Allowed

State Bank of India v. M/S Parul Enterprises and Others

DRT24 Sept 2025OA/136/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by State Bank of India against respondents for recovery of a loan amount of Rs. 24,56,266.00p. The respondents appeared ex parte. The Tribunal granted uniform simple interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 24,56,266.00p plus costs and simple interest @8% p.a.; Issuance of Recovery Certificate.

State Bank of India versus M/S Parul Enterprises and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.136/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.12.2021

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DATE OF DECISION: 24.09.2025

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State Bank of India, a Body Corporate, constituted under The State Bank of India Act, 1955 having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its local branch at SMECCCI, Zonal Office, Fountain Chowk, Civil Lines, Ludhiana (Punjab) through its Chief Manager, Sh. Manish Arora.

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……..Applicant

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Versus

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M/s Parul Enterprises, 2040/16/2-C/1, Street No. 1, Jain Nagar, Near Basant Nagar, Ludhiana, Punjab through its Proprietor Smt. Parul Dhingra.

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Smt. Parul Dhingra W/o Sh. Vishal Dhingra, R/o H. No. 1932/114-H, Gandhi Nagar, Ludhiana, Punjab, Proprietor of M/s Parul Enterprises

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Sh. Vishal Dhingra S/o Sh. Ramesh Dhingra R/o H. No. 1932/114-H, Gandhi Nagar, Ludhiana, Punjab

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………Defendants

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Advocates:

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Present: Sh. Jagraj Singh, Advocate proxy for Sh. Vinish Singla, Advocate for Applicant 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.24,56,266.00p (Rupees Twenty Four Lacs Fifty Six Thousand Two Hundred Sixty Six Only). The Original Application has been filed through Sh. Manish Arora, Chief Manager o f the applicant, who is competent to institute the Original Application in

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2 OA NO.136/2022

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STATE BANK OF INDIA VS. M/S PARUL ENTERPRISES AND OTHERS

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terms of the Gazette Notification dated 26.09.1959, 26.08.1972 and Notification dated 02.05.1987 issued by the Executive Committee of Central Board in exercise of the powers conferred on it under Regulation No.76 & 77 of State Bank of India General Regulation framed in exercise of the power conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor had approached the applicant for grant of CC Limit of Rs.6.00 Lacs, vide Loan Application dated 12.08.2013, which is Annexure A1 to this OA. Defendant no. 3 stood as guarantor. Thereafter, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 17.50 Lacs under SME Saral Scheme vide loan application dated 30.06.2016, which is Annexure A12 to this OA. Further, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for Working Capital Term Loan (GECL) under Emergency Credit Line Guarantee Scheme (ECLGS) of Rs.3.48 Lacs and renewal of CC Limit of Rs.17.50 Lacs. Thereafter, defendant no. 1 through its proprietor defendant no. 2 requested the applicant for FITL for accrued interest during Covid-19 moratorium vide application dated 23.04.2021, which is Annexure A30-A to this OA. 3. The applicant sanctioned CC Limit of Rs.6.00 Lacs, vide Sanction Letter and letter of arrangement, both dated 17.08.2013, which are Annexures A2 and A3 to this OA. Further, the limit was enhanced by the applicant to Rs. 17.50 Lacs vide sanction and letter of arrangement, both dated 30.06.2016, which are Annexures A13 and A14 to this OA. Thereafter, the applicant sanctioned Working Capital Term Loan (GECL) under Emergency Credit Line Guarantee Scheme (ECLGS) of Rs. 3.48 and renewed of CC Limit of Rs.17.50 Lacs vide Letter of Arrangement dated 30.06.2020, which is Annexure A22 to this OA. Thereafter, the applicant sanctioned FITL of Rs. 95,877/- vide letter of arrangement dated 23.04.2021, which is Annexure A30-B to this OA. The terms and conditions were duly accepted by the defendants.

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3 OA NO.136/2022

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STATE BANK OF INDIA VS. M/S PARUL ENTERPRISES AND OTHERS

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Defendant no.2 mortgaged her immovable property i.e. House no. 2040/2016/2-C/1, measuring 122 Sq. yards, situated at Taraf Sekhewal, Hadbast no. 78 locality known as Street No. 1, Jain Nagar, Near Basant Nagar, Ludhiana, Punjab, through equitable mortgage of title deed no. 16503 dated 07.02.2011, vide Mortgage Deed (simple mortgage) dated 30.06.2016, which is Annexures A19 to this OA. undertaking regarding mortgage, which is Annexure A10 to this OA; Memorandum for recording extension of mortgage by deposit of title deeds, dated 30.06.2016, which is Annexure A17 to this OA, Letter of confirmation for extension of mortgage by deposit of title deeds, dated 30.06.2016, which is Annexure A18 to this OA; Memorandum for recording extension of mortgage by deposit of title deeds, dated 30.06.2020, which is Annexure A25 to this OA. Defendant no. 1 through its proprietor defendant no. 2 hypothecated stock of cloth, current assets of the firm including stock and receivables, vide agreements of loan-cum-hypothecation dated 17.08.2013, 30.06.2016, which are Annexures A4 and A15 to this OA and supplemental agreement of loan-cum-hypothecation dated 30.06.2020, which is Annexure A23 to this OA.

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Documents executed:- Guarantee Agreement (SME-3), Declaration Letter, Power of Attorney, Insurance Waiver Letter and Consent Form, all dated 17.08.2013, which are Annexures A5 to A9 to this OA; Guarantee Agreement (SME-3), Power of Attorney and Consent Form, all dated 30.06.2020, which are Annexures A16, A20 and A21 to this OA; Guarantee Agreement dated 30.06.2020, which is Annexure A24 to this OA; Declaration Letter, Acknowledgement Letter and Insurance Letter, all dated 30.06.2020, which are Annexures A26 to A29 to this OA; Account Statements, which are Annexures A11, A30 and A31 to this OA; Legal Notice dated 18.05.2021, which is Annexure A32 to this OA; Revival Letters dated 10.08.2016 & 14.03.2019, which are Annexures A33 & A34 to this OA and Notice dated 12.10.2021, u/s 13(2) of SARFAESI Act, which is Annexure A35 to this OA.

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4 OA NO.136/2022

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STATE BANK OF INDIA VS. M/S PARUL ENTERPRISES AND OTHERS

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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.24,56,266.00p, which is recoverable and the defendants 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 25.07.2025.

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In support of the OA, affidavit of Sh. Manish Arora, Chief Manager, State Bank of India h as 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 A35 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 defendant 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.24,56,266.00p (Rupees Twenty Four Lacs Fifty Six Thousand Two Hundred Sixty Six 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.25% p.a. along with @2% p.a. penal interest with monthly rests from 03.12.2021 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

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OA NO.136/2022

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STATE BANK OF INDIA VS. M/S PARUL ENTERPRISES AND OTHERS

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instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,56,266.00p (Rupees Twenty Four Lacs Fifty Six Thousand Two Hundred Sixty Six 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 24.09.2025.

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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 Parul Enterprises and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Parul Enterprises and Others

Case brief

What is this about?

What did the court decide?

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