Allowed

State Bank of India v. Madhavrao Kishanrao Kshirsagar

DRT22 Sept 2025OA/315/2022

Case brief

AI extract

What is this about?

A debt recovery tribunal allowed an original application filed by State Bank of India against two agricultural borrowers for recovery of a loan amount of Rs. 39,78,450/- along with future interest at 10% p.a. and a recovery certificate for the hypothecated/agricultural lands.

What did the court decide?

Recovery of Rs. 39,78,450/- plus future interest at 10% p.a. simple interest; direction to issue Recovery Certificate.

State Bank of India versus Madhavrao Kishanrao… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 07.06.2022 Registered on: 08.08.2022 Decided on: 22.09.2025 Duration: Y M D 03 01 14

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.315/2022

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TOTAL CLAIM AMOUNT – Rs. 39,78,450/-

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STATE BANK OF INDIA

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A body corporate constituted under the State Bank of India Act, 1955, having its local Head Office at Bandra Kurla Complex, Mumbai and

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one of its branch at SARB at CIDCO, Aurangabad, through one of its officer i.e. City Case Officer, Shri. Ravindra S/o. Jaywantrao

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… Applicant

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Dabhadkar, Age: 31 Years, Occupation: Service

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as City Case Officer, State Bank of India Branch

(OA No.315-2022)

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at SARB, CIDCO, Aurangabad and having authority to file the application which includes the authority to sign and verify the application

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Versus

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MADHAVRAO KISHANRAO KSHIRSAGAR,

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…Defendants

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Age: 65 Years, Occu: Agril,

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R/o: At Village Borgaon Telang,

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Taluka and District Nanded-431605.

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M. No.8552806970.

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SANJAY MADHAVRAO KSHIRSAGAR,

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Age: Major Years, Occu: Agril,

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R/o: At Village Borgaon Telang,

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Taluka and District Nanded-431605.

M. No.8552806970.

APPEARANCES

(OA No.315-2022)

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[Ambadas]

For the Applicant Mr. Arun Rakh - Advocate For Defendants Ex-parte

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J U D G M E N T Delivered on (22.09.2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 39,78,450/- (Rs. Thirty Nine Lacs, Seventy Eight Thousand, Four Hundred and Fifty Only) together with interest @12.25%, @13.10%, & @10.25% p.a. with yearly rests upon KCC Loan and two Term Loan Facilities from 31.03.2022 till the full realization of the entire dues and costs from the Defendants jointly and severally.

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Brief facts of the application are as under:

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That the Defendants approached the Applicant Bank and requested for the sanction of Agricultural Term Loan facilities. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned the Agricultural

(OA No.315-2022)

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KCC Loan Facilities of Rs. 4,39,000/- (Rs. Four Lacs, Thirty Nine Thousand Only) for Cultivation of Plantation corps, other annual domestic needs and estimates small valued investment in farm to its borrower on 27.04.2015 vide Arrangement Letter dated 27.04.2015 and Agricultural Term Loan facilities of Rs.20,00,000/- (Rs. Twenty Lacs Only) for Construction of Polymer House and Agricultural use on dated 23.07.2015 vide Arrangement letter dated 23.07.2015. Further Rs.3,00,000/- was sanctioned of KCC loan vide arrangement letter dated 21.04.2016. the defendant no.2 stood guarantor for defendant No.1.

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In order to secure the aforesaid Agricultural Loan facilities and KCC Loan facilities, the Defendants executed loan documents in favour of the applicant bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking, equitable mortgage etc.

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The applicant bank contended that to secure the Agricultural Term Loan facilities and KCC Loan facilities, the Defendants by

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way of guarantee deed and deed of declaration mortgaged the properties which are mentioned as under :-

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(i) Agricultural Land from Gut No. 22, admeasuring 0 H 66 R,

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situated at Village Borgaon, Taluka and District Nanded

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owned by Madhavrao Kishanrao Kshirsagar.

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(ii) Agricultural Land from Gut No. 56, admeasuring 0 H 40 R,

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situated at Village Borgaon, Taluka and District Nanded

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owned by Madhavrao Kishanrao Kshirsagar.

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(iii) Agricultural Land from Gut No. 8, admeasuring 1 H 31 R,

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situated at Village Borgaon, Taluka and District Nanded

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owned by Madhavrao Kishanrao Kshirsagar.

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(iv) Agricultural Land from Gut No. 102, admeasuring 1 H 27 R, situated at Village Sugaon, Taluka and District Nanded owned by Madhavrao Kishanrao Kshirsagar.

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The applicant Bank further contended that the Defendants failed to keep their promises and commitments agreed by them with

(OA No.315-2022)

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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 irregular and classified as NPA on 31.07.2018. Therefore on 30.03.2022, the applicant Bank issued legal notice to the Defendants through their Advocate. Despite service of Notice, the Defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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Despite service of summons, the Defendants did not choose to enter appearance either personally or through their Advocate. Hence, the defendants were proceeded ex-parte vide order dated 07.07.2023.

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The applicant Bank has filed Claim Affidavit of evidence at

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Exhibit-04 of Mr. Ravindra S/o. Jaywantrao Dabhadkar, City Case Officer of the applicant bank and has produced on record the original loan transaction documents as Annexure A-I to A-XIV in evidence affidavit for marking Exhibit-09 and in 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 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 future interest at @12.25%, @13.10% & @10.25% per annum in the loan accounts with yearly rests from 08.08.2022 till the full realization of the entire dues and costs from the Defendants. However, considering the facts of the case, I am of the opinion that awarding future interest at @10% per annum (simple) on outstanding amounts,

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it would be just and reasonable.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No.315/2022 is allowed with costs.

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(B) The Defendants shall pay jointly and severally to the Applicant Bank a sum of Rs. 39,78,450/- (Rs. Thirty Nine Lacs, Seventy Eight Thousand, Four Hundred and Fifty Only), along with future interest at @10% per annum (simple) from the date of filing of the Original Application, i.e., 08.08.2022, till full payment/ realization of the said amount.

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(C)

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(C) The aforesaid adjudicated amount is secured by an Agreement of Loan cum Hypothecation in favour of the Applicant Bank vide document Annexure A-II, A-VI and A-X in list of documents Exh.5. The mortgaged

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properties are described as follows:

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Agricultural Land from Gut No. 22, admeasuring 0 H

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66 R, situated at Village Borgaon, Taluka and District Nanded owned by Madhavrao Kishanrao Kshirsagar.

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Agricultural Land from Gut No. 56, admeasuring 0 H 40 R, situated at Village Borgaon, Taluka and District Nanded owned by Madhavrao Kishanrao Kshirsagar .

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Agricultural Land from Gut No. 8, admeasuring 1 H 31 R,, situated at Village Borgaon, Taluka and District Nanded owned by Madhavrao Kishanrao Kshirsagar.

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Agricultural Land from Gut No. 102, admeasuring 1 H 27 R, situated at Village Sugaon, Taluka and District Nanded owned by Madhavrao Kishanrao

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Kshirsagar.

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

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immovable properties and

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hypothecated

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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) File be consigned to the record room.

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Sd/-

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(Dr. J. R. Chauhan) Place : Aurangabad Presiding Officer Date : 22.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.315-2022)

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State Bank of India v. Madhavrao Kishanrao Kshirsagar

Case brief

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State Bank of India v. Madhavrao Kishanrao Kshirsagar

Case brief

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