Allowed

Equitas Small Finance Bank Limited v. M/S Rm Home of Future

DRT23 Jun 2026OA/276/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 62,02,161/- and future interest awarded by this court against the defendants who failed to appear.

What did the court decide?

Respondents directed to pay Rs. 62,02,161/- plus future interest @ 9% p.a. (simple) from 01.05.2025. Recovery certificate issued. Hypothecated assets secured for realization.

Equitas Small Finance Bank Limited versus M/S Rm… — Contract and Commercial Disputes | DRT (2026)

¶1

Presented on: 01.05.2025 Registered on: 15.05.2025 Decided on: 23.06.2026 Duration: Y M D 01 01 22

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 276/2025

¶3

TOTAL CLAIM AMOUNT – Rs. 62,02,161/-

¶4

Equitas Small Finance Bank Ltd.

¶5

A Banking Company incorporate, under the Companies Act, 1956 and carrying on the Banking Business under the Banking Regulation Act, 1949 having its registered office at 4^th Floor, Phase – II, Spencer Plaza, 769, Anna Salai, Chennai, Tamil Nadu – 600002

¶6

Through its Authorized Representative Mr. Sambhaji Shivaji Surwase, Age: 36 years, Occ.: Service, having his address for communication at c/o Equitas Small Finance Bank Limited, Kakde Tower, Office No. 202, 2^nd Floor, Plot No. 5 & 6, CTS No. 15845, Shahnoorwadi Dargah Road, Opp. Podar International School, Garkheda, Aurangabad – 431005.

… Applicant

(OA No.276/2025)

Page 1 of 7

[AMBADAS]

Versus

1. M/s. RM Home of Future, Through its Prop. Mr. Mahesh Ramesh Meghale, Age: 33 years, Occ.: Business, Gram Panchayat, South City, Gut No. 42 Plot No. 5, Karodi, Tq. and Dist. Aurangabad, Maharashtra.

¶13

2. Mr. Mahesh Ramesh Meghale,

¶14

Age: 33 years, Occ.: Business, R/o.: Plot No. 147, Gut No. 225, Kohinoor Park, Aurangabad, Maharashtra.

¶15

…Defendants

¶16

APPEARANCES

¶17

For the Applicant For Defendants

¶18

Mr. M.D. Narwadkar -Advocate Ex-parte

¶19

JUDGMENT Delivered on 23.06.2026

¶20

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 62,02,161/- (Rupees Sixty Two Lacs, Two Thousand, One Hundred and Sixty One only), along with further interest from the date of filing of the Original Application, i.e.,

(OA No.276/2025)

Page 2 of 7

[AMBADAS]

01.05.2025, until the date of realization of the entire outstanding dues from the Defendants.

¶25

Brief facts of the application are as under:

¶26

The Applicant Bank submits that Defendant No. 1 approached the Applicant Bank with a request for financial assistance. Upon due consideration of the said request and the financial requirements of Defendants, the Applicant Bank was pleased to sanction Overdraft under CGTMSE for Working Capital Requirement of Rs. 50,00,000/- vide sanction letter dated 30.06.2023 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @ 11% p.a. The Defendants also agreed to pay additional interest @ 2% by way of liquidated damages in the event of any default in repayment.

¶27

In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letter, demand promissory note, deed of

(OA No.276/2025)

Page 3 of 7

[AMBADAS]

hypothecation, registered mortgage deed bearing daybook No.

¶32

4500/2022 dated 07.11.2022 etc., in favour of the Applicant Bank

¶33

The Applicant Bank further contends that in order to secure the aforesaid loan facility, the Defendants executed hypothecation agreement thereby hypothecating unencumbered business assets and movable fixed assets including both present and future book debts, stocks, moveable plant and machinery etc.

¶34

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 06.05.2024 the

(OA No.276/2025)

Page 4 of 7

[AMBADAS]

applicant bank issued recall Notice to the defendants. The defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶39

The defendants failed to appear in matter though they were duly served. Hence, the defendants were proceeded ex parte as per Order dated 29.01.2026.

¶40

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Sambhaji S/o. Shivaji Surwase, Authorized Officer of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-10 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

¶41

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

¶42

Since the defendants failed to appear and did not contest the application, I find no reason to disbelieve the unrebutted

(OA No.276/2025)

Page 5 of 7

[AMBADAS]

evidence of the applicant Bank. Therefore, the applicant Bank is entitled for the reliefs as claimed.

¶47

The applicant Bank has claimed charge over hypothecated properties.

¶48

The applicant Bank has claimed future interest @ 11% p. a. from the date of filing i.e. 01.05.2025 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 9% per annum (simple), it would be just and reasonable rate of interest.

¶49

ORDER

¶50

(A) Original Application No. 276/2025 is allowed with costs.

¶51

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 62,02,161/- (Rupees Sixty Two Lacs, Two Thousand, One Hundred and Sixty One only), along with future interest @ 9% per annum (simple) from the date of filing of the Original

(OA No.276/2025)

Page 6 of 7

[AMBADAS]

Application i.e. 01.05.2025 till full payment/realization

¶56

of the amount mentioned in this operative order.

¶57

¶58

hypothecation of unencumbered business assets and movable fixed assets including both present and future book debts, stocks, moveable plant and machinery vide document at Annexure A-6 in list of documents Exh. 5.

¶59

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

¶60

(E) Issue Recovery Certificate accordingly.

¶61

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

¶62

(G) File be consigned to the record room.

¶63

Sd/-

¶64

Pronounced in open court. Place: Aurangabad Date:.23.06.2026

¶65

(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

¶66

(OA No.276/2025)

¶67

Page 7 of 7

¶68

[AMBADAS]

Equitas Small Finance Bank Limited v. M/S Rm Home of Future

Case brief

What is this about?

What did the court decide?

Equitas Small Finance Bank Limited v. M/S Rm Home of Future

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Mr. Mahendra Rohidas Lohar

Union Bank of India versus Babasaheb Changdeo Kolpe

Vikram Vijaykumar Choubey versus Edelweiss Asset Reconstruction Co.Ltd

Bank of India versus Mr. Kashinath Sahebrao Jadhav

Idbi Bank Limited versus Mr. Ganesh Sarangdhar Vispute

Bank of India versus Janardhan Namdeo Magar