Allowed

State Bank of India v. M/S sanshu Green Corn Limited

DRT17 Feb 2026OA/63/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by State Bank of India for recovery of over Rs. 21.73 crore dues along with interest from a private limited company and its directors who failed to repay sanctioned loan facilities.

What did the court decide?

Application allowed with costs; Defendants directed to pay Rs. 21,73,39,001/- plus future interest at 9% p.a. from 21.12.2021; rights over mortgaged and hypothecated assets recognized.

State Bank of India versus M/S sanshu Green Corn… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 21.12.2021 Registered on: 30.03.2022 Decided on: 17.02.2026 Duration: Y M D 01 11 05

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Shri Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 63/2022

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TOTAL CLAIM AMOUNT – Rs. 21,73,39,001/-

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STATE BANK OF INDIA

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A body corporate constituted under the State

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Bank of India Act, 1955, having its Local Head Office at, Bandra Kurla Complex, Mumbai and one of its branch At Waluj Branch at Aurangabad, through one of its officer i.e. … Applicant Manager, Shri. Alok S/o Deepak Jewoorkar, Age: 33 Years, Occ: Service as Manager, State Bank of India Branch at Waluj Branch

(OA No. 63-2022)

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Aurangabad and having Authority to file the Application which includes the authority to sign and verify the application.

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Versus

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M/s. Sanshu Green Corn Pvt. Ltd.,

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… Defendants

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Through its Directors,

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Having its Register office at,

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Plot No. B-39, Chalisgaon MIDC,

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Chalisgaon, Dist. Jalgaon,

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Pin Code- 4241001.

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Email: [email protected]

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Mr. Gaurav Kuldeep Kashyap,

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Plot No. 554, Near Kattle Garden,

(OA No. 63-2022)

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[Ambadas]

N-3 CIDCO, Aurangabad- 431003.

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Mob No. : 9823573333. Email: [email protected]

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Mrs. Rani Bharavanath Thite, Flat No. A-2, 401, Manjeet Pride, Gut No. 1, Tisgaon, Tq & Dist. Aurangabad- 431102. Mob No. : 8308035333. Email : [email protected]

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Mr. Raj Rajiv Chowdgari, Plot No. 16, Mahatma Phule Housing Society, Near Radhaswami

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Colony, Harsool, Aurangabad 431008.

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Mob No. : 7020113437.

(OA No. 63-2022)

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Email : [email protected]

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APPEARANCES

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For the Applicant Mr. Arun Rakh – Advocate. For Defendants Ex-parte

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J U D G M E N T

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Delivered on (17.02.2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 18,01,09,027/- (Rs. Eighteen Crores, One Lakh, Nine Thousand, and Twenty-Seven Only) together with interest @14.75% per annum in respect of Cash Credit Loan facilities and Rs. 3,72,29,974/- (Rs. Three Crore, SeventyTwo Lakhs, Twenty-Nine Thousand, Nine Hundred and SeventyFour Only) together with interest @7.40% p.a. in respect of GECL (Guaranteed Emergency Credit Line) loan facilities with monthly rests, aggregating to Rs. 21,73,39,001/- from 15.12.2021 till the full realization of the entire dues and costs from the Defendants.

(OA No. 63-2022)

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[Ambadas]

Brief facts of the application are as under:

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That the Defendants approached the Applicant Bank and requested for the sanction of a various loan facilities. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned the Cash Credit Loan facility of Rs. 7,00,00,000/- and Term Loan facility of Rs. 98,00,000/- Totally an amount of Rs. 7,98,00,000/- for starting the business and for purchasing machinery, vide Arrangement Letter dated 25.09.2014. The Applicant Bank enhanced the limit of Cash Credit Loan facility from of Rs. 7,00,00,000/- to Rs. 12,00,00,000/- and also sanctioned new facility of SLC loan facility of Rs. 1,50,00,000/- and reviewed Term Loan facility of Rs. 98,00,000/- (outstanding amount of Rs. 96,00,000/-) and Totally sanctioned of Rs. 14,48,00,000/- vide Arrangement Letter dated 29.06.2015. The Applicant Bank enhanced the limit of Cash Credit Loan facility of Rs. 12,00,00,000/- to Rs, 15,00,00,000/-, also enhanced the SLC loan facility from an amount of Rs. 1,50,00,000/- to Rs. 2,25,00,000/- and Term Loan facility of Rs. 98,00,000/- (outstanding amount of Rs.

