Allowed

State Bank of India v. M/S Sonawane Poultry Feed Mill

DRT1 Sept 2025OA/32/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 54,49,126/- from the defendants, confirming the mortgage charges over their properties and directing the issuance of a Recovery Certificate.

What did the court decide?

Defendants directed to pay Rs. 54,49,126/- plus future interest at 12% p.a. (simple); mortgaged properties secured; Recovery Certificate issued.

State Bank of India versus M/S Sonawane Poultry… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 15.05.2023 Registered on: 09.01.2024 Decided on: 01.09.2025 Duration: Y M D 02 03 16

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 32/2024

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TOTAL CLAIM AMOUNT – Rs. 54,49,126/-

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STATE BANK OF INDIA (SARB), is a body corporate constituted under the State Bank of India

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(SARB), Act, 1955 having a Branch at Ahmednagar,

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through its Manager, through Mr. Sunildatt S/o. Jagdish Chander, Manager, (City Care Officer), SARB,

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Aurangabad. Age: 51 years, Occ.: Service, R/o.

Aurangabd

Versus

… Applicant

1. M/s. Sonawane Poultry Feed Mill, Prop. Hari Ramdas Sonawane, Age- Major, Occ.: Agriculture, R/o. Kada Tq. Ashti Dist. Beed-414202 AND

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R/o. Survey No. 50/B/2, 52/1(P), Village Lamatanda, Tal. Ashti, Dist. Beed

(OA No.32/2024)

Page 1 of 12

[AMBADAS]

Hari Ramdas Sonawane, Age- Major, Occ.: Agriculture, R/o. Kada Tq. Ashti Dist. Beed-414202 AND

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R/o. Survey No. 50/B/2, 52/1(P), Village Lamatanda, Tal. Ashti, Dist. Beed

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Jayshree Hari Sonawane, Age- Major, Occ.: Agriculture, R/o. Kada Tq. Ashti Dist. Beed-414202 AND

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R/o. Survey No. 50/B/2, 52/1(P), Village Lamatanda, Tal. Ashti, Dist. Beed

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…Defendants

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APPEARANCES

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For the Applicant Mr. A. L. Muley - Advocate For Defendants Ex-parte

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JUDGMENT

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Delivered on 01.09.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 54,49,126/- ( Rupees Fifty Four Lacs, Forty Nine Thousand, One Hundred and Twenty Six only), along with future interest from the date of filing of the Original Application, i.e., 15.05.2023, until the date of realization of the entire outstanding dues from the Defendants.

(OA No.32/2024)

Page 2 of 12

[AMBADAS]

Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 to 3 had approached and requested the Applicant Bank for a Cash Credit Facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned Cash Credit Facility of Rs. 40 lacs on certain terms and conditions. The agreed rate of interest for the Cash Credit Facility was 13% p.a. with monthly rests. The Defendants also agreed to pay additional interest of @2% way of liquidated damages in the event of any default in repayment.

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Subsequently, the Defendants again approached the Applicant Bank seeking further financial assistance by way of another Cash Credit Facility. After examining the necessary documents, the Bank sanctioned a Cash Credit Facility of Rs. 40 lacs vide sanction letter dated 31.07.2020. The agreed rate of interest for

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this facility was 11.35% per annum with monthly rests, and the

(OA No.32/2024)

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[AMBADAS]

Defendants agreed to pay additional interest at the rate of 2% per annum by way of liquidated damages in the event of default.

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Thereafter, the Defendants once again approached the Bank for financial assistance through a Cash Credit Facility & emergency guarantee scheme (ECLGS). Upon verification of the submitted documents, the Bank sanctioned a Cash Credit Facility of Rs. 40 lacs & emergency guarantee scheme (ECLGS) of Rs. 8 lacs vide sanction letter dated 04.06.2020. The agreed rate of interest for Cash Credit Facility was 11.35% per & for annum emergency guarantee scheme (ECLGS) was 7.40% per annum with monthly rests. As with the previous loans, the Defendant agreed to pay additional interest at the rate of 2% per annum as liquidated damages in case of default in repayment.

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In order to secure the aforesaid loan facilities, the Defendant No. 1 to 3 executed various loan documents in favour of the Applicant Bank. These included sanction letters, Hypothecation

(OA No.32/2024)

Page 4 of 12

[AMBADAS]

agreements, registered mortgage deed vide daybook nos.

