Allowed

State Bank of India v. M/s Shri Shivshankar Cellular

DRT15 Oct 2025OA/516/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's claim for recovery of a debt amounting to Rs. 1,12,99,553/- along with future interest at 9% per annum. The judgment secured this amount against the respondents' mortgaged immovable property and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 1,12,99,553/- plus future interest at 9% p.a.; charge over mortgaged property; issuance of Recovery Certificate.

State Bank of India versus M/s Shri Shivshankar… — Contract and Commercial Disputes | DRT (2025)

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Presented on: 12.10.2022 Registered on: 25.11.2022 Decided on: 15.10.2025 Duration: Y M D 03 00 03

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 516/2022

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TOTAL CLAIM AMOUNT – Rs. 1,12,99,553/-

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State Bank of India

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(Erstwhile State Bank of Hyderabad) A body Corporate constituted under the provisions of the State Bank of India Act, 1955 (23 of 1955) and the successor to State Bank of Hyderabad under the Acquisition of State Bank of Hyderabad Order, 2017 passed by the Central Government under Section 35 of the State Bank of India Act, 1955 (23 of 1955) having it’s one of Local Head office at Synergy, Bandra-Kurla Complex, Bandra (E), Mumbai, & Branches amongst the other places including i.e. Chikalthana Ashok Nagar, MICDC Area, Chikalathana, Aurangabad & having Stressed Assets Recovery Branch (SARB) at Plot No. 79, N-5, CIDCO Aurangabad-431003, through its City Case Officer &

(OA No.516/2022)

Page 1 of 11

[AMBADAS]

Mr. Sunil Dutt S/o. Jagdish Chander, Age: Major, Occ.: Service, R/o. CIDCO, Aurangabad.

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… Applicant

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Versus

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1. M/s. Shri Shivshankar Cellular, Through its Proprietor, Mr. Sagar Mathuradas Sarda, Age: Major, Occ.: Business, R/o.: At Shop No. A-17, Gajanan Vaibhav Complex, Cannought Place, N-5, CIDCO, Aurangabad – 431003.

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2. Mr. Sagar Mathuradas Sarda,

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Age: Major, Occ.: Business, R/o.: At Row House No. 1, Udyam Aangan, Gut No. 115, Beed Bypass, Satara Parisar, Aurangabad – 431001.

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AND/OR

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Mr. Sagar Mathuradas Sarda, Age: Major, Occ.: Business, At- Row House No. B-1 (Part B), Pahade Residency, CTS No. 15840/59 of Survey No. 57/6, Ramakrushna Nagar, Garkheda, Aurangabad – 431001.

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…Defendant

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APPEARANCES

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For the Applicant For Defendants

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Mr. K. D. Pande Advocate Ex-parte

(OA No.516/2022)

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[AMBADAS]

JUDGMENT

Delivered on 15.10.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 1,12,99,553/- (Rupees One Crore, Twelve Lacs, Ninety Nine Thousand, Five Hundred and Fifty Three only), along with further interest from the date of filing of the Original Application, i.e., 12.10.2022, 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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Defendant No. 2, being the proprietor of Defendant No. 1, had approached the Applicant Bank requesting sanction of a Cash Credit Facility. After due consideration, the Bank sanctioned a Cash Credit Facility of ₹50,00,000/- vide Arrangement Letter dated 05.11.2012, subject to certain terms and conditions. The agreed rate of interest for the said facility was 13.25% per annum

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with monthly rests. Additionally, the Defendants agreed to pay

(OA No.516/2022)

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[AMBADAS]

further interest at the rate of 2% per annum by way of liquidated damages in the event of default in repayment.

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Thereafter, Defendant No. 2 again approached the Applicant Bank for renewal of the said Cash Credit Facility. Upon considering the

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request, the Bank renewed the facility for ₹50,00,000/- vide Arrangement Letter dated 10.03.2014. The rate of interest was revised to 11.70% per annum with monthly rests, and the Defendant continued to remain liable to pay additional interest at 2% per annum in case of default.

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Subsequently, Defendant No. 2 sought further renewal and enhancement of the Cash Credit Facility. The Bank, after due consideration, enhanced the facility from ₹50,00,000/- to ₹60,00,000/- vide Arrangement Letter dated 20.10.2015. The revised interest rate was 13.30% per annum with monthly rests, with an additional 2% per annum as liquidated damages on default.

