Allowed

State Bank of India v. M/S Shiva Electrical & Hardware Store

DRT19 Feb 2025OA/1893/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 40,56,953/- with interest against the defendants, who failed to appear ex parte, by directing the sale of mortgaged land and issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 40,56,953/- with interest allowed; liability of all defendants joint and several; sale of mortgaged land directed; Recovery Certificate issued.

State Bank of India versus M/S Shiva Electrical & Hardware Store — Consumer Protection | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1893/2022 Date of Institution: 09.09.2022 Date of Decision: 19.02.2025

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SBI, having its branches all over India and a branch at Bathal, Tehsil Arki, District Solan, Himachal Pradesh.

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……..Applicant

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Vs.

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M/s Shiva Electrical & Hardware Store, V.P.O. Bathal, Tehsil Arki, District Solan, Himachal Pradesh, through its Proprietor Sh. Sunil Kumar Sharma.

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Sh. Sunil Kumar Sharma s/o Sh. Prem Lal Sharma, r/o V.P.O. Bathal, Tehsil Arki, District Solan, Himachal Pradesh.

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Sh. Narender Kumar Pathak s/o Sh. Nand Lal, r/o V.P.O. Bathal, Tehsil Arki, District Solan, Himachal Pradesh.

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……….Defendants

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Advocates

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Sh.Gurinderjit Singh,Counsel for the applicant bank. Defendants ex parte .

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OA for the Recovery of Rs.40,56,953/- with interest @16.80% per annum with monthly rests from 09.09.2022.

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ORDER

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SBI (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.40,56,953/- with interest against M/s Shiva Electrical & Hardware Store and others (defendants).

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Bank’s case is that defendant No.1 is the Proprietorship Firm of defendant No.2. On 22.06.2011, it had granted a loan of Rs.30.00 Lacs to defendant No.1 and 2 in the form of C.C Limit, for business purpose. To secure the loan, Defendant No.2 had mortgaged his land (fully detailed in para No.3A of the application). Defendant No.3 stood as guarantor. The

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loan was chargeable to interest @16.80% per annum with monthly rests. On 31.08.2022, a sum of Rs.40,56,953/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 23.09.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 22.02.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Umesh Kumar Kaundal, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-25.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.30.00 Lacs and on 31.08.2022, a sum of Rs.40,56,953/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.40,56,953/- (Rupees Forty Lacs Fifty Six Thousand Nine Hundred Fifty Three Only) with interest @16.80% per annum with monthly rests from 09.09.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A) of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 20.03.2025, who is directed to distribute the sale proceeds of the mortgage land per the provisions of Section 19(20-AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 19.02.2025 Presiding Officer DRT-1, Chandigarh

State Bank of India v. M/S Shiva Electrical & Hardware Store

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Shiva Electrical & Hardware Store

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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