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2905/2018 & 2329/2020 dated 10.08.2018 & 08.09.2020

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respectively etc in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to them, the Defendant No. 1 to 3 created first charge over their immovable properties vide daybook nos. 2905/2018 & 2329/2020 dated 10.08.2018 & 08.09.2020 respectively in favour of the Applicant Bank. The

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mortgage was created in respect of the following properties –

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A) All that piece and parcel of Plot No. 6 out of NA land Survey No. 50/B/2, 52/1(P), situated at Village Lamntanda, Tq. Ashti, District Beeb, adm 257352 Sq. Mtr. Standing in the name of defendant No. 3 Jayshree Hari Sonawane which is bounded as under:

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 5, South: Plot No. 7.

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B) All that piece and parcel of Plot No. 7 out of NA land Survey No. 50/B/2, 52/1(P), situated at Village Lamntanda, Tq. Ashti, District Beeb, adm 257352 Sq. Mtr. Standing in the name of defendant No. 3 Jayshree Hari Sonawane which is bounded as

(OA No.32/2024)

Page 5 of 12

[AMBADAS]

under:

East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 6, South: Plot No. 8.

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C) All that piece and parcel of Plot No. 8 out of NA land Survey No. 50/B/2, 52/1(P), situated at Village Lamntanda, Tq. Ashti, District Beeb, adm 257352 Sq. Mtr. Standing in the name of defendant No. 3 Jayshree Hari Sonawane which is bounded as under:

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 7, South: Plot No. 9.

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D) All that piece and parcel of Plot No. 9 out of NA land Survey No. 50/B/2, 52/1(P), situated at Village Lamntanda, Tq. Ashti, District Beeb, adm 257352 Sq. Mtr. Standing in the name of defendant No. 3 Jayshree Hari Sonawane which is bounded as under:

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 8, South: Open Space.

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The applicant bank further states that the defendant No. 1 to 3 also executed hypothecation agreement thereby hypothecating all the present and future stocks and consumables whether it be

(OA No.32/2024)

Page 6 of 12

[AMBADAS]

in any stage of production, all movables (Raw Materials/ Work in Progress/ Finished Goods) and also such other goods, movable properties/ consumer durables and other assets etc in favour 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 irregular and classified as NPA on 29.06.2022. Therefore, on 17.04.2023 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

(OA No.32/2024)

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[AMBADAS]

application is filed.

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The defendants failed to appear in matter though they were served through summons. Hence, the defendants were proceeded ex-parte as per Order dated 04.04.2024.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Sunildatt S/o Jagdish Chander, City Care Officer of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-10 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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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.

(OA No.32/2024)

Page 8 of 12

[AMBADAS]

The applicant Bank has claimed charge over immovable properties of the borrowers which are mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @13% p.a. besides 2% penal interest from the date of filing i.e. 15.05.2023 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), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 32/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 54,49,126/- ( Rupees Fifty Four Lacs, Forty Nine Thousand, One Hundred and Twenty Six only), along with future interest @ 12% per annum (simple) from the date of filing of the Original Application i.e. 15.05.2023 till full

(OA No.32/2024)

Page 9 of 12

[AMBADAS]

payment/realization of the amount mentioned in this operative order.

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mortgage deed bearing daybook nos. 2905/2018 & 2329/2020 executed by the defendants on 10.08.2018 & 08.09.2020 respectively marked as Exh. A-7 & A-8 in the list of documents Exh. 5.

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 5, South: Plot No. 7.

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 6, South: Plot No. 8.

(OA No.32/2024)

Page 10 of 12

[AMBADAS]

East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 7, South: Plot No. 9.

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East: 15m wide Road, West: S. No. 50/2(P), North: Plot No. 8, South: Open Space.

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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.

(OA No.32/2024)

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[AMBADAS]

(F) The Registrar is directed to send the copy of the

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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:.01.09.2025

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

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(OA No.32/2024)

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Page 12 of 12

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[AMBADAS]

State Bank of India v. M/S Sonawane Poultry Feed Mill

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Sonawane Poultry Feed Mill

Case brief

What is this about?

What did the court decide?

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