Allowed

State Bank of India v. Ms Pais Agro Processing Pvt. Ltd.

DRT24 Aug 2026OA/522/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by State Bank of India to recover a sum of over Rs. 3.26 crore along with future interest from two defendants who failed to repay agricultural loans and did not appear to contest the claim.

What did the court decide?

Defendants to pay Rs. 3,26,37,990/- plus future interest at 11% per annum; power to sell mortgaged and hypothecated assets; issuance of Recovery Certificate.

State Bank of India versus Ms Pais Agro Processing Pvt. Ltd. — Company and Corporate | DRT (2026)

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Presented on: 21.07.2025 Registered on: 26.08.2025 Decided on: 24.08.2026 Duration: Y M D 01 01 03

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 522/2025

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TOTAL CLAIM AMOUNT – Rs. 3,26,37,990/-

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State Bank of India

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(SME) Shrirampur Ahilyanagar, is a body corporate constituted under the State Bank of India (SME) Shrirampur Ahilyanagar, Act, 1955 having a SME Branch, at Shrirampur, through its Manager, through Mr. Nilay Mahadeorao Sorte, Deputy Manager, SME Shrirampur Ahilyanagar, Age: 52 years, Occ.: Service, R/o.: Aurangabad.

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… Applicant

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Versus

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1. M/s Pais Agro Processing Pvt. Ltd., Through. Prop. Sandip Dilip Alwane,

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Age: Major, Occupation: Business, R/o.: Kadu Lane, Newasa Kh. Rural, Tq. Newasa, Dist. Ahilyanagar 414603 AND Office at: Gut No. 372 H. No. 1048, Suwarnyog Mokota Newasa, Tq. Newasa, Dist. Ahilyanagar.

(OA No.522/2025)

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[AMBADAS]

2. Deepak Dattatray Shinde, Sadshiv Nagar, Vivekanand Nagar, Tq. Newasa, Dist. Ahilyanagar 414603

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…Defendants

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APPEARANCES

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Mr. A.L. Muley Advocate Ex-parte

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For the Applicant For Defendants

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JUDGMENT Delivered on 24.08.2026

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The Applicant Bank has filed the present application for the

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recovery of a sum of Rs. 3,26,37,990 /- (Rupees Three Crore, Twenty Six Lacs, Thirty Seven Thousand, Nine Hundred and Ninety only), along with further interest from the date of filing of the Original Application, i.e., 21.07.2025, until the date of realization of the entire outstanding dues from the Defendants. Brief facts of the application are as under:

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That, the Defendant No. 1 & 2 had approached to the Applicant bank and requested for financial assistance. Upon considering the request and need of the defendant, the Applicant Bank Sanctioned Working Capital of Rs. 90 lacs & Term Loan of Rs. 110 lacs vide

(OA No.522/2025)

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[AMBADAS]

arrangement letter dated 29.09.2022 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 13.40% p.a. with monthly rests. The defendants also agreed to pay an additional interest @2% by way of liquidated damages in case of default in repayment.

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Thereafter, the defendant no. 1 & 2 approached the applicant bank for renewal of the said facilities & sanction another term loan. Upon considering the request and need of the defendants, the Applicant Bank renewed the Working Capital of Rs. 90 lacs & Term Loan 1 of Rs. 110 lacs & sanctioned Term loan 2 of Rs. 3 Crore 25 lacs vide arrangement letter dated 10.03.2024 on certain terms and conditions.

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Subsequently, the defendant no. 1 & 2 again approached the applicant bank for renewal of the said facilities. Upon considering the request and need of the defendants, the Applicant Bank renewed the Working Capital of Rs. 90 lacs, Term Loan 1 of Rs.

(OA No.522/2025)

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[AMBADAS]

110 lacs & Term loan 2 of Rs. 1 Crore 24 lacs vide arrangement

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letter dated 01.03.2025 on certain terms and conditions.

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In order to secure the aforesaid loan facilities, the Defendants executed various loan documents in favour of the Applicant Bank, including the sanction letters, hypothecation agreements, personal deed of guarantee, registered mortgage deed vide no. 1413/2023 dated 13.03.2023 etc., in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan Facilities, the Defendants created first charge over mortgage property thereby executed registered mortgage deed vide nos. 1413/2023 & 2254/2024 dated 13.03.2023 & 15.04.2024. The mortgage was created in respect of the following property:

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All that piece and parcel of Gat 372/1, on Makota Road, Near Suvarnayog Hotel, Village Newasa Bk, Newasa, Ahmednagar, admeasuring area of 4000 Sq. m. Net are 2536.283 sq. meter belonging to Mr. Deepak Shinde and bounded as under:-

(OA No.522/2025)

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[AMBADAS]

North: Shiv Road, East: Land of Suresh Jadhav and Kishor Jadhav, South: Land of Balasaheb Kulkarni, West: Gat 372.

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The defendants also executed hypothecation agreement thereby hypothecating existing as well as future entire stocks of RM. SIP, finished goods, paid inventory, packing materials, & Debtors as well as cotton seed oil DOC plant, construction of shade and any

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other machinery purchased out of bank finance.

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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 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 23.05.2025. Therefore, on

(OA No.522/2025)

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[AMBADAS]

26.06.2025 the applicant bank issued legal Notice to the defendants. 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 they were duly served. Hence, the defendants were proceeded ex-parte as per Order dated 25.02.2026.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Nilay Mahadeorao Sorte, Authorized Officer of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-16 as per 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 did not contest the application, I find no reason to disbelieve the unrebutted

(OA No.522/2025)

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[AMBADAS]

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 immovable property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @ 13.40% per annum with monthly rests on the loan from the date of filing i.e. 21.07.2025 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 @ 11% per annum (simple) on outstanding amount, it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 522/2025 is allowed with costs.

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(B) The defendants shall jointly and severally pay to the applicant Bank a sum of Rs. 3,26,37,990 /- (Rupees Three Crore, Twenty Six Lacs, Thirty Seven Thousand, Nine

(OA No.522/2025)

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[AMBADAS]

Hundred and Ninety only), along with future interest @ 11% per annum (simple) from the date of filing of the Original Application i.e. 21.07.2025 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 mortgage of the following immovable property vide documents at Exh. A-13 & A-14 in list of documents Exhibit 5.

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North: Shiv Road, East: Land of Suresh Jadhav and Kishor Jadhav, South: Land of Balasaheb Kulkarni, West: Gat 372.

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

(OA No.522/2025)

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[AMBADAS]

(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 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. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.24.08.2026 Debts Recovery Tribunal, Aurangabad

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(OA No.522/2025)

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[AMBADAS]

State Bank of India v. Ms Pais Agro Processing Pvt. Ltd.

Case brief

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State Bank of India v. Ms Pais Agro Processing Pvt. Ltd.

Case brief

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