(OA No.516/2022)

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[AMBADAS]

Further renewals of the said Cash Credit Facility were granted by the Applicant Bank vide Letters of Arrangement dated 17.01.2017 and 01.01.2019, maintaining the facility at ₹60,00,000/-.

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Thereafter, on further request, the Bank enhanced the Cash Credit Facility from ₹60,00,000/- to ₹90,00,000/- vide Letter of Arrangement dated 29.07.2019. The applicable interest rate was 11.15% per annum with monthly rests, and the Defendant continued to be liable for an additional 2% per annum in the event of default.

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Subsequently, Defendant No. 2 approached the Bank for sanction of a Working Capital Term Loan under the Government Emergency Credit Line (GECL) Scheme. The Bank sanctioned a Working Capital Term Loan (WCTL) of ₹17,00,000/- vide Letter of Arrangement dated 30.07.2020.

(OA No.516/2022)

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[AMBADAS]

Thereafter, the Cash Credit Facility was renewed and revised by reducing the sanctioned limit from ₹90,00,000/- to ₹85,00,000/vide Letter of Arrangement dated 30.06.2021.

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Finally, on further request from Defendant No. 2, the Applicant Bank renewed the Cash Credit Facility at ₹85,00,000/- and sanctioned an additional Working Capital Term Loan of ₹10,00,000/- under GECL, vide Letter of Arrangement dated 26.11.2021.

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant Bank, including the arrangement letters, hypothecation agreement, deeds of declaration, letters of undertaking, equitable mortgage by depositing title deeds dated 20.11.2012 & letter of confirmation dated 20.11.2012 etc., in favor of the Applicant Bank.

(OA No.516/2022)

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[AMBADAS]

The Applicant Bank further contends that, in order to secure the aforesaid loan facilities sanctioned to him, the Defendants created first charge over their immovable property by creating equitable mortgage by depositing title deeds dated 20.11.2012 & letter of confirmation dated 20.11.2012, in favour of the Applicant Bank.

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The mortgage was created in respect of the following property –

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All that piece & parcel of residential house No. 8-B, Dwarka Pahade Residency, admeasuring 60.68 sq. mtrs., CTS No. 15840/59, Sheet No. 289 & 292 out of Survey No. 57/6, situated at Kasliwal Nagar, Garkheda, Aurangabad, which is bounded as under:

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East :- Internal Road West :- Marginal Space South: - Row House No. B-1 (Part B) North: - Open Space.

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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

(OA No.516/2022)

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[AMBADAS]

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 30.04.2022. Therefore, on 23.09.2022 the applicant bank issued legal notice to the defendants through his advocate. Despite service of Notices, the defendants 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 they were served through summons. Hence, the defendants were proceeded exparte as per Order dated 18.07.2023.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Sunil Dutt s/o Jagdish Chander, (City Case Officer & Dy. Manager) of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-58 as per list of documents Exh. 5 which corroborates the case of the applicant Bank.

(OA No.516/2022)

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[AMBADAS]

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 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 @9.40% per annum in respect of Cash Credit facility and @7.40% p.a. with respect of WCTL facility with monthly rests from the date of filing i.e. 12.10.2022 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) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.516/2022)

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[AMBADAS]

ORDER

(A) Original Application No. 516/2022 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 1,12,99,553/- (Rupees One Crore, Twelve Lacs, Ninety Nine Thousand, Five Hundred and Fifty Three only), along with future interest @ 9% per annum (simple), on outstanding amount from the date of filing of the O.A. i.e. 12.10.2022 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 documents at Exh. A-7, A-8 & A-9 in list of documents Exh. 5.

(OA No.516/2022)

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[AMBADAS]

West :- Marginal Space South: - Row House No. B-1 (Part B) North: - Open Space.

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(D) The applicant Bank is entitled to sell the mortgaged immovable property and hypothecated 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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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.15.10.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.516/2022)

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[AMBADAS]

State Bank of India v. M/s Shri Shivshankar Cellular

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Shri Shivshankar Cellular

Case brief

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What did the court decide?

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