Allowed

State Bank of India v. M/S Phool Chand Ghansi Lal Jain

DRT28 Oct 2025OA/335/2024

Case brief

AI extract

What is this about?

DRT Jaipur allowed an original application filed by State Bank of India for recovery of Rs. 5.32 Crore from a borrower firm and guarantors. The Tribunal issued a recovery certificate against the defendants' movable, immovable, and corporate assets with future interest.

What did the court decide?

Recovery Certificate for Rs. 5,32,24,117.96 with 10% simple interest p.a. from 30.10.2023, recoverable from defined assets and properties.

State Bank of India versus M/S Phool Chand Ghansi Lal Jain — Execution and Attachment | DRT (2025)

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“ORIGINALAPPLICATION” No. 335 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 335 OF 2024

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DATE OF DELIVERY OF ORDER 28.10.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 (23 of 1955) having its Corporate Centre at Madam Cama Road, Nariman Point, Mumbai400021 and amongst others the concerned office at Stressed Assets Recovery Branch (SARB), 3^rd Floor, Matrix Mall, near Lal Jain Mandir, Sector-4, Jawahar Nagar, Jaipur-302004 (Rajasthan) and also at Hat Chowk, Village and Post- Ratlai, Tehsil- Jhalarapatan, District-Jhalawar, Rajasthan acting through Authorized Officer Shri Ashish Gupta.

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…..Applicant Bank…..

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VERSUS

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1. M/s Phool Chand Ghansi Lal Jain (Principal Borrower) having office at Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan through Proprietress Smt. Priti Jain.

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2. Smt. Priti Jain W/o Girish Kumar Jain, Proprietoress of M/s Phool Chand Ghansi Lal Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, DistrictJhalawar, Rajasthan.

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3. Shri Girish Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

OA No. 335 of 2024

4. Shri Veerendra Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, TehsilJhalarapatan, District- Jhalawar, Rajasthan.

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5. Shri Sanskar Jain S/o Narendra Kumar Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

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……Defendants…..

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Counsel for the Applicant Bank Sh. Yash Sharma Counsel for the Defendant no. 2 & 3 Sh. Annirudh Sharma Counsel for the Defendant no. 4 Sh. B.C. Jain None for the Defendant no. 1& 5

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JUDGMENT

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This Original Application was filed by the applicant bank on 15.03.2024 for recovery of outstanding amount of Rs. 5,32,24,117.96/- from the Defendants.

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As per the pleadings, Defendant no. 1 is a proprietorship firm of proprietress Defendant no. 2 and is engaged in the business of wholesale trading of Food grains and Defendant no. 3 to 5 are the guarantors and mortgagors for the credit facilities availed by the defendant no. 1 firm at Ratlai. The defendants are also located at the addresses stated in the cause title which is lying within the territorial jurisdiction of the Tribunal.

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In order to run the business smoothly, defendant no. 1, through Defendant no. 2 required financial assistance in the form of Cash Credit (Hypo.) and Standlby Line of Credit and accordingly, approached the applicant bank and submitted an application form on 15.04.2020 for sanction of

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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the cash credit facility for meeting out its financial requirements for business purpose. After the consideration the applicant bank sanctioned Cash Credit (Hypo.) and Standby Line of Credit to the tune of Rs. 4.75 Cr. and Rs. 25.00 Lac respectively vide letter of arrangement dated 27.10.2020 in favor of the defendants. Thereafter, for meeting out the financial requirements, the defendants again approached for grant of Cash Credit (Hypo.) to tune of Rs. 4.55 Cr. and keeping in view the financial requirements of the defendants, the applicant bank revised and sanctioned Cash Credit (Hypo.) to tune of Rs. 4.55 Cr. vide letter of arrangement dated 15.09.2021 against the same securities/properties. These credit facilities were availed and continued to be availed through Cash Credit Account no. 39849083803.

