL @9% per annum (simple), it would be just and reasonable rate of interest.

¶33

Sanap ( OA No. 218/2024 ) 4 of 5

¶34

Hence, I pass the following order.

¶35

O R D E R

¶36

A} Original Application No. 218/2024 is allowed with costs.

¶37

B} The defendant shall pay to the applicant Bank the sum of Rs.37,95,877/- (Rupees Thirty Seven Lakh Ninety Five Thousand Eight Hundred Seventy Seven only) towards Cash Credit account and GECL account along with future interest @9% per annum from the date of filing of the Original Application i.e. 12.12.2023 till full payment/realization of the amount mentioned in this operative order.

¶38

C} The defendant shall pay to the applicant Bank the sum of Rs.1,27,532/- (Rupees One Lakh Twenty Seven Thousand Five Hundred Thirty Two only) towards GECL along with future interest @8.70% per annum from the date of filing of the Original Application i.e. 12.12.2023 till full payment/realization of the amount mentioned in this operative order.

¶39

D} Issue Recovery Certificate.

¶40

E} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendant.

¶41

Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 14.07.2026 Debts Recovery Tribunal, Pune.

¶42

Sanap ( OA No. 218/2024 ) 5 of 5

Canara Bank v. Mr.Sandip Dattatray Midgule

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr.Sandip Dattatray Midgule

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Bank of Maharashtra versus Mr Omprakash Babulal Runthala Prop M/S Mukund Texttitle

Federal Bank versus Mandakini

Federal Bank versus Balu

Vidharbha Konkan Gramin Bank versus Mr Niranjan Bhagwat Kolekar

Idbi Bank versus Dinkar Nangare

State Bank of India versus Swapnil