Allowed

Axis Bank v. Janata Pashukhadya House

DRT10 Aug 2026OA/555/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applications filed by Axis Bank Ltd. for recovery of dues totaling Rs. 21,39,416.64/- and future interest. The court imposed future interest at 9% per annum (simple) and secured the decree against the defendants' hypothecated assets, including current assets, movable properties, and machinery.

What did the court decide?

Payment of Rs. 21,39,416.64/- with future interest at 9% p.a. simple interest; realization from hypothecated assets; issuance of Recovery Certificate.

Axis Bank versus Janata Pashukhadya House — Company and Corporate | DRT (2026)

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Presented on: 27.06.2025 Registered on: 12.09.2025 Decided on: 10.08.2026 Duration: Y M D 01 01 14

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 555/2025

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TOTAL CLAIM AMOUNT – Rs. 21,39,416.64/-

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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 Branch Office situated at Patel Plaza, CS No. 2683 A 1, 17 MG Road, Jalgaon- 425001, Also having its office at “Shrivastava”, 65, Sarang Housing Society, Near Gajanan Maharaj Mandir, Garkheda, Aurangabad- 431005, Through its Aurthorised Officer and Area Legal Manager 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. 555-2025)

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Versus

Janata Pashikhadya House, … Defendants Through its Proprietor,

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Juned Alam Shaikh Jalaluddin Shaikh,

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R/o: Chaupal Mohalla, Main Road,

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Nashirabad, Dist. Jalgaon- 425303.

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Juned Alam Shaikh Jalaluddin Shaikh

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Age: 38 Years, Occu.: Business,

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R/o: Chaupal Mohalla, Main Road,

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Nashirabad, Dist. Jalgaon- 425303.

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APPEARANCES

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

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J U D G M E N T Delivered on (10.08.2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 21,39,416.64/- (Rs. Twenty-One

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Lakhs, Thirty-Nine Thousand, Four Hundred Sixteen and SixtyFour Paisa Only) together with interest with monthly rests in

(OA No. 555-2025)

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respect of Credit Facility from 27.06.2025 till the full realization of the entire dues and costs from the Defendants.

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Brief facts of the application are as under:

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That the Defendants approached the Applicant Bank and requested for the sanction of Credit Facility. Upon considering the Defendant’s representation, request and financial needs, the Applicant Bank sanctioned the Credit facility of Rs. 20,00,000/as Working Capital by way of Cash credit under SBB CGTSME Limit vide sanction letter dated 10.02.2023 on certain terms & conditions.

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The agreed rate of interest for the Credit Facility was @12% p.a. with monthly rests.

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In order to secure the aforesaid Credit facility, the Defendants 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

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loan facilities, the Defendants executed A Deed of Hypothecation dated 04.03.2023, in respect of the following hypothecated assets in favour of the Applicant Bank:

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Description of Hypothecated Assets:

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Current Assets: The whole of the Security Provider’s stocks of raw materials, goods-in-process, semi-finished and finished goods, consumable stores and spares and such other movables, including book debts, bills, whether documentary or clean, both present and future, whether in the possession or under the control of the security Provider or not, whether now lying loose of in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or wherever else the same may be or be held by any party to the order or disposition of the Security provider or in the course of transit or on high seas or on order or delivery (referred to as the “Current Assets”, which expression shall, as the context may permit or require, mean Any or each of such Current Assets).

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Movable Properties: The whole of the Security Provider’s

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moveable properties (save and except Current Assets) including its movable plant and machinery, machinery spares, tools and accessories, non-trade receivables and other movables, both present and future, whether in the possession or under the control of the Security Provider or not, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during continuance of these presents be brought into or upon or be stored or be in or about all the Security Provider’s factories, premises and godowns situated at or wherever else the same me be held by any party to the order disposition of the Security Provider or in the course of transit or on high seas or on order or delivery (referred to as the “Movable Properties”, which expression shall, as the context may permit or require, mean any or each of such Moveable Properties).

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DPG Machinery: The whole of the machinery purchased/to be purchased on deferred payment terms including its spares, tools and accessories, software, both present and future, whether in the possession or under the control of the Security Provider or not, whether now lying loose or in cases

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or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be stored or be in or about all the Security Provider's ’factories, premises and godowns situated at or wherever else the same may be or be held by any party to the order or disposition of the Security Provider or in the course of transit or on high seas or on order or delivery (referred to as the “DPG Machinery”, which expression shall, as the context may permit or require, Mean any or all of such DPG Machinery).

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Specific Equipment’s: The whole of the Security Provider including its spares, tools and accessories, software, whether installed or not and whether in the possession or under the control of the Security Provider or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about the Security Provider’s factories, premises and godowns situate at or wherever else the same maybe or be held by any party to the order disposition of the Security Provider or in the course of transit or on high

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seas or on order or delivery (referred to as the “Specific Equipment”, which expression shall, as the context may permit or require, mean any or each of such Equipment).

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Account Assets: All the accounts of the Security Provider with all the branches of Bank (“Axis Bank Accounts”) and all rights, title, interest, benefits, claims and demand whatsoever of the Security Provider in, to, under and in respect of the Axis Bank Accounts and all monies including all cash flows and receivables and all proceeds arising from/in connection with and insurance proceeds payable into the Axis Bank Accounts, which have been

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deposited/credited/lying in the Axis Bank Accounts, all investments, assets, instruments and securities which represent all amounts in the Axis Bank accounts, both present and future (referred to as the “Account Assets”, which expression shall, as the context may permit or require, mean any or each of such Account Assets).

