STATE BANK OF INDIA v. M/S OM SAI TRADING COMPANY

24.09.2025, until the date of realization of the entire outstanding dues from the Defendant.

Brief facts of the application are as under:

2. The Applicant Bank states that the Defendant had approached and requested the Applicant Bank for Financial Assistance. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Cash Credit of Rs. 41,00,000/- vide arrangement letter dated 31.03.2024 on certain terms and conditions. The agreed rate of interest for aforesaid loan facilities was @ 11.15% per annum. The Defendant also agreed to pay additional interest @2% by way of liquidated damages in the event of any default in repayment.

3.

In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included arrangement letter, hypothecation agreement, letter of undertaking etc.

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4. The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendant executed hypothecation loan agreement, dated 31.03.2024, thereby hypothecating Stock & assets in favour of the Bank

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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 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 26.05.2025. Therefore, on 17.04.2025 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.

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6. The LR's of defendant Ganesh Bandu Badgujar proprietor of the firm failed to appear in matter though they were served through RPAD. Hence, the LR's of defendant were proceeded ex-parte as per Order dated 01.09.2026.

7. The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Sudhir Dharamdas Walde, Deputy Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-6 along with list of documentsExh.5 which corroborates the case of the applicant Bank.

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

9. Since the defendant failed to appear 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.

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10. The applicant Bank has claimed charge over the hypothecated properties of the borrower.

11. The applicant Bank has claimed future interest @ 11.15% p.a. from the date of filing i.e. 24.09.2025 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 @ 9% per annum (simple), it would be just and reasonable rate of interest.

ORDER

(A) Original Application No. 681/2025 is allowed with costs.

(B) The defendant shall pay to the applicant Bank a sum of Rs. 42,11,045/- (Rupees Forty Two Lacs, Eleven Thousand, and Forty Five only), along with future interest @ 9% per annum (simple) from the date of filing of the O.A. i.e. 24.09.2025 till full

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payment/realization of the amount mentioned in this operative order.

(C) The aforesaid adjudicated amount is secured by the hypothecation of Stock & assets vide document at Exh. A-2 in list of documents Exh. 5.

(D) The applicant Bank is entitled to sell the hypothecated assets/ stocks/goods etc., to recover its dues.

(E) Issue Recovery Certificate accordingly.

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

(G) File be consigned to the record room. Sd/-

Pronounced in open court.

Place: Aurangabad Date:.06.11.2026 (Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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