Allowed

State Bank of India v. M/S Goyal Trading Company and Another

DRT23 Sept 2025OA/1777/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant Bank's original application for recovery of a disputed loan amount of Rs. 28,35,494. The defendants failed to appear, and the Tribunal noted the evidence was unrebutted. The Tribunal granted simple interest at 08% p.a. and directed the issuance of a recovery certificate attached with the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 28,35,494 along with future simple interest at 08% p.a.

State Bank of India versus M/S Goyal Trading Company and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1777/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.09.2022

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DATE OF DECISION: 23.09.2025

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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 Madame Cama Road, Nariman Point, Mumbai and having its branches all over India and one such Branch at Industrial Area Branch, Ram Bagh Road, Near Bus Stand, Mansa, Punjab through its Manager and Principal Officer Mrs. Neha Singh.

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……..Applicant

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Versus

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M/s Goyal Trading Company, Shop No. 9, Silver City Colony, Near Grain Market, Sirsa Road, Mansa, Punjab, a proprietorship concern through its sole proprietor Sh. Krishan Lal S/o Sh. Siya Ram.

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Sh. Krishan Lal, S/o Sh. Siya Ram, R/o Village Chakerian, PO Kot

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Lallu, Tehsil & District Mansa, Punjab

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……… Defendants

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Advocates:

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Argued by Sh. Kanwar Ashok Kumar Davesar, 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.28,35,494.00p (Rupees Twenty Eight Lacs Thirty Five Thousand Four Hundred and Ninety Four Only). The Original Application has been filed through Mrs. Neha Singh, Manager and Principal Officer, o f the applicant, who is competent to institute the Original Application in terms of Gazette notification dated 26.09.1955, 26.08.1972, 27.03.1987 & 29.10.2005 issued by Executive Committee of the Central Board in exercise of powers conferred on it under

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2 OA NO.1777/2022 STATE BANK OF INDIA VS MESSRS GOYAL TRADING COMPANY AND ANOTHER

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Regulation No.76 & 77 of the State Bank of India, Regulations made by the RBI in exercise of powers conferred by the Sub section 3 of the Section 50 of the State Bank of India Act, 1955. 2. The brief facts of the OA are that the defendant no.1 through its proprietor of defendant no.2 had approached the applicant for grant of CC Limit of Rs.10.00 Lacs vide Loan Application dated 17.04.2014, which is Annexure A1 to this OA. Further, defendant no.1 through its proprietor defendant no. 2 had approached the applicant for renewal of the limit vide Loan Application for renewal dated 28.04.2015 and dated 10.05.2017, which are Annexures A5 and A9 to this OA. 3. The applicant sanctioned CC Limit of Rs.10.00 Lacs vide Sanction/Letter of Arrangement dated 23.04.2014, which is Annexure A2 to this OA. Thereafter, the limit was renewed by applicant vide letter of Arrangement dated 28.04.2015 and 16.05.2017, which are Annexures A6 and A10 to this OA. The terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its sole proprietor defendant no. 2 hypothecated its immovable properties i.e. Stocks & grocery items, rice flour, ghee and other grocery items, book debts and other current assets vide Agreement of Loan-cum-Hypothecation & Free Access Letter dated 23.04.2014, which is Annexure A3 to this OA. Documents executed :- Pronote along with DP Note delivery letter dated 23.04.2014, which is Annexure A4 to this OA; BC-cumacknowledgement of security letters dated 23.03.2017 & 31.03.2017, which are Annexures A7 & A8 to this OA; Revival Letter dated 30.12.2019, which is Annexure A11 to this OA; Legal Notices dated 08.02.2018 & 26.10.2018, along with postal receipts & translation, which is Annexure A12 to this OA; Legal Notice dated 27.06.2016, along with postal receipts, translation and copy of envelope, which is Annexure A13 to this OA; Statement of Account & Computer Certificate

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3 OA NO.1777/2022 STATE BANK OF INDIA VS MESSRS GOYAL TRADING COMPANY AND ANOTHER

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under Banker’s Books Evidence Act, 1891, which is Annexure A14 to this OA and Interest Chart, which is Annexure A15 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.28,35,494.00p, 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 24.04.2024.

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In support of the OA, affidavit of Mrs. Neha Singh, Manager and Principal Officer, State Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A15 to this OA, it is proved that the defendant no.1 through its sole proprietor defendant no.2 approached applicant for availing of the loan facility 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,35,494.00p (Rupees Twenty Eight Lacs Thirty Five Thousand Four Hundred and Ninety Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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4 OA NO.1777/2022 STATE BANK OF INDIA VS MESSRS GOYAL TRADING COMPANY AND ANOTHER

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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 @12.45%p.a. for CC Limit with monthly rests from 16.09.2022 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 @08.00%p.a. in the loan account 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.28,35,494.00p (Rupees Twenty Eight Lacs Thirty Five Thousand Four Hundred and Ninety Four Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.10.2025.

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5 OA NO.1777/2022 STATE BANK OF INDIA VS MESSRS GOYAL TRADING COMPANY AND ANOTHER

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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: 23.09.2025.

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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 Goyal Trading Company and Another

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State Bank of India v. M/S Goyal Trading Company and Another

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