Allowed

Idbi Bank v. Nageshwar Industries

DRT6 Apr 2026OA/242/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues. The court held that since the defendants did not contest the claim, the bank was entitled to the principal amount along with future interest, marking the loan account as NPA and securing the dues via hypothecation.

What did the court decide?

Order 242/2023 allowed; defendants to pay Rs. 25,31,606/- with 9% simple interest; Recovery Certificate issued; execution over hypothecated properties directed.

Idbi Bank versus Nageshwar Industries — Banking and Recovery | DRT (2026)

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Presented on: 21.02.2023 Registered on: 28.12.2023 Decided on: 06.04.2026 Duration: Y M D 03 01 15

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 242/2023

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TOTAL CLAIM AMOUNT – Rs. 25,31,606/-

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IDBI BANK LTD.,

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A Company registered under the Banking Companies

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Act, 1956 (1 of 1956) & a banking Company within

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the meaning of Section 5 (c) of the Banking Regulation Act, 1949, (10 of 1049) and having its registered office at IDBI Tower, WTC Complex, Cuff Parade, Mumbai-400005, State Maharashtra and one

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of its Branch at I.M.A. Hall, Samarth Nagar, Aurangabad-01, through its D.G.M. and Authorized signatory Mr. Manoj S/o. Chokha

Ubale.

… Applicant

(OA No.242/2023)

Page 1 of 9

[AMBADAS]

Versus

1. Nageshwar Industries,

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Through its Proprietor Mrs. Shobha Ashok Muley, Shop No. 27, Plot No. RX-5/14, Bajaj Nagar, MIDC, Waluj, Aurangabad-431136.

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2. Mrs. Shobha Ashok Muley,

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Proprietor of Nageshwar Industries, Age: 39 years, Occ.: Industrialist, R/o.: Plot No. RX-5/14, Bajaj Nagar, MIDC, Waluj, Aurangabad-431136.

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…Defendants

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APPEARANCES

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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 06.04.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 25,31,606/- (Rupees Twenty Five Lacs, Thirty One Thousand, Six Hundred and Six only), along with future interest from the date of filing of the Original Application, i.e., 21.02.2023, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.242/2023)

Page 2 of 9

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 through defendant No. 2 Proprietor approached and requested the Applicant Bank for Cash Credit facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank Sanctioned Cash Credit facility of Rs. 5,00,000/-, vide sanction letter dated 31.05.2007 on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @ 12.25% 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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Furthermore, the said CC was renewed vide Letters of Intent dated 25.07.2012 & 03.09.2013 at rate of Interest @ 14.25% & @ 14% per annum with monthly rests.

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Subsequently, the defendant No. 1 again approached for the enhancement of Said CC loan and sanction of term loan. Upon

(OA No.242/2023)

Page 3 of 9

[AMBADAS]

considering the request and financial needs of the Defendant, the Applicant Bank enhanced the Cash Credit Facility to Rs. 15,00,000/- & sanctioned term loan of Rs. 18,00,000/- vide letter of intent dated 18.01.2018 on certain terms and conditions. The agreed rate on interest was @ 11.50% 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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Furthermore, during the month of July 2019 defendants approached to the applicant bank and requested for renewal of enhanced CC. Upon Considering the requested the applicant bank sanctioned renewal of Enhanced CC of Rs. 15 Lacs, at the rate of interest 11.40% per annum and reviewed the Said Loan of Rs. 14.20 Lacs at the rate of interest @ 11.45% per annum vide its Letter of Intent dated 31.07.2019.

(OA No.242/2023)

Page 4 of 9

[AMBADAS]

Subsequently, during the COVID period the Applicant Bank under GECL scheme granted Working Capital Term Loan of Rs. 5,55,000/- at the rate of interest @ 9.10% per annum with monthly rests vide its letter of intent dated 10.07.2020.

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Furthermore, during the month of February 2021 defendants approached to the applicant bank and requested for renewal of enhanced CC and review of Said Loan and COVID Loan. Upon Considering the requested the applicant bank sanctioned renewal of Enhanced CC of Rs. 15 Lacs, at the rate of interest @ 11.55% per annum and reviewed the Said Loan of Rs. 12.06 Lacs at the rate of interest @ 11.45% per annum and COVID Loan of Rs. 5.55 Lacs, at the rate of interest @ 9.10% per annum vide its Letter of Intent dated 18.02.2021.

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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, letters of intent, hypothecation

(OA No.242/2023)

Page 5 of 9

[AMBADAS]

agreements, demand promissory notes, 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 all stocks plant and machinery, vehicles of the borrower etc., in favour of the 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. Therefore, on 26.08.2022 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and

(OA No.242/2023)

Page 6 of 9

[AMBADAS]

neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants appeared but failed to file written statement. Hence, the right of defendants to file written statement stands closed as per Order dated 13.08.2025.

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The applicant Bank has filed Evidence Affidavit of evidence at Exhibit-4 of Mr. Manoj S/o. Chokha Ubale, Branch Head 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 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.

(OA No.242/2023)

Page 7 of 9

[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. 21.02.2023 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. 242/2023 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 25,31,606/- (Rupees Twenty Five Lacs, Thirty One Thousand, Six Hundred and Six only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 21.02.2023 till full payment/realization of the amount mentioned in this operative order.

(OA No.242/2023)

Page 8 of 9

[AMBADAS]

(C) The aforesaid adjudicated amount is secured by the hypothecation of all stocks plant and machinery, vehicles of the borrower vide document at Annexure A-

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5, A-24 & A-31 in list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated stocks / plant and machinery/ 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) 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:.06.04.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.242/2023)

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Page 9 of 9

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[AMBADAS]

Idbi Bank v. Nageshwar Industries

Case brief

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Idbi Bank v. Nageshwar Industries

Case brief

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