The Debts Recovery Tribunal allowed the bank's application for recovery. It ordered the respondent to pay the principal amount of Rs. 81,90,733.13 and future interest at 9% simple per annum, while rejecting the applicant's claim for higher interest rates.
Clause: The defendant shall pay Rs. 81,90,733.13 with future interest at 9% simple per annum from 12.07.2022.
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: 12.07.2022 Registered on: 21.03.2023 Decided on: 22.06.2026 Duration: Y M D 03 11 10
IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 41/2023
TOTAL CLAIM AMOUNT – Rs. 81,90,733.13/-
CANARA BANK
A Body Corporate duly constituted under the
Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 Having its Head Office at Banglore-560002 and branch amongst the other places as at SME Branch Jalna Road, Aurangabad - 431001 through Power of Attorney Holder and Chief
Manager, Mr. Upendra Prasad Lohani s/o Bachu Prasad Lohani, Age: 45 years, Occ.: Service as Chief Manager, SME Branch, Jalna Road Aurangabad. R/o. Jalna Road, Aurangabad. … Applicant
(OA No.41/2023)
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[AMBADAS]
Versus
Mr. Mahendra Rohidas Lohar, Age: Major, Occu.: Business, Proprietor of M/s Maithali Industries, Plot No. M-11, MIDC Waluj, Aurangabad, Pin – 431136. And
Flat No. F-67, Sidhivinayak Vihar, Behind A S Club, Aurangabad. And RM-48/6, Near BSNL Godown, Bajaj Nagar, Wadgaon (Kh), MIDC Waluj, Aurangabad.
…Defendant
APPEARANCES
For the Applicant For Defendant
Mr. Mohan B. Jaiswal -Advocate Ex-parte
JUDGMENT Delivered on 22.06.2026
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[AMBADAS]
Brief facts of the application are as under:
to pay additional interest by way of liquidated damages in case of any default in repayment.
Subsequently, the Defendant again approached the Applicant Bank to renew the Cash Credit facility. Upon consideration of the said request, the Applicant Bank renewed the Cash Credit facility and reduced it from ₹70,00,000/- to ₹60,00,000/- vide renewal letter dated 05.06.2016, on revised terms and conditions.
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Thereafter, the Defendant again approached the Applicant Bank to renew the Cash Credit facility. Upon consideration of the said request, the Applicant Bank renewed the Cash Credit facility and reduced it from ₹60,00,000/- to ₹50,00,000/- vide renewal letter dated 01.09.2018, on revised terms and conditions.
Subsequently, the Defendant again approached the Applicant Bank seeking sanction of Working Capital GECL Facility. Upon consideration of the said request, the Applicant Bank Sanctioned Working Capital GECL Facility of ₹10,00,000/-, vide sanction letter dated 21.07.2020, on revised terms and conditions. The agreed rate of interest was @7.65% per annum with monthly rests. The Defendant once again agreed to pay additional interest by way of liquidated damages in the event of default.
In accordance with the guidelines issued by the Reserve Bank of India (RBI) during the COVID-19 pandemic, the Applicant Bank sanctioned a COVID Funded Interest Term Loan (GFITL) of
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₹2,38,775/-, which was disbursed on 03.09.2020. This facility was
extended in respect of interest payable on the OCC account for the period from 01.03.2020 to 31.08.2020. The disbursed amount was credited to the OCC account of the Defendant.
The applicant bank submits that, as per the request made by the defendant, working capital (WCDL) of Rs. 5,00,000/- was granted to the defendant vide sanction letter dated 30.09.2020. The agreed rate of interest was @6.90% per annum with monthly rests. The Defendant once again agreed to pay additional interest by way of liquidated damages in the event of default.
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ORDER
(B) The defendant shall pay to the applicant Bank a sum of Rs. 81,90,733.13/- (Rupees Eighty One Lacs, Ninety Thousand, Seven Hundred Thirty Three and Thirteen Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 12.07.2022 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 the movable properties i.e. of current assets, stocks and book debts etc/. as per Hypothecation deed Exh. A-16 & A-20 in the list of documents Exh. 7.
(D) The applicant Bank is entitled to sell the hypothecated articles/goods/stocks/book debts/ machinery etc., to recover its dues.
(G) File be consigned to the record room.
Sd/-
Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.22.06.2026 Debts Recovery Tribunal, Aurangabad
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2 issues framed by the court
Whether the claim for recovery of loans and future interest ought to be allowed in the absence of the defendant.
Whether the future interest rate of 9% per annum (simple) is reasonable in the circumstances.
Canara Bank
Mr. Mahendra Rohidas Lohar
Dr. J. R. Chauhan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
