Allowed

Punjab National Bank v. Shri Sai Sharan Automobiles

DRT20 Mar 2026OA/192/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Punjab National Bank against Shri Sai Sharan Automobiles and its proprietor for recovery of a cash credit facility. In the absence of the defendants, the court awarded the claim amount along with future interest at 9% per annum and directed the issuance of a recovery certificate.

What did the court decide?

The respondents were ordered to pay Rs. 85,91,038/- with future interest at 9% p.a. from 05.03.2023, and a recovery certificate was issued.

Punjab National Bank versus Shri Sai Sharan… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 05.08.2023 Registered on: 14.03.2024 Decided on: 20.03.2026 Duration: Y M D 02 07 15

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 192/2024

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TOTAL CLAIM AMOUNT – Rs. 85,91,038/-

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Punjab National Bank,

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A Body Corporate constituted under the Banking companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-75, and one of its Branch at Ulkanagri, Garkheda, Near Chetak Ghoda, A’bad, through its Senior Branch Manager, Mr. Rahul Nathaji Potphode .

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… Applicant

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Versus

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1. Shri Sai Sharan Automobiles,

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Through its Prop. Mr. Deepak Haribhau Sonavane, Khivansara Park, Plot No. 22, Ulkanagari, Garkheda Parisar, Aurangabad.

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2. Mr. Deepak Haribhau Sonavane

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Age: 51 years, Occ.: Business, R/o.: Plot No. 22, Ulkanagari, Khivansara Park, Garkheda Parisar, Aurangabad.

…Defendants

(OA No.192/2024)

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APPEARANCES

For the Applicant For Defendants

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Mr. Sameer J. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 20.03.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 85,91,038/- (Rupees Eighty Five Lacs, Ninety One Thousand and Thirty Eight only), along with future interest from the date of filing of the Original Application, i.e., 05.03.2023, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 through its Prop. Defendant No. 2 had approached and requested the Applicant Bank for Cash Credit Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank Sanctioned Cash Credit Facility of Rs. 90,00,000/- vide sanction letter dated 05.05.2021 on certain terms and conditions. The

(OA No.192/2024)

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[AMBADAS]

agreed rate of interest for the aforesaid loan was @ 8.10 % p.a.

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with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any

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default in repayment.

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In order to secure the aforesaid loan facility, the Defendants executed various loan documents in favour of the Applicant Bank.

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These included sanction letter, letter of undertaking, hypothecation agreement dated 12.05.2021 and Master Agreement etc., in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants executed hypothecation agreement dated 12.05.2021 thereby hypothecating goods and book debt etc., in favour of the Applicant Bank.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly and failed to pay the agreed

(OA No.192/2024)

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[AMBADAS]

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 defendants to pay with the agreed rate of interest thereon, but the defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 03.06.2023. Therefore, on 13.06.2023 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear in matter though duly served through court commissioner. Hence, the defendants were proceeded ex-parte as per Order dated 20.06.2025.

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The applicant Bank has filed Evidence Affidavit of evidence at Exhibit-4 of Mr. Rahul s/o. Nathaji Potphode, Power of Attorney Holder of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-16

(OA No.192/2024)

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along with list of documents Exh.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 defendants 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 @15% p. a. from the date of filing i.e. 05.03.2023 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 @ 9% per annum (simple), it would be just and reasonable rate of interest. ORDER

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(A) Original Application No. 192/2024 is allowed with costs.

(OA No.192/2024)

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[AMBADAS]

(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 85,91,038/- (Rupees Eighty Five Lacs, Ninety One Thousand and Thirty Eight only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 05.03.2023 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 goods and book debts vide document at Annexure A-5 in list of documents Exh. 5.

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

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(E)

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(E) Issue Recovery Certificate accordingly.

(OA No.192/2024)

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

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.20.03.2026

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

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(OA No.192/2024)

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[AMBADAS]

Punjab National Bank v. Shri Sai Sharan Automobiles

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Punjab National Bank v. Shri Sai Sharan Automobiles

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