Allowed

State Bank of India v. M/s Janta Fruits and Coconut Traders and Others

DRT28 Oct 2025OA/595/2025

Case brief

AI extract

What is this about?

The DRT allowed an application by State Bank of India to recover Rs. 26,20,703 from defendants who breached loan terms. The court granted a recovery certificate and ordered interest at 8% p.a., permitting sale of assets under SARFAESI Act.

What did the court decide?

Recovery Certificate issued; decree for Rs. 26,20,703 with 8% p.a. interest; liberty to enforce via sale of hypothecated or personal assets.

State Bank of India versus M/s Janta Fruits and Coconut… — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.595/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.05.2025

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DATE OF DECISION: 28.10.2025

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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, Nariman Point, Mumbai and one of its Local Head office at sector 17-A, Chandigarh and one of its RACC Branch at Sheran Wala Gate, The Mall Patiala, District Patiala (Punjab) 147001 through its Chief Manager Smt. Madhvi Sharma.

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……..Applicant

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Versus

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M/s Janta Fruits & Coconut Traders, a partnership concern situated at VPO Banarsi, Tehsil Moonak, District Sangrur through its partners Sh. Balraj Sharma and Smt. Archana.

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Sh. Balraj Sharma son of Sh. Basau Ram R/o VPO Banarsi, Tehsil Moonak, District Sangrur (Punjab).

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Smt. Archana wife of Sh. Ashok Kumar R/o VPO Banarsi, Tehsil Moonak, District Sangrur (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Gaurav Singla, Advocate for the applicant

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Defendants already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for recovery of Rs.26,20,703.00p (Rupees Twenty Six Lacs Twenty Thousand Seven Hundred Three Only). The Original Application has been filed through Smt. Madhvi Sharma, Chief Manager of the applicant, who is competent to institute the Original Application vide terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No. 76 & 77 of State Bank of India Regulations framed in

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OA NO.595/2025 STATE BANK OF INDIA VS M/S JANTA FRUITS AND COCONUT TRADERS AND OTHERS

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Exercise of the powers conferred by Sub section (3) of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant no.1 through his partners defendant no.2 & 3 had approached the applicant for grant of CC Limit of Rs.25.00 Lacs vide loan application dated 29.05.2023, which is Annexure A1 to this OA. Defendant nos. 2 and 3 also stood as guarantors. 3. The applicant sanctioned the CC Limit of Rs.25.00 Lacs vide Letter of arrangement dated 30.05.2023, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its partners defendant nos. 2 and 3 had hypothecated stocks, receivables and all existing and future current assets vide agreement of loan cum hypothecation dated 30.05.2023, which is Annexure A3 to this OA. Documents executed: - Guarantee agreement dated 30.05.2023, which are Annexure A4 to this OA; Legal notice dated 16.04.2025 along with postal receipts, which is Annexure A5 to this OA and Statement of account along with calculation sheet & Banker’s Certificate, which is Annexure A6 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.26,20,703.00p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 23.10.2025.

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OA NO.595/2025 STATE BANK OF INDIA VS M/S JANTA FRUITS AND COCONUT TRADERS AND OTHERS

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In support of the OA, affidavit of Smt. Madhvi Sharma, chief Manager, State Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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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 A6 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms 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.26,20,703.00p (Rupees Twenty Six Lacs Twenty Thousand Seven Hundred Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.15%p.a. along with 2% penal interest with monthly rests from 10.04.2025 till the realization.

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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/hypothecated assets, 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 @8.00%p.a. in the loan account from the date of filing of the OA till

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OA NO.595/2025 STATE BANK OF INDIA VS M/S JANTA FRUITS AND COCONUT TRADERS AND OTHERS

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realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,20,703.00p (Rupees Twenty Six Lacs Twenty Thousand Seven Hundred Three Only) jointly and severally, with costs, current and future simple interest @8.00%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 assets of 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.11.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 28.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/s Janta Fruits and Coconut Traders and Others

Case brief

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State Bank of India v. M/s Janta Fruits and Coconut Traders and Others

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