Allowed

State Bank of India v. Jeet Collection

DRT3 Sept 2025OA/75/2022

Case brief

AI extract

What is this about?

In this Debt Recovery Tribunal application, the Bank sought recovery of a Term Loan and Cash Credit facility denied by the Defendant. The Tribunal found in favour of the Bank after it proceeded ex-parte, allowing the claim for the principal amount and awarding future interest at 9% per annum. The recovery of dues was secured against hypothecated movable properties.

What did the court decide?

Recovery of principal sum of Rs. 26,69,381/- along with future interest at 9% per annum simple interest. Power to sell hypothecated movable properties granted.

State Bank of India versus Jeet Collection — Company and Corporate | DRT (2025)

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Presented on: 26.10.2021 Registered on: 04.04.2022 Decided on: 03.09.2025 Duration: Y M D 03 04 30

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.75/2022

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TOTAL CLAIM AMOUNT – Rs. 26,69,381/-

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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 one of its branch At ADB Branch at Beed, District Beed, through one of its officer i.e. … Applicant Branch Manager, Mr. Waman S/o Tarachand Shripad, Age: 53 Years, Occupation: Service as Chief Manager, State Bank of India ADB Beed

(OA No.75-2022)

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Branch, District Beed and having Authority to

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file the Application which includes the authority to sign and verify the application.

Versus

JEET COLLECTION,

… Defendant

Through its Prop. Swati Siddharth Shinde

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R/o: Raj Niwas, Bindusara Colony,

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Rajeev Gandhi Chauk, Beed,

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Taluka and District Beed.

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Mob No: 9765462326, 9588646261

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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

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Delivered on (03.09.2025)

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The Applicant Bank has filed the present application for

(OA No.75-2022)

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[Ambadas]

recovery of the sum of Rs. 26,69,381/- (Rs. Twenty Six Lakhs, Sixty Nine Thousand, Three Hundred and Eighty One Only) together with interest @13.80% p.a. with monthly rests upon Term loan facilities from 23.10.2021 till the full realization of the entire dues and costs from the Defendant.

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Brief facts of the application are as under:

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That the Defendant approached the Applicant Bank and requested the sanction of a Cash Credit Facilities and Term Loan Facility. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned the Cash Credit Facilities of Rs. 15,00,000/- (Rs. Fifteen Lakh Only) and Term Loan facility of Rs. 08,75,000/- (Rs. Eight Lakh, Seventy Five Thousand Only), for total amount of Rs 23,75,000/(Rs. Twenty Three Lakh, Seventy Five Thousand Only) under the scheme of Prime Minister Employment Generation Programme (PMEGP) Scheme with the guarantee under CGTMSE to start the business to its borrower vide sanction letter dated 28.06.2019 on certain terms & conditions.

(OA No.75-2022)

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The agreed rate of interest for the Cash Credit and Term Loan Facility was @13.80% per annum with monthly rests.

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In order to secure the aforesaid Term Loan facility, the Defendant 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 Term Loan facility, the Defendant executed Agreement of loan Cum Hypothecation dated 28.06.2019 of the following property/hypothecation in favour of the applicant bank:

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All the pieces and parcel of M/S. Jeet Collection, Raj Niwas Bindusara Colony, West, Near Rajiv Gandhi Chowk, Beed.

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Description of Hypothecated Assets Nature of the Stocks, Book Debts, Receivables:Readymade Garments.

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Description of the Machinery and other equipment items:-

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Sweing Machines.

The applicant Bank further contended that the Defendant have failed to keep his promises and commitments agreed by him with regard to due repayment of the loan amount. The Defendant 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 Defendant to pay with the agreed rate of interest thereon, but the Defendant failed and neglected to pay the same. The loan account of the Defendant became irregular and classified as NPA on 22.03.2020. Therefore on 16.03.2021, the applicant Bank issued legal notice to the Defendant through their Advocate. Despite service of Notice, the Defendant 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 despite service through paper publication. Hence, the Defendant was proceeded ex-parte vide

(OA No.75-2022)

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Order dated 21.01.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Waman S/o Tarachand Shripad, Chief Manager of the applicant bank and has produced on record the original loan transaction documents as Exh. A-I to A-V 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 Defendant 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 @13.80% per annum with monthly rests from 23.10.2021 till the full realization of the entire dues and costs from the Defendant. However, considering the facts of the case, I am of the opinion that awarding future interest at @9% per annum (simple), it

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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. 75/2022 is allowed with costs.

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(B) The Defendant shall pay to the Applicant Bank a sum of Rs. 26,69,381/- (Rs. Twenty Six Lakhs, Sixty Nine Thousand, Three Hundred and Eighty One only), alongwith future interest at @9% per annum (simple) from the date of filing of the Original Application, i.e., 26.10.2021, till full payment/ realization of the said amount.

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(C) The aforesaid adjudicated amount is secured by executing Agreement of loan Cum Hypothecation in favour of the Applicant Bank vide document AnnexureA-III in list of document Exh.5. The movable properties hypothecated to the applicant bank are described in Hypothecation Deed dated 28.06.2019 (Annexure A-III

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page Nos. 56 to 73) in list of documents Exh.5

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(D) The applicant Bank is entitled to sell the 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 Defendant.

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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 : 03.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.75-2022)

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[Ambadas]

State Bank of India v. Jeet Collection

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jeet Collection

Case brief

What is this about?

What did the court decide?

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