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Receivables: All amounts owing to, and received and/or receivable by, the Security Provider and/or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from/in connection with and all rights, title,

(OA No. 555-2025)

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interest, benefits, claims and demands whatsoever of the Security Provider in, to or in respect of all the aforesaid assets, including but not limited to the Security Provider’s cash-in-hand, both present and future (referred to as the “Receivables”, which expression shall, as the context may permit or require, mean any or each of such Receivables). 7. Specific Assets: The specific assets of the Security Provider (referred to as the “Specific Assets”).

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The Applicant Bank further contended that the Defendants have failed to keep their promises and commitments agreed by them with regard to due repayment of the loan amount. The Defendants 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 Defendants to pay with the agreed rate of interest thereon, but the Defendants failed and neglected to pay the same. The loan account of the Defendants became irregular and classified as NPA. Therefore on 27.03.2025, the Applicant Bank issued legal

(OA No. 555-2025)

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notice to the Defendants through their Advocate. Despite service of Notice, the Defendants failed and neglected to repay the outstanding dues of the Applicant Bank. Hence, this application is filed.

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Despite service, the Defendants neither appeared nor filed WS. Hence, they proceeded ex-parte vide Order dated 24.04.2026.

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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-21 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 Defendants 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

(OA No. 555-2025)

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Applicant Bank is entitled for the reliefs as claimed.

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The Applicant Bank has claimed future interest at @12% p.a. with monthly rests on loan from 27.06.2025 till the full realization of the entire dues and costs from the Defendants. However, considering the facts of the case, I am of the opinion that awarding future interest at @9% 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. 555/2025 is allowed with costs.

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(B) The Defendants shall pay jointly and severally to the Applicant Bank a sum of Rs. 21,39,416.64/- (Rs. Twenty-One Lakhs, Thirty-Nine Thousand, Four Hundred Sixteen and Sixty-Four Paisa Only) along-with future interest at @9% per annum (simple) from the date of filing of the Original Application, i.e., 27.06.2025, till full payment/ realization of the said

(OA No. 555-2025)

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amount.

(C) The aforesaid adjudicated amount is secured by hypothecated assets in favour of the Applicant Bank vide document Exh. A-06 in list of Documents Exh.5. The hypothecated assets are described as follows:

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Current Assets: The whole of the Security Provider’s stocks of raw materials, goods-in-process, semifinished and finished goods, consumable stores and spares and such other movables, including book debts, bills, whether documentary or clean, both present and future, whether in the possession or under the control of the security Provider or not, whether now lying loose of in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or wherever else the same may be or be held by any party to the order or disposition of the Security provider or in the course of transit or on

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high seas or on order or delivery (referred to as the “Current Assets”, which expression shall, as the context may permit or require, mean Any or each of such Current Assets).

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Movable Properties: The whole of the Security Provider’s moveable properties (save and except Current Assets) including its movable plant and machinery, machinery spares, tools and accessories, non-trade receivables and other movables, both present and future, whether in the possession or under the control of the Security Provider or not, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during continuance of these presents be brought into or upon or be stored or be in or about all the Security Provider’s factories, premises and godowns situated at or wherever else the same me be held by any party to the order disposition of the Security Provider or in the course of transit or on high seas or on order or delivery

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(referred to as the “Movable Properties”, which expression shall, as the context may permit or require, mean any or each of such Moveable Properties).

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DPG Machinery: The whole of the machinery purchased/to be purchased on deferred payment terms including its spares, tools and accessories, software, both present and future, whether in the possession or under the control of the Security Provider or not, whether now lying loose or in Cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be stored or be in or about all the Security Provider's ’factories, premises and godowns situated at or wherever else the same may be or be held by any party to the order or disposition of the Security Provider or in the course of transit or on high seas or on order or delivery (referred to as the “DPG Machinery”, which expression shall, as the context may permit or

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require, Mean any or all of such DPG Machinery).

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Specific Equipment’s: The whole of the Security Provider including its spares, tools and accessories, software, whether installed or not and whether in the possession or under the control of the Security Provider or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about the Security Provider’s factories, premises and godowns situate at or wherever else the same maybe or be held by any party to the order disposition of the Security Provider or in the course of transit or on high seas or on order or delivery (referred to as the “Specific Equipment”, which expression shall, as the context may permit or require, mean any or each of such Equipment).

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Account Assets: All the accounts of the Security Provider with all the branches of Bank (“Axis Bank

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Accounts”) and all rights, title, interest, benefits, claims and demand whatsoever of the Security Provider in, to, under and in respect of the Axis Bank Accounts and all monies including all cash flows and receivables and all proceeds arising from/in connection with and insurance proceeds payable into the Axis Bank Accounts, which have been deposited/credited/lying in the Axis Bank Accounts, all investments, assets, instruments and securities which represent all amounts in the Axis Bank accounts, both present and future (referred to as the “Account Assets”, which expression shall, as the context may permit or require, mean any or each of such Account Assets).

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Receivables: All amounts owing to, and received and/or receivable by, the Security Provider and/or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from/in connection with and all rights, title, interest, benefits, claims and demands whatsoever of the Security Provider in, to or in respect of all the

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Aforesaid assets, including but not limited to the Security Provider’s cash-in-hand, both present and future (referred to as the “Receivables”, which expression shall, as the context may permit or require, mean any or each of such Receivables). 7. Specific Assets: The specific assets of the Security Provider (referred to as the “Specific Assets”).

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(D) The Applicant Bank is entitled to sell the hypothecated assets, 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 Defendants.

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(G) File be consigned to the record room.

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Place : Aurangabad Date : 10.08.2026

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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. 555-2025)

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Axis Bank v. Janata Pashukhadya House

Case brief

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Axis Bank v. Janata Pashukhadya House

Case brief

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