Allowed

State Bank of India v. Mr. Sandip Bhimrao Awasarmol

DRT7 Jan 2026OA/31/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by State Bank of India for recovery of Rs. 33,39,117.05/- from the defendant, who failed to appear. The Tribunal directed the defendant to pay the principal sum plus future interest at 9% p.a. secured by Irrevocable Standing Instructions.

What did the court decide?

The defendant must pay Rs. 33,39,117.05/- along with future interest at 9% per annum simple, secured by Irrevocable Standing Instructions, and a Recovery Certificate is to be issued.

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

¶1

Presented on: 03.12.2024 Registered on: 13.01.2025 Decided on: 07.01.2026 Duration: Y M D 01 01 04

¶2

IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 31/2025

¶3

TOTAL CLAIM AMOUNT – Rs. 33,39,117.05/-

¶4

State Bank of India,

¶5

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 at Ramdas Tower, Aurangabad & having Stresses Assets Recovery Branch (SARB) at Plot No. 79, N-5, CIDCO, Chh. Sambhajinagar431003, through its Authorized Officer, Mr. Dinesh Ashok Bhagurkar (Dy. Manager & CCO), Age: 47 yrs., Occu.: Service, R/o. CIDCO, Chh. Sambhajinagar.

¶6

Versus

¶7

Mr. Sandip Bhimrao Awasarmol, Age: Major, Occ.: Service, R/o.: At Flat No. 405, Rangoli Apartment Arch Angan, Plot No. 01, Gut No. 107, Mitmita Chh. Sambhajinagar 431001.

… Applicant

…Defendant.

(OA No.31/2025)

Page 1 of 7

[AMBADAS]

APPEARANCES

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

¶15

JUDGMENT

¶16

Delivered on 07.01.2026

¶17

The Applicant Bank has filed the present application for the recovery of a sum of Rs. 33,39,117.05/- (Rupees Thirty Three Lacs, Thirty Nine Thousand, One Hundred Seventeen and Five Paisa only), along with further interest from the date of filing of the Original Application, i.e., 03.12.2024, until the date of realization of the entire outstanding dues from the Defendant.

¶18

Brief facts of the application are as under:

¶19

The Applicant Bank states that the Defendant had approached and requested the Applicant Bank for Term loan. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Term loan of Rs. 32,00,000/- vide arrangement letter dated 15.02.2024 on certain terms and conditions. The agreed rate of interest for aforesaid loan facility

(OA No.31/2025)

Page 2 of 7

[AMBADAS]

was @ 11.90% per annum with monthly rests. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

¶24

In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included arrangement letter, personal loan agreement, letter of undertaking & Irrevocable Standing Instructions given by the borrower to the Bank Dated 15.02.2024 etc.

¶25

The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant executed Irrevocable Standing Instructions , dated 15.02.2024 , in favour of the Bank. By virtue of the said instructions, the Bank is authorized to collect and receive any amounts payable towards the Defendant’s provident fund, gratuity, pension, or any other similar dues.

¶26

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

(OA No.31/2025)

Page 3 of 7

[AMBADAS]

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 13.10.2024. Therefore, on 16.11.2024 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.

¶31

The defendant failed to appear in matter though he was served through paper publication. Hence, the defendant was proceeded ex-parte as per Order dated 17.09.2025.

¶32

The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Dinesh Ashok Bhagurkar, Authorized Officer of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-8 along with list of

(OA No.31/2025)

Page 4 of 7

[AMBADAS]

documentsExh.5 which corroborates the case of the applicant Bank.

¶37

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

¶38

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.

¶39

The applicant Bank has claimed charge over the Defendant’s salary and other employment-related benefits.

¶40

The applicant Bank has claimed future interest @ 11.90% p.a. from the date of filing i.e. 03.12.2024 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) on outstanding amount, it would be just and reasonable rate of interest.

(OA No.31/2025)

Page 5 of 7

[AMBADAS]

ORDER

(A) Original Application No. 31/2025 is allowed with costs.

¶46

(B) The defendant shall pay to the applicant Bank a sum of Rs. 33,39,117.05/- (Rupees Thirty Three Lacs, Thirty Nine Thousand, One Hundred Seventeen and Five Paisa only), along with future interest @ 9% per annum (simple) from the date of filing of the Original Application i.e. 03.12.2024 till full payment/realization of the amount mentioned in this operative order.

¶47

(C) The aforesaid adjudicated amount is secured by the Irrevocable Standing Instructions dated 15.02.2024, under which the Applicant Bank is authorized to recover its dues from the Defendant’s salary and other employment-related benefits at Exh A-5 in list of documents Exh. 5.

(OA No.31/2025)

Page 6 of 7

[AMBADAS]

(D) The applicant Bank is entitled to recover its dues in

¶52

terms of document Exh. A-5.

¶53

(E) Issue Recovery Certificate accordingly.

¶54

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

¶55

(G) File be consigned to the record room.

¶56

Sd/Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.07.01.2026 Debts Recovery Tribunal, Aurangabad

¶57

(OA No.31/2025)

¶58

Page 7 of 7

¶59

[AMBADAS]

State Bank of India v. Mr. Sandip Bhimrao Awasarmol

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mr. Sandip Bhimrao Awasarmol

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus M/S Mauli Agriclinic and Business Centre

Bank of Maharashtra versus M/S Satyam Trading Company

Union Bank of India versus Mr. Chandulal Naval Patil

Bank of Maharashtra versus Sunita Sharad Bhadane

Bank of Maharashtra versus Mrs. Vidya Santosh Zalte

Union Bank of India versus Sundarrao Madhavrao Kadam (Deceased)