Allowed

State Bank of India v. Santosh Haribhau Kate

DRT13 Aug 2025OA/301/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by State Bank of India for recovery of a defaulted home loan principal and future interests from the defendant, finding the defendant failed to appear and contest the case.

What did the court decide?

Defendant directed to pay Rs. 23,78,377.33/- plus future interest at 9% p.a. (simple) from 22.06.2023; bank entitled to sell mortgaged property to recover dues; issued Recovery Certificate.

State Bank of India versus Santosh Haribhau Kate — Banking and Recovery | DRT (2025)

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Presented on: 22.06.2023 Registered on: 24.04.2024 Decided on: 13.08.2025 Duration: Y M D 02 01 21

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INTHEDEBTSRECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.301/2024

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TOTAL CLAIM AMOUNT – Rs.23,78,377.33/-

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State Bank of India

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A Body Corporate constituted under the provisions of the State Bank of India Act, 1955 (23 of 1955)

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having it’s one of Local Head office at Synergy, Bandra-Kurla Complex, Bandra (E), Mumbai, & Branches amongst the other places at RACPC, Aurangabad at Administrative Office (Zone-I), Plot No. 79, Town Centre, N-5, CIDCO, Aurangabad 431003 through its Authorized Person, Mr. Gokul s/o Raoasaheb Bhujade (Deputy Manager), Age: 33

(OA No.301/2024)

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[AMBADAS]

yrs, Occu.: Service R/o. CIDCO, Aurangabad 431003

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… Applicant

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Versus

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Mr. Santosh Haribhau Kate Age: Major, Occu.: Business, R/o.: Plot No. 268, Near Jain Mandir, CIDCO, N-3, Aurangabad 431003

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AND/OR

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Mr. Santosh Haribhau Kate Age: Major, Occu.: Business, R/o.: Flat No. B-204 on Stilt 2^nd Floor, Amrut Sai Ram, Gut No. 37/2, Gayatri Nagar, Chikalthana MIDC Aurangabad.

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AND/OR

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Mr. Santosh Haribhau Kate Age: Major, Occu.: Business, R/o.: Kate Mathematics Institute, K-5, Above Malkapur Bank, Pawan Nagar, HUDCO, CIDCO, K C Complex, Opp. Sharad Hotel, Aurangabad -431003

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…Defendant

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

(OA No.301/2024)

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[AMBADAS]

JUDGMENT Delivered on 13.08.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 23,78,377.33/- (Rupees Twenty Three Lacs Seventy Eight Thousand Three Hundred Seventy Seven and Thirty Three Paisa only), along with further interest from the date of filing of the Original Application, i.e., 22.06.2023, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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That, the Defendant had approached to the Applicant bank and requested to sanction a Home Loan. Upon considering the request and need of the defendant, the Applicant Bank sanctioned a Home loan of Rs. 19,83,000/- lacs and Funding of Home Loan Insurance Cover of Rs. 72,000/- vide sanction letter dated 07.03.2015 on certain terms and conditions. The agreed rate of interest was @ 10.15% p.a. with monthly rests. The defendant also agreed to pay an additional interest by way of

(OA No.301/2024)

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[AMBADAS]

liquidated damages @ 2% p.a. in case of default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank, including the sanction letter, agreement of housing loan, registered sale deed bearing daybook no. 606 dated 10.03.2015 etc in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the Housing Loan sanctioned to him, the Defendant created an equitable mortgage over his immovable property by depositing title deeds on 11.03.2015, in favour of the Applicant Bank. The mortgage was created in respect of the following property –

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All that piece & parcel of Flat No. B-204 admeasuring 48.36 sq. mtrs. (i.e. 520.35 sq.ft.) carpet area on Stilt 2^nd Floor, Amrut Sair Ram, Gut No. 37/2, Gayatri Nagar, Chikalthana MIDC, Aurangabad which is bounded as under:

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East :- Flat No. B-204, West :- Side Margin North:- Flat No. B-201, South :- Side Margin

(OA No.301/2024)

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[AMBADAS]

The applicant bank contended that the defendant has failed to

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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. 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 20.12.2020. Therefore on 22.05.2023 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notices, 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 paper publication. Hence, the defendant was proceeded ex-parte as per Order dated 29.04.2025.

(OA No.301/2024)

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[AMBADAS]

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Gokul s/o Raosaheb Bhujade, Deputy Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-16 as per 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 defendant 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 property of the borrower which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @10.25% per annum with monthly rests on the loan from the date of filing i.e.

(OA No.301/2024)

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[AMBADAS]

22.06.2023 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), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No.301/2024 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. 23,78,377.33/- (Rupees Twenty Three Lacs Seventy Eight Thousand Three Hundred Seventy Seven and Thirty Three Paisa only), along with future interest @9% per annum (simple) from the date of filing of the Original Application i.e. 22.06.2023 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 mortgaged of the following immovable property vide equitable mortgage deed Exh. A-7 in list of documents

(OA No.301/2024)

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[AMBADAS]

Exh. 5.

East :- Flat No. B-204, West :- Side Margin North:- Flat No. B-201, South :- Side Margin

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