Allowed

Bank of Baroda v. M/S Sunil Trading Company

DRT17 Dec 2025OA/175/2024

Case brief

AI extract

What is this about?

Dr. J. R. Chauhan, Presiding Officer, allowed the applicant bank's original application against the borrowers and guarantor ex-parte for recovery of loan dues of Rs. 31,06,754.46 with future interest.

What did the court decide?

Order allowed with costs; respondents to pay Rs. 31,06,754.46 plus future interest at 9% p.a. from 20.09.2023; recovery secured by hypothecated properties via sale and issuance of Recovery Certificate

Bank of Baroda versus M/S Sunil Trading Company — Contract and Commercial Disputes | DRT (2025)

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Presented on: 20.09.2023 Registered on: 08.03.2024 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. 175/2024

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TOTAL CLAIM AMOUNT – Rs. 31,06,754.46/-

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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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… Applicant

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Versus

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1. M/s. Sunil Trading Company, Represented by the Proprietor Shri. Sunil Dattu Rathod, (Borrower) C/o- Plot No. 98, Gut No. 38, Rangnath Nagar, Near Water Tank, Indewadi, Ambad Road,

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[AMBADAS] (OA No.786/2024)

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Page 1 of 11

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Dist. Jalna, Maharashtra-431203.

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2. Shri. Sunil Dattu Rathod, The Proprietor by M/s. Sunil Trading Company. (Borrower) C/o- Plot No. 98, Gut No. 38, Rangnath Nagar, Near Water Tank, Indewadi, Ambad Road, Dist. Jalna, Maharashtra-431203.

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3. Smt. Alka Sunil Rathod, (Guaarantor) C/o- Plot No. 98, Gut No. 38, Rangnath Nagar, Near Water Tank, Indewadi, Ambad Road, Dist. Jalna, Maharashtra-431203.

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…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 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. 31,06,754.46/- (Rupees Thirty One Lacs, Six Thousand, Seven Hundred Fifty Four, Forty Six Paisa only), along with future interest from the date of filing of the Original

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(OA No.786/2024)

[AMBADAS]

Application, i.e., 20.09.2023, until the date of realization 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 the Defendants, the Applicant Bank sanctioned Term loan facility of Rs. 20,00,000/-, Rs. 3,75,000/- & Rs. 53,535/- vide sanction letters dated 08.03.2019, 26.06.2020 & 18.03.2021 respectively on certain terms and conditions. The agreed rate of interest for the aforesaid loan facilities was @9.60% & @7.50% 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.

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(OA No.786/2024)

[AMBADAS]

These included sanction letters, hypothecation agreements, demand promissory notes, letters of undertaking, letter of sole proprietorship, hypothecation agreement etc., Additionally defendant No. 3 stood as guarantor for defendant No. 1 & 2.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants 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 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

Page 4 of 11

(OA No.786/2024)

[AMBADAS]

irregular and classified as NPA on 30.06.2021. Therefore on 21.07.2023 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 by hand. Hence, the defendants were proceeded ex-parte as per Order dated 07.10.2025.

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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-1/49 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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(OA No.786/2024)

[AMBADAS]

Since the defendants failed to appear and contest the application,

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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 of the borrowers.

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The applicant Bank has claimed future interest @9.60% & @7.50% & @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.

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ORDER

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(A) Original Application No. 175/2024 is allowed with costs.

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(OA No.786/2024)

[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 31,06,754.46/- (Rupees Thirty One Lacs, Six Thousand, Seven Hundred Fifty Four, Forty 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 hypothecation of stock/book, debt/vehicles/ movable machinery etc., vide documents at Exh AW-1/4, AW1/6, AW-1/17 & AW-1/30, in list of documents Exh. 5.

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(D) The applicant Bank is entitled to sell the hypothecated stocks / vehicles/articles/goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(OA No.786/2024)

[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:. 17.12.2025.

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

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Page 8 of 11

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(OA No.786/2024)

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[AMBADAS]

Bank of Baroda v. M/S Sunil Trading Company

Case brief

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Bank of Baroda v. M/S Sunil Trading Company

Case brief

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