Allowed

State Bank of India v. M/S Bachna Ram Krishan Chand and Others

DRT26 Jun 2025OA/488/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 36.64 lakhs against the respondents. The court modified the claimed interest rate to 8% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.36,64,971.00 with 8% p.a. interest; issuance of Recovery Certificate; attachment and sale of personal assets if dues remain unsatisfied.

State Bank of India versus M/S Bachna Ram Krishan Chand and… — Company and Corporate | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.488/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 07.02.2022

¶5

DATE OF DECISION: 26.06.2025

¶6

State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 having its Central Office at Madame Cama Road, Nariman Point Mumbai and its Local Head Office at Sector 17-A, Chandigarh and State Bank of India, Hospital Road Branch, Mansa, District Mansa, through its Branch Manager Ms. Neha Singh.

¶7

……..Applicant Versus

¶8

M/s Bachna Ram Krishan Chand, Shop No. 344, Old Grain Market, Mansa, District Mansa, Punjab through its proprietor.

¶9

i) Krishan Chand S/o Bachna Ram R/o H.No. 126, Babar Singh Street, Ward No. 17, Nim Wali Gali, Mansa, District Mansa.

¶10

Anju Bala W/o Subhash Goyal R/o H.No. 176, Ward No. 17, Babar Sabji Wala, Mansa, District Mansa.

¶11

Smt. Suman Lata W/o Sh. Rajpal Goyal R/o Greenway Street, Bhagat Singh Chowk, Mansa, District Mansa.

¶12

………. Defendants

¶13

Advocates:

¶14

Argued by Sh. Gurinderjit Singh, Advocate for Applicant Defendants are ex-parte

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.36,64,971.00 (Rupees Thirty Six Lacs Sixty Four Thousand Nine Hundred And Seventy One Only). The Original Application has been filed through Ms. Neha Singh, Branch Manager o f the applicant, who is competent to institute the Original Application vide Gazette notification dated 26.09.1959, 26.08.1972 & 27.03.1987.

¶17

2 OA NO.488-2022 STATE BANK OF INDIA VS M/S BACHNA RAM KRISHAN CHAND AND OTHERS

¶18

The brief facts of the OA are that the defendant no. 1 had approached the applicant for grant of Cash Credit Limit of Rs.30.00 Lacs vide Loan Application both dated 20.05.2019, which is Annexure A1 to this OA and further for its renewal vide Loan Application dated 10.08.2020, which is Annexure A8 to this OA.

¶19

The applicant sanctioned Cash Credit Limit of Rs.30.00 Lacs vide Letter of Arrangement dated 26.06.2019 which is Annexure A2 to this OA and further sanctioned its renewal vide Renewal Sanction Letter dated 28.08.2020, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant nos.2 and 3 had mortgaged their immovable property i.e. Land measuring 1 Kanal 10 Marla situated at Near Ganga Oil Mill Mansa, District Mansa vide Equitable Mortgage of Sale Deed bearing vasika no.602 dated 09.05.2001 and jamanbandi for the year 2012-13 with their translations filed in compliance of the order dated 30.05.2024 vide diary no. 7457 dated 15.05.2025. Documents executed:- Agreement of Loan cum Hypothecation, Guarantee Agreement and Letter of Undertakings dated 26.06.2019, which are Annexures A3 to A7 to this OA; Letter of Confirmation dated 27.06.2019, which is Annexure A10 to this OA; Memorandum for Recording creation of Mortgage dated 26.06.2019, which is Annexure A11 to this OA; Jamabandi along with its English translation 2012-13, which is Annexure A12 to this OA; Affidavit dated 16.05.2019, which is Annexure A13 to this OA; Bank Notices dated 08.12.2020, which are Annexures A14 to A16 to this OA; Notices U/s 13(2) dated 01.01.2021, which are Annexures A17 to A19 to this OA; Possession Notice dated 04.09.2021, which is Annexure A20 to this OA; Valuation Report dated 11.05.2019, which is Annexure A21 to this OA; Statement of Account along with interest

¶20

3 OA NO.488-2022 STATE BANK OF INDIA VS M/S BACHNA RAM KRISHAN CHAND AND OTHERS

¶21

statement and Certificate dated 19.05.2014, which is Annexure A22 to this OA.

¶22

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 36,64,971.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶23

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 30.08.2023.

¶24

In support of the OA, affidavit of Ms. Neha Singh, Branch Manager, State Bank of India h as been filed.

¶25

Heard arguments and perused record.

¶26

It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A22 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per Housings and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,64,971.00 (Rupees Thirty Six Lacs Sixty Four Thousand Nine Hundred And Seventy One 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.

¶27

4 OA NO.488-2022 STATE BANK OF INDIA VS M/S BACHNA RAM KRISHAN CHAND AND OTHERS

¶28

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.05% plus penal interest @2.00%p.a. form 29.1.2022 till the realization.

¶29

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.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,64,971.00 (Rupees Thirty Six Lacs Sixty Four Thousand Nine Hundred And Seventy One 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 applicant 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.

¶31

Any other application pending stands disposed of .

¶32

Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 16.07.2025.

¶34

5 OA NO.488-2022 STATE BANK OF INDIA VS M/S BACHNA RAM KRISHAN CHAND AND OTHERS

¶35

Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶36

Pronounced by me in the open Tribunal .

¶37

Dated: 26.06.2025

¶38

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S Bachna Ram Krishan Chand and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Bachna Ram Krishan Chand and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Sh. Satnam Singh

Punjab National Bank versus M/S Bombay Catering and Others

Union Bank of India versus Rajni Gupta and Another

Uco Bank versus Amory Cosmetics Private Limited and Others

State Bank of India versus Kiran Arora and Another

Indian Bank versus Sh. Gurcharan Singh and Others