Allowed

State Bank of India v. Akhil Sharad Khandelwal

DRT10 Oct 2025OA/294/2024

Case brief

AI extract

What is this about?

In an Original Application for debt recovery, the Debts Recovery Tribunal allowed State Bank of India's claim against a defaulting borrower for approximately Rs. 96 lakhs and future interest at 12% p.a., granting the bank authorization to sell hypothecated assets and issue a Recovery Certificate.

What did the court decide?

Directed respondent to pay Rs. 96,51,849.44 plus future interest at 12% p.a.; authorized sale of hypothecated assets; directed issue of Recovery Certificate.

State Bank of India versus Akhil Sharad Khandelwal — Specific Performance | DRT (2025)

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Presented on: 30.11.2023 Registered on: 24.04.2024 Decided on: 10.10.2025 Duration: Y M D 01 09 10

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 294/2024

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TOTAL CLAIM AMOUNT – Rs. 96,51,849.44/-

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State Bank of India, A body corporate constituted under the State Bank of India, Act, 1955 (23 of 1955) having it’s one of Local Head office at Synergy, Bandra-Kurla Complex, Bandra (E), Mumbai & Branches amongst the other places at Osmanpura, Aurangabad & having Stressed Assets Recovery Branch (SARB) at Plot No. 79, N-5, CIDCO Aurangabad-431003, through CCO & Dy. Manager Mrs. Kavita Vasudeo Khalse, Age: 41 yrs., Occ.: Service, R/o.: CIDCO, Aurangabad.

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… Applicant

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Versus

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1.Mr. Akhil Sharad Khandelwal, Prop. Of M/s. Khandelwal Masale, Age: Major, Occ. Agri., R/o. Milkat No. 972, Balaji Galli, Post Babra, Tq. Phulambri, Dist. Aurangabad 431111. AND/OR

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Mr. Akhil Sharad Khandelwal, Prop. Of M/s. Khandelwal Masale, Age: Major, Occ. Agri., R/o. Shop No. 1, Sushil Arcade, Moti Karanaja, Circle, Shahagunj, Aurangabad 431001.

[AMBADAS]

(OA No.294/2024)

Page 1 of 8

AND/OR Mr. Akhil Sharad Khandelwal, Prop. Of M/s. Khandelwal Masale, Age: Major, Occ. Agri., R/o. B-3/11, Bhagatsingh Nagar, Harsul, Aurangabad 431001.

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…Defendant

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APPEARANCES

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For the Applicant Mr. K.D. Pande -Advocate For Defendant Ex-parte

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JUDGMENT

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Delivered on 10.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 96,51,849.44/- (Rupees Ninety Six Lacs, fifty One Thousand, Eight hundred Forty Nine and Forty Four Paisa only), along with further interest from the date of filing of the Original Application, i.e., 30.11.2023, until the date of realization of the entire outstanding dues from the Defendant. Brief facts of the application are as under:

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The Applicant Bank states that the Defendant had approached and requested the Applicant Bank for a Term loan facility and cash credit facility. Upon considering the request and financial

(OA No.294/2024)

Page 2 of 8

[AMBADAS]

needs of the Defendant, the Applicant Bank sanctioned a Term loan facility of Rs. 60,00,000/- and Cash Credit Facility of Rs. 15,00,000/- Lacs, vide sanction letter dated 04.09.2020 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 10.70% per annum with monthly rests. The Defendant also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment. The applicant bank further states that the defendant again approached the applicant bank seeking renewal of said loan facilities and after considering the need of the defendant, the applicant bank renewed the Cash Credit facility to the extent of Rs. 15,00,000/- & restructure the Term loan facility of Rs. 60,00,000/- vide arrangement letters dated 05.08.2021 & 03.04.2023 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 14.75% per annum with monthly rests. The Defendant also agreed to pay additional

(OA No.294/2024)

Page 3 of 8

[AMBADAS]

interest by way of liquidated damages in the event of any default

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in repayment.

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank. These included arrangement letters, hypothecation agreements, revival letter, and guarantee agreement in favor of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the defendant executed hypothecation agreement thereby hypothecating stock & book-debts, raw materials, stock in process and finished goods and receivables, plant & machinery purchased out of bank’s finance etc.

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The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant 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.

(OA No.294/2024)

Page 4 of 8

[AMBADAS]

Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendant became irregular and classified as NPA on 29.08.2023. Therefore, on 21.11.2023 the applicant bank issued legal Notice to the defendant. The defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was served through court commissioner. Hence, the defendant was proceeded ex-parte as per Order dated 04.04.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mrs. Kavita Vasudeo Khalse, City Case Officer & Dy. Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-17 along with list of documentsExh.5 which corroborates the case of the applicant Bank.

(OA No.294/2024)

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[AMBADAS]

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

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Since the defendant 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 hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @14.75% p.a. on aforesaid loans from the date of filing i.e. 30.11.2023 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 @12% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.294/2024)

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[AMBADAS]

ORDER

(A) Original Application No. 294/2024 is allowed with

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costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 96,51,849.44/- (Rupees Ninety Six Lacs, fifty One Thousand, Eight hundred Forty Nine and Forty Four Paisa only), along with future interest @12% per annum (simple) on outstanding amount, from the date of filing of the Original Application i.e. 30.11.2023 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-debts, raw materials, stock in process and finished goods and receivables, plant & machinery purchased out of bank’s finance etc. vide hypothecation agreement dated 04.09.2020 at Exh. A-4 in the list of documents at Exh. 5.

(OA No.294/2024)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the hypothecated

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plant and machinery/ 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 defendant.

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(G) File be consigned to the record room.

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Sd/Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.10.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.294/2024)

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Page 8 of 8

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[AMBADAS]

State Bank of India v. Akhil Sharad Khandelwal

Case brief

What is this about?

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State Bank of India v. Akhil Sharad Khandelwal

Case brief

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