Allowed

State Bank of India v. Govardhan Wire Industries and Another

DRT28 Nov 2025OA/661/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application for recovery under Section 19 of the RDB Act. It directed the respondents to pay dues with costs and uniform simple interest at 8% p.a., granting a recovery certificate in accordance with law.

What did the court decide?

Recovery Certificate issued. Directing payment of principal with costs and simple interest at 8% p.a. from filing date until realization.

State Bank of India versus Govardhan Wire Industries and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.661/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.05.2025

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DATE OF DECISION: 28.11.2025

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State Bank of India, a Body Corporate constituted under the provisions of The State Bank of India Act, 1955 (23 of 1955), having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai. (Maharashtra) 400021, carrying on its Business of Banking in India and Abroad having one of its Local Head Office at Sector 17, Chandigarh and having its Branch amongst other places at Barra Chowk, Sangrur (Punjab) 148001 through its Chief Manager Shri Nishant Ranjan Ojha.

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……..Applicant

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Versus

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M/s Govardhan Wire Industries, a Proprietor Firm, at Ubhawal Link Road, Sangrur (Punjab) 148001, through its Proprietor Ms. Meenakshi Jain wife of Shri Sunil Jain.

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Ms. Meenakshi Jain wife of Shri Sunil Jain, Proprietor of M/s Govardhan Wire Industries, Resident of House no.30/5/3, Har Gobindpura Basti, Ward no.9, Sangrur. (Punjab) 141008.

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IInd address: Resident of Street No.5, Maan Colony, Sangrur.

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(Punjab) 141008.

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….……Defendants

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Advocates:

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Argued by: Sh. Vivek Verma, Advocate for 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.43,65,424.42p (Rupees Forty Three Lacs Sixty Five Thousand Four Hundred Twenty Four & Paise Forty Two Only). The Original Application has been filed through Shri Nishant Ranjan Ojha, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette

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2 OA/661/2025 STATE BANK OF INDIA VS GOVARDHAN WIRE INDUSTRIES AND ANOTHER

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Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulation No. 76 & 77 of State Bank of India General Regulation framed in exercise of the power conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. 2. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for the grant of Cash Credit Limit of Rs.7.60 Lacs & Term loan of Rs.16.15 Lacs vide Loan applications dated 15.02.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.7.60 Lacs & Term loan of Rs.16.15 Lacs vide Letter of arrangement dated 16.03.2017, which is Annexure A3 to this OA. 4. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 had hypothecated stock, machinery etc. vide agreement cum loan cum hypothecation dated 16.03.2017, which is Annexure A4 to this OA.

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Defendant no. 2 mortgaged her immovable property i.e. land measuring 2 Kanal 2 Marla, situated at Ubhawal, Tehsil and District Sangrur (Punjab) vide Registered Mortgaged deed bearing vasika no. 4028 dated 07.03.2017 , along with its translation, which is Annexure A7 to this OA.

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Documents executed : Amalgamation Notification dated 22.02.2017, which is Annexure A1 to this OA; A, DP Note, no lien letter, both dated 16.03.2017, which are Annexures A5 and A6 to this OA; Statements of accounts, which are Annexures A8 & A9 to this OA; Notice dated 09.04.2018 u/s 13(2) of SARFAESI Act, which is Annexure A10 to this OA and Valuation report dated 29.04.2024, which is Annexure A11 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.43,65,424.42p, which is recoverable and the defendants

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were served recall notices but they did not repay the outstanding

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3 OA/661/2025 STATE BANK OF INDIA VS GOVARDHAN WIRE INDUSTRIES AND ANOTHER

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 26.11.2025.

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In support of the OA, affidavit of, Shri Nishant Ranjan Ojha, 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 A11 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts 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.43,65,424.42p (Rupees Forty Three Lacs Sixty Five Thousand Four Hundred Twenty Four & Paise Forty Two 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 @11.95% p.a. with 2% penal interest with half yearly rests from 20.05.2025 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

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4 OA/661/2025 STATE BANK OF INDIA VS GOVARDHAN WIRE INDUSTRIES AND ANOTHER

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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 both the loan accounts from the date of filing of the OA till 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.43,65,424.42p (Rupees Forty Three Lacs Sixty Five Thousand Four Hundred Twenty Four & Paise Forty Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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. 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 08.12.2025. 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: 28.11.2025

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

State Bank of India v. Govardhan Wire Industries and Another

Case brief

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State Bank of India v. Govardhan Wire Industries and Another

Case brief

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