Allowed

State Bank of India v. Mr. Chandrashekhar Rangnath Shinde

DRT15 Jun 2026OA/280/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the borrower's recovery application filed by State Bank of India against Mr. Shinde ex-parte. The court directed the defendant to pay the principal amount plus future interest at 10% p.a. and declared hypothecated assets as security.

What did the court decide?

Defendant directed to pay Rs. 34,51,936.95 plus future interest at 10% p.a.; hypothecated assets declared as security for recovery.

State Bank of India versus Mr. Chandrashekhar… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 03.08.2023 Registered on: 16.04.2024 Decided on: 15.06.2026 Duration: Y M D 02 10 13

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 280/2024

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TOTAL CLAIM AMOUNT – Rs. 34,51,936.95/-

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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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Mr. Chandrashekhar Rangnath Shinde, Prop. of M/s. S. S. Auto Components, Age: Major, Occ.: Business, R/o.: At L4, 14/2, N-2, CIDCO, Ramnagar, Aurangabad 431001.

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AND/OR

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Mr. Chandrashekhar Rangnath Shinde, Prop. of M/s. S. S. Auto Components, Age: Major, Occ.: Business,

(OA No.280/2024)

Page 1 of 11

[AMBADAS]

R/o.: At X-217, MIDC Area, Near Kamgar Chowk, Aurangabad 431001.

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AND/OR

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Mr. Chandrashekhar Rangnath Shinde, Prop. of M/s. S. S. Auto Components, Age: Major, Occ.: Business, R/o.: At Flat No. 12, Guruvihar Building, S. No. 982, Pune-Nashik, Road, Bhosari, Pune 411039.

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APPEARANCES

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…Defendant

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For the Applicant Mr. K.D. Pande -Advocate For Defendant Ex-parte

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JUDGMENT

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Delivered on 15.06.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 34,51,936.95/- (Rupees Thirty Four Lacs, Fifty One Thousand, Nine Hundred Thirty Six and Ninety Five 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:

(OA No.280/2024)

Page 2 of 11

[AMBADAS]

The Applicant Bank states that the Defendant 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. 15,00,000/for business purpose vide arrangement letter dated 01.07.2013 on certain terms and conditions. The agreed rate of interest for aforesaid loan facility was @12.95% 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. Thereafter, The Applicant Bank states that the Defendant had again approached and requested the Applicant Bank for renewal and enhancement of the said Cash Credit Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank was pleased to renew and enhance Cash Credit Facility to the extent of Rs. 20,00,000/- vide arrangement letter dated 10.03.2014 on certain terms and conditions. The agreed

(OA No.280/2024)

Page 3 of 11

[AMBADAS]

rate of interest for aforesaid loan facility was @13.25% per

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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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Subsequently, The Applicant Bank states that the Defendant had again approached and requested the Applicant Bank for renewal and enhancement of the said Cash Credit Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank was pleased to renew and enhance Cash Credit Facility to the extent of Rs. 30,00,000/- vide arrangement letter dated 13.02.2015 on certain terms and conditions. The agreed rate of interest for aforesaid loan facility was @12.75% 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.

(OA No.280/2024)

Page 4 of 11

[AMBADAS]

That Thereafter, the Defendant had again approached and requested the Applicant Bank for renewal and enhancement of the said Cash Credit Facility & sanction a fresh Term Loan. Upon considering the request and financial needs of the Defendant, the Applicant Bank was pleased to renew and enhance Cash Credit Facility to the extent of Rs. 30,00,000/- & sanctioned a Fresh Term Loan facility of Rs. 14,90,000/- vide arrangement letter dated 31.03.2016 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @12.30% & @12.45% per annum respectively with monthly rests. The Defendant also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment. Thereafter, The Applicant Bank states that the Defendant had again approached and requested the Applicant Bank for renewal of the said Cash Credit Facility. Upon considering the request and financial needs of the Defendant, the Applicant Bank was pleased

(OA No.280/2024)

Page 5 of 11

[AMBADAS]

to renew Cash Credit Facility to the extent of Rs. 30,00,000/- vide arrangement letter dated 13.01.2017 on certain terms and conditions.

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That Thereafter, the Defendant had again approached and requested the Applicant Bank for renewal of the said Cash Credit Facility & sanction a fresh Term Loan under GECL scheme. Upon considering the request and financial needs of the Defendant, the Applicant Bank was pleased to renew Cash Credit Facility to the extent of Rs. 30,00,000/- & sanctioned a Fresh Term Loan facility of Rs. 5,87,600/- vide arrangement letter dated 01.07.2020 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 12.30% & @ 9.25% per annum respectively with monthly rests. The Defendant also agreed to pay additional interest by way of liquidated damages in the event of any default in repayment.

(OA No.280/2024)

Page 6 of 11

[AMBADAS]

In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included arrangement letters, hypothecation agreements, DP Note, letter of undertaking, letter of consent, 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 agreements thereby hypothecating all kind of stock & book-debts, existing P & M, stocks and raw materials, receivables and other current assets of the firm, present and future. Material/Machinery/Equipment’s purchased out of Bank’s Finance.

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The applicant bank contended that the defendant has failed to keep his promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant failed to operate the loan account properly and failed to pay the agreed

(OA No.280/2024)

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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 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 14.06.2023. 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 he was duly served. Hence, the defendant was proceeded ex-parte as per Order dated 12.03.2026.

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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 applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-36 along with list of documentsExh.5 which corroborates the case of the applicant Bank.

(OA No.280/2024)

Page 8 of 11

[AMBADAS]

I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendant failed to appear and did not file the written statement and proceeded exparte, 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 charge over hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @ 12.40% & @9.75% p.a. respectively on the 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 outstanding amount, it would be just and reasonable rate of interest.

(OA No.280/2024)

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[AMBADAS]

ORDER

(A) Original Application No. 280/2024 is allowed with costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 34,51,936.95/- (Rupees Thirty Four Lacs, Fifty One Thousand, Nine Hundred Thirty Six and Ninety Five 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 all kind of stock & book-debts, existing P & M, stocks and raw materials, receivables and other current assets of the firm, present and future. Material/Machinery/Equipment’s purchased out of Bank’s Finance. vide hypothecation agreement at Exh. A-3, A-8. A-14, A-20, A-22 and A27 in the list of documents at Exh. 5.

(OA No.280/2024)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the hypothecated Stocks/ Plant & Machinery/ articles/goods/vehicles

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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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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.15.06.2026. Debts Recovery Tribunal, Aurangabad

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(OA No.280/2024)

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Page 11 of 11

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[AMBADAS]

State Bank of India v. Mr. Chandrashekhar Rangnath Shinde

Case brief

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State Bank of India v. Mr. Chandrashekhar Rangnath Shinde

Case brief

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