Allowed

Encore Assets Reconstruction Company Private Limited v. Vishnu Shingare

DRT19 Feb 2026OA/475/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an asset reconstruction company's original application for recovery of dues. The court approved the debt amount fixed future interest at 9% per annum and directed issuance of a recovery certificate against defendants who failed to appear.

What did the court decide?

Ordered payment of Rs. 30,53,656/- along with future interest @9% p.a. and issuance of Recovery Certificate to sell secured assets.

Encore Assets Reconstruction Company Private Limited versus… — Company and Corporate | DRT (2026)

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Presented on .. 30.03.2022 Registered on .. 04.06.2022 Decided on .. 19.02.2026 Duration .. Y—M—D 03--10--19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 475/2022.

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Encore Asset Reconstruction Company Private Limited, A Company incorporated under the Companies Act, 1956 and registered as an Asset Reconstruction Company pursuant to Section 3 of the SARFAESI Act, 2022 having its registered office at Caddie Commercial Tower, Regus Business Centre, 5^th Floor, Aerocity (Dial), New Delhi 110 037 and its Corporate office at 5^th Floor, Plot 137, Sector 44, Gurgaon, Haryana 122 002.

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… Applicant

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Versus

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1 Shri Vishnu Ramchandra Shingare, 20/827, Gat No. 1065, Swami Mala, Ichalkaranji, Taluka Hatkanangale, District Kolhapur 416 115.

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2 Mr. Sunil Mahadev Nivale, 20/1426, Ligade Mala, Ichalkaranji, Tal. Hatkanangale, Dist. Kolhapur 416 115.

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3 Mr.Vishwanath Ganpati Akkatgerhal, 20/947, Jawahar Nagar, Ichalkaranji, Taluka Hatkanangale, District Kolhapur 416 115.

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… Defendants

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Sanap ( OA No. 475/2022 ) 1 of 7

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Appearances :- For Applicant Advocate Sudha Koloti. For Defendants Ex parte.

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Total Claim Amount – Rs.30,53,656/-

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JUDGMENT

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( Delivered on 19^th February, 2026 )

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The Applicant Company has filed the present application for recovery of the sum of Rs.30,53,656/- together with future interest @14.70% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :-

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The applicant is a company incorporated under the Companies Act, 1956 and registered as an asset reconstruction company with the Reserve Bank of India pursuant to Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022 (hereinafter called as ‘SARFAESI Act’).

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The applicant company is entitled to acquire the Financial Assets of any Bank or Financial Institution in the manner as provided under Section 5(a) and 5(b) of the SARFAESI Act and on such acquisition, the applicant

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Sanap ( OA No. 475/2022 ) 2 of 7

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Company (hereinafter called as the ‘Assignee’) shall be deemed to be Lender and all rights of such Banks shall vest in the applicant Company. As such, after said assignment, the Applicant Company has stepped into the shoes of Assignor Bank and has become entitled to recover entire dues from the defendants.

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That Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd., Ichalkaranaji, A Multistate Co-operative Bank (hereinafter called as the ‘Assignor Bank’) vide registered deed of Assignment dated 07.08.2020 has unconditionally and absolutely assigned the present loan account availed by the defendants to the applicant (Assignee Company) together with all the rights, title and interest in the underlying security interest created in its favour.

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As per the loan application of defendant No.1, the Assignor Bank sanctioned the mortgage loan facility of Rs.5,00,000/- to defendant No.1 vide Sanction Letter dated 07.02.2012. Defendant Nos.2 and 3 stood guarantors for the repayment of loan availed by defendant No.1. In order to secure the aforesaid loan facility, the defendants executed necessary loan and security documents in favour of the Assignor Bank along

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Sanap ( OA No. 475/2022 ) 3 of 7

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with deed of hypothecation in respect of 56” cooper made power looms 24 quantity, electric motors 26 quantity and winding machine 2 quantity and deed of simple mortgage of all that piece and parcel of Gat No. 1065 having area 12R, N.A. Plot No.1 having area 220 square meters situated at Kabnoor, Taluka Hatkanangale, District Kolhapur, in favour of the Assignor Bank.

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Thereafter, as per request of defendant No.1, the Assignor Bank sanctioned and enhanced the cash credit facility from Rs.5,00,000/- to Rs.10,00,000/- as per Sanction Letter dated 20.02.2013 on execution of loan and documents the necessary security by defendants in favour of Assignor Bank. Thereafter, again on the request of the defendants, the Cash Credit facility was renewed on 08.10.2015.

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The applicant Company contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 29.05.2019, the Assignor Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India.

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Sanap ( OA No. 475/2022 ) 4 of 7

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The Assignor Bank has assigned the loan account in respect of financial facility availed by the defendants along with the personal guarantee to the Applicant Company together with all rights titles and interest of the Assignor Bank to initiate and continue legal proceedings against the defendants.

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Thereafter, on 15.02.2022, the applicant Company issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Company. Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per Order dated 28.02.2025 passed below Application (Exhibit-1).

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The applicant Company has filed Claim Affidavit of evidence (Exhibit-6) of Dharmendra Maurya, Manager and Authorized Officer of the applicant Company, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-30 along with list (Exhibit 7), which corroborates the case of the applicant.

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

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Sanap ( OA No. 475/2022 ) 5 of 7

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Company. Therefore, the applicant Company is entitled for reliefs as claimed.

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The applicant Company has claimed future interest @14.70% per annum. 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.

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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 475/2022 is allowed with costs.

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B} Defendant Nos.1 to 3 either jointly or severally shall pay to the applicant Company the sum of Rs.30,53,656/(Rupees Thirty Lakh Fifty Three Thousand Six Hundred Fifty Six only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 30.03.2022 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 in respect of 56” cooper made power looms 24 quantity, electric motors 26 quantity and

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Sanap ( OA No. 475/2022 ) 6 of 7

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winding machine 2 quantity and mortgage of all that piece and parcel of Gat No. 1065 having area 12R, N.A. Plot No.1 having area 220 square meters situated at Kabnoor, Taluka Hatkanangale, District Kolhapur, more particularly described in the Para No. 6 of the Original Application.

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D} The applicant Company is entitled to sell the hypothecated and mortgaged property to recover its dues.

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E} Issue Recovery Certificate.

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

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 19.02.2026 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 475/2022 ) 7 of 7

Encore Assets Reconstruction Company Private Limited v. Vishnu Shingare

Case brief

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Encore Assets Reconstruction Company Private Limited v. Vishnu Shingare

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