Allowed

State Bank of India v. M/S Sai Shraddha Industries

DRT26 Aug 2025OA/376/2024

Case brief

AI extract

What is this about?

The appellant bank approached the Tribunal claiming recovery of a sum of Rs. 25,08,642/- along with future interest from the respondent firm for defaulting on term loans and credit facilities. The Tribunal, noting the respondent's failure to appear and contest the claim, allowed the original application. The judgment secured the recovery through an existing mortgage on immovable property and direc

What did the court decide?

The defendants were directed to jointly and severally pay the sum of Rs. 25,08,642/- along with future interest at 12% per annum (simple) and to sell the mortgaged property if dues are not realized.

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

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Presented on: 14.12.2023 Registered on: 03.06.2024 Decided on: 26.08.2025 Duration: Y M D 01 08 12

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 376/2024

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TOTAL CLAIM AMOUNT – Rs.25,08,642/-

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State Bank of India (SARB), is a body corporate constituted under the State Bank of India (SARB), Act, 1955 having a SME Branch, at Aurangabad, through its Manager, through Mr. Bashir Kazi, Manager, (City Case Officer), SARB, Aurangabad Age: … Applicant 346 years, Occ.: Service, Aurangabad

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Versus

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1.M/s. Sai Shraddha Interprised Through it’s Prop. Santosh Baburao Taro Age: Major, Occu. Business, R/o. Plot No. A-114/5, Five Star MIDC Shendra, Kamgarnagar, Dist. Aurangabad

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M/s. Sai Shraddha Interprised Through it’s Prop. Rajendra Baburao Taro Age: Major, Occu. Business, R/o. Plot No. A-114/5, Five Star MIDC

(OA No.376/2024)

Page 1 of 8

[AMBADAS]

…Defendant

Shendra, Kamgarnagar, Dist. Aurangabad

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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 26.08.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 25,08,642/- (Rupees Twenty Five Lacs Eight Thousand Six Hundred and Forty Two only), along with further interest from the date of filing of the Original Application, i.e., 14.12.2023, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant Nos. 1 & 2 had approached and requested the Applicant Bank for a Term loan facility and cash credit facility. Upon considering the request and financial needs of the Defendants, the Applicant Bank sanctioned

(OA No.376/2024)

Page 2 of 8

[AMBADAS]

a Term loan facility of Rs. 30,00,000/- and Cash Credit Facility of

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Rs. 25,00,000/- Lacs, vide sanction letter dated 27.09.2012 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 14% per annum with monthly rests. The Defendants 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 No. 1 & 2 again approached the applicant bank seeking financial assistance and after considering the need of the defendants, the applicant bank sanctioned a Cash Credit of Rs. 25,00,000/-, New Term Loan-I of Rs. 7,93,000/- & New Term loan –II Facility of Rs. 5,00,000/- vide arrangement letter dated 10.06.2016 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 13.75% per annum with monthly rests. The Defendants also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

(OA No.376/2024)

Page 3 of 8

[AMBADAS]

In order to secure the aforesaid loan facilities, the Defendants

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executed various loan documents in favour of the Applicant Bank. These included arrangement letters, hypothecation agreement, simple mortgage deed bearing registration no 4421/2012 dated 08.10.2012, tripartite agreement 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 Nos. 1 & 2 created charge over their immovable property bearing registration No. 4421/2012 dated 08.10.2012 in favour of the applicant bank. The mortgage was created in respect of the following property –

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Plot No. A-114/5, Five Star MIDC Shendra, Tq. Dist. Aurangabad which is bounded as under: East: Plot No. A-115, West: 15 Mtr Road, North: Plot A-114/6 South: Plot A-114/4

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The applicant bank contended that the defendants have failed to

(OA No.376/2024)

Page 4 of 8

[AMBADAS]

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 29.12.2022. Therefore, on 30.11.2023 the applicant bank issued legal Notice to the defendants. The defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though they were duly served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 06.05.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Bashir Kazi, City Case Officer of the applicant

(OA No.376/2024)

Page 5 of 8

[AMBADAS]

Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-13 along with list of documentsExh.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 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 immovable property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @13.75% p.a. on aforesaid loans from the date of filing i.e. 14.12.2023 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future

(OA No.376/2024)

Page 6 of 8

[AMBADAS]

interest is granted @12% per annum (simple), it would be just and reasonable rate of interest.

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ORDER (A) Original Application No. 376/2024 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 25,08,642/- (Rupees Twenty Five Lacs Eight Thousand Six Hundred and Forty Two only), along with future interest @12% per annum (simple) from the date of filing of the Original Application i.e. 14.12.2023 till full payment/realization of the amount mentioned in this operative order. (C) The aforesaid adjudicated amount is secured by the mortgage of the following immovable property bearing registration No. 4421/2012 vide simple mortgage deed dated 08.10.2012 at Exh. A-6 in the list of documents at Exh. 5

(OA No.376/2024)

Page 7 of 8

[AMBADAS]

Plot No. A-114/5, Five Star MIDC Shendra, Tq. Dist. Aurangabad which is bounded as under: East: Plot No. A-115, West: 15 Mtr Road, North: Plot A-114/6 South: Plot A-114/4

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(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated 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 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. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.26.08.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.376/2024)

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Page 8 of 8

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[AMBADAS]

State Bank of India v. M/S Sai Shraddha Industries

Case brief

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State Bank of India v. M/S Sai Shraddha Industries

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