Allowed

State Bank of India v. M/S Ovikiran Petroleum

DRT18 Sept 2025OA/371/2024

Case brief

AI extract

What is this about?

In this Debt Recovery Tribunal proceeding, the applicant bank sought recovery of outstanding dues from a loan borrower and personal guarantors who defaulted on an e-DFS loan facility. Proceeding ex-parte against non-appearing respondents, the court allowed the application, adjudging the principal sum and modifying the future interest rate to 10% simple per annum.

What did the court decide?

Respondents to pay Rs. 42,75,773 along with future interest at 10% per annum simple from 15.12.2023 till realization, secured by hypothecated assets, with issuance of Recovery Certificate.

State Bank of India versus M/S Ovikiran Petroleum — Contract and Commercial Disputes | DRT (2025)

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Presented on: 15.12.2023 Registered on: 01.06.2024 Decided on: 18.09.2025 Duration: Y M D 01 03 17

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.371/2024

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TOTAL CLAIM AMOUNT – Rs. 42,75,773/-

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STATE BANK OF INDIA

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A body corporate constituted under the State

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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 Stressed Assets Recovery Branch at Aurangabad, through one of its officer i.e. City Case Officer, Shri. Nitin S/o. Narayan Kambale, Age: 42 Years, Occupation:

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… Applicant

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Service as City Case Officer, State Bank of

(OA No.371-2024)

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[Ambadas]

India, Branch at SAR 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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M/s. OVIKIRAN PETROLEUM, … Defendants Through its Proprietor, Smt. Sayali Sharad Dhage,

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Regd. Off- Survey No.252, at Village Karule,

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Taluka Sangamner, Dist. Ahmednagar-422605. M. No.8766765981. And

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At post Village Kalas Budruk, Taluka Akole,

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Dist. Ahmednagar-422601.

(OA No.371-2024)

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[Ambadas]

2. SHRI. SUDHIR NAMDEO WAKCHAURE,

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R/o. At post Village Kalas Budruk,

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Taluka Akole, Dist. Ahmednagar-422601.

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M. No.8793597532.

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SHRI. KIRAN NAMDEV WAKCHAURE,

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R/o. At post Village Kalas Budruk,

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Taluka Akole, Dist. Ahmednagar-422601.

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M. No.8793597532.

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APPEARANCES For the Applicant Mr. Arun Rakh - Advocate For Defendant Ex-parte

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J U D G M E N T Delivered on (18.09.2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 42,75,773/- (Rs. Forty two Lakhs, Seventy Five Thousand, Seven Hundred and Seventy Three Only)

(OA No.371-2024)

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[Ambadas]

together with interest @12.30% p.a. with monthly rests on e- DFS Loan facility from 03.12.2023 till the full realization of the entire dues and costs from the Defendants.

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Brief facts of the application are as under:

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That the Defendant No.1 approached the Applicant Bank and requested for the sanction of a e-DFS Loan facility. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned the e-DFS Loan facility of Rs. 1,00,00,000/- (Rs. One Crore Only) for working capital to its borrower on 30.09.2022 and Applicant Bank has further disbursed an amount of Rs. 10,00,000/- (Rs. Ten Lakh Only) to its borrower on 02.02.2023 Defendant has been executed Supplemental Agreement of loan cum hypothecation dated 02.02.2023 on certain terms & conditions. The defendant No2 and 3 have given personal guarantee to the loan facilities of defendant No.1.

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The agreed rate of interest for the Cash Credit loan facility as @9.20% p.a. with monthly rests.

(OA No.371-2024)

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[Ambadas]

In order to secure the aforesaid e-DFS Loan facility, the Defendants executed loan documents in favour of the applicant bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking etc.

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The applicant bank contended that to secure the e-DFS Loan facility, the Defendants executed Agreement of loan Cum Hypothecation dated 30.09.2022 and 02.02.2023 of the following property/hypothecation in favour of the applicant bank:

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Description of Hypothecated Assets Nature of the Stocks, Book Debts, Receivables:-

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All types of stocks of raw materials, finished goods, stocks-inprocess, stores and spares, packing materials of the unit at their factory premises or at some other places including goods in transit, out-standing moneys, book debts, receivables, advance payment to the suppliers, 100% hypothecation of vehicle stocks financed to the dealers by SBI and receivables thereof.

(OA No.371-2024)

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[Ambadas]

RAW MATERIAL, SEMI FINISHED GOODS, FINISHED GOODS, CONSUMABLES STOCK IN TRADE, BOOK DEBTS,

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ALL CURRENT ASSETS.

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The applicant Bank further contended that the Defendants have failed to keep their promises 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. Therefore, the applicant Bank issued legal notice to the Defendants through their Advocate on 30.10.2023. Despite service of Notice, the Defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

(OA No.371-2024)

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[Ambadas]

None appears for the Defendants, through served. Hence, they were hereby proceeded ex-parte vide Order dated 12.02.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Nitin S/o Narayan Kamble, Bramch Manager of the applicant bank and has produced on record the original loan transaction documents as Annexure A-I to A-VII 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 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 @12.30% per annum with monthly rests from 03.12.2023 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

(OA No.371-2024)

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[Ambadas]

that awarding future interest at @10% per annum (simple), 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. 371/2024 is allowed with

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costs.

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(B) The Defendants shall pay jointly and severally to the Applicant Bank a sum of Rs. 42,75,773/- (Rs. Forty two Lakhs, Seventy Five Thousand, Seven Hundred and Seventy Three Only), along-with future interest at @10% per annum (simple) from the date of filing of the Original Application, i.e., 15.12.2023, till full payment/ realization of the said amount.

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(C) The aforesaid adjudicated amount is secured by Agreement of loan Cum Hypothecation in favour of the Applicant Bank vide document Annexure A-II and Annexure A-IV in list of Documents Exh.5.

(OA No.371-2024)

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[Ambadas]

Description of Hypothecated Assets Nature of the Stocks, Book Debts, Receivables:-

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All types of stocks of raw materials, finished goods, stocks-in-process, stores and spares, packing materials of the unit at their factory premises or at some other places including goods in transit, outstanding moneys, book debts, receivables, advance payment to the suppliers, 100% hypothecation of vehicle stocks financed to the dealers by SBI and receivables thereof.

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RAW MATERIAL, SEMI FINISHED GOODS, FINISHED GOODS, CONSUMABLES STOCK IN TRADE, BOOK DEBTS, ALL CURRENT ASSETS.

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

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(E) Issue Recovery Certificate accordingly.

(OA No.371-2024)

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

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Place : Aurangabad Date : 18.09.2025

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(OA No.371-2024)

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Page 10 of 10

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[Ambadas]

State Bank of India v. M/S Ovikiran Petroleum

Case brief

What is this about?

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State Bank of India v. M/S Ovikiran Petroleum

Case brief

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