Allowed

State Bank of India v. Teluram Amar Chand and Co.

DRT4 Nov 2025TA/2792/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India for recovery of a loan of Rs. 66.42 crores along with interest.

What did the court decide?

Directing defendants to pay Rs. 66,42,97,010/- as on 30.04.2018 along with interest @ 12% p.a. with monthly rests from 01.05.2018 till realization.

What the court decided

State Bank of India versus Teluram Amar Chand and Co. — Company and Corporate | DRT (2025)

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T.A. No.2792 of 2022

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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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T.A. No. 2792 of 2022

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State Bank of India

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(e-State Bank of Mysore) Stressed Assets Management Branch-II 2nd & 3rd Floor, 18/4, SBI House, Arya Samaj Road, Karol Bagh, New Delhi-110005 Applicant

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Versus

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M/s Teluram Amar Chand & Co. Through its Proprietor Sh.Amar Chand Gupta R/o 4116, Naya Bazar, Delhi-110006

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Sh. Amar Chand Gupta s/o Late Sh. Teluram R/o 4116, Naya Bazar, Delhi-110006

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Sh. Ram Lal Gupta s/o Amar Chand Gupta R/o 4116, Naya Bazar, Delhi-110006

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Sh. Raj Kumar Gupta s/o Amar Chand Gupta R/o 4116, Naya Bazar, Delhi-110006

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M/s Karnav Foods Pvt. Ltd. R/o 4116, Naya Bazar, Delhi-110006

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M/s JT Agro Foods Pvt. Ltd. R/o 4116, Naya Bazar, Delhi-110006 Defendants

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Present: Shri PBA Srinivasan, Counsel for the applicant bank

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Date of Reserve: 10.10.2025

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Date of Pronouncement: 04.11.2025

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T.A. No.2792 of 2022

FINAL ORDER

This original application has been filed by the applicant bank on 18.05.2018 before DRT-III Delhi and then transferred to DRT-I Delhi through Ms.Shalini Sharma, authorized representative of the applicant under Section 19 of Recovery of Debts Due to Banks & Financial Institutions Act, 1993 against the defendants for recovery of Rs.66,42,97,010/(Rupees Sixty Six Crores Forty Two Lacs Ninety Seven Thousand Ten only) as on 30.04.2018 @12.40% interest with monthly rests plus penal interest @2% from 01.05.2018 till the date of actual and final realization along with costs .

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The brief facts of the case are that at the request of defendant no.1 through its proprietor / guarantor being defendant no.2 in the business of food grains, grain merchant and commission agent, the applicant bank sanctioned Cash Credit (Hypothecation) limit for Rs.15.00 crores on 16.03.2010, which was renewed and enhanced from time to time lastly to Rs.45.00 crores on 18.03.2016 @12.40% interest per annum with monthly rests against hypothecation of stocks of food grains, book debts, current assets and mortgage of six properties owned by defendant no.1, 2, 5 & 6. The defendant no.3 and 4 stood as guarantors as well as defendant no.5 and 6 stood as Corporate Guarantors I Mortgagors for securing the credit facilities availed by defendant no.1 from the applicant bank.

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That in order to avail the aforesaid loan facilities, the defendant no.2 as proprietor of defendant no.1 submitted loan application on 07.01.2010 and Renewal Requests on various dates and executed Agreement of Loan cum Hypothecation, Delivery Letter, Sanction Letters, Demand Promissory Notes, Agreements for Advance of Cash Credit (Form 10),

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T.A. No.2792 of 2022

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Agreements to Secure an Advance against Hypothecation of Goods, Agreements of Continuing Security, Consent Clause, Agreements for Advance - Form 12, Revival Letters, Declarations, Undertakings, Utilization Certificates in favour of the applicant bank on 17.03.2010 and thereafter on various dates whenever the account is renewed and enhancement of limit. The defendant no.2 to 4 being personal guarantors executed Agreement for Advances/ Form-8 giving the continuing guarantee notwithstanding on 30.03.2015 as well as defendant no.5 and 6 executed relative guarantee agreements towards applicant bank. the defendant no.1 executed letter of undertaking on 30.03.2015 to convert the firm into LLP and Utilization Certificate to use the loan for genuine business purpose only.

