Allowed

State Bank of India v. Ms Nishkriti Foods Private Limited

DRT25 Sept 2025OA/1217/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's ex-parte application for recovery of dues. The Court found the defendants executed loan and security documents, failed to discharge liability, and directed repayment with 11% interest and enforcement against assets.

What did the court decide?

Recovery directed of Rs.32,15,199/- with 11% interest; Recovery Certificate issued; lien on assets; injunction against transfer of properties.

State Bank of India versus Ms Nishkriti Foods… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIB rAL LUCKNOW

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a proceeding			Officeaction taken with date
O.A. No. 1217/2023 25.09.2025	The Judgment is signed pronounced on separate sheets. Separ attachedin06sheets. Order be uploaded on the Tribu website. (Dictated (PravasKumar PresidingOffic (MK)	and ately nal’s Xv kingh) er

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IN THE DEBTS RECOVERY TRIBUNAL .T LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer

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Case No. Original Application No.1217 of 2023

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Dated: 25.09.2025

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State Bank of India, having Branch at Stressed
Assets Recovery Branch (SARB), Lucknow U.P.
........Applicant-bank
Versus
1. M/s Nishkriti Foods Private Limited, Through
its partner Nishank Sahu and Smt. Karatika
Khandelwal 209, Rail Bazar Cantt, Kanpur
208004.
Second Address: E-83 Spath Nagar, Panki
Kanpu r.
2. Nishak Sahu S/o Amar Nath Sahu R/a – 210
Rail Bazar Cantt Kanpur – 208004.
3. Kratika Khandelwa I W/o BaI Krishna
Khandelwal House No.N51/52 ward No.-42
Ruikar Ward – Dwarakpuri, Burhanpur, ...... Defendants
Madhya Pradesh – 450331.

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........Applicant-bank

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Ld. Counsel for Applicant-bank: Mrs. Usha Chawla, Advocate

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Ld. Counsel for the Defendants: None.

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JUDGEMENT

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This Original Application has been filed by the ,pplicant-bank under

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Section 19(1) of the Recovery of Debts & Bankruptcy ,ct, 1993, against the defendants for the recovery of Rs.32,15,199.00/- (Rupees Thirty Two Lacs,

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Fifteen Thousand, One Hundred Ninety Nine Only) [Rs.14,28,293.00/- in

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Cash Credit Loan Account (Hypothecation) & Rs.17,86,906.00/- in Term Loan

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O.A. No. 1217 of 2023

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Account] together with pendent-lite and future interest, costs and other reliefs etc.

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The brief facts of case are that the defendants Nos.2 & 3 on behalf of the defendant No.1 had approached the applicant bank for grant of Cash Credit Hypothecation Limit to the tune of Rs.28.00 lacs Term Loan of Rs.21.50 lacs vide its Sanction Letter dated 26.08.2022 on certain terms and conditions (Exhibit No. A-1 to Exhibit No. A-3) to this Original Application.

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To secure aforesaid credit facility, defendants had executed and signed various security documents in favour of the Applicant-bank on 28.08.2022. The defendant No.2 & 3 signed and executed Guarantee Agreement dated 26.08.2022 (Exhibit No. A-4 to Exhibit No. A-9) to this Original Application.

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To avail the aforesaid credit facility, the Applicant-bank had opened two loan accounts in the name of defendant No. 1 in order to maintain the credit facilities.

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After availing the aforesaid credit facility, the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, consequently, the loan account of the defendant no.1/firm was classified as NPA on 30.08.2023 by the bank as per RBI guidelines (Exhibit No. A-10), thereafter the Applicant-bank issued Legal Notice dated 12.10.2023 to the defendants (Exhibit No. A-11), but, the defendants stated no-response and they failed to repay the same and the loan accounts of the defendants are still un-liquidated, hence, this Original Application has been instituted.

O.A. No.1217 of 2023

As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.32,15,199.00/- (Rupees Thirty Two Lacs, Fifteen Thousand, One Hundred Ninety Nine Only) [Rs.14,28,293.00/in Cash Credit Loan Account (Hypothecation) & Rs.17,86,906.00/- in Term Loan Account] including interest upto 24.11.2023, were lying due for payment, for which the defendants are jointly and severally liable to repay the same, which they did not pay despite repeated requests and demand. The Applicant-bank filed the Statement of loan Accounts. (Exhibit No.A-12 Exhibit No.A-13) to this Original Application.

