Allowed

State Bank of India v. Gul Enterprises

DRT9 Sept 2025OA/782/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by State Bank of India for recovery of a loan of Rs. 43,13,151/- along with interest and costs from M/s Gul Enterprises after the respondent failed to appear and rebut the bank's documented case.

What did the court decide?

Direct the defendant to pay Rs.43,13,151/- with interest @12.40% p.a. within 30 days; in default, recover via sale of assets.

State Bank of India versus Gul Enterprises — Banking and Recovery | DRT (2025)

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O.A. No. 782 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No.782 of 2023

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State Bank of India

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Stressed Assets Recovery Branch-II SBI House, 18/4, 4th Floor Arya Samaj Road, Karol Bagh, New Delhi-110005

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Applicant

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Versus

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M/s Gul Enterprises Through Proprietor Smt. Gulfisha w/o Mohd. Ikram

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Nizampur Road, Parnala Near Saini Sweets, Behind Saini Property Haryana-124507

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Also at:

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M/s Gul Enterprises Through Proprietor Smt. Gulfisha House no.160, Gali Mata Wali Chhatta Lal Mian, Darya Ganj Central Delhi, Delhi-110002

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Also at:

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M/s Gul Enterprises Through Proprietor Smt. Gulfisha Deepak Plaza Building D.C. Chowk Sector-9, Rohini, Delhi

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Also at:

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M/s Gul Enterprises Through Proprietor Smt. Gulfisha Plot no.2346, MIE Part-B, Bahadurgarh Jhajjar, Haryana-1245407 Defendant

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Present: Ms. Jaya Tomar, Counsel for the applicant bank

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O.A. No. 782 of 2023

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Date of Institution: 21.09.2023

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Date of Pronouncement: 09.09.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 21.09.2023 through its authorized representative under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.43,13,151/- (Rupees Fourteen Lacs Thirteen Thousand One Hundred Fifty One only) along with pendentelite and future interest @12.40% per annum with monthly rests from the date of filing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned Fund Based Cash Credit Limit of Rs.20,00,000/- (Rupees Twenty Lacs only) @11.80% interest per annum and Term Loan of Rs.20,00,000/(Rupees Twenty Lacs only) @8.55% interest per annum under Stand Up India (SUI) notified by Govt.of India with CGSSI scheme on 11.10.2022 for carrying out business of Poly Carbonate Natural Granules against hypothecation of assets, plants, Machinery, etc. The term loan was to be repayable in monthly installments of Rs.33,333/- plus interest.

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In order to avail the loan facilities, the defendant submitted loan application and executed Letter of Arrangement (SME-1), Agreement of Loan cum Hypothecation (SME-2), Guarantee of Agreement of Loan (SME-3) with the applicant bank on 11.10.2022.

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O.A. No. 782 of 2023

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In order to secure the loan facilities, the defendant hypothecated the stock in trade, receivable, plant & machinery in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the Cash Credit account and term loan installments with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 29.05.2023 as per RBI guidelines and issued a legal demand notice dated 06.06.2023 but the defendant failed to regularize the account and hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 15.05.2025, the defendant has been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Kapil Singh Ahlawat, authorized representative of the applicant bank who has proved the documents as Gazette notification, GST registration certificate, Loan application form for Stand up India scheme, Letter of Arrangement, Agreement of Loan cum Hypothecation, Guarantee Agreement of loan, Undertaking by the Proprietor, Legal notice, Statement of accrued interest, Statement of accounts, Certificate u/s 2A(a), (b) & (c) read with Section 2(8)

5d-

O.A. No. 782 of 2023

and under Section 2(8) of the Banker's Books Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/12.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.43,13,151/- (Rupees Forty Three Lacs Thirteen Thousand One Hundred Fifty One only) together with pendentelite and future interest @12.40% per annum with monthly rests from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated assets, machinery etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

O.A. No. 782 of 2023

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 07.11.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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** 5d —_ (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI**

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(Dictated and pronounced in open court) Dated: 09.09.2025

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State Bank of India v. Gul Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. Gul Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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