Allowed

State Bank of India v. M/S Sharma Automobiles

DRT10 Mar 2025OA/391/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of an outstanding loan principal and interest. The court confirmed the debt due from a proprietorship firm and its proprietor, permitting recovery via sale of hypothecated stocks or other property.

What did the court decide?

Recovery of Rs. 34,02,430.37 plus interest and costs; recovery to be made via sale of hypothecated stocks or personal property.

State Bank of India versus M/S Sharma Automobiles — Execution and Attachment | 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: 391/2023

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Date of Institution: 15.02.2023 Date of Decision: 10.03.2025

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SBI, having its branches all over India and a branch at Near Old Bus Stand, Nangal Road, Una, Himachal Pradesh.

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……..Applicant

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Vs. 1. M/s Sharma Automobiles, a proprietorship Firm, at Village and Post Office Lal Singhi, Amb Road, Una, Himachal Pradesh, through its proprietor Sh. Rohit Sharma s/o Sh. Vidya Sagar. 2. Sh. Rohit Sharma s/o Sh. Vidya Sagar, proprietor of M/s Sharma Automobiles, Resident of House No. 2(1), Ward No.2, Block No.8, Una, Himachal Pradesh. IInd Address: Resident of Village Dayapur, Post Office Gohlani, Tehsil Nangal, District Rupnagar, Punjab. IIIrd Address: C/o Shri Gurdyal Singh Dhesi, Resident of House No.1526, Ward No.3, Galua, Una, Himachal Pradesh. IVth Address: C/o Sharma Motors, Amb Road, Near Petrol Pump, Una, Himachal Pradesh. ……….Defendants

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Advocates

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Mr. Vivek Verma, Counsel for the applicant bank. Defendants- ex parte .

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OA for the Recovery of Rs.34,02,430.37p with interest @12.15% per annum with monthly rests from 15.02.2023.

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ORDER 1. SBI, (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the

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2 recovery of Rs.34,02,430.37p with interest against M/s Sharma
Automobiles and another (defendants).
2. Bank’s case is that Defendant No.1 is the proprietorship firm of
defendant No.2. On 27.06.2013, it had granted a C.C Limit of Rs.20.00
Lacs and Term Loan of Rs.10.00 Lacs to Defendant No.1 through defendant No.2 for Business purpose. Both the facilities were renewed on 28.06.2015. To secure the loan, Defendants had hypothecated stocks
(fully detailed in para No.3A of the application). The loans were
chargeable to different rates of interest. On 08.02.2023, a sum of
Rs.34,02,430.37p was due from the defendants. Despite repeated
requests, defendants did not make the repayment. Hence, this
application.
3. On 10.03.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 26.02.2024, they were proceeded_ex_ parte.
4. In order to prove its case, the Bank has placed on record the
affidavit of Sh. Pankaj Koundal, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-12.
5. 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 C.C Limit of
Rs.20.00 Lacs and Term Loan of Rs.10.00 Lacs and on 08.02.2023, a sum of Rs.34,02,430.37p was due.
6. Accordingly, the application of the bank for the recovery of
Rs.34,02,430.37p (Rupees Thirty Four Lacs Two Thousand Four Hundred Thirty and Thirty Seven Paise Only) with interest @12.15%

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per annum with monthly rests from 15.02.2023, 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 hypothecated stocks (fully detailed in para No.3A of the application) as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 08.04.2025, who is directed to distribute the sale proceeds of the hypothecated stocks as per the provisions of Section 19(20-AB) of the Act . 10. 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: 10.03.2025 Presiding Officer DRT-1, Chandigarh

State Bank of India v. M/S Sharma Automobiles

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Sharma Automobiles

Case brief

What is this about?

What did the court decide?

What the court decided

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