Allowed

State Bank of India v. M/S Pact Industries Limited and Others

DRT5 Jun 2025OA/1321/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's claim for recovery of a loan debt. Holding that the case proved by unrebutted documentary evidence, the Tribunal decreed the recovery of the principal amount together with costs and fixed interest at 8% per annum.

What did the court decide?

Recovery of Rs. 11,69,34,296.90p with costs and simple interest @08.00%p.a. from the date of filing of the OA till realization.

State Bank of India versus M/S Pact Industries Limited and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1321/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.10.2023

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DATE OF DECISION: 05.06.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 (Act No. 23 of 1955) and having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17, Chandigarh and one of its branches at Stressed Asset Management Branch, Civil Lines, Ludhiana through its Chief Manager Sh. Vinod Kataria.

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……..Applicant Versus

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M/s PACT Industries Ltd., a company duly registered under the Companies Act 1956, having its Registered Office at 303, Hotel Taksons, opposite Railway Station, Ludhiana (PB) through its Directors. 2^nd address : G.T. Road Jugiana, Ludhiana

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Sh. Harpreet Singh S/o Sh. Avtar Singh, Director M/s PACT Industries Ltd., R/o House no. 90-B, Bhai Randir Singh Nagar, Ludhiana.(PB)

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Sh. Eshaan Takkar S/o Sh. Harpreet Singh Director M/s PACT Industries Ltd., R/o House no. 90-B, Bhai Randir Singh Nagar, Ludhiana.(PB)

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Smt. Tanupreet Kaur W/o Sh. Harpreet Singh R/o House no. 90-B, Bhai Randir Singh Nagar, Ludhiana.(PB)

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M/s Preet Builders Pvt. Ltd. a company duly registered under the Companies Act 1956, having its Registered Office at Kartar Complex, G.T. Road, Jalandhar Bye Pass, Ludhiana (PB) through its Directors.

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M/s Kartar Finvest Pvt. Ltd. a company duly registered under the companies Act 1956, having its registered office at Kartar Complex, G.T. Road, Jalandhar Bye-Pass, and Ludhiana (PB) through its Directors.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Rakesh Gupta, Advocate for the applicant Defendants are ex parte

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2 OA NO.1321-2023 STATE BANK OF INDIA VS M/S PACT INDUSTRIES LIMITED AND OTHERS

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.11,69,34,296.90p (Rupees Eleven Crore Sixty Nine Lacs Thirty Four Thousand Two Hundred Ninety Six and Paise Ninety Only). The Original Application has been filed through Sh. Vinod Kataria, Chief Manager o f the applicant, who is competent to institute the Original Application vide in terms of gazette notifications published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under regulations no.76 & 77 of State Bank of India General Regulations framed in exercising of the powers conferred by Sub section 3 of section 50 of the State Bank of India Act, 1955 with the precious sanction of the central Government.

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The brief facts of the OA are that the defendants were already availing CC Limit of Rs.3.00 Crore and had approached the applicant from time to time for enhancement of upto Rs. 18.95 Crore and Further for its reduction to Rs. 08.50 Crores. Thereafter, the defendants had again approached the applicant for grant of CCECL of Rs.50.00 Lacs vide Application dated 17.04.2020, which is Annexure A14 to this OA and further for reduction of CC Limit from Rs. 8.50 Crore to Rs.7.70 Crores. Later, the defendants approached the applicant for pre-approved GECL/WCTL loan of Rs.1,13,48,000.00 vide Offer Letter dated 27.05.2020, which is Annexure A19 to this OA. Further, the defendant no. 1 approached applicant bank from time to time for enhancement of financial Facilities upto Rs.13.20 Crores. 3. The applicant sanctioned enhancement of CC Limit to Rs. 18.95 Crore and Further, the applicant reduced the facilities from time to time to Rs. 08.50 Crore vide Letters of Arrangement dated 08.01.2018, 15.03.2019 which are Annexures A6 and A10 to this

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3 OA NO.1321-2023 STATE BANK OF INDIA VS M/S PACT INDUSTRIES LIMITED AND OTHERS

