The Tribunal allowed the applicant's application for recovery of dues. The court confirmed liability for the outstanding loan amount of Rs. 21,92,398 and modulated the applicable interest rate to 8% per annum considering market conditions.
Recovery of Rs. 21,92,398 plus simple interest at 8% p.a. from filing date till realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.360/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 05.03.2023
DATE OF DECISION: 03.01.2025
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 one of its Local Head Office at Sector 17A, Chandigarh, having its Branches all over India and one of its Specialized Branch SME City Credit Centre (SMECCC)-2 Administrative Office Building Second Floor Civil Lines Fountain Chowk, Ludhiana through its Chief Manager and Principal Officer Sh. Abinash Kumar Roy.
……..Applicant
Versus
Second Address : House No.1284/55, Street No.4, Guru Nanak Dev Nagar, Ludhiana.
Third Address . House No.B-VI, 120/3 Kucha No.2, Old Madhopuri Ludhiana.
….……Defendants
Advocates:
Argued by Sh. V.K. Sharma, Advocate for the applicant Sh. M.S. Kathuria, Advocate for Defendants
FINAL ORDER
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filed through Sh. Abinash Kumar Roy, Chief Manager of the applicant, who is competent to institute the Original Application in terms of gazette notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulation No.76 and 77 of State Bank of India General Regulations, made by the RBI in exercise of powers conferred by the sub Section 3 of Section 50 of the State Bank of India Act 1955.
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07.04.2020 & 18.03.2021, which are Annexures A16 to A18 to this OA; Balance Confirmation Letter dated 05.04.2021, which Annexure A19 to this OA; Demand Notices dated 19.12.2022, which is Annexure A20 to this OA and Statement of Account with certificate, Closure , which is Annexure A21 to this OA.
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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,92,398.00 (Rupees Twenty One Lacs Ninety Two Thousand Three Hundred Ninety 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 account.
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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,92,398.00 (Rupees Twenty One Lacs Ninety Two Thousand Three Hundred Ninety Eight 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/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 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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Pronounced by me in the open Tribunal . Dated: 03.01.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding debt from the respondents jointly and severally.
Whether the rate of interest claimed can be modified given market conditions.
State Bank of India
M/s H.D. Sharma Hosiery
Vijay Kumar Sharma
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
