The Debts Recovery Tribunal allowed the bank's original application for recovery of a term loan. Despite the defendant's absence, the Tribunal confirmed the debt, modified the requested interest rate, and directed the issuance of a recovery certificate.
Order allowed; defendant to pay Rs. 17,32,705/- plus future interest at 9% p.a.; issue Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Presented on .. 05.07.2019 Registered on .. 18.02.2023 Decided on .. 12.05.2026 Duration .. Y—M—D 06--10--07
IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 260/2023.
Canara Bank,
A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at 112 JC Road, Bangalore, in the State of Karnataka and branch office at 143/1, Main Chowk, Hinjwadi, Pune 411 057.
… Applicant
Versus
Shri Vilas Hiraman Gaikwad, Age Adult, Occ. Business, Residing at – Survey No. 177/1/3, Sudarshan Colony, Wakad, Pune 411057. … Defendant
Appearances :-
For Applicant Advocate R.B. Ganbote. For Defendant Ex parte.
Total Claim Amount – Rs.17,32,705/-
Sanap ( OA No. 260/2023 ) 1 of 5
JUDGMENT (Delivered on 12th May, 2026)
The defendant approached the applicant Bank on 18.09.2014 and requested for Term Loan of Rs.15,76,000/for manufacturing of fly ash bricks. The applicant Bank considered the request of the defendant and sanctioned and disbursed the Term loan facility of Rs.15,76,000/- to the defendant vide Sanction Letter dated 19.09.2014.
In order to secure the aforesaid loan facility, the defendant has executed necessary loan and security documents in favour of the applicant Bank. The defendant has also executed deed of hypothecation in favour of the applicant Bank.
The defendant has also executed Acknowledgment of Debt and Security on 05.09.2017 and thereby confirmed the balance outstanding in loan account.
Sanap ( OA No. 260/2023 ) 2 of 5
to regularize the accounts. Hence, the applicant Bank has classified the account of the defendant as NonPerforming Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 08.06.2017, 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.
Sanap ( OA No. 260/2023 ) 3 of 5
Hence, I pass the following order.
O R D E R
A} Original Application No. 260/2023 is allowed with costs.
B} The defendant shall pay to the applicant Bank the sum of Rs.17,32,705/- (Rupees Seventeen Lakh Thirty Two Thousand Seven Hundred Five only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 05.07.2019 till full
Sanap ( OA No. 260/2023 ) 4 of 5
payment/realization of the amount mentioned in this operative order.
Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 12.05.2026 Debts Recovery Tribunal, Pune.
Sanap ( OA No. 260/2023 ) 5 of 5
2 issues framed by the court
Whether the applicant bank is entitled to recover the unpaid term loan amount along with principal and interest.
Whether future interest granted at a rate of 9% per annum is just and reasonable in the circumstances of the case.
Canara Bank
Dilip G. Murumkar
As recorded by the court registry
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