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The cause of action for filing the present application arose firstly on 26.08.2022 when the aforesaid credit facility were sanctioned by the Applicant-bank and the same were availed by the defendants and necessary documents were executed by the defendants. The cause of action further arose on when Legal Notice dated 12.10.2023 was sent to the defendants, recalling the entire outstanding dues and they failed to pay the same.

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The summons were served upon the defendants through registered post, but the defendants did not appear before the Tribunal to contest their

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case, hence the matter proceeded ex- parte against the defendants.

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From the perusal of the record, it is evident that the defendants were provided with fair opportunities to contest the claim of the bank. As the defendants opted not to contest the case, so only point of consideration before this Tribunal is as to whether bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading

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submitted by it.

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O.A. No. 1217 of 2023

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In support of the case Shri Amit Kumar Singh, Chief Manager of the

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Applicant-bank has filed an affidavit.

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On a careful scrutiny of the evidence on affidavit and Exhibits marked as Exhibit No.A-1 to Exhibit No.A-13, it is proved that defendants 111 had availed the credit facilities from the Applicant-bank by executing loan and security documents detailed as above in favour of the Applicant-bank. A perusal of the application, evidence and documents relied upon clearly show that defendant had utilized the above loan facilities as granted to them. The Applicant-bank had maintained the Books of account in the IIU ordinary course of banking business showing disbursal of the loan amount. The Bank had also charged interest from time to time and the entries are relevant u/s 4 of the Banker Books of Evidence Act. It is also proved that the Applicant-bank’s claim is within limitation against defendants, therefore, the defendants are jointly and severally liable to pay the dues.

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Accordingly, the defendants are directed to pay the balance dues to the Applicant-bank within a period of 2 months from the date of judgement lltl failing which the Applicant-bank will be entitled to sell the hypothecated assets and personal assets/ properties of the defendants.

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The Applicant-bank has claimed [email protected]% in Cash Credit (Hypo) and [email protected]% in Term Loan Account per annum with monthly rest w.e.f. 25.11.2023 till the date of realization and costs. On the basis of foregoing discussion, interest of justice will be served if pendentlite and future interest is granted @11% in both the above loan accounts per

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O.A. No. 1217 of 2023

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annum with monthly rest reducing balance from the date of filing of the O.A. till the date of realization with costs.

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1 find that the bank has proved the execution of loan documents and creation ofhypothecation in its favour. In the result, the Original Application succeeds as ex-parte against the defendants with costs. The bank has proved the loan execution of loan documents in favour of the bank and availment of credit facility. The liability of the defendant Nos.1 to 3 are joint and several and hypothecated asset as well as the personal properties are to be sold.

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It is, therefore , ordered

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(i) That the Original Application No.1217 of 2023 of the Applicant bank for issuance of Recovery Certificate to the tune of Rs.32,15,199.00/(Rupees Thirty Two Lacs, Fifteen Thousand, One Hundred Ninety Nine Only) [Rs.14,28,293.00/- in Cash Credit Loan Account (Hypothecation) & Rs.17,86,906.00/- in Term Loan Account] along with the interest @11% per annum with monthly rest from the date of filing of the Original Application i.e. 30.11.2023 till the loan is fully liquidated and costs succeeds ex-parte against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgement, failing which the Applicant-bank will be entitled to recover the same from the secured assets, personal movabIes and immovable assets of the defendants.

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(iii) The Applicant–bank is entitled to recover aforesaid amount by sale of hypothecated assets (if not sold earlier under the provision of the

\t\ 'r

O.A. No.1217 of 2023

S.A.R.F.A.E.S.I. Act 2002). The amount, if any already recovered by sale of any hypothecated assets or otherwise shall be recoverable, if the dues of the Applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable assets of the defendant jointly and severally.

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(iV) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the Applicant-bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 18.12.2025 before R.O., DRT, Luckno

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(vi) The Applicant-bank is directed to file a memo of cost for preparing Recovery Certificate u/s 19(22) of the Recovery of Debts Bankruptcy Act, 1993 .

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Judgment is pronounced in the open court.

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Dated: 25.09.2025

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k§t

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(Pravas Kumar Singh) Presiding Officer

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(MK)

State Bank of India v. Ms Nishkriti Foods Private Limited

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Nishkriti Foods Private Limited

Case brief

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What did the court decide?

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