Authority: High Court of Bombay at Goa
Order Date: 30 October 2026
Case Overview
- Petitioner: Mangesh Shankar Bicholkar, who obtained a loan of Rs 7,60,000 from O.B.C. Finance and Development Corporation Ltd (Respondent No.1) on 21 July 2016 for a restaurant business.
- The loan was secured by hypothecation; during the COVID period the petitioner defaulted on instalments.
- Respondent No.1 filed a recovery application before Respondent No.2 (a debt‑recovery authority) seeking Rs 8,63,690 against the petitioner and sureties Mr Janardhan Mahesh Arondekar and Mr Anand Jaywant Gaonkar.
- Respondent No.2 issued an order on 16 December 2024 directing the petitioner to pay Rs 10,80,307 and issued a distress warrant, allegedly without giving the petitioner prior notice of the hearing.
- The petitioner filed Writ Petition No.1047 of 2026 challenging the 16‑December‑2024 order and a notice dated 7 January 2025 (No. MAM/BAR/DRO/02/2025/179).
- The petitioner stated he had deposited Rs 1,00,000 immediately after the court notice and continued to pay Rs 15,000 per month into the loan account, which was not disputed by Respondent No.1.
Final Outcome
- The Court held that the 16‑December‑2024 order violated principles of natural justice as no hearing notice was served.
- The order was quashed and set aside.
- The matter is relegated back to Respondent No.2 for fresh consideration with an opportunity of hearing to both parties.
- Both parties must appear before Respondent No.2 on 19 November 2026 at 3.00 p.m. and may submit written arguments.
- Respondent No.2 may pass a further order within three months of the appearance.
- The petitioner is directed to continue depositing Rs 15,000 per month into the loan account of Respondent No.1 until the proceedings are concluded.
Topics: Legal Dispute, Loan Recovery