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Post compliance by the defendants of the pre-requisites for release of the financial assistance as sanctioned by the applicant bank and as stated above, the applicant bank allowed the defendant no. 1 to avail the same on the basis of the stipulations envisaged in the sanction letters, loan, security and guarantee documents referred to above and also made entries in respect of the transactions made by the defendants in the Cash Credit and Standby Line of Credit accounts open in the name of the defendant no. 1 and which is since then being maintained by the applicant bank regularly.

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After having availed the credit facilities as sanctioned, renewed, enhanced and allowed from time-to-time,

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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defendants failed and neglected to maintain financial discipline and make payment of the outstanding dues to the applicant bank and the applicant bank constrained to classify the Cash Credit Account as NPA on 24.01.2023 in accordance with the guidelines of RBI and also the policies of the applicant bank prevalent at the relevant time.

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The applicant bank also proceeded to get issued a loan recall notice on 28.10.2023. Further, a demand notice dated 13.09.2023 under Section 13(2) of the SARFAESI Act, 2002 has also been issued to the defendants on 13.09.2023 thereby, demanding payment of the entire outstanding dues from the defendants.

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The applicant bank duly maintained the Cash Credit and Standby Line of Credit accounts of the defendant no. 1 recording therein, the funds/amounts as were disbursed by it from time-to-time including the amount of interest charged periodically and other expenses and also amount deposited by the defendants in the said account from timeto-time. Later, at the time of revision of Cash Credit facilities to the tune of Rs. 4.55 Cr., credit facility granted in the form of Standby Line of Credit was closed by the defendants on 28.12.2021. However, the amount repaid/deposited was not sufficient to satisfy and keep the said loan account afloat. Accordingly, in cash credit account no. 39849083803, an amount of Rs. 5,30,74,117.96 remains outstanding till 30.10.2023 inclusive of the interest calculated thereon, at the contractual rate of 8.10% above EBLR, which is presently applicable rate 14.75% calculated

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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in daily products at monthly rest along with penal interest as applicable/decided by the bank from time to time.

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Summons were issued to the Defendants on 03.04.2024 and on 24.10.2024 Sh. B C Jain was filed Vakalatnama on behalf of the Defendant No. 4. On 11.08.2025 Sh. Annirudh Sharma has filed Vakalatnama on behalf of the Defendant no. 2 & 3.

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The Defendant no. 4 had appeared before this Tribunal on 24.10.2024 and no reply was filed by them. Counsel for defendant no. 2 and 3 submits that written statement has been filed within stipulated time. One of the properties which are mortgaged is standing against the name of Defendant no. 2, 3 and 4. Affidavit of evidence has been filed, but there is no rebuttal filed by the defendants.

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10.Heard arguments and perused the record.

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11.The defendants have not been able to prove availment of loan and subsequent default mortgage is also been admitted.

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12.As stated supra, the Applicant Bank filed the evidence affidavit of Sh. Ashish Gupta, coupled with the recitals in the documents, viz Exhibit-1 to Exhibit-6 (Colly) marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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13.In the result, this O.A. No. 335 of 2024 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 5,32,24,117.96 (Rupees Five Core Thirty-Two Lac Twenty Four Thousand One Hundred Seventeen and Paisa Ninety Six only) with future interest @ 10.00% (simple) p.a. from 30.10.2023 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated goods and charge on entire current assets of the firm including: stock of raw materials, consumables, stores & spare, stock in process, finished goods etc. (present & future) lying in their business premises, go downs or elsewhere and including stock/goods in transit and cash/ credit balances in its cash credit account. All present and future Book Debts/Receivables as also clean or documentary bills, domestic or exports, whether accepted or otherwise and the cheque/ drafts/instruments etc. drawn in favor of the firm and also sale of equitable mortgaged property i.e. “Residential property situated at village Ratlai at Khasra no. 773, Near Jain Mandir, Village and Post- Ratlai, Tehsil- Jhalrapatan, District Jhalawar, Rajasthan measuring 11960 Sq. feet in the name of Sh. Girish Jain & Sh. Sanskar Jain and Commercial property situated at Khasra no. 1840/77, Village &

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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Post- Ratlai, Tehsil-Jhalrapatan, District Jhalawar, Rajasthan measuring 17480 Sq. feet in the name of Sh. Veerendra Jain, Sh. Girish Jain & Sh. Sanskar Jain as well as personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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14.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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15.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 22.12.2025 .

