Allowed

Bank of Maharashtra v. M/s. Riddhi Siddhi Trading Company

DRT11 Jun 2026OA/366/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by the Bank of Maharashtra for recovery of dues against a defaulting borrower. Proceeding ex-parte due to the respondent's absence, the tribunal directed payment of the principal sum with future interest at 10% per annum and the sale of hypothecated assets.

What did the court decide?

Payment of Rs. 27,15,588/- with future interest at 10% p.a. and a Recovery Certificate; direction to sell hypothecated assets.

Bank of Maharashtra versus M/s. Riddhi Siddhi… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 07.05.2025 Registered on: 21.06.2025 Decided on: 11.06.2026 Duration: Y M D 01 01 04

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 366/2025

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TOTAL CLAIM AMOUNT – Rs. 27,15,588/-

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Bank of Maharashtra, A Body Corporate and constituted under the Banking Companies (Acquisition of Undertaking) Act, 5 of 1970, carrying on Banking Business and having its Head Office at “Lokmangal”, 1501, Shivaji Nagar, Pune – 411 005 and Zonal Office at Second Floor, Laltaki Road, Ahmednagar-414005. Branch at Shevgaon, Tal. Shevgaon, Dist. Ahmednagar. Through its Authorized Officer, Shri. Avinash Shivajirao Mate, Age: Major, Occ.: Service, Working as Senior Manager, Branch at Shevgaon, Tal. Shevgaon, Dist. Ahmednagar.

… Applicant

Versus

(OA No.366/2025)

Page 1 of 7

[AMBADAS]

1. M/s. Riddhi Siddhi Trading Company, Through its Proprietor, Kishor Ashok Raut

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Age: Major, Occ.: Business, Address: At Samarth Nagar, Paithan Road, …Defendant Shevgaon, Tq. Shevgaon, Dist. Ahmednagar 414502.

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APPEARANCES

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For the Applicant Mr. Atul A. Mishra -Advocate For Defendant Ex-parte

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JUDGMENT

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Delivered on 11.06.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 27,15,588/- (Rupees Twenty Seven Lacs, Fifteen Thousand, Five Hundred and Eighty Eight only), along with further interest from the date of filing of the Original Application, i.e., 07.05.2025, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The applicant bank states that Defendant approached the applicant bank seeking financial assistance. Upon scrutiny of the

(OA No.366/2025)

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[AMBADAS]

submitted documents, the applicant Bank Sanctioned Cash Credit Facility for Working Capital of Rs. 24,00,000/-vide sanction letter dated 10.05.2023. The agreed rate of interest for the aforesaid loan facility was @12.30% p.a. with monthly rests. The defendant also agreed to pay an additional interest by way of liquidated damages in case of default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, demand promissory note, 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 Defendant executed hypothecation agreement thereby hypothecating Plant & machineries, Equipment’s Implements Furniture & Fixtures & purchased goods from bank finance to secure the loan facility.

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The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to

(OA No.366/2025)

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[AMBADAS]

due repayment of the loan amount. The defendant 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 defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendant became irregular and classified as NPA on 10.07.2024. Therefore, on 15.07.2024 the applicant bank issued legal Notice to the defendant. The defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was served through RPAD. Hence, the defendant was proceeded as ex-parte as per Order dated 05.05.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Avinash Shivajirao Mate, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. AW-1(1) to AW-1(10) along with

(OA No.366/2025)

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[AMBADAS]

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 defendant 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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The applicant Bank has claimed charge over hypothecated property of the borrower.

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The applicant Bank has claimed future interest @ 12% p.a. with monthly rests on the aforesaid loan facility from the date of filing i.e. 07.05.2025 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 @ 10% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.366/2025)

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[AMBADAS]

ORDER

(A) Original Application No. 366/2025 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 27,15,588/- (Rupees Twenty Seven Lacs, Fifteen Thousand, Five Hundred and Eighty Eight only), along with future interest @ 10% per annum (simple) from the date of filing of the Original Application i.e. 07.05.2025 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecation of Plant & machineries, Equipment’s Implements Furniture & Fixtures & purchased goods from bank finance to secure the loan facility. Vide document at Exh. AW-1(4) in list of documents Exh. 5.

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

(OA No.366/2025)

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[AMBADAS]

(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 defendant.

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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:.11.06.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.366/2025)

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Page 7 of 7

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[AMBADAS]

Bank of Maharashtra v. M/s. Riddhi Siddhi Trading Company

Case brief

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Bank of Maharashtra v. M/s. Riddhi Siddhi Trading Company

Case brief

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