Allowed

Bank of Maharashtra v. M/S Abhyudaya Enterprises and Another

DRT27 Aug 2026OA/702/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of Maharashtra's application for recovery of Rs. 45,19,324.00 from two respondents, who were granted ex-parte relief due to non-appearance. The court decreed the loan amount with simple interest at 8.00% p.a. and directed the issuance of a recovery certificate.

What did the court decide?

Decree for recovery of Rs. 45,19,324.00 with simple interest at 8.00% p.a.; Issue of Recovery Certificate;

Bank of Maharashtra versus M/S Abhyudaya Enterprises and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 702/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.05.2025

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DATE OF DECISION: 27.08.2026

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Bank of Maharashtra, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Lokmangal, 1501, Shivajinagar, Pune411005 and Branch Offices amongst others, a Branch Office at B.S. Tower, AKS Colony, Patiala Rooad, Zirakpur, Punjab- 140603 through its General Power of Attorney Holder, Sh. Ashutosh, Branch Manager

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……..Applicant

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Versus

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M/S Abhyudaya Enterprises, a Proprietorship Firm having its Business at #89, Shivalik Vihar, Patiala Road, Opposite Durga Mandir, Zirakpur, Punjab- 140603 through its Proprietor namely Sh. Gourav Shukla, S/o Sh. Om Parkash Shukla

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Sh. Gourav Shukla, S/o Sh. Om Parkash Shukla, R/o #89, Shivalik Vihar, Patiala Road, Opposite Durga Mandir, Zirakpur, Punjab- 140603

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…..Defendants

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Advocates:

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Argued by Ms. Gargi Kumar, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 24.08.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 45,19,324.00 (Rupees Forty Five Lacs Nineteen Thousand Three Hundred Twenty Four Only). The Original Application has been filed through Sh. Ashutosh, Branch Manager of the applicant, who is competent to institute the Original Application vide Letter of Authority dated 23.04.2025, which is Annexure A1 to this OA.

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2 OA NO. 702/2025 BANK OF MAHARASHTRA VS. M/S ABHYUDAYA ENTERPRISES AND ANOTHER

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 30.00 Lacs and Bank Guarantee Limit of Rs. 5.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 45.00 Lacs and Bank Guarantee Limit to Rs. 10.00 Lacs.

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The applicant sanctioned CC Limit of Rs. 30.00 Lacs and Bank Guarantee Limit of Rs. 5.00 Lacs vide Sanction Memorandum dated 10.01.2022, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 45.00 Lacs and Bank Guarantee Limit to Rs. 10.00 Lacs vide Sanction Letter dated 09.06.2023, which is Annexure A4 to this OA. 4. Defendant no. 1 through its Proprietor hypothecated their book debts vide Hypothecation Agreement dated 12.01.2022, which is Annexure A3 to this OA. Documents executed: Multi Facility Agreement and DP Note, both dated 15.06.2023, which are Annexure A5 and A6 to this OA; Legal Notice dated 14.02.2025, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs. 45,19,324.00, which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.08.2026. 7. In support of the OA, affidavit of Sh. Ashutosh, Branch Manager, Bank of Maharashtra has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA NO. 702/2025 BANK OF MAHARASHTRA VS. M/S ABHYUDAYA ENTERPRISES AND ANOTHER

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It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A8 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 45,19,324.00 (Rupees Forty Five Lacs Nineteen Thousand Three Hundred Twenty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.20%p.a. with monthly rest from the date of filing of the application till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00% p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,19,324.00 (Rupees Forty Five Lacs Nineteen Thousand Three Hundred Twenty Four Only) jointly and severally, with costs, current

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4 OA NO. 702/2025 BANK OF MAHARASHTRA VS. M/S ABHYUDAYA ENTERPRISES AND ANOTHER

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and future simple interest @8.00% p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets of defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.09.2026.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 27.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of Maharashtra v. M/S Abhyudaya Enterprises and Another

Case brief

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Bank of Maharashtra v. M/S Abhyudaya Enterprises and Another

Case brief

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