Allowed

State Bank of India v. M/S Shri Datta Textiles Prop. Mr. Jayshrihari Krishna Londhe

DRT16 Mar 2026OA/682/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal granted an ex-parte relief to State Bank of India for recovery of dues totaling Rs. 24,47,680/- plus future interest. The claim was adjusted by reducing penal interest and capping future interest at 9% p.a.

What did the court decide?

The applicant is entitled to recover Rs. 24,47,680/- along with future interest at 9% p.a. from 29.03.2022 and issuance of a Recovery Certificate.

State Bank of India versus M/S Shri Datta Textiles… — Contract and Commercial Disputes | DRT (2026)

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Presented on: 29.03.2022 Registered on: 26.08.2022 Decided on: 16.03.2026 Duration: Y M D 03 11 16

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.682/2022.

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State Bank of India ,

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A Banking Company constituted under the State Bank of India Act, 1955, having its Corporate Office at State Bank Bhavan, Nariman Point, Madam Cama Road, Mumbai-400021 and its Branch Ichalkaranji Main Branch, Taluka Ichalkaranji, District Kolhapur.

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… Applicant

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Versus

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M/s Shri Datta Textiles Prop. – Mr. Jayshrihari Krishna Londhe R/at 21/1054, Thakare Chowk, Jawahar Nagar, Near Swami Apartment, Ichalkaranji, District Kolhapur-416 115.

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… Defendant

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APPEARANCES

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For the Applicant For the Defendant

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Mr. Subhash Pawar – Advocate Ex parte.

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TOTAL CLAIM AMOUNT –Rs.25,27,585/-.

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JUDGMENT (Delivered on 16^th March, 2026)

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The Applicant Bank has filed present Application for recovery of an aggregate sum of Rs.25,27,585/- for Credit Facilities due and payable as on 22.03.2022 with future interest thereon @13% p.a. with

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monthly rests from 23.03.2022 till full repayment/realization of entire dues from the defendant.

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Brief facts of the application are as under: -

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Defendant approached the applicant bank with application dated 04.10.2015 requesting for Cash Credit Facility for business purpose.

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The applicant bank considered the loan application and granted Cash Credit Facility on 27.10.2015 of Rs.17 Lakhs repayable on demand subject to review, as Working Capital, on certain terms and conditions.

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The Defendant has executed Agreement of Loan cum Hypothecation on 27.10.2015 for amount of Rs.17 lakhs and secured by hypothecation of defendant’s all present and future book debts, outstanding, monies receivable and all the tangible, movable plant and machinery, yarn, both present and future and on the terms and conditions.

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In the year 2018, the defendant approached to the applicant bank for renewal of credit facility for working capital for the purpose of business. The applicant bank considered the request and sanctioned Cash Credit Facility on 19.05.2018 to the tune of Rs.15 lakhs, as DCC Limit.

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In the year 2020, the defendant again approached to the applicant bank for renewal of Credit Facility for Working Capital for

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the purpose of business. The applicant bank considered the request of the defendant and sanctioned Cash Credit Facility on 06.05.2020 to the tune of Rs.15 Lakhs (Cash Credit) and Rs.1.50 Lakhs (CCECL).

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The defendant executed Supplemental Agreement of Loan cum Hypothecation on 06.05.2020 for an amount of Rs.16.50 lakhs sanctioned to the defendant and the same is secured by hypothecation of the defendant’s all that present and future book debts, outstanding, monies receivable and all the tangible, movable plant and machinery, Yarn, both present and future and on the terms and conditions set out in the Letter of Agreement on 06.05.2020.

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In the year 2020, the defendant once again approached to the applicant bank for renewal of Credit Facility for Working Capital for the purpose of business. The applicant bank sanctioned Cash Credit Facility on 05.06.2020, to the tune of Rs.15 Lakhs (Cash Credit), Rs.1.50 Lakhs (CCECL), Rs.3 Lakhs (GECL).

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The defendant executed Supplemental Agreement of Loan cum Hypothecation on 05.06.2020 for an amount of Rs.19.50 lakhs sanctioned to the defendant and the same is secured by hypothecation of the defendant’s all that present and future book debts, outstanding, monies receivable and all the tangible, movable plant and machinery, Yarn, both present and future and on the terms and conditions set out in the Letter of Agreement on 05.06.2020.

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The defendant has admitted the outstanding Debt and executed Revival Letter dated 31.07.2018 in respect of Cash Credit and Revival Letter dated 16.06.2021 in respect of Cash Credit.

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The applicant Bank further contended that defendant after availing the said Credit facilities for business purpose, neglected and defaulted in repayment of the loans availed by them. Therefore, the loan accounts of defendant were classified as Non-Performing Asset on 30.03.2021, as per the RBI guidelines.

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Thereafter, the applicant Bank issued Notice dated 22.03.2022 to the defendant through its advocate and thereby called upon the defendant to repay the entire amount outstanding of under Scheme of the Bank. However, the defendant failed to comply with the requisitions contained in the legal notice and failed to repay the outstanding in the said loan accounts. Despite receipt of Notice, defendant neglected to repay the outstanding dues in the accounts with the applicant bank.

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Hence, this application is filed.

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Despite service of summons, defendant failed to appear. Hence, application proceeded ex-parte against defendant & order of ex-parte hearing is passed on 27.05.2025 below application (Exh.-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-7) of Mr. Yogesh Ananda Kadam, Authorized Officer, which supports the case of the applicant Bank elucidated in the application. The

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applicant Bank has produced on record the original loan transaction documents (Sr.Nos.AW-1/1 to AW-1/21) which corroborate the case of the applicant Bank.

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

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Since the defendant failed to appear and contest the application, I find no reason to disbelieve 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 relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

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The applicant bank has claimed Rs.79,905/- under the head of Penal, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs. 25,27,585/- is reduced to Rs. 24,47,680 /-.

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The Applicant Bank has claimed future interest @13% p.a. for the credit facilities availed. However, considering the facts of the case, I am of the opinion that if future interest is granted @9%p.a. (simple) for the said loan facility, it would be just and reasonable rate of interest.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.682/2022 is allowed with costs.

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(B) Defendant shall pay an aggregate amount of Rs.24,47,680/- (Rupees Twenty-Four Lakhs Fourty Seven Thousand Six Hundred Eighty only) to the applicant bank towards the loan facility availed with future interest @9% p.a. from the date of filing of the Original Application i.e.29.03.2022 till full realization of amount mentioned in this operative order.

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