Allowed

Bank of India v. M/s. Lotus Interiors and Decorators

DRT17 Feb 2026OA/544/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application by Bank of India for recovery of dues from a proprietorship firm defaulted on cash credit loan. The court reduced the claim by deducting claimed penalty interest and fixed future interest at 9% p.a. due to lack of asset schedule.

What did the court decide?

Respondents jointly or severally to pay Rs.38,78,952 with future interest @9% p.a. from 01.03.2023; issue Recovery Certificate.

Bank of India versus M/s. Lotus Interiors and Decorators — Banking and Recovery | DRT (2026)

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Presented on : 01.03.2023 Registered on : 13.04.2023 Decided on : 17.02.2026 Duration : Y M D 02 11 16

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri. Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.544/2023.

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BANK OF INDIA

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A Body corporate constituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 and having its Head Office at Star House, Plot No.C-5, G Block, Bandra Kurla Complex, Bandra (E), Mumbai- 400 015 and its branch address at Shivajinagar Branch, Showroom No.1, Mayfair Towers, Mumbai Pune Road, Wakdewadi, Shivajinagar, Pune-411 005.

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… Applicant

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Vs.

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1. M/s Lotus Interiors & Decorators, Proprietor – Mr. Sachin Subhash Ingale R/at- 1128, Budhwar Peth, Jilbya Maruti Chowk, Tulshi Bag, Pune-411 002.

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2. Mr. Sachin Subhash Ingale Age adult, Occ.:- Business, R/at - 1128, Budhwar Peth, Jilbya Maruti Chowk, Tulshi Bag, Pune-411 002.

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.. Defendants

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APPEARANCES

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For the Applicant Mr. Satyan Jagtap - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.41,41,870.67Ps.

(OA No.544/2023)

Page 1 of 5

[ANIL]

JUDGMENT (Delivered on 17^th February, 2026)

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Applicant Bank has filed present application for recovery of Rs.41,41,870.67Ps. as on 20.02.2023 inclusive of interest plus interest thereon @11.10% p.a. with monthly rests with effect from 02.02.2023 till payment/realization of entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 represented by Defendant No.2 is a borrower, who approached to the applicant bank in 2015 requesting Cash Credit of Rs.10 Lakhs for business of selling Artificial Flowers.

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Applicant bank considered the request of the defendants and sanctioned Cash Credit Facility of Rs.9.90 lakhs on 23.12.2015 under CGTMSE Scheme, on certain terms and conditions.

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In order to secure the Cash Credit facility, the defendants have executed necessary loan transaction and security documents, as mentioned in Para No.5.5 of the Original Application.

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Further, in the year 2017, defendants approached to the applicant bank requesting enhancement of Cash Credit Facility from Rs.9.90 lakhs to Rs.25 Lakhs. The applicant bank considered the request of the defendants and sanctioned Additional Cash Credit Facility of Rs.15.10 Lakhs under CGTMSE Scheme.

(OA No.544/2023)

Page 2 of 5

[ANIL]

In order to secure the enhanced Cash Credit facility, the defendants have executed necessary loan transaction and security documents, as mentioned in Para No.5.9 of the Original Application.

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Defendants created security by way of Hypothecation of Assets i.e. Stocks and Fixed Assets of the proprietorship concern, as set out in Para No.5.6 of the Original Application.

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It is further contended that after availing and utilizing Cash Credit facility, defendants failed to repay the loan amounts as per terms of sanction. The Cash Credit Account was irregular and defendants were reluctant to pay the amounts. Applicant bank therefore, repeatedly called upon the defendants to regularize the account, but they failed and neglected to comply with the same. Hence, the applicant bank issued Loan Recall Notice on 04.01.2023 through their Advocate Mr. Satyan Jagtap to the defendants calling upon to pay the outstanding amounts. Despite service of notice, the defendants failed and neglected to comply with the demand in the said Notice.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants vide order dated 26.05.2025 passed below the Application (Exhibit-01).

(OA No.544/2023)

Page 3 of 5

[ANIL]

The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Vivek Kumar, Manager and POA Holder of Bank, which supports the case of the applicant elucidated in the application.

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The applicant bank has produced in evidence the original loan documents at Sr.Nos.AW-1/1 to AW-1/17, which corroborate 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 defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant bank. Therefore, the applicant bank is entitled for reliefs as claimed.

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The applicant bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

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The Applicant Bank has claimed Penalty interest of Rs.2,62,918.76Ps for Cash Credit Facility availed, which cannot be granted and the same are required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.41,41,870.67Ps is reduced to Rs.38,78,952/-.

(OA No.544/2023)

Page 4 of 5

[ANIL]

Applicant Bank has claimed future interest @11.10% per annum for the said Cash Credit Facility. 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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ORDER

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(A) Original Application No.544/2023 is allowed with costs. (B) Defendants No.1 and 2 shall jointly or severally pay to the Applicant Bank a sum of Rs.38,78,952/- (Rupees ThirtyEight Lakhs Seventy-Eight Thousand Nine Hundred Fifty-Two only) towards Cash Credit Account No. 051730110000095 with future interest @9% per annum from the date of filing of the Original Application i.e. 01.03.2023 till payment/realization of the amount mentioned in this operative order.

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The Registrar is directed to send copy of Judgment and

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(D) Recovery Certificate to the applicant bank and the defendants.

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Sd/-

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Place : Pune (Dilip G. Murumkar) Date: 17.02.2026 Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.544/2023)

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Page 5 of 5

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[ANIL]

Bank of India v. M/s. Lotus Interiors and Decorators

Case brief

What is this about?

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Bank of India v. M/s. Lotus Interiors and Decorators

Case brief

What is this about?

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