Allowed

Axis Bank v. Sanjay Bhagwansingh Chavan

DRT11 Aug 2026OA/528/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Axis Bank Ltd. for recovery of dues amounting to Rs. 39,88,875/- from a defendant who defaulted on a car loan. The defendant did not contest the application. The Tribunal ordered the defendant to pay the principal sum along with future interest at 12% p.a. and authorized the sale of the hypothecated vehicle to recover dues.

What did the court decide?

Defendant directed to pay Rs. 39,88,875/- with future interest at 12% p.a.; Recovery Certificate issued; Authorization to sell hypothecated vehicle.

Axis Bank versus Sanjay Bhagwansingh Chavan — Specific Performance | DRT (2026)

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Presented on: 01.06.2025 Registered on: 25.08.2025 Decided on: 11.08.2026 Duration: Y M D 01 02 10

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 528/2025

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TOTAL CLAIM AMOUNT – Rs. 39,88,875/-

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Axis Bank Ltd.,

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A Body Corporate, constituted and established under the Companies Act 1956 and having its Registered Office at “Trishul” 3^rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad, having its Office situated at “Shrivastava”, 65, Sarang Housing Society, Near Gajanan Maharaj Mandir, Garkheda, Aurangabad- 431005, Through its Aurthorised Representative Pramod Manohar Landge, Age: 35 Years, Occupation: Service, having his address for communication at C/o: Axis Bank Ltd., “Shrivastava”, 65, Sarang Housing Society, Near Gajanan Maharaj Mandir, Garkheda, Aurangabad- 431005.

… Applicant

(OA No. 528-2025)

Page 1 of 7

[Ambadas]

Versus

Sanjay Bhagwansingh Chavan, … Defendants Age: 47 Years, Occ. : Business, R/o: 29, New Shreeram Nagar, Ranjangao, Ghanegaon, Tal. & Dist. Aurangabad- 431136.

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APPEARANCES

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For the Applicant Mr. Dabholkar M. M. - Advocate For Defendant Ex-parte

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J U D G M E N T Delivered on (11.08.2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 39,88,875/- (Rs. Thirty-Nine Lakhs, Eighty-Eight Thousand, Eight Hundred and Seventy-Five Only) together with interest with monthly rests in respect of Credit Facility from 01.06.2025 till the full realization of the entire dues and costs from the Defendant.

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Brief facts of the application are as under:

(OA No. 528-2025)

Page 2 of 7

[Ambadas]

That the Defendant approached the Applicant Bank and requested for the sanction of car loan Top Up. Upon considering the Defendant’s representation, request and financial needs, the Applicant Bank sanctioned the Car Loan Top Up of Rs. 40,00,000/- for Purchase of Toyota Fortuner vide Loan cum Hypothecation Agreement dated 27.01.2024 on certain terms & conditions.

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The agreed rate of interest for the Loan was @14% p.a. with monthly rests.

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In order to secure the aforesaid Credit Loan facility, the Defendant executed loan documents in favour of the Applicant Bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking etc.

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The Applicant Bank contended that, in order to secure the said loan facilities, the Defendant executed A Loan cum Hypothecation Agreement dated 27.01.2024, in respect of the following hypothecation in favour of the Applicant Bank:

(OA No. 528-2025)

Page 3 of 7

[Ambadas]

Description of the Hypothecated Vehicle:

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Toyota Fortuner Vehicle is registered with the Registration No. MH-20-EK-2142.

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The Applicant Bank further contended that the Defendant has failed to keep his promises and commitments agreed by him with regard to 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. Therefore on 24.11.2024, the Applicant Bank issued legal notice to the Defendant through their Advocate. Despite service of Notice, the Defendant failed and neglected to repay the outstanding dues of the Applicant Bank. Hence, this application is filed.

(OA No. 528-2025)

Page 4 of 7

[Ambadas]

Despite service, the Defendant neither appeared nor filed WS. Hence, the Defendant proceeded ex-parte vide Order dated 18.06.2026.

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The Applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Pramod Manohar Landge, Area Legal Manager of the Applicant Bank and has produced on record the original loan transaction documents as per Exh. A-01 to A-08 along-with 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 file written statement 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 future interest at @14% p.a. with monthly rests on loan from 01.06.2025 till the full realization of the entire dues and costs from the Defendant.

(OA No. 528-2025)

Page 5 of 7

[Ambadas]

However, considering the facts of the case, I am of the opinion that awarding future interest at @12% per annum (simple) on outstanding amount, it would be just and reasonable.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No. 528/2025 is allowed with costs.

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(B) The Defendant shall pay to the Applicant Bank a sum of Rs. 39,88,875/- (Rs. Thirty-Nine Lakhs, Eighty-Eight Thousand, Eight Hundred and Seventy-Five Only) along-with future interest at @12% per annum (simple) from the date of filing of the Original Application, i.e., 01.06.2025, till full payment/ realization of the said amount.

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(C)

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(C) The aforesaid adjudicated amount is secured by hypothecated asset in favour of the Applicant Bank vide document Exh. A-02 in list of Documents Exh.5.

(OA No. 528-2025)

Page 6 of 7

[Ambadas]

The hypothecated asset is described as follows:

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Toyota Fortuner Vehicle is registered with the Registration No. MH-20-EK-2142.

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

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(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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Place : Aurangabad Date : 11.08.2026

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Sd/-

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

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(OA No. 528-2025)

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Page 7 of 7

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[Ambadas]

Axis Bank v. Sanjay Bhagwansingh Chavan

Case brief

What is this about?

What did the court decide?

Axis Bank v. Sanjay Bhagwansingh Chavan

Case brief

What is this about?

What did the court decide?

What the court decided

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