Allowed

Bank of Baroda v. M/S Kamalshanti Industries

DRT17 Dec 2025OA/157/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Aurangabad, allowed an Original Application filed by Bank of Baroda for the recovery of dues amounting to Rs. 25,77,151.26/- along with future interest from two defendants who failed to appear. The court reduced the claimed interest rate and secured the debt via the mortgaged properties.

What did the court decide?

Directing defendants to jointly and severally pay Rs. 25,77,151.26/- with future interest @ 9% p.a.; securing dues via mortgaged properties; issuing Recovery Certificate.

Bank of Baroda versus M/S Kamalshanti Industries — Banking and Recovery | DRT (2025)

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Presented on: 20.09.2023 Registered on: 07.03.2024 Decided on: 17.12.2025 Duration: Y M D 02 02 27

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 157/2024

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TOTAL CLAIM AMOUNT – Rs. 25,77,151.26/-

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Bank of Baroda ,

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Banking Company incorporated under the Banking companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Head Office at Baroda House, Plaza-1, Sayaji Ganj, Mandvi, Vadodara-390006, Gujrat and its branch office at Stressed Asset Recovery Branch, Plot No. 8. Sector-E, CIDCO, N-5, Connaught Place, Chh. Sambhajinagar-Maharashtra431003, through its Authorized Signatory, Mr. Pradeep Kumar Shrivastava.

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Versus

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… Applicant

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1. M/s. Kamalshanti Industries, Represented by the Proprietor Shri. Jitendra Shantilal Sancheti, C/o- Surenndra Oil Industries, Shri. Surendra Jaylal Agrawal, D-58, Additional MIDC, Phase No.-1, Near Shakti Engineering,

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[AMBADAS]

Dist. Jalna, Maharashtra-431203.

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2. Shri. Jitendra Shantilal Sancheti, The Proprietor of M/s. Kamalshanti Industries, R/o. Gandhi Chowk, Old Jalna, Jalna, Tq. and Dist. Jalna, Maharashtra-431203. …Defendants

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APPEARANCES

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For the Applicant Mr. M.M. Jadhav -Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 17.12.2025

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 25,77,151.26/- (Rupees Twenty Five Lacs, Seventy Seven Thousand, One Hundred Fifty One and Twenty Six Paisa only), along with future interest from the date of filing of the Original Application, i.e., 20.09.2023, until the date of realization

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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 states that the Defendant No. 1 & 2 had approached and requested the Applicant Bank for financial assistance. Upon considering the request and financial needs of

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[AMBADAS]

the Defendants, the Applicant Bank sanctioned Term loan facility

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of Rs. 22,50,000/-, Rs. 3,35,000/- & Rs. 10,00,000/- vide sanction letters dated 08.03.2019, 16.07.2020 & 14.08.2020 respectively on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @9.90%, @7.85% & @9.90% p.a. with monthly rests respectively. 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 facilities, the Defendants executed various loan documents in favour of the Applicant Bank. These included sanction letters, hypothecation agreements, demand promissory notes, letters of undertaking, letter of sole proprietorship, hypothecation agreement 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 hypothecation

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[AMBADAS]

agreement in favour of the Applicant Bank. The mortgage was

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created in respect of the following properties-

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i) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, House/ Plot No. 101 Area 170 Sq. Mtr. Shrikrushna Rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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ii) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, 11494 B 104, Plot No. 101 Area 425 sq. mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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iii) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, Plot No. 114 Area 225 sq. mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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iv) All that piece and parcel at Survey No. 182, Plot No. 1, House No. D-19, Area 111.52 sq. mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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The defendant also executed hypothecation agreement thereby hypothecating stock/book, debt/vehicles/ movable machinery, etc., in favor of the applicant bank.

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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

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operate the loan account properly and failed to pay the agreed

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rate of interest as per terms and conditions of the sanction letter.

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[AMBADAS]

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 16.12.2021. Therefore on 20.07.2023 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, 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 court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 15.07.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Sanjay Baban Dongare, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. AW-1/1 to AW-1/64 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

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[AMBADAS]

I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and 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 properties & hypothecated properties of the borrowers which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @9.90%, @7.85% & @9.90% p.a. on outstanding amount from the date of filing i.e. 20.09.2023 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 @ 9% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

ORDER

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[AMBADAS]

(A) Original Application No. 157/2024 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 25,77,151.26/- (Rupees Twenty Five Lacs, Seventy Seven Thousand, One Hundred Fifty One and Twenty Six Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 20.09.2023 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 properties vide documents at Exh AW-1/10, AW-1/11, AW-1/29, AW1/32, AW-1/45, AW-1/46, AW-1/47, AW-1/50 & AW1/51 in list of documents Exh. 5.

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i) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, House/ Plot No. 101 Area 170 Sq. Mtr. Shrikrushna Rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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ii) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, 11494 B 104, Plot No. 101 Area 425 sq.

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[AMBADAS]

mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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iii) All that piece and parcel at Survey No. 125/1A, 126/1A, 126/2B, Plot No. 114 Area 225 sq. mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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iv) All that piece and parcel at Survey No. 182, Plot No. 1, House No. D-19, Area 111.52 sq. mtr shrikrushna rukhmini nagar Dr. Bhala, residence” Taluka and District Jalna.

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(D) The applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods etc., 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. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:. 17.12.2025. Debts Recovery Tribunal, Aurangabad

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(OA No.157/2024)

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[AMBADAS]

Bank of Baroda v. M/S Kamalshanti Industries

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Kamalshanti Industries

Case brief

What is this about?

What did the court decide?

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