Allowed

State Bank of India v. Messrs Gursimran Hp Centre and Another

DRT24 Jul 2025OA/803/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's Original Application for recovery of an NP A loan of approximately Rs.32.40 lakhs. The tribunal fixed interest at 8% per annum and directed the issuance of a Recovery Certificate, permitting recovery from hypothecated or personal assets.

What did the court decide?

Recovery of Rs.32,39,643.90 with interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via sale of hypothecated or personal assets.

State Bank of India versus Messrs Gursimran Hp Centre and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.803/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2024

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DATE OF DECISION: 24.07.2025

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State Bank of India is a Body Corporate constituted under the provision 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 and having one of its Local Head Office at Sector 17, Chandigarh, having its Branch amongst other places at Civil Hospital Road, Rupnagar (Punjab) 140001 through its Branch Manager Ms. Navjot Kaur.

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……..Applicant Versus

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M/s Gursimran HP Centre, a Proprietorship Firm at Village Kanjla, Morinda Chamkaur Sahib Road, Tehsil Morinda, District Rupnagar, Punjab 140101, through its Proprietor Shri Gagandeep Singh S/o Shri Ram Lal Mall.

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Shri Gagandeep Singh S/o Shri Ram Lal Mall, Proprietor, M/s Gursimran HP Centre R/o House No. 189, Giani Zail Singh Nagar, Rupnagar, Punjab 140001.

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……….Defendants

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Advocates:

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Argued by Sh. Sanjay Sagar, Advocate proxy for Sh. Vivek Verma, 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.32,39,643.90p (Rupees Thirty Two Lacs Thirty Nine Thousand Six Hundred Forty Three and Paisa Ninety Only). The Original Application has been filed through Ms. Navjot Kaur, Branch Manager o f the applicant, who is competent to institute the

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2 OA/803/2024 STATE BANK OF INDIA VS MESSRS GURSIMRAN HP CENTRE AND ANOTHER

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Original Application. Gazette notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 read with Regulation no. 76 and 77 of State Bank of India Regulations framed in exercise of power conferred by sub section 3 of section 50 of the State Bank of India Act,1955 with previous sanction of the Central Government.

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The brief facts of the OA are that the Defendant No.1 through its Proprietor Defendant No. 2 had approached the applicant for grant of CC Limit of Rs.30.00 Lacs and vide Loan Application dated 20.01.2020, which is Annexure A1 to this OA and thereafter for its Renewal vide Application dated 06.03.2023, which is Annexure A4 to this OA. 3. The applicant sanctioned CC Limit of Rs.30.00 Lacs vide Letter of Arrangement dated 21.01.2020, which is Annexure A2 to this OA and thereafter sanction its Renewal vide Letter of Arrangement dated 13.04.2023, which is Annexure A5 , to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had Hypothecated stocks i.e. Stocks of Petrol and Diesel, Receivables etc. vide Agreement of Loan-cum-Hypothecation dated 21.01.2020, w hich is Annexure A3 to this OA. Documents executed: - Revival Letter dated 20.01.2023, which is Annexure A6 to this OA; Notice dated 31.05.2023, 31.12.2023, 31.01.2024, which are Annexures A7 to A9 , to this OA; Legal Notices dated 09.08.2023 and 03.02.2024 along with Postal Receipts, which are Annexures A10 and A11 , to this OA Statement of Accounts from 2020 to 2024, which is Annexure 12 to this OA.

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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.32,39,643.90, 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.

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3 OA/803/2024 STATE BANK OF INDIA VS MESSRS GURSIMRAN HP CENTRE AND ANOTHER

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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 04.01.2025 7. In support of the OA, affidavit of Ms. Navjot Kaur, Branch Manager, State Bank of India h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A12 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.32,39,643.90p (Rupees Thirty Two Lacs Thirty Nine Thousand Six Hundred Forty Three and Paisa Ninety 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.75%p.a. with monthly rests along with penal interest @2%p.a. from 06.06.2024 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 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

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4 OA/803/2024 STATE BANK OF INDIA VS MESSRS GURSIMRAN HP CENTRE AND ANOTHER

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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.

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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.32,39,643.90p (Rupees Thirty Two Lacs Thirty Nine Thousand Six Hundred Forty Three and Paisa Ninety 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 assets 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.

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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 29.08.2025. 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: 24.07.2025

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

State Bank of India v. Messrs Gursimran Hp Centre and Another

Case brief

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State Bank of India v. Messrs Gursimran Hp Centre and Another

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