Allowed

Axis Bank v. M/S Tejas Trading Company

DRT25 May 2026OA/807/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Axis Bank Ltd. for recovery of dues against a proprietor firm. The court granted sum along with future interest at 7% p.a. and directed sale of hypothecated assets.

What did the court decide?

The respondents shall pay Rs. 1,02,82,700/- along with future interest at 7% per annum (simple). The Bank is entitled to sell hypothecated assets to recover dues. A Recovery Certificate is issued.

Axis Bank versus M/S Tejas Trading Company — Company and Corporate | DRT (2026)

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Presented on: 15.09.2024 Registered on: 09.10.2024 Decided on: 25.05.2026 Duration: Y M D 01 08 10

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 807/2024

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TOTAL CLAIM AMOUNT – Rs. 1,02,82,700/-

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

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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

(OA No.807/2024)

Page 1 of 8

[AMBADAS]

Versus

1. M/s. Tejas Trading Company. Magar Complex, Opp. Baba Petrol, Osmanabad Road, Tuljapur, Tq. tuljapur, Dist. Osmanabad (Dharashiv) Pin Code – 413601.

¶14

2. Tejas Satish Bobade, R/o.: At: C 1, Prakash Nagar, Near Novoday Vidhyalay, Naldurg Road, Tuljapur, Tq. Tuljapur, Dist. Osmanabad (Dharashiv) Pin code – 413 601.

…Defendants

APPEARANCES

For the Applicant

For Defendants

Mr. Pradeep B. Kulkarni H/for Mr. M.D. Narwadkar -Advocate Ex-parte

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JUDGMENT

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Delivered on 25.05.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 1,02,82,700/- (Rupees One Crore, Two Lacs, Eighty Two Thousand, Seven Hundred only), along with further interest from the date of filing of the Original Application, i.e., 15.09.2024, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.807/2024)

Page 2 of 8

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank submits that Defendant No. 1 is a proprietary firm represented by Defendant No.2 who is the proprietor of the firm 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 Working Capital Facility under Cash Credit CGTMSE Loan of Rs. 1,30,00,000/- vide sanction letter dated 08.02.2024 on certain terms and conditions. The agreed rate of interest for the aforesaid loan facility was @ 10.60% 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.807/2024)

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[AMBADAS]

These included sanction letter, demand promissory note, deed of hypothecation etc., 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 deed of hypothecation dated 29.02.2024 thereby hypothecating current Assets and Movable fixed assets including present and future, book debts, Stocks, Unencumbered Business Assets, Moveable Plant and Machinery etc.

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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

(OA No.807/2024)

Page 4 of 8

[AMBADAS]

irregular and classified as NPA on 16.07.2024. Therefore, on 22.07.2024 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 served through paper publication. Hence, the defendants were proceeded ex-parte as per Order dated 03.10.2025.

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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.

(OA No.807/2024)

Page 5 of 8

[AMBADAS]

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 properties.

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The applicant Bank has claimed future interest @ 10.60% p. a. from the date of filing i.e. 15.09.2024 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 7% per annum (simple), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 807/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 1,02,82,700/- (Rupees One Crore, Two Lacs, Eighty Two Thousand, Seven Hundred

(OA No.807/2024)

Page 6 of 8

[AMBADAS]

only), along with future interest @ 7% per annum (simple) from the date of filing of the Original Application i.e. 15.09.2024 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 current Assets and Movable fixed assets including present and future, book debts, Stocks, Unencumbered Business Assets, Moveable Plant and Machinery etc. vide document at Annexure G in list of documents Exh. 5.

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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.

(OA No.807/2024)

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[AMBADAS]

(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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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.25.05.2026

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

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(OA No.807/2024)

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Page 8 of 8

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[AMBADAS]

Axis Bank v. M/S Tejas Trading Company

Case brief

What is this about?

What did the court decide?

Axis Bank v. M/S Tejas Trading Company

Case brief

What is this about?

What did the court decide?

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