Allowed

Canara Bank v. M/S Shivans Agro Food Products

DRT26 Aug 2025OA/13/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of outstanding dues of Rs. 20,07,53.95 from Defaulters who failed to appear. The order includes a reduced future interest rate of 9% per annum and grants a sell-through the mortgage proceeds.

What did the court decide?

Debtors to pay Rs. 20,07,53.95 with interest at 9% p.a.; Bank entitled to sell mortgaged property and issue Recovery Certificate.

Canara Bank versus M/S Shivans Agro Food Products — Contract and Commercial Disputes | DRT (2025)

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Presented on: 07.06.2023 Registered on: 01.01.2023 Decided on: 26.08.2025 Duration: Y M D 02 02 19

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 13/2024

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TOTAL CLAIM AMOUNT – Rs.20,00,753.95/-

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CANARA BANK

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A Body Corporate constituted under the Banking

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Companies (Acquisition and Transfer of Undertakings) Act, 1970 Having its Head Office at S P & D Wing, Head office, 112, J C Road, Bengaluru, and having branches amongst the other places at Shrigonda, Tq. Shrigonda Dist. Ahmendagar Through its Authorized Person, Mr. Vivek s/o Bhagwat Pawar (Senior Manager) (Manager), Age: 36 years, Occ.: Service, R/o. Shrigonda, Tq. Shrigonda Dist. Ahmendagar

… Applicant

(OA No.13/2024)

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[AMBADAS]

Versus

M/s. Shivans Agro Food Products Through its Proprietor, Smt. Anuradha Jijaba Rode Age: Major, Occu.: Business, R/o.: At Post Janglewadi, Tq.Shrigonda, Dist. Ahmendagar 413726

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Smt. Anuradha Jijaba Rode Age: Major, Occu.: Business, R/o.: At Gut No. 43/1, Village Janglewadi, Tq.Shrigonda, …Defendants Dist. Ahmendagar 413726 APPEARANCES For the Applicant Mr. K. D. Pande - Advocate For Defendants Ex-parte

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JUDGMENT Delivered on 26.08.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 20,00,753.95/- (Rupees Twenty Lacs Seven hundred Fifty Three and Ninety Five Paisa only), along with further interest from the date of filing of the Original Application, i.e., 07.06.2023, until the date of realization of the

(OA No.13/2024)

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[AMBADAS]

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 states that the Defendant Nos. 2 being a Proprietor of Defendant no. 1 had approached and requested the Applicant Bank for a Term loan facility and cash credit facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned a Term loan facility of Rs. 19,00,000/- and Open Cash Credit Facility of Rs. 4,75,000/vide sanction letter dated 19.03.2018 on certain terms and conditions. The agreed rate of interest for Term loan facility was @ 9.25% per annum with monthly rests and for Cash Credit Facility was @8.40% p.a. with monthly rests. The Defendants also agreed to pay additional interest of 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 facilities, the Defendant No. 2 executed various loan documents in favour of the Applicant

(OA No.13/2024)

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[AMBADAS]

Bank. These included sanction letters, letter of proprietorship,

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simple mortgage deed bearing day book no 6662 dated 10.12.2021 etc in favour of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendant No. 2 created charge over immovable property bearing daybook No. 6662 dated 10.12.2021 in favour of the applicant bank. The mortgage was created in respect of the following property –

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All that piece and parcel of the Agricultural Land Admeasuring 01 H 27 R out of Gut No. 43/1, situated at Jangalwadi, Tq. Shrigonda, Dis. Ahmendagar which is bounded as under: East: Gut No. 3,4, 5 West: Gut No. 42, 44 North: Gut No. 207 South: Gut No. 33,34,35

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The applicant bank further states that in order to secure the loan, the defendant also executed composite loan agreement, thereby hypothecating machinery purchased out of bank finance, stock in trade for OCC, 25 ton crusher, Kirloskar Engine, Stock etc.

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The applicant bank contended that the defendant No. 2 has

(OA No.13/2024)

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[AMBADAS]

failed to keep her promise and commitments agreed by her with regard to due repayment of the loan amount. The defendant No. 2 failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the agreement letter. Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendant No. 2 to pay with the agreed rate of interest thereon, but the defendant No. 2 failed and neglected to pay the same. The loan account of the defendant No. 2 became irregular and classified as NPA on 29.07.2022. Therefore on 17.12.2022 the applicant bank issued legal Notice to the defendant No. 2. The defendant No. 2 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 06.05.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Vivek s/o Bhagwat Pawar, Senior Manager of the

(OA No.13/2024)

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[AMBADAS]

applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-13 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 to file the written statement 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 immovable property of the borrower which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest@ 10.55% per annum & @ 9.30% per annum on both the loans respectively from the date of filing i.e. 07.06.2023 of this application till

(OA No.13/2024)

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[AMBADAS]

realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted

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@ 9% 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. 13/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 20,00,753.95/- (Rupees Twenty Lacs Seven hundred Fifty Three and Ninety Five Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 07.06.2023 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 mortgage of the following immovable property vide registered simple mortgage bearing day book No. 6662 dated 10.12.2021 at Exh. A-8 in the list of documents at Exh. 5

(OA No.13/2024)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated articles/goods, 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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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.26.08.2025

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

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(OA No.13/2024)

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Page 8 of 8

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[AMBADAS]

Canara Bank v. M/S Shivans Agro Food Products

Case brief

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Canara Bank v. M/S Shivans Agro Food Products

Case brief

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