Allowed

State Bank of India v. Bharati Lalit Mali

DRT4 Nov 2025OA/91/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Aurangabad allowed an original application filed by State Bank of India against a defaulting borrower. The tribunal adjudicated a claim of Rs. 22,88,505.63 and granted future interest at 10% p.a., securing the recovery via hypothecated assets.

What did the court decide?

Respondent to pay applicant Rs. 22,88,505.63 with future interest @10% p.a. from 03.08.2023 until realization; applicant entitled to sell hypothecated goods.

State Bank of India versus Bharati Lalit Mali — Contract and Commercial Disputes | DRT (2025)

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Presented on: 03.08.2023 Registered on: 15.02.2024 Decided on: 04.11.2025 Duration: Y M D 02 03 01

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 91/2024

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TOTAL CLAIM AMOUNT – Rs. 22,88,505.63/-

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State Bank of India, A body corporate constituted under the provisions 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 SMECCC, Ground Floor, N—5, Town Centre, CIDCO, Aurangabad through Chief Manager, Mr. Kiran Vishwanath Kherud, Age: Major, Occ.: Service, R/o. CIDCO, Aurangabad 431003.

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… Applicant

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Versus

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Mrs. Bharati Lalit Mali, Prop. of M/s. Tulsi Agro, Age: Major, Occ.: Business, R/o.: F-20/2E Sector, Near NRB, MIDC Chikalthana, Aurangabad 431001.

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AND/OR

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Mrs. Bharati Lalit Mali, Prop. of M/s. Tulsi Agro, Age: Major, Occ.: Business,

(OA No.91/2024)

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[AMBADAS]

R/o.: D-97/12, 11 Scheme, Near Jain Mandir, Shivajinagar, CIDCO, Aurangabad 431005.

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…Defendant

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APPEARANCES

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For the Applicant For Defendant

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Mr. K.D. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 04.11.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 22,88,505.63/- (Rupees Twenty Two Lacs, Eighty Eight Thousand, Five Hundred Five and Sixty Three Paisa only), along with further interest from the date of filing of the Original Application, i.e., 03.08.2023, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant had approached and requested the Applicant Bank for Cash Credit Facility & Term loan facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Cash Credit Facility

(OA No.91/2024)

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[AMBADAS]

of Rs. 5,70,000/- and Term loan facility of Rs. 14,25,000/- vide

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arrangement letter dated 20.01.2022 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 10.50% per annum with monthly rests. The Defendant also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included arrangement letter, hypothecation agreement, DP Note, Article of agreement, etc., in favor of the applicant bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the defendant executed hypothecation agreement dated 20.01.2022 thereby hypothecating stock & book-debts, raw materials, stock in process and finished goods and receivables, plant & machinery purchased out of bank’s finance etc.

(OA No.91/2024)

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[AMBADAS]

The applicant bank contended that the defendant has failed to keep her promise and commitments agreed by her 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 03.11.2022. Therefore, on 25.07.2023 the applicant bank issued legal Notice to the defendant. 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 in matter though she was served through court commissioner. Hence, the defendant was proceeded ex-parte as per Order dated 28.03.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Kiran Vishwanath Kherud, Chief Manager of the

(OA No.91/2024)

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[AMBADAS]

applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-11 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 defendant 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. 10. The applicant Bank has claimed charge over hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @12.40% & @12.65% p.a. on aforesaid loans from the date of filing i.e. 03.08.2023 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @10% per annum (simple) on

(OA No.91/2024)

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[AMBADAS]

outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 91/2024 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 22,88,505.63/- (Rupees Twenty Two Lacs, Eighty Eight Thousand, Five Hundred Five and Sixty Three Paisa only) along with future interest @10% per annum (simple), from the date of filing of the O.A. i.e. 03.08.2023 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 hypothecation of stock & book-debts, raw materials, stock in process and finished goods and receivables, plant & machinery purchased out of bank’s finance etc. vide hypothecation agreement dated 20.01.2022 at Exh. A-3 in the list of documents at Exh. 5.

(OA No.91/2024)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the hypothecated

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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 defendant.

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(G) File be consigned to the record room.

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Sd/Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.04.11.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.91/2024)

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[AMBADAS]

State Bank of India v. Bharati Lalit Mali

Case brief

What is this about?

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State Bank of India v. Bharati Lalit Mali

Case brief

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