Allowed

State Bank of India v. M/S Nipun Traders

DRT22 Sept 2025OA/842/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 82,02,359/-. It ordered payment of principal, future interest at 10% p.a., and directed the issue of a recovery certificate to sell hypothecated assets for dues recovery.

What did the court decide?

Defendant to pay Rs. 82,02,359/- plus future interest at 10% p.a.; recovery certificate issued allowing sale of hypothecated goods.

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

¶1

Presented on: 11.10.2024 Registered on: 24.10.2024 Decided on: 22.09.2025 Duration: Y M D 00 10 28

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.842/2024

¶3

TOTAL CLAIM AMOUNT – Rs. 82,02,359/-

¶4

STATE BANK OF INDIA

¶5

A body corporate constituted under the State Bank of India Act, 1955, having its Local Head Office at, Bandra Kurla Complex, Mumbai and one of its branch At Stressed Assets Recovery Branch, through one of its officer i.e. Manager, Shri. Bashir S/o. Mohammadhanif Kazi, Age: 52 Years, Occupation: Service as Manager, State Bank of India, Stressed Assets Recovery

… Applicant

(OA No.842-2024)

Page 1 of 8

[Ambadas]

Branch, at Chhatrapati Sambhajinagar, and having Authority to file the Application which includes the authority to sign and verify the application.

¶11

Versus

¶12

M/s. NIPUN TRADERS … Defendant (Proprietor: Mrs. Bhagwati Dinesh Singare)

¶13

Address:- C/o. Ram Singare, Shop No.24A,

¶14

New Mondha, Jalna, Taluka and

¶15

District Jalna-431203.

¶16

Mob. No. 8830012956, 7972062122, 9421194739 And

¶17

Near Vitthal Mandir, Kadrabad, Pani Ves, Jalna, Taluka and Dist. Jalna-431203.

¶18

Mob. No. 8830012956, 7972062122, 9421194739

(OA No.842-2024)

Page 2 of 8

[Ambadas]

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

¶23

J U D G M E N T

¶24

Delivered on (22.09.2025)

¶25

The Applicant Bank has filed the present application for recovery of the sum of Rs. 82,02,359/- (Rs. Eighty Two Lacs, Two Thousand, Three Hundred and Fifty Nine Only) together with interest @12.40% per annum in respect of Cash Credit Loan Account with monthly rests upon from 08.10.2024 till the full realization of the entire dues and costs from the Defendant.

¶26

Brief facts of the application are as under:

¶27

That the Defendant approached the Applicant Bank and requested the sanction of a Cash Credt Loan facilities of Rs. 90,00,000/- (Rs. Nineteen Lacs Only) as working capital for trading to its borrower on 11.07.2023, vide Letter of Arrangement dated 11.07.2023 on certain terms & conditions.

(OA No.842-2024)

Page 3 of 8

[Ambadas]

The agreed rate of interest for the Term Loan facilities was @12.40% per annum with monthly rests.

¶32

In order to secure the aforesaid Cash Credit Loan, the Defendant executed loan documents in favour of the applicant bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking etc.

¶33

The applicant bank contended that to secure the Cash Credit Loan, the Defendant executed Agreement of loan Cum Hypothecation dated 11.07.2023, and defendant further submits that, Bhagwati Dinesh Shingare has given her personal guarantee and executed the Guarantee Agreement dated 11.07.2023 to secure the loan facility, and hypothecated the following properties in favour of the applicant bank:

¶34

Description of Hypothecated Assets

¶35

Hypothecated the existing as well as future entire stocks, row

¶36

material, stock in process and receivables stores and row

(OA No.842-2024)

Page 4 of 8

[Ambadas]

material of the shop or some other places including goods in

¶41

transit, outstanding moneys, books debts and receivables.

¶42

The applicant Bank further contended that the Defendant has 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. Therefore on 19.09.2024, the applicant Bank issued legal notice to the Defendant through their Advocate on 23.098.2024. Despite service of Notice, the Defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

¶43

The defendant failed to appear despite service. Hence, defendant

(OA No.842-2024)

Page 5 of 8

[Ambadas]

was proceeded ex-parte vide Order dated 10.02.2025.

¶48

The applicant Bank has filed Evidence Claim Affidavit of Exh.4 of Bashir Mohammadhanif Kazi, officer of the applicant bank and has produced and taken on record loan transaction documents as per Evidence Affidavit for Marking Exhibit as Exh. AW-1 to AW-8 and list of documents is Exh.5 which corroborates the case of the applicant Bank.

¶49

I have heard arguments of the learned Advocate for the applicant Bank.

¶50

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.

¶51

The Applicant Bank has claimed future interest at @12.40% per annum with monthly rests from 08.10.2024 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 @10% per annum (simple), it

(OA No.842-2024)

Page 6 of 8

[Ambadas]

would be just and reasonable.

¶56

Hence, I pass the following order.

¶57

ORDER

¶58

(A) Original Application No.842/2024 is allowed with

¶59

costs.

¶60

(B) The Defendant shall pay to the Applicant Bank a sum of Rs. 82,02,359/- (Rs. Eighty Two Lacs, Two Thousand, Three Hundred and Fifty Nine Only), along with future interest at @10% per annum (simple) from the date of filing of the Original Application, i.e., 11.10.2024, till full payment/ realization of the said amount.

¶61

(C) The aforesaid adjudicated amount is secured by Agreement of loan Cum Hypothecation in favour of the Applicant Bank vide document Exhibit AW-3 and annexure A-III in list of documents Exh.5. The movable

(OA No.842-2024)

Page 7 of 8

[Ambadas]

properties hypothecated to the applicant bank are described in Agreement of Loan Cum Hypothecation dated 11.07.2023 (Annexure A-III Page Nos. 71 to 81)

¶66

in list of documents Exh.5.

¶67

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

¶68

(E) Issue Recovery Certificate accordingly.

¶69

(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and Defendant.

¶70

(G) File be consigned to the record room.

¶71

Place : Aurangabad Date : 22.09.2025

¶72

Sd/-

¶73

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

¶74

(OA No.842-2024)

¶75

Page 8 of 8

¶76

[Ambadas]

State Bank of India v. M/S Nipun Traders

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Nipun Traders

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Idbi Bank versus Anjali Sanjay Kulkarni

Canara Bank versus Sahadev Vishwanath Nimbhore

Maharastra Gramin Bank versus Bhimashankar Gurunathappa Bawage

Bank of Maharashtra versus M/S City Enterprises

Canara Bank versus Haider Amir Jakate

Union Bank of India versus Changdeo Sahebrao Mhaske (Deceased)