Allowed

State Bank of India v. Ishwari Enterprises

DRT22 Sept 2025OA/846/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's application for recovery of outstanding dues totaling Rs. 37,38,877/- from Eshwari Enterprises. The court dismissed the ex-parte defendant's case due to non-appearance and ordered repayment with interest.

What did the court decide?

Defendant to pay Rs. 37,38,877/- plus future interest at 9% simple per annum from 21.09.2024; recovery certificate issued.

State Bank of India versus Ishwari Enterprises — Banking and Recovery | DRT (2025)

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Presented on: 21.09.2024 Registered on: 25.10.2024 Decided on: 22.09.2025 Duration: Y M D 00 10 27

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No.846/2024

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TOTAL CLAIM AMOUNT – Rs. 37,38,877/-

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STATE BANK OF INDIA

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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 Dhondrai, Taluka Georai, District Beed through one of its officer i.e. Branch Manager, Shri. Rajkumar S/o. Maroti Chandawar, Age: 44 Years, Occupation:

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… Applicant

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Service as Branch Manager, State Bank of

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India, Branch Dhondrai, Taluka Georai, District Beed and having Authority to file the Application which includes the authority to

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sign and verify the application.

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Versus

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ESHWARI ENTERPRISES … Defendant Through its Proprietor, Smt. Sunita Gopal Lokhande, Age: 33 Years, Occupation: Business, R/o: In front of Civil and Criminal Court, Georai, Taluka Georai, Dist. Beed-431127. M. No.7020039015.

And

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Near Viththal Mandir, Sanjay Nagar, Georai,

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Taluka Georai, Dist. Beed-431127.

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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 (22.09.2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 37,38,877/- (Rs. Thirty Seven Lacs, Thirty Eight Thousand, Eight Hundred and Seventy Seven Only) together with interest @11.15% per annum in respect of Term Loan Account with monthly rests and @11.05% p.a. with monthly rests on Cash Credit loan facilities from 19.09.2024 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 Term Loan facilities of Rs. 16,40,000/- (Rs. Sixteen Lacs, Forty Thousand Only) and Cash Credit facilities of Rs. 08,50,000/- (Rs. Eight Lacs, Fifty Thousand Only) Total an amount of Rs. 24,90,000/- (Rs. Twenty Four Lacs, Ninety Thousand Only) to purchase of machinery and start the business to its borrower on 01.01.2020, and GECL Loan facility an amount of Rs. 5,00,000/- (Rs. Five Lacs Only) on 06.08.2020, on execution of various documents by the defendant vide Letter of Arrangement dated 01.01.2020 and Arrangement Letter dated 06.08.2020 on certain terms & conditions.

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The agreed rate of interest for the Term Loan facilities @11.15% per annum and Cash Credit facilities @11.05% per annum and GECL Loan [email protected]% per annum with monthly rests.

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In order to secure the aforesaid Term Loan and Cash Credit, 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.

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The applicant bank contended that to secure the Term Loan, the Defendant executed Agreement of loan Cum Hypothecation dated 02.01.2020, Supplementary Agreement of Loan cum Hypothecation dated 06.08.2020 and hypothecated the following properties in favour of the applicant bank:

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Description of Hypothecated Assets

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Hypothecated the existing as well as future entire stocks of

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the finished goods, stores and spares and spares packing

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materials and all equipment’s of the unit and some other

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places including goods in transit, outstanding moneys, books debts and receivables and also plants and machinery

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purchased out of bank finance.

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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

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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 30.09.2022, the applicant Bank issued legal notice to the Defendant through their Advocate on 20.08.2024. 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. Hence, defendant was proceeded ex-parte vide Order dated 05.02.2025.

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The applicant Bank has filed Evidence Claim Affidavit of Rajkumar S/o. Maroti Chandawar, officer of the applicant bank as Exh.4 and produced on record loan transaction documents as Annexure A-I to A-X along with list of documents Exh.5 which

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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 @11.15% per annum, @11.05% p.a., and @9.60% with monthly rests on all three loans from 01.03.2018 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) on outstanding amount, 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.846/2024 is allowed with

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costs.

(B) The Defendant shall pay to the Applicant Bank a sum of Rs. 37,38,877/- (Rs. Thirty Seven Lacs, Thirty Eight Thousand, Eight Hundred and Seventy Seven Only), along with future interest at @9% per annum (simple) on outstanding amount from the date of filing of the Original Application, i.e., 21.09.2024, 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 A- IV in list of documents Exh.5. The movable properties hypothecated to the applicant bank are described in Agreement of Loan Cum Hypothecation dated 02.01.2020 and 06.08.2020 (Annexure A-II Page Nos. 53 to 84 and Annexure A-IV Page Nos. 96 to 100) 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 : 22.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.846-2024)

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[Ambadas]

State Bank of India v. Ishwari Enterprises

Case brief

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State Bank of India v. Ishwari Enterprises

Case brief

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