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OA. Thereafter, the applicant sanctioned the Car loan of Rs. 29.40 Lacs vide Letter of Arrangement dated 09.08.2017, which is Annexure A3 to this OA. Further, applicant sanctioned CCECL of Rs. 50.00 Lacs and again reduced the financial facilities from Rs. 8.50 Crore upto Rs. 7.70 Crore vide Letter of Arrangement dated 27.04.2020, which is Annexure A15 to this OA. Further, applicant Sanctioned the GECL/WCTL loan of Rs. 99.00 Lacs which is further enhanced upto Rs. 8.69 Crore vide Letter of Arrangement dated 01.06.2020, which is Annexure A20 to this OA. Further, applicant sanctioned the enhancement of Financial Facilities from time to time upto Rs. 13.20 Crores vide Letters of arrangement dated 10.09.2020 and 18.10.2021, which are Annexures A24 & A28 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 4 had mortgaged her immovable properties i.e. Commercial Plot bearing MC No. BXXXV-5, measuring 1251.24 Sq. Yds. situated at Village Sunet, Hadbast No.159, locality known as Inder Nagar, Ludhiana vide Equitable Mortgage of Sale Deeds along with its translations bearing vasika nos. 10201, 10198 & 10202 dated 29.11.2017, w hich is Annexure A32(Colly) to this OA.

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Documents executed:- Notification dated 27.03.1987 and 17.05.2001, which is Annexure A1(Colly) to this OA; Certificate of incorporation dated 14.03.2008 and 08.02.1995, which is Annexure A2(Colly) to this OA; Loan cum hypothecation agreement and Guarantee agreement dated 09.08.2017, which are Annexures A4 to A5 to this OA; Resolution, Supplemental Agreement of Loan cum Hypothecation, Guarantee agreement all dated 08.01.2018, which are Annexures A7 to A9 to this OA; Resolution, Agreement of Loan cum Hypothecation, Guarantee agreement all dated 15.03.2019, which are Annexures A11 to A13 to this OA; Resolution dated 23.04.2020, which is Annexure A16 to this OA; Agreement of Loan cum Hypothecation,

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4 OA NO.1321-2023 STATE BANK OF INDIA VS M/S PACT INDUSTRIES LIMITED AND OTHERS

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Guarantee agreement dated 27.04.2020, which are Annexures A17 to A18 to this OA; Resolution dated 30.05.2020, which is Annexure A21 to this OA; Agreement of Loan cum Hypothecation, Guarantee agreement dated 01.06.2020, which are Annexures A22 to A23 to this OA; Resolution, Agreement of Loan cum Hypothecation, Guarantee agreement all dated 10.09.2020, which are Annexures A25 to A27 to this OA; Resolution dated 17.10.2021, which is Annexure A29 to this OA; Agreement of Loan cum Hypothecation, resolution alongwith guarantee agreement dated 18.10.2021, which are Annexures A30 and A31 to this OA; Copy of confirmation dated 08.01.2018 and 19.10.2021, which is Annexure A33 to this OA; Balance confirmation letter dated 01.04.2023, which is Annexure A34 to this OA; Form 8 dated 10.09.2020, which is Annexure A35 to this OA; Legal Notice dated 10.04.2023, which is Annexure A36 to this OA; Notice u/s 13(2) dated 28.04.2023, which is Annexure A37 to this OA; Possession notice dated 13.09.2023, which is Annexure A38 to this OA; Statement of Accounts along with closure balance interest which are Annexures A39 to A47 to this OA and Valuation report dated 02.07.2023, which is Annexure A48 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.11,69,34,296.90p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 09.10.2024. 7. In support of the OA, affidavit of Sh. Vinod Kataria, Chief Manager, State Bank of India h as been filed.

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5 OA NO.1321-2023 STATE BANK OF INDIA VS M/S PACT INDUSTRIES LIMITED AND OTHERS

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Heard 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 A48 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per Housings 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.11,69,34,296.90p (Rupees Eleven Crore Sixty Nine Lacs Thirty Four Thousand Two Hundred Ninety Six and Paise Ninety 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.15%p.a. with monthly rests from 04.10.2023 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, 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 @08.00%p.a. in all 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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6 OA NO.1321-2023 STATE BANK OF INDIA VS M/S PACT INDUSTRIES LIMITED AND OTHERS

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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.11,69,34,296.90p (Rupees Eleven Crore Sixty Nine Lacs Thirty Four Thousand Two Hundred Ninety Six and Paise Ninety Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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/mortgaged properties 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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Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.06.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 05.06.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S Pact Industries Limited and Others

Case brief

What is this about?

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State Bank of India v. M/S Pact Industries Limited and Others

Case brief

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