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16.Prepare Recovery Certificate accordingly.

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17.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 28.10.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA PRESIDING OFFICER O.A. NO. 335 OF 2024

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DATE OF DELIVERY OF ORDER 28.10.2025

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

2. Smt. Priti Jain W/o Girish Kumar Jain, Proprietoress of M/s Phool Chand Ghansi Lal Jain R/o Hat Chowk,

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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Village and Post-Ratlai, Tehsil- Jhalarapatan, DistrictJhalawar, Rajasthan.

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3. Shri Girish Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

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4. Shri Veerendra Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, TehsilJhalarapatan, District- Jhalawar, Rajasthan.

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5. Shri Sanskar Jain S/o Narendra Kumar Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

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……Defendants…..

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Recovery Certificate for Rs. 5,32,24,117.96

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In terms of final order dated 28.10.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 5,32,24,117.96 (Rupees Five Core Thirty-Two Lac Twenty Four Thousand One Hundred Seventeen and Paisa Ninety Six only) with future interest @ 10.00% (simple) p.a. from 30.10.2023 till the date of realization.

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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and cash/ credit balances in its cash credit account. All present and future Book Debts/Receivables as also clean or documentary bills, domestic or exports, whether accepted or otherwise and the cheque/ drafts/instruments etc. drawn in favor of the firm and also sale of equitable mortgaged property i.e. “Residential property situated at village Ratlai at Khasra no. 773, Near Jain Mandir, Village and Post- Ratlai, Tehsil- Jhalrapatan, District Jhalawar, Rajasthan measuring 11960 Sq. feet in the name of Sh. Girish Jain & Sh. Sanskar Jain and Commercial property situated at Khasra no. 1840/77, Village & Post- Ratlai, Tehsil-Jhalrapatan, District Jhalawar, Rajasthan measuring 17480 Sq. feet in the name of Sh. Veerendra Jain, Sh. Girish Jain & Sh. Sanskar Jain as well as personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 22.12.2025.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and

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OA No. 335 of 2024

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Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 335 OF 2024

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DATE OF DELIVERY OF ORDER 28.10.2025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

2. Smt. Priti Jain W/o Girish Kumar Jain, Proprietoress of M/s Phool Chand Ghansi Lal Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, DistrictJhalawar, Rajasthan.

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3. Shri Girish Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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4. Shri Veerendra Kumar Jain S/o Shri Kailash Chand Jain R/o Hat Chowk, Village and Post-Ratlai, TehsilJhalarapatan, District- Jhalawar, Rajasthan.

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5. Shri Sanskar Jain S/o Narendra Kumar Jain R/o Hat Chowk, Village and Post-Ratlai, Tehsil- Jhalarapatan, District- Jhalawar, Rajasthan.

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……Defendants…..

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	15,000.00
2	Process Fee (Inc. Publication)	401.20
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	16,651.20

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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Date : 28.10.2025

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Counsel:

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Sh. Yash Sharma, Counsel for Applicant Bank Sh. Annirudh Sharma, Counsel for the Defendant no. 2 & 3 Sh.B.C. Jain, Counsel for the Defendant no. 4 None for the Defendant no. 1 & 5

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 04.11.2025

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OA No. 335 of 2024

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Date : 28.10.2025

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Counsel:

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Sh. Yash Sharma, Counsel for Applicant Bank Sh. Annirudh Sharma, Counsel for the Defendant no. 2 & 3 Sh.B.C. Jain, Counsel for the Defendant no. 4 None for the Defendant no. 1 & 5

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The Tribunal vide order dated 28.10.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 28.10.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 04.11.2025

State Bank of India v. M/S Phool Chand Ghansi Lal Jain

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Phool Chand Ghansi Lal Jain

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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