Allowed

State Bank of India v. Ms Basanti Lal Mitha Lal Jain

DRT18 Dec 2025OA/397/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by State Bank of India for recovery of Rs. 24,73,481/- outstanding from a proprietorship firm and its sole proprietor. The Tribunal held the respondents liable, ordered issuance of a recovery certificate, and directed future interest and costs.

What did the court decide?

Recovery certificate issued for Rs. 24,73,481/- with future interest @10% simple; recovery from hypothecated and personal assets; costs awarded.

State Bank of India versus Ms Basanti Lal Mitha Lal Jain — Banking and Recovery | DRT (2025)

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“ORIGINALAPPLICATION” No. 397 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. 397 OF 2024

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DATE OF DELIVERY OF ORDER 18.12.2025

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State Bank of India , a body corporate, constituted under the State Bank of India Act, 1955, and having Central office at Madam Cama Road, Mumbai and one of its Local Head office at Tilak Marg, C-Scheme, Jaipur and one of it's an office Stressed Assets Recovery Branch, situated at IIIrd Floor, Matrix Mall, Near Lal Jain Mandir, Sector No. 4, Jawahar Nagar, Jaipur through its Chief Manager Shri L.N. Samariya.

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…..Applicant Bank…..

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VERSUS

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1. M/s Basanti Lal Mitha Lal Jain , a proprietorship firm, Registered office at Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-341025.

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Also At:-

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-313602 through its proprietor Shri Basanti Lal Jain.

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2. Shri Basanti Lal Jain S/o Sh. Mitha Lal Jain proprietor of M/s Basanti Lal Mitha Lal Jain R/o Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan341025.

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Also At:-

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur Rajasthan-313602.

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……Defendants…..

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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Counsel for the Applicant Bank Sh. Vikram Jain Counsel for the Defendants

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Sh. Kuldeep Sharma

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JUDGMENT

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This Original Application was filed by the applicant bank on 17.02.2024 for recovery of outstanding amount of Rs. 24,73,481/- from the Defendants.

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As per the pleadings, the defendant No. 1 is the proprietorship concern carrying on business and defendant No. 2 is the sole proprietor of defendant No. 1 and as such the defendants are jointly and severally liable for the repayment of the loan facility availed by them.

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It is submitted that on 01.06.2019, defendant 2 on behalf of defendant No. 1 approached to the applicant banks, Branch office situated at Kheroda, Near Kheroda Bus Stand, Tehsil Vallabhnagar, District Udaipur for the grant of the Cash Credit Hypothecation facility of Rs. 30.00 lacs to expansion of business activity. That on 02.08.2019, the applicant bank after usual verification and considering their business needs and requirements on their application sanctioned and granted the Cash Credit Hypothecation limit of Rs.30.00 lacs. The said facility was sanctioned with such terms & conditions that interest will be charged at the rate of 3.60% margin above the MCLR/RLLR with a minimum interest rate of 12.00% per annum, rising and falling there with & which will be calculated on daily products with monthly rests. The said facility will be repayable on demand & will be available for 12 months subject to review of every 12 months.

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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The said facility will be secured by way of hypothecation of Firm’s entire all type of stock, fixed assets, current assets, finished goods, semi-finished goods, stores, spares, consumables, Receivables & Book Debts. Loan application dated 01.06.2019 along with documents & Letter of arrangement dated 02.08.2019 are enclosed herewith and marked as Annexure A-2 & Annexure A-3.

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It is submitted that Defendants borrower agreed to pay an interest at the rate of 3.60% margin above the MCLR/RLLR with a minimum interest rate of 12.00% per annum, rising and falling there with & which will be calculated on daily products with monthly rests. The defendants availed the entire loan facility from the Applicant Bank and used for their business purpose.

