Allowed

State Bank of India v. Ananda Nagargoje

DRT29 Jul 2025OA/956/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by State Bank of India for recovery of dues from a defaulter. The court reduced the claimed penal interest and fixed future interest at 9%, directing the defendant to pay the adjusted amount with interest from the date of application.

What did the court decide?

The defendant shall pay Rs.40,03,143/- along with future interest @9% p.a. from 05.10.2022. Recovery Certificate issued.

State Bank of India versus Ananda Nagargoje — Contract and Commercial Disputes | DRT (2025)

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Presented on .. 05.10.2022 Registered on .. 14.06.2023 Decided on .. 29.07.2025 Duration .. Y—M—D 02--09--24

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 956/2023.

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State Bank of India,

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A Banking Company constituted under the State Bank of India Act, 1955 and having its Corporate Office at State Bank Bhavan, Nariman Point, Madam Cama Road, Mumbai 400 021 and its branch at – Miraj, where the Credit facilities were granted and thereafter account migrated to State Bank of India, Stressed Assets Recovery Branch, Second Floor, Wardhaman, Seven Loves Chowk, Plot No. 321/A/3, Mahatma Phule Peth, Pune 411042.

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… Applicant

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Versus

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Mr. Ananda Bapu Nagargoje, A Post Narwad, Taluka Miraj, District Sangli 416 409.

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… Defendant

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:- Appearances

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For Applicant Advocate Sudha Koloti. For Defendant Ex parte.

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Sanap ( OA No. 956/2023 ) 1 of 5

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Total Claim Amount – Rs.40,97,965/-

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JUDGMENT (Delivered on 29^th July, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.40,97,965/- together with future interest for KCC Loan @13.85% and for Term Loan @12.50% per annum from the date of Application till realization of the entire dues from the defendant.

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Brief facts of the application are as under :-

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As per the loan application of the defendant, the applicant Bank sanctioned the Kisan Cash Credit facility of Rs.19,33,000/- to the defendant for cultivation of crops vide Letter of Arrangement dated 06.07.2015.

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Again as per the loan application of the defendant for renewal of previously sanctioned short term loan (KCC), the applicant Bank renewed the KCC loan of Rs.14,52,000/- vide Letter of Arrangement dated 29.06.2016. The defendant has also executed Revival Letter dated 12.06.2018 and admitted execution of all loan documents.

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Thereafter, again as per the application dated 28.02.2019 of the defendant for grant of Crop loan i.e. Term Loan, the applicant Bank sanctioned the Term Loan

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Sanap ( OA No. 956/2023 ) 2 of 5

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facility of Rs.10,00,000/- to the defendant for renovation of grape garden and provision of drainage facility to farm vide Letter of Arrangement dated 13.03.2019. In order to secure the aforesaid loan facility, the defendant has executed necessary loan and security documents along with hypothecation agreement of standing crops, in favour of the applicant Bank.

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The applicant Bank contended that the defendant committed defaults in payment of installments and failed to regularize the accounts. Hence, on 24.09.2020, the applicant Bank has classified the account of the defendant as Non Performing Asset in accordance with guidelines of Reserve Bank of India. Therefore, on 05.09.2022, the applicant Bank issued Recall Notice to the defendant. Despite service of Notice, the defendant failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendant as per Order dated 22.04.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Smt. Jyoti Bandmantri, Assistant General

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Sanap ( OA No. 956/2023 ) 3 of 5

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Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-26 along with list (Exhibit 7), 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 evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed Penal Interest of Rs.94822/- (Rs.50,447/- for KCC loan account + Rs.44,375/- for Term Loan), which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.40,97,965/- is reduced to Rs.40,03,143/-.

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The applicant Bank has claimed future interest for KCC Loan @13.85% and for Term Loan @12.50% per annum. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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O R D E R

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Sanap ( OA No. 956/2023 ) 4 of 5

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A} Original Application No. 956/2023 is allowed with proportionate costs.

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B} The defendant shall pay to the applicant Bank the sum of Rs.40,03,143/- (Rupees Forty Lakhs Three Thousand One Hundred Forty Three only) along with future interest @9% per annum from the date of filing of the Original Application i.e. 05.10.2022 till full payment/realization of the amount mentioned in this operative order.

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C} Issue Recovery Certificate.

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D} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendant.

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 29.07.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 956/2023 ) 5 of 5

State Bank of India v. Ananda Nagargoje

Case brief

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State Bank of India v. Ananda Nagargoje

Case brief

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