(OA No. 63-2022)

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[Ambadas]

77,00,000/-) has been reviewed and Totally sanctioned amount of Rs. 18,23,00,000/- vide Arrangement letter dated 15.09.2016. Then after in the year 2019 the Defendants renewed Cash Credit limit of Rs. 15,00,00,000/-, SLC limit of Rs. 2,25,00,000/- at existing level and term loan facility was closed as repaid on dated 24.03.2019 and exchanged the arrangement letter. At the request of the Defendant No. 1, the Applicant Bank Sanctioned the Funded Interest Term Loan facility (for Cash Credit) of Rs. 86,00,000/- , Funded Interest Term Loan facility (for SLC facility) of Rs. 14,00,000/- and Guaranteed Emergency Credit Line Facility (GECL) of Rs. 3,47,00,000/- and renewal of Cash Credit of Rs. 15,00,00,000/- and renewal of SLC loan facility of Rs. 2,25,00,000/- at existing level and Totally sanctioned an amount of Rs. 21,72,00,000/- vide Arrangement Letter dated 31.10.2020 on certain terms & conditions.

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The agreed rate of interest for the Cash Credit facility was @11.70% p.a., @13.85% p.a. in respect of Term Loan facility and @12.40% p.a. in respect of SCL loan facility with monthly rests.

(OA No. 63-2022)

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In order to secure the aforesaid Cash Credit and Term Loan, the Defendants executed loan documents in favour of the applicant bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking, equitable mortgage etc.

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The applicant bank contended that to secure the Cash Credit and Term Loan, the Defendants executed Equitable Mortgage dated 25.09.2014 and 10.03.2015, Extension of Equitable Mortgage dated 29.06.2015, Extension of Equitable Mortgage dated 15.09.2016, Extension of Equitable Mortgage dated 31.10.2020 of the following properties and Agreement of Loan-cum Hypothecation dated 25.09.2014 in favour of the applicant bank:

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Description of Mortgage Properties:-

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All Piece and parcel of land/building of mortgage property with construction thereon situated at as detailed below:

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Land and Building at Plot No. B-39, area adm. 4500 Square

(OA No. 63-2022)

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[Ambadas]

meters, situated Chalisgaon MIDC, Chalisgaon, Dist. Jalgaon in

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the name of M/s Sanshu Green Corn Private Limited and

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bounded as under:-

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East :- MIDC Road,

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West :- Plot No. B-40,

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North :- Plot No. B-38,

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South :- MIDC Road.

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Registered lease deed bearing daybook No. 5155/2014

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dated 23.06.2014 and 6789/2014 dated 16.09.2014.

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Land and Building at Plot No. A-23, area adm. 20000

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Square meters, situated Chalisgaon MIDC, Chalisgaon,

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Dist. Jalgaon in the name of M/s Sanshu Green Corn Private

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Limited and bounded as under:-

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East :- MIDC land, West :- MIDC Road,

(OA No. 63-2022)

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North :- MIDC Road, South :- Plot No. A-24.

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Registered lease deed bearing daybook No, 1571/2015

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dated 04.03.2015.

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Description of Hypothecated Asset:

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Hypothecation of plant and machineries purchased out of the loan amount, mentioned in the Hypothecation Agreement and other documents.

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The applicant Bank further contended that the Defendants failed to keep their promises 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

(OA No. 63-2022)

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28.07.2021. Therefore on 20.08.2021, the applicant Bank issued legal notice to the Defendants through their Advocate. Despite service of Notice, the Defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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Despite service of summons, the Defendants neither appeared nor filed WS. Hence, they proceeded ex-parte vide order dated 31.08.2023.

