Allowed

Bank of Baroda v. M/S Riddhi Logistics and Multi Services

DRT7 Jul 2026OA/230/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Aurangabad, upheld an original application filed by Bank of Baroda to recover dues of Rs. 25,53,254/- and future interest from borrowers who failed to repay term loans granted for business and working capital needs.

What did the court decide?

Recovery of Rs. 25,53,254/- plus future interest at 9% p.a. and sale of hypothecated vehicles to realize dues.

Bank of Baroda versus M/S Riddhi Logistics and… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 26.08.2023 Registered on: 22.03.2024 Decided on: 07.07.2026 Duration: Y M D 02 10 11

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 230/2024

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TOTAL CLAIM AMOUNT – Rs. 25,53,254/-

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Bank of Baroda , a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at Baroda House, Mandvi, Baroda – 01, State Gujarat and one of its S.A.R.B. Branch at Regional Office, Cidco, Aurangabad, having perpetual succession through Its Chief Manager & Attorney Mr. Sanjay Baban Dongare.

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… Applicant

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Versus

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1. M/s. Riddhi Logistics and Multi Services, Through it’s Prop. Mr. Abhi Ambadas Hiwale Plot No. 28, Matoshree Niwas, Adarsh Colony, Sut Girni Road, Garkheda Parisar, Aurangabad -09

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2. Mr. Abhi Ambadas Hiwale. Age: 39 years, Occ.: Business, R/o.: Plot No. 28, Matoshree Niwas, Adarsh Colony, Sut Girni Road, Garkheda Parisar, Aurangabad -09

…Defendants

Page 1 of 8

(OA No.230/2024)

[AMBADAS]

APPEARANCES

For the Applicant For Defendants

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Mr. Sameer J. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 07.07.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 25,53,254/- (Rupees Twenty Five Lacs, Fifty Three Thousand, Two Hundred and Fifty Four only), along with future interest from the date of filing of the Original Application, i.e., 26.08.2023, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendants had approached and requested the Applicant Bank for financial assistance. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Term loan facility of Rs. 39,00,000/- &

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Bank Guarantee of Rs. 4,00,00/- vide sanction letter dated 09.08.2019 on certain terms and conditions. The agreed rate of

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(OA No.230/2024)

[AMBADAS]

interest for the aforesaid loan facility was @10.45% p.a. with monthly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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Thereafter, the Defendants had again approached and requested the Applicant Bank for financial assistance. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Working Capital Term loan of Rs. 7,80,000/- vide sanction letter dated 11.09.2020 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @7.50% p.a. with monthly rests. The Defendants also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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Thereafter, the Defendants had again approached and requested the Applicant Bank for financial assistance. Upon considering the

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request and financial needs of the Defendants, the Applicant Bank

Page 3 of 8

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[AMBADAS]

sanctioned Additional Working Capital Term loan of Rs. 3,50,000/- vide sanction letter dated 10.02.2022 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @7.50% p.a. with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, hypothecation agreement, demand promissory note, and letter of undertaking, hypothecation agreement etc., in favour of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants executed hypothecation agreement thereby hypothecating vehicle as mentioned in the ‘Instrument of Hypothecation of Vehicle’, ‘Hypothecation

Page 4 of 8

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[AMBADAS]

agreement’, and ‘Loan Cum – Hypothecation Agreement’ etc in favour of applicant bank.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants 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 defendants to pay with the agreed rate of interest thereon, but the defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 14.02.2022. Therefore on 08.06.2023 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

Page 5 of 8

(OA No.230/2024)

[AMBADAS]

The defendants failed to appear in matter though they were served through Court Commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 09.09.2025.

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The applicant Bank has filed evidence Affidavit of evidence at Exhibit-4 of Mr. Sanjay S/o. Baban Dongare, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-42 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 defendants 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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(OA No.230/2024)

[AMBADAS]

The applicant Bank has claimed charge over hypothecated properties of the borrowers.

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The applicant Bank has claimed future interest @15% p.a. from the date of filing i.e. 26.08.2023 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future 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. 230/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 25,53,254/- (Rupees Twenty Five Lacs, Fifty Three Thousand, Two Hundred and Fifty Four only), along with future interest @ 9% per annum

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(simple) from the date of filing of the O.A. i.e. 26.08.2023

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[AMBADAS]

till full payment/realization of the amount mentioned in

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this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecation of Vehicle’, ‘Hypothecation agreement’, and ‘Loan Cum – Hypothecation Agreement’ vide documents at Anx. A-8, A-16 & A-27 in list of documents

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Exh. 5.

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

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(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 defendants.

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(G)

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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:. 07.07.2026 Debts Recovery Tribunal, Aurangabad

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[AMBADAS]

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Page 8 of 8

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(OA No.230/2024)

Bank of Baroda v. M/S Riddhi Logistics and Multi Services

Case brief

What is this about?

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Bank of Baroda v. M/S Riddhi Logistics and Multi Services

Case brief

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