Allowed

State Bank of India v. M/S Randhawa Traders and Another

DRT5 Jun 2025OA/133/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the State Bank of India's application for recovery of Rs. 57.23 lakhs owed by Randhawa Traders. The court granted a uniform interest rate of 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 57,23,148.00 with 8% p.a. interest; issuance of Recovery Certificate; liberty to attach and sell personal assets.

State Bank of India versus M/S Randhawa Traders and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.133/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.01.2024

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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 and having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17, Chandigarh and branches all over India including one of its Branch at Chamkaur Sahib, Ropar Punjab now through its specialized Branch known as Stressed Assets Recovery Branch is situated at 1^st Floor, S.C.O. 15, Sector 7-C, Madhya Marg, Chandigarh, through its Authorized Officer Sh. Sanjeev Prakash Verma.

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……..Applicant Versus

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M/s Randhawa Traders, Shop no. 42, Anaj Mandi, Tehsil Chamkaur Sahib, District Ropar, Punjab-140112, through its Proprietor Sh. Kamaljeet Singh Randhawa @ Kamaljeet Singh S/o Sh. Bant Singh.

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Sh. Kamaljeet Singh Randhawa @ Kamaljeet Singh S/o Sh. Bant Singh R/o Village Bhowal, Tehsil Chamkaur Sahib, District Ropar, Punjab-140112.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Ajay Singla, Advocate for the applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.57,23,148.00 (Rupees Fifty Seven Lacs Twenty Three Thousand One Hundred Fourty Eight Only). The Original Application has been filed through Sh. Sanjeev Prakash Verma, Authorized Officer of the

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2 OA NO.133-2024 STATE BANK OF INDIA VS M/S RANDHAWA TRADERS AND ANOTHER

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applicant, who is competent to institute the Original Application 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. 2. The brief facts of the OA are that the defendant no. 2 had approached the applicant for grant of CC Limit of Rs. 18.00 Lacs vide Loan Application dated 07.09.2013, which is Annexure A2 to this OA and further for its enhancement upto Rs. 30.00 Lacs. Thereafter, the defendants again approached the applicant for grant of Term Loan under GECL Scheme of Rs. 06.09 Lacs. 3. The applicant sanctioned CC Limit of Rs. 18.00 Lacs vide Letter of Arrangement dated 07.09.2013, which is Annexure A3 to this OA and further sanctioned its enhancement upto Rs. 30.00 Lacs vide Letter of Arrangement dated 21.07.2015, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned the Term Loan under GECL Scheme of Rs. 06.09 Lacs vide Sanction Letter dated 25.06.2020 & 30.06.2020, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 had mortgaged his immovable property i.e. Plot No. 12, measuring 2500 Sq. Ft. situated at Anaj Mandi, Chamkaur Sahib, Hadbast No.151, Ropar, Punjab vide Equitable Mortgage of Title Deed bearing vasika no. 1828 dated 27.02.2009 along with its translation, w hich is Annexure A7 to this OA. Documents executed:- Notification dated 02.05.1987, which is Annexure A1 to this OA; D.P. Note, D.P Note cum Continuity Letter, Agreement of Loan cum Hypothecation dated 07.09.2013, which are Annexures A4 to A6 to this OA; Letter of confirmation dated 07.09.2013, which is Annexure A8 to this OA; Agreement of loan cum

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3 OA NO.133-2024 STATE BANK OF INDIA VS M/S RANDHAWA TRADERS AND ANOTHER

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hypothecation and No lien letter dated 21.07.2015, which are Annexures A10 & A11 to this OA; Letter of confirmation dated 18.07.2015, which is Annexure A12 to this OA; Application dated 31.08.2018, which is Annexure A13 to this OA; Letter of confirmation dated 07.09.2018, which is Annexure A14 to this OA; Arrangement Letter dated 17.09.2018, which is Annexure A15 to this OA; Revival Letter dated 30.03.2021, which is Annexure A17 to this OA; Notice dated 29.07.2022, which is Annexure A18 to this OA and Statement of Accounts along with certificate which are Annexures A19 to A20 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 both the loan accounts there was a debit of Rs.57,23,148.00, 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.

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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 08.10.2024.

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In support of the OA, affidavit of Sh. Sanjeev Prakash Verma, Authorized Officer, State Bank of India h as been filed.

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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 A20 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they 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

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4 OA NO.133-2024 STATE BANK OF INDIA VS M/S RANDHAWA TRADERS AND ANOTHER

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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.57,23,148.00 (Rupees Fifty Seven Lacs Twenty Three Thousand One Hundred Fourty Eight 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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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.15%p.a. in CC Limit and @09.25% in GECL Scheme Advance plus penal interest with monthly rests in both from 21.12.2023 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 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.57,23,148.00 (Rupees Fifty Seven Lacs Twenty Three Thousand One Hundred Fourty Eight Only) jointly and severally, with costs, current and future simple interest @08.00%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/mortgaged properties

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OA NO.133-2024 STATE BANK OF INDIA VS M/S RANDHAWA TRADERS AND ANOTHER

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 27.06.2025.

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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: 05.06.2025

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

State Bank of India v. M/S Randhawa Traders and Another

Case brief

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State Bank of India v. M/S Randhawa Traders and Another

Case brief

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