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It is submitted that on 01.05.2020, the defendants approached to the applicant bank to renewal of the Cash Credit (Hypothecation) Loan facility & also requested to applicant bank to grant Term Loan facility of Rs. 3.00 lac. On the request of defendants, the applicant bank renewed the Cash Credit (Hypothecation) Loan facility of Rs. Rs. 30.00 lac & granted Term Loan facility of Rs. 3.00 lac on 19.05.2020. The said Term Loan Limit was sanctioned with such terms & conditions that the interest at the rate of 7.25 % per annum with monthly rests linked with MCLR will be calculated and charged on daily balance in bank's favour due in the said loan and they will also liable to pay increased rate of interest which may be increased from time to time according to increase in MCLR. The said loan will be repaid

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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by them in 24 Monthly installments of Rs. 19,000/- each commencing from 01.12.2020. The aforesaid both facilities will be secured by way of hypothecation of Firm’s entire all type of stock, fixed assets, current assets, finished goods, semi-finished goods, stores, spares, consumables, Receivables & Book Debts. Letter of arrangement dated 19.05.2020 is enclosed herewith and marked as Annexure A- 5.

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It is submitted that since the defendants failed to adhere to the financial discipline and also failed to regularize their loan account maintained by the applicant bank. The applicant bank made various demands orally and by writing. The applicant bank issued a Notice under Section 13(2) of the SARFAESI Act 2002 on 26.10.2023 & also issued a Legal Notice through their counsel on 29.01.2024, but no efforts had been made by them to regularize their loan account. The copy of notice under Section 13(2) of the SARFAESI Act 2002 dated 26.10.2023& registered receipt are enclosed herewith and marked as Annexure A-9 & Annexure A-10.

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It is submitted that on 15.01.2024, applicant bank credited the amount of Rs. 8,97, 911.00/- of Fixed deposit Receipt having no. 38685131556, which was deposited by defendant No.2 as security, in the loan account of defendants.

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It is submitted that the applicant bank maintained the Cash Credit (Hypothecation) Loan Account of the defendant No 1, in which an amount of Rs. 21,37,711.00/- is due up to 14.02.2024 against defendants. In the loan account the

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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interest has been debited up to 30.06.2023, which is shown in copy of the statement of the account. As per the Income Recognition and Assets Classification norms of accounting laid down in accordance with the statuary instruction of Reserve Bank of India, the loan account of defendant No.1 has been declared Non-performing account on 01.05.2023 and thereafter no interest has been debited in the loan account and Rs 2,38,421/- is outstanding from dated 01.07.2023 to dated 14.02.2024 as accrued/unrealized interest & Rs.97,349.00/- is outstanding from dated 01.07.2023 to dated 14.02.2024 as accrued penal interest amount against defendants. Hence, the total amount of Rs. 24,73,481.00/- is due up to 14.02.2024. against defendants.

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It is submitted that the Defendants have also miserably failed to adhere to the financial norms and discipline of the Applicant bank as per terms and conditions of the security documents executed by defendant no.2 on behalf of defendant no.1 in favour of the Applicant bank in respect of the aforesaid Cash Credit (Hypothecation) Loan Facility availed by the Defendants. They have failed to regularly submit the stock statements, Balance Sheets and other financial data of their business as required by the Applicant bank and they have also stopped routing the sale transactions of their business through their aforesaid Cash Credit (Hypothecation) account with the Applicant bank. With the results the aforesaid account of defendant no.1 has become quite irregular and the defendants have exceeded arrangements in the aforesaid account. Further the

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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Defendants also closed the unit and there is no activity going on presently on unit. The defendants have failed to regularize the said account in spite of the repeated requests and reminders made by the authorized officers of the Applicant bank. Since the Defendants have committed breach of the terms and conditions of the security documents and the Applicant bank is left with no alternative but to seek recourse of this Hon'ble Tribunal for the recovery of their dues.

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10.It is submitted that in spite of the execution of the security documents, and the repeated request and demand made by Applicant Bank, the Defendants have failed to pay the outstanding amount and interest in the above referred Loan facilitates.