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The applicant Bank has filed Claim Affidavit Exh.4 of Mr. Alok S/o Deepak Jewoorkar, Manager of the applicant bank who has produced on record the copies of the original loan transaction documents as Annex. A-I to A-XXXX along with list of documents Exh.5, which corroborates the case of the applicant Bank. The Applicant bank has also filed original loan documents as Exh. AW-1 to AW-43 along-with Evidence Affidavit for Marking Exhibit on behalf of Applicant Bank filed by Mr. Piyush Kumar Tripathi.

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I have heard arguments of the learned Advocate for the

(OA No. 63-2022)

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applicant Bank.

Since the Defendants failed to appear 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 at @14.75% per annum & @7.40% p.a. with monthly rests besides 2% p.a. penal interest from 15.12.2021 till the full realization of the entire dues and costs from the Defendants. However, considering the facts of the case, I am of the opinion that awarding future interest at @9% per annum (simple) on the outstanding amount, it would be just and reasonable.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No. 63/2022 is allowed with costs.

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(B) The Defendants shall pay to the Applicant Bank a sum

(OA No. 63-2022)

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of Rs. 21,73,39,001/- (Rs. Twenty-One Crore, SeventyThree Lakhs, Thirty-Nine Thousand and One only), along with future interest at @9% per annum (simple) from the date of filing of the Original Application, i.e., 21.12.2021, till full payment/ realization of the said amount.

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(C) The aforesaid adjudicated amount is secured by mortgage of immovable property in favour of the Applicant Bank vide document as Annex. A-V, A-VI, A- XII, A-XIII, A-XIX, A-XX, A-XXVIII and A-XXIX in list of documents Exh.5 and Exh. AW-5, AW-6, AW-7 AW-8, AW-14, AW-15, AW-21, AW-22, AW-31, AW-32 submitted along-with evidence affidavit for marking exhibit. The Mortgaged properties are described as follows:-

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Description of Mortgage Properties:-

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All Piece and parcel of land/building of mortgage

(OA No. 63-2022)

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property with construction thereon situated at as detailed below:

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Land and Building at Plot No. B-39, area adm. 4500

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Square meters, situated Chalisgaon MIDC,

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Chalisgaon, Dist. Jalgaon in the name of M/s. Sanshu Green Corn Private Limited and bounded as under:-

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East :- MIDC Road,

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West :- Plot No. B-40, North :- Plot No. B-38, South :- MIDC Road.

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Registered lease deed bearing daybook No. 5155/2014 dated 23.06.2014 and 6789/2014 dated 16.09.2014.

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Land and Building at Plot No. A-23, area adm. 20000

(OA No. 63-2022)

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Square meters, situated Chalisgaon MIDC,

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Chalisgaon, Dist. Jalgaon in the name of M/s Sanshu

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Green Corn Private Limited and bounded as under:-

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East :- MIDC land, West :- MIDC Road, North :- MIDC Road, South :- Plot No. A-24.

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Registered lease deed bearing daybook No.1571/2015 dated 04.03.2015.

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Description of Hypothecated Asset:

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Hypothecation of plant and machineries purchased out of the loan amount, mentioned in the Hypothecation Agreement and other documents.

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(D) The applicant Bank is entitled to sell the mortgaged

(OA No. 63-2022)

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immovable properties and

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hypothecated

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articles/goods 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 Defendants.

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(G) File be consigned to the record room.

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Sd/-

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(Dr. J. R. Chauhan) Place : Aurangabad Presiding Officer Date : 17.02.2026 Debts Recovery Tribunal, Aurangabad

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(OA No. 63-2022)

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[Ambadas]

State Bank of India v. M/S sanshu Green Corn Limited

Case brief

What is this about?

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State Bank of India v. M/S sanshu Green Corn Limited

Case brief

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