Allowed

Axis Bank v. M/s. Aashirwad Trading Company

DRT11 May 2026OA/576/2024

Case brief

AI extract

What is this about?

In an ex-parte order under an Original Application, the Debts Recovery Tribunal allowed the bank's claim for recovery of outstanding dues. The court affirmed the bank's right to future interest at 9% per annum and secured the debt via hypothecated warehouse receipts and pledged personal property, directing the issuance of a recovery certificate.

What did the court decide?

Order allowed; Defendants to pay Rs. 3,69,27,946.79 plus 9% simple annual interest; Recovery Certificate issued.

Axis Bank versus M/s. Aashirwad Trading Company — Contract and Commercial Disputes | DRT (2026)

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Presented on: 20.03.2024 Registered on: 31.07.2024 Decided on: 11.05.2026 Duration: Y M D 02 01 21

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 576/2024

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TOTAL CLAIM AMOUNT – Rs. 3,69,27,946.79/-

¶4

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. Samartheshwsar Temple, Law Garden, Ellis Bridge, Ahmedabad, AND

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Its, Branch Office at “Shrivasta”, 65, Sarang Housing Society, New Gajanan Maharaj Mandir, Garkheda, Aurangabad. Through its Authorized Representative Mr. Nitin Bhausaheb Warule, Age: 32 Years, Occ.: Service having his address for communication at c/o. Axis Bank Ltd., “Shrivastava”, 65, Sarang Housing Society, Near Gajanan Maharaj Mandir, Garkheda, Aurangabad.

… Applicant

Versus

(OA No.576/2024)

Page 1 of 8

[AMBADAS]

1. M/s. Aashirwad Trading Company, Through its Proprietor, Mr. Rahim Maqbul Shaikh, Age: 48 Years, Occ.: Business, R/o.: House No. 125, Main Road, Galle Borgaon, Golegaon, Tq. & Dist. Aurangabad.

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2. Mr. Rahim Maqbul Shaikh, Age: 48 Years, Occ.: Business, R/o.: House No. 125, Main Road, Galle Borgaon, Golegaon, Tq. & Dist. Aurangabad.

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3. Mrs. Hajarabai Rahim Shaikh, Age: 44 Years, Occ.: Business, R/o.: House No. 125, Main Road, Galle Borgaon, Golegaon, …Defendants Tq. & Dist. Aurangabad.

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APPEARANCES

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For the Applicant For Defendants

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Mr. M. D. Narwadkar -Advocate Ex-parte

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JUDGMENT

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Delivered on 11.05.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 3,69,27,946.79/- (Rupees Three Crores,

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Sixty Nine Lacs, Twenty Seven Thousand, Nine Hundred Forty Six

(OA No.576/2024)

Page 2 of 8

[AMBADAS]

and Seventy Nine Paisa only), along with further interest from the date of filing of the Original Application, i.e., 20.03.2024, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank submits that Defendant No. 1 through its proprietor defendant No. 2 approached the Applicant Bank with a request for financial assistance. Upon due consideration of the said request and the financial requirements of Defendants, the Applicant Bank was pleased to sanction Credit Line Warehousing facility of Rs. 4,50,00,000/- vide sanction letter dated 17.03.2022

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on certain terms and conditions. The agreed rate of interest for the aforesaid loan was @9% p.a. with monthly rests. The Defendants also agreed to pay additional interest @ 2% by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank.

(OA No.576/2024)

Page 3 of 8

[AMBADAS]

These included sanction letter, pledge agreement deed of hypothecation etc. Additionally defendant No. 3 stood as guarantor for defendant No. 1 & 2 and executed deed of guarantee in favour of the Applicant Bank

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The Applicant Bank further contends that in order to secure the aforesaid loan facility, the Defendants executed pledge agreement thereby hypothecation Warehouse Receipts/ Storage Receipts covering Stocks of Cotton Bales stored in Central Warehouse (CW), at Puntamba (Ahmednagar) etc., in favour of the applicant bank.

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Personal Properties of defendant

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All that piece and parcel of Plot No. 18, situated in the Gut No. 36/P bearing Grampanchayat Milkat No. 1272 of village Satara, Tq. and Dist. Chhatrapati Sambhajinagar admeasuring 285 Sq. Meters, which is bounded as under:

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East: Plot No. 18/P, West: Plot No. 17, South: Plot No. 20 North: Road of 7.50 meter width.

(OA No.576/2024)

Page 4 of 8

[AMBADAS]

The applicant bank contended that the defendants have failed to keep their promise 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 on 28.06.2023. Therefore, on 01.01.2024 the applicant bank issued recall Notice to the defendants. The defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though they were duly served. Hence, the defendants were proceeded ex-parte as per Order dated 26.05.2025.

(OA No.576/2024)

Page 5 of 8

[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Nitin S/o. Bhausaheb Warule, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A to M 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 appear 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 charge over hypothecated & personal properties of the borrowers.

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The applicant Bank has claimed future interest @ 9% p. a. with monthly rests from the date of filing i.e. 20.03.2024 of this application till realization of the claim amount. However,

(OA No.576/2024)

Page 6 of 8

[AMBADAS]

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

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reasonable rate of interest.

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ORDER

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(A) Original Application No. 576/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 3,69,27,946.79/- (Rupees Three Crores, Sixty Nine Lacs, Twenty Seven Thousand, Nine Hundred Forty Six and Seventy Nine Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 20.03.2024 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 Warehouse Receipts/ Storage Receipts covering Stocks of Cotton Bales stored in Central Warehouse (CW), at Puntamba (Ahmednagar)

(OA No.576/2024)

Page 7 of 8

[AMBADAS]

and the following personal property vide document at Annexure D in list of documents Exhibit 5.

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Personal Property of the defendants

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East: Plot No. 18/P, West: Plot No. 17, South: Plot No. 20 North: Road of 7.50 meter width.

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(D) The applicant Bank is entitled to sell the hypothecated /pledged articles/goods & personal property of the defendants, 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)

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.11.05.2026.

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

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(OA No.576/2024)

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Page 8 of 8

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[AMBADAS]

Axis Bank v. M/s. Aashirwad Trading Company

Case brief

What is this about?

What did the court decide?

Axis Bank v. M/s. Aashirwad Trading Company

Case brief

What is this about?

What did the court decide?

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