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11.It is submitted that since the Defendants have failed to regularize the account on the demand of the Applicant bank and even after the due service of notices recalling the said amount, the Applicant bank is left with no alternative but to seek recourse of this Hon'ble Tribunal for the recovery of their dues.

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12.Summons were issued to the Defendants on 10.04.2024 and Sh. Kuldeep Sharma filed Vakalatnama on behalf of the Defendants, but reply has not been filed by the defendant.

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13.Heard arguments and perused the record.

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14.As stated supra, the Applicant Bank filed the evidence affidavit of Shri L. N. Samariya coupled with the recitals in the documents, viz Exhibit A/1 to A/14 marked on behalf of the applicant bank, clinches the claim of the applicant

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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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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15.In the result, this O.A. No. 397 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. 24,73,481/- (Rupees Twenty Four Lac Seventy Three Thousand Four Hundred Eighty One only) with future interest @ 10% (simple) 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 stock, fixed assets, currents assets, finished goods, semi finished goods, stores, spared, consumables, Receivables and Book Debts and as well as from the 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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16.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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17.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 31.01.2026 .

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18.Prepare Recovery Certificate accordingly.

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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19.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. 18.12.2025 .

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

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Order signed & uploaded on 22.12.2025.

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OA No. 397 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. 397 OF 2024

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DATE OF DELIVERY OF ORDER 18.12.2025

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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

1. M/s Basanti Lal Mitha Lal Jain , a proprietorship firm, Registered office at Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-341025.

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Also At:-

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-313602 through its proprietor Shri Basanti Lal Jain.

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2. Shri Basanti Lal Jain S/o Sh. Mitha Lal Jain proprietor of M/s Basanti Lal Mitha Lal Jain R/o Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan341025.

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Also At:-

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur Rajasthan-313602.

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……Defendants…..

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Recovery Certificate for Rs. 24,73,481/-

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In terms of final order dated 18.12.2025 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. 24,73,481/- (Rupees Twenty Four Lac Seventy Three Thousand Four Hundred Eighty One only) with future interest @ 10% (simple) 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 stock, fixed assets, currents assets, finished goods, semi finished goods, stores, spared, consumables, Receivables and Book Debts and as well as from the 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 31.01.2026 .

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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 Financial

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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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 on this 18.12.2025 .

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

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 397 OF 2024

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DATE OF DELIVERY OF ORDER 18.12.2025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/s Basanti Lal Mitha Lal Jain , a proprietorship firm, Registered office at Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-341025.

¶119

Also At:-

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan-313602 through its proprietor Shri Basanti Lal Jain.

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2. Shri Basanti Lal Jain S/o Sh. Mitha Lal Jain proprietor of M/s Basanti Lal Mitha Lal Jain R/o Main Market, Village Kheroda, Tehsil Vallabhnagar, District Udaipur, Rajasthan341025.

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Also At:-

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Order signed & uploaded on 22.12.2025.

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OA No. 397 of 2024

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Khakar Devji ke Pass, Village Kheroda, Tehsil Vallabhnagar, District Udaipur Rajasthan-313602.

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……Defendants…..

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	27,000.00
2	Process Fee (Inc. Publication)	566.40
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	28,816.40

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

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Order signed & uploaded on 22.12.2025.

OA No. 397 of 2024

18.12.2025

Counsel:

Sh. Vikram Jain, Counsel for Applicant Bank Sh. Kuldeep Sharma, Counsel for the Defendants

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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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Order signed & uploaded on 22.12.2025.

OA No. 397 of 2024

18.12.2025

Counsel:

Sh. Vikram Jain, Counsel for Applicant Bank Sh. Kuldeep Sharma, Counsel for the Defendants

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The Tribunal vide order dated 18.12.2025 , 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 18.12.2025 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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Order signed & uploaded on 22.12.2025.

State Bank of India v. Ms Basanti Lal Mitha Lal Jain

Case brief

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State Bank of India v. Ms Basanti Lal Mitha Lal Jain

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