Allowed

State Bank of India v. M/S Amravati Trading Company Acting through Its Proprietor Shri Raj Shubhakaran

DRT8 May 2026OA/47/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by State Bank of India for recovery of a cash credit loan. The court directed joint and several payment of the principal amount and future interest, disallowing penal interest. A recovery certificate was issued.

What did the court decide?

Defendants to pay Rs. 1,62,21,729 with simple future interest @9% p.a. Evaluation of penal interest disallowed. Recovery certificate issued.

State Bank of India versus M/S Amravati Trading Company Acting… — Banking and Recovery | DRT (2026)

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Page 1 of 4 O.A. No. 47/2025

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PRESENTED ON : 28.11.2024 REGISTERED ON : 23.01.2025

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BEFORE THE PO, DEBTS RECOVERY TRIBUNAL, NAGPUR

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Delivered by Pankaj Kumar O.A. No. 47/2025

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State Bank of India

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: Applicant

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A Bank constituted under the State Bank of India Act, 1955 having one of its Branch at Stressed Assets Recovery Branch, 5, Sai Complex, 3rd Floor, Above Industrial Finance Branch, Bharat Nagar, Amravati Road, Nagpur440 010.

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Phone No. 0712-2567934, 2567345

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IFS Code: SBIN0010152 acting through its Chief Manager Smt. Sujata Anil Chauthaiwale, Mobile No. 94201 79170 e-mail: [email protected]

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having authority to file the Original Application which includes the authority to verify & sign the Original Application

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Versus

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M/s. Amravati Trading Company : Defendants

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a Proprietary concern, acting through its Proprietor

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Shri Raj Shubhakaran Madhogarhia, Aged about 24

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years; Occ: Business

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Plot No. 96, Khandelwal Market, Sakkarsath,

Amravati - 444 601

PAN: GKJPM2784L

Also at:

Madhogarhia Sadan, Siddhivinayak Colony, Vilas Nagar, Amravati-444 601

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Also at: Flat No. 202, Gukuldham Residency, Kharaiya Nagar, Amravati-444 604

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Page 2 of 4 O.A. No. 47/2025

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2. Shri Raj Shubhakaran Madhogarhia,

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Aged about – 24 Years, Occupation: Business Plot No. 96, Khandelwal Market, Sakkarsath, Amravati - 444 601 PAN: GKJPM2784L Also, at: Madhogarhia Sadan, Siddhivinayak Colony, Vilas Nagar, Amravati-444 601 Also, at: Flat No. 202, Gukuldham Residency, Kharaiya Nagar, Amravati-444 604

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Learned Counsels for Applicant	Adv. S N Kumar
	Adv. P P Joshi
Defendants Set Exparte On	26.11.2025

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JUDGMENT (Delivered on 8^th Day of May, 2026)

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This is an application filed by the applicant U/s 19 of RDB Act, 1993 against defendants for recovery of aggregate amount of Rs. 1,62,24,604/outstanding in Cash Credit Loan Account No. 42466004026 with costs and future interest @ 13.40% with monthly rests from the date of filing of O.A. till the date of realization .

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Though, defendants were duly served with the suit summons vide vide Diary No. 6298/2025, they failed to cause appearance before this Tribunal to defend their case despite granting several adjournments. Hence, the proceeding against defendants was set exparte on 26.11.2025.

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Page 3 of 4 O.A. No. 47/2025

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The applicant has filed its Claim Affidavit alongwith List of Documents, annexing therewith 4 documents vide Diary No.1032/2026. The original documents therein are marked as Exh. AW-1/1 to AW-1/3. The applicant has stated in the O.A. as well as in claim affidavit that penal interest of Rs. 2,875/- has been charged in the Loan Account.

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Heard Learned counsel for the applicant.

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As stated supra, defendants remained exparte. The Evidence Affidavit coupled with the recitals in the documents viz. Exh. AW -1/1 to AW-1/3 marked on behalf of the applicant, clinches the claim of the applicant against defendants. There is no reason to disbelieve the evidence adduced on behalf of applicant. Hence, defendants are liable to pay, jointly and severally, the claim of the applicant with costs and future interest. However, I am not inclined to allow the penal interest of Rs. 2,875/- charged in the Cash Credit Loan Account No . 42466004026.

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Hence, it is ordered as under:-

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ORDER

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A] O.A. No. 47/2025 is allowed to the extent as under with costs.

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B] Defendants to pay jointly and severally to the applicant bank an amount of Rs. 1,62,21,729/- (Rupees One Crore Sixty Two Lakh Twenty One Thousand Seven Hundred Twenty Nine Only) outstanding in Cash Credit Loan Account No. 42466004026 with simple future interest @9% p.a. from the date of filing of O.A. till its realization.

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Page 4 of 4 O.A. No. 47/2025

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C] It is also declared that charge of the outstanding dues is kept on hypothecated goods of defendant no. 1 referred in Schedule-I annexed to the O.A. and as referred in Exh. AW-1/2.

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D] Issue Recovery Certificate accordingly.

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E] The Registrar is directed to send the copy of Judgment and Recovery Certificate to the parties to this O.A at once.

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Nagpur

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Date: 08.05.2026

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(Pankaj Kumar) Presiding Officer Debts Recovery Tribunal Nagpur

State Bank of India v. M/S Amravati Trading Company Acting through Its Proprietor Shri Raj Shubhakaran

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State Bank of India v. M/S Amravati Trading Company Acting through Its Proprietor Shri Raj Shubhakaran

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