Allowed

State Bank of India v. M/S Khalsa Agriculture Store and Others

DRT6 Nov 2025OA/1035/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under RDB Act by SBI against Khalsa Agriculture Store and legal heirs for recovery of Rs. 25.22 lakhs as the loan became NPA, granting 7.40% p.a. interest and directing issuance of Recovery Certificate.

What did the court decide?

Recovery of Rs. 25,22,870 plus interest at 7.40% p.a. from filing date till realization; Recovery Certificate issued for enforcement.

State Bank of India versus M/S Khalsa Agriculture… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1035/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2023

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DATE OF DECISION: 06.11.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Malerkotla and one of its specialized branch known as SARB at SCO 15, 1^st Floor, Sector 7- C, Madhya Marg, Chandigarh 160009 through its Chief Manager Sh.

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Sanjeev Parkash Verma.

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……..Applicant Versus

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M/s Khalsa Agriculture Store, a sole proprietorship concern situated at Near New Sabji Mandi, College Road, Tehsil and District Malerkotla 148023, Punjab through its proprietor Sh. Chamkaur Singh since deceased survived by legal heirs as mentioned against defendant no.2.

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Sh. Chamkaur Singh son of Sh. Sardara Singh, since deceased survived by following legal heirs:

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2.1 Smt. Surinder Kaur, Wife of Late Sh. Chamkaur Singh, resident of Prem Nagar, Near Truck Union, Tehsil and District Malerkotla-148023.

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2.2 Sh. Dalvir Singh Son of Late Sh. Chamkaur Singh, resident of Prem Nagar, Near Truck Union, Tehsil and District Malerkotla- 148023.

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2.3 Smt. Swaranjeet Kaur W/o Gurpreet Singh and D/o Late Sh. Chamkaur Singh, resident of Prem Nagar, Near Truck Union, Tehsil and District Malerkotla-148023.

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a. Smt. Rajvir Kaur W/o Mandeep Singh and D/o Late Sh. Chamkaur Singh, resident of Prem Nagar, Near Truck Union, Tehsil and District Malerkotla-148023.

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2 OA NO.1035/2023 STATE BANK OF INDIA VS. M/S KHALSA AGRICULTURE STORE AND OTHERS

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Smt. Surinder Kaur wife of Sh. Chamkaur Singh resident of

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Prem Nagar, Near Truck Union, Tehsil and District Malerkotla 148023.

……

Defendants

Advocates:

Present: Sh. Mohan Parsad, Advocate proxy for Sh. Gaurav Singla, Advocate for Applicant

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Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for recovery of Rs.25,22,870.00p (Rupees Twenty Five Lacs Twenty Two Thousand Eight Hundred Seventy Only). The Original Application has been filed through Sh. Sanjeev Parkash Verma, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No. 76 & 77 of State Bank of India Regulations framed in Exercise of the powers conferred by Sub section (3) of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 (since deceased) was availing the facility of CC Limit of Rs.20.00 Lacs from applicant. The defendant no.1 through its proprietor defendant no.2 (since deceased) approached the applicant for renewal of the CC Limit of Rs.20.00 Lacs and for fresh Working Capital Term Loan of Rs. 4.00 Lacs under GECL vide loan application dated 10.08.2020, which is Annexure A1 to this OA. Defendant no. 3 stood as guarantor.

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3 OA NO.1035/2023 STATE BANK OF INDIA VS. M/S KHALSA AGRICULTURE STORE AND OTHERS

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The applicant renewed CC Limit of Rs.20.00 Lacs and sanctioned fresh Working Capital Term Loan of Rs. 4.00 Lacs under GECL vide letter of arrangement dated 10.08.2020, which is Annexure A2 and the terms and conditions were duly accepted by the defendants.

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Defendant no. 3 mortgaged her immovable properties detailed as under: - I. Commercial shop measuring 46 Sq. yards situated at College Road, Backside new Sabji Mandi, Malerkotla-148023 vide equitable mortgage of Sale Deed bearing vasika no. 3198 dated 22.02.2008, along with its translation, which is Annexure A5 to this OA.

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II. Commercial Shop measuring 52.2/9 Sq. Yds situated at College Road, near new Sabji Mandi, Malerkotla-148023 vide equitable mortgage of Sale Deed bearing vasika no. 4800 dated 31.03.2006, along with its translation, which is Annexure 6 to this OA.

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Letter of Confirmation for Creation of Mortgage by Deposit of Title Deeds dated 18.03.2008, which is Annexure A7 to this OA and Letter of Confirmation for Extension of Mortgage by deposit of title deeds, dated 21.03.2014, which is Annexure A8 to this OA.

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Documents executed: - Supplemental Agreement of Loan cum, Guarantee Agreement, both dated 10.08.2020, which are Annexures A3 & A4 to this OA; Revival letters dated 18.02.2011, 10.01.2014, 16.03.2017, 29.05.2019 & 10.08.2020, which are Annexures A9 to A13 to this OA; Balance Confirmation Letter dated 10.08.2020, which is Annexure A14 to this OA; Death certificate dated 13.07.2021, which is Annexure A15 to this OA; Legal notice dated 28.07.2023 along with postal receipts, which is Annexure A16 to this OA and Statements of accounts, along with Banker’s certificate, which are Annexures A17 & A18 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.25,22,870.00p, which is recoverable and the defendants

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4 OA NO.1035/2023 STATE BANK OF INDIA VS. M/S KHALSA AGRICULTURE STORE AND OTHERS

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were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notice to appear before this Tribunal. Sh. Mahipal Singh Yadav, Advocate appeared on behalf of defendants and filed Power of Attorney on behalf of defendants on 06.06.2024. WS was filed on behalf of defendants on 28.08.2024 and matter was listed for admission or denial of documents on 21.02.2025 and 03.07.2025 and again on 10.09.2025. Since, no one appeared on behalf of defendants after 03.07.2025, the defendants were proceeded ex-parte on 19.09.2025.

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In support of the OA, affidavit of Sh. Sanjeev Parkash Verma, Chief Manager, State Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 (since deceased) and defendant no. 3 approached applicant for availing of the loans facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. They failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,22,870.00p (Rupees Twenty Five Lacs Twenty Two Thousand Eight Hundred Seventy Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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5 OA NO.1035/2023 STATE BANK OF INDIA VS. M/S KHALSA AGRICULTURE STORE AND OTHERS

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.40%p.a. plus 2% penal interest in CC Limit and interest @8.15%p.a. in WCTL GECL Term Loan with monthly rests from 28.07.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7.40%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,22,870.00p (Rupees Twenty Five Lacs Twenty Two Thousand Eight Hundred Seventy Only) jointly and severally, with costs, current and future simple interest @7.40%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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6 OA NO.1035/2023 STATE BANK OF INDIA VS. M/S KHALSA AGRICULTURE STORE AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.11.2025.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 06.11.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. M/S Khalsa Agriculture Store and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Khalsa Agriculture Store and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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