Allowed

State Bank of India v. M S Gauri

DRT22 Jul 2025TA/128/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's transfer application for recovery of ₹13,01,458/- comprising principal and interest on cash credit and term loans. Being ex-parte, the Tribunal directed defendants to pay the dues, secured the hypothecated assets, and issued a recovery certificate.

What did the court decide?

Defendants directed to pay ₹13,01,458/- with further interest; hypothecated securities secured; recovery certificate issued.

State Bank of India versus M S Gauri — Banking and Recovery | DRT (2025)

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023 IN TRANSFERRED ORIGINAL APPLICATION (L) NO.2226 OF 2022 IN ORIGINAL APPLICATION NO.538 OF 2013

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Date of Institution: 31.05.2013 Date of Decision: 22.07.2025

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TOTAL CLAIM AMOUNT : ₹ 13,01,458/-

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State Bank of India A body corporate constituted and functioning under the provisions of State Bank of India Act, 1955 having its Local Head Office at Synergy, ‘C-6’, G-Block, BandraKurla Complex, Bandra (East), Mumbai and amongst its other branches, a branch office known as State Bank of India, Dadar West Branch (20377) 81/83, Shalini Palace, Bhavani Shankar Road, Dadar (West), Mumbai – 400 028

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Represented by Branch Manager field officer Shri Deepak Bansal

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… Applicant

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Versus

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M/s Gauri a) 8/B, 303 Alica Nagar, Lokhandwala Complex, Kandivali (East), Mumbai – 400 101

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Page 1 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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b) S-1, 504, Udyog Nagar, Kamla Vihar, Mahavir Nagar, Kandivali (West), Mumbai – 400 067 c) Yasodhan Industries, Bombay Talkies Compound, Malad (West), Mumbai – 400 064 2. Mr Siddhesh J. Rane Proprietor of M/s Gauri, a) 8/B, 303 Alica Nagar, Lokhandwala Complex, Kandivali (East), Mumbai – 400 101 b) S-1, 504, Udyog Nagar, Kamla Vihar, Mahavir Nagar, Kandivali (West), Mumbai – 400 067 c) Yasodhan Industries Bombay Talkies Compound, (West), Mumbai – 400 064 …Defendants

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APPEARANCES

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For the Applicant : Mr Anshuman Upadhyay i/b Mrs Rathina Maravaraman - Advocate For Defendants : None – Advocate

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J U D G M E N T

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(1) This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹8,83,734/- in respect of

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Page 2 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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Cash Credit Loan with further interest thereon at the contractual (Base Rate) rate of interest at 13% per annum and ₹4,17,724/- and in respect of Term Loan with further interest thereon at the contractual rate of interest at 13.50% per annum aggregating to ₹13,01,458/- from the date of presentation of the Original Application i.e. 31.05.2013 till payment/realization and to enforce the hypothecated securities.

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The details of the claim amount are as under: -

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Sr	Nature of	O/s. as on	Interest	Total
No	Facility	31.05.2013	accrued up to
			31.05.2013
1	Cash Credit	₹7,99,007.97/-	₹84,726.03/-	₹8,83,734/-
2	Term Loan	₹3,92,642.33/-	₹25,081.67/-	₹4,17,724/-
	Grand Total			₹13,01,458/-

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(2) It is undisputed fact in the matter that the Defendant nos.1 and 2 were duly served with the summons vide order-sheet dated 18.01.2024. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte vide order dated 02.07.2025.

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(3) Defendant no. 1 is the principle borrower who through Defendant No.2 acting in the capacity of Proprietor of Defendant No.1 approached the Applicant Bank seeking financial assistance by way of Cash Credit Facility and Term Loan Facility. Pursuant to the loan application vide Loan Application dated 22.08.2010 made by

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Page 3 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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defendant, the Applicant sanctioned vide Sanction Letter dated 07.09.2010 the loan in sum of ₹5,00,000/- for Cash Credit Loan Facility and ₹5,00,000/- for Term Loan Facility aggregating to ₹10,00,000/-. Further on the request of the Respondent, the Applicant enhanced the said Cash Credit loan Facility vide Sanction Letter/Letter of Arrangement dated 21.09.2011 to an amount of ₹8,00,000/- to the extent of aggregate limit of ₹13,00,000/-. The said loan is covered under CGTMSE Scheme.

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The details of the Sanction amount are as under: -

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S	Date of	Nature of	Amount	ROI	Security
r N o	Sanction	Facility
1	07.09.2010	Cash Credit	₹5,00,000/-	13% p.a.	Hypothecated Movables/goods/mac hinery viz. 6406- Patriot Megaject, Patriot SSA Autohead as per invoice no. E237 and fibreglass materials, ployster resin, foam etc, semi finished & finished doors & further
		Term Loan	₹5,00,000/-	13.05% p.a.	receivables, claims & Book debts.
2	21.09.2011	Cash Credit (Enhanced)	₹8,00,000/-	13.05% p.a.	Hypothecation of Stock and Receivables covered under CGTMSE Scheme.
	Total		₹13,00,000/-

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Page 4 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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(4) On 07.09.2010, 06.11.2010, 21.09.2011 and 29.12.2012, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.E (ii) & (iii) (Page No.7 & 8) of the Original Application. Defendants hypothecated Movables/goods/machinery viz. 6406-Patriot Megaject, Patriot SSA Autohead as per invoice no. E237 and fibreglass materials, ployster resin, foam etc, semi finished & finished doors & further receivables, claims & Book debts vide Hypothecation Deeds dated 06.11.2010 and 21.09.2011 to secure the loan.

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The details of the documents executed by the Defendant vide Sanction Letter dated 07.09.2010 are as under: -

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(a) Accepted Letter of Arrangement for ₹10.00 Lakhs dated 07.09.2010;

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(b) Agreement of Loan cum Hypothecation dated 07.09.2010 executed by Defendant No.1 for Cash Credit limit of ₹ 5.00 Lakhs;

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The details of the documents executed by the Defendant vide Sanction Letter dated 21.09.2011 are as under: -

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(a) Agreement of Loan-cum-Hypothecation dated

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Page 5 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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21.09.2011 executed by Defendant No.1;

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(b) Demand Promissory Note dated 21.09.2011 executed by Defendant No.1 for an amount ₹80,00,000/-;

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(d) Acknowledgment of Debt & Security letter dated 29.12.2012 for Term Loan Account and Cash Credit Account separately.

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(5) After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 29.01.2013 as per RBI Guidelines. Therefore, on 25.05.2013, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹12,93,159/- due and payable for both facilities with further applicable rate of interest winthin 2 daysfrom the receipt of the notice. Despite notice, defendant nos. 1 and 2 failed and neglected to pay.

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(6) As on 31.05.2013, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹13,01,458/-. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

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Page 6 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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(7) Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 31.05.2013.

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(8) The applicant has filed affidavit (exhibit-9) in lieu of examination in chief of Mr Deepak Bansal Branch Manager and list of documents (exhibit10) thereby adducing in evidence the documents at exhibits-A-1 to A-14, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed as on 31.05.2013 for the recovery of ₹8,83,734/in respect of Cash Credit Loan with further interest thereon at the contractual rate of interest at 13% per annum and ₹4,17,724/- as on 31.05.2013 in respect of Term Loan with further interest thereon at the contractual rate of interest at 13.50% per annum aggregating to ₹13,01,458/from the date of presentation of the Original Application i.e. 31.05.2013 till payment/realisation.

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(10) The Tribunal has scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

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(11) Upon careful scrutiny and the examination of the Original Application, analysing the evidence and

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Page 7 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

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(12) In view of the observations made hereinabove, Original Application filed by the applicant deserves to be allowed.

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(13) Hence, the following order:

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ORDER

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(A) The Transferred Original Application No.128 of 2023 in Original Application No.538 of 2013 is allowed with costs.

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(B) Defendant nos. 1 and 2 are ordered and directed to pay to the applicant, either jointly or severally, the aggregated sum of ₹13,01,458/- i.e. ₹8,83,734/- in respect of Cash Credit Loan with further interest thereon at the contractual rate of interest at 13% per annum and ₹4,17,724/- in respect of Term Loan with further interest thereon at the contractual rate of interest at 13.50% per annum from the Original Application’s presentation date, that is, 31.05.2013 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Movables/goods/machinery viz. 6406Patriot Megaject, Patriot SSA Autohead as per invoice no. E237 and fibreglass materials, ployster

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Page 8 of 9

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TRANSFERRED ORIGINAL APPLICATION NO.128 OF 2023

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resin, foam etc, semi finished & finished doors & further receivables, claims & Book debts vide Hypothecation Deeds dated 06.11.2010 and 21.09.2011.

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(D) Defendant nos. 1 and 2 are entitled to redeem the hypothecated securities as per law failing which the applicant has right to proceed to sell the hypothecated securities and recover dues as per law.

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(E) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme.

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(F) Issue Recovery Certificate.

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(G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

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Sd/-

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(Harish Kumar Kaushik)

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Presiding Officer, DRT-2, Mumbai

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Page 9 of 9

State Bank of India v. M S Gauri

Case brief

What is this about?

What did the court decide?

State Bank of India v. M S Gauri

Case brief

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What did the court decide?

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