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The defendant no.1 through its proprietor defendant no.2 executed Balance Confirmation on 03.03.2014 and 27.04.2016 acknowledging the debt towards the applicant bank.

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The defendant no.5 and 6 vide their Board Resolutions dated 03.10.2011, 30.03.2015, 06.04.2016 resolved that they are offering corporate guarantee in respect of credit facilities availed by defendant no.1 sanctioned by the applicant bank and authorized defendant no.3 and 4, directors of the company to deposit title deeds of property as security and execute all prescribed documents in favour of applicant bank.

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That in order to secure the said loan facilities, the defendant no.1, through defendant no.2 hypothecated all current assets including RM, WIP, FG, Packing Material Receivables consumables, book debts and other chargeable with the applicant bank. In addition, the defendant no.1, 2, 5 and 6 mortgaged their properties with the applicant bank duly executing Letter of Confirmation confirming deposit of title

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T.A. No.2792 of 2022

deeds of properties and extended the mortgaged of the properties as collateral securities dated 27.04.2016 as per details:

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a. Commercial property at 4120/2, Ground Floor, Burn Baston Road, Naya Bazar, Delhi measuring 38.32 sq. yards owned by defendant no.1.

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b. Industrial Building at Plot no.519, HSIIDC Food Park Industrial Estate, Rai, Dist. Sonipat, Haryana measuring 1012.50 sq. mtrs. in the name of defendant no.5;

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c. Industrial Building at Plot no.511, HSIIDC, Food Park Industrial Estate, Rai, Dist. Sonipat, Haryana measuring 1012.50 sq. mtrs. Owned by defendant no.6;

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d. Commercial Property at 4101 and 4157, Ground Floor, Naya Bazar, Delhi measuring 61.48 sq. mtrs. Owned by defendant no.2;

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e. Commercial property at 4111 & 4153 with Mezzanine on Ground Floor, Burn Baston Road, Naya Bazar, Delhi measuring 66.32 sq. mtrs. Owned by defendant no.1;

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f. Commercial Property bearing Shop No.3996, Municipal No.3995-3996, Plot No.16, Ward No.III, Naya Bazar, Delhi measuring 47 sq. mtrs. Owned by defendant no.1.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendants did not comply with the terms and conditions despite several requests and reminders. The defendants failed to deposit the interest regularly and not maintain the account as per term of sanction with the applicant bank despite various notices, reminders and personal visits of officials of the applicant bank. Ultimately, the applicant bank classified the account as NPA on 30.03.2017 but defendants neglected to clear the dues hence the applicant bank has approached this tribunal for recovery of its dues.

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T.A. No.2792 of 2022

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Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 17.04.2017 was issued to the defendants but there was no response. The applicant bank issued notice u/s 13(4) of Sarfaesi Act along with Section 8(1) of Security Interest (Enforcement) Rules 2002 on 01.02.2018 and took symbolic possession of properties at S.No.5 and 6 as well as physical possession of properties at Sr.No.1 to 4 on 13.03.2018.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 22.05.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even no written statement, evidence and affidavit of assets has been filed on behalf of the defendants.

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In order to prove its case, the applicant bank has filed various Original / Copies of Security documents such as Gazette Notification, Sanction Letters, Loan Agreements cum Hypothecation, Board Resolutions, Demand Promissory Notes, Agreements to Secure an Advance (Form-8), Agreements for Advance for Cash Credit (Form 10), Agreement for Advance (Form 12), Revival Letters, Concerned Clause, Balance Confirmation Letters, Letters of Undertaking, Declarations, Utilization Certificates, Concerned Clause, Title Deeds of Mortgaged Properties, Letters of Confirmation for Mortgage of Properties, Copies of Notices issued, Demand Notices, Possession Notices, Photographs, Statement of Account duly Certified under Section 4 of Banker's Books of Evidence Act and Balance Sheet marked as Annexures A-1 to Annexures A-54 from page no.7 to 372.

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T.A. No.2792 of 2022

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 has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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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 defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.66,42,97,010/- (Rupees Sixty Six Crores Forty Two Lacs Ninety Seven Thousand Ten only) as on 30.04.2018

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T.A. No.2792 of 2022

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together with pendentelite and future interest @12.00% per annum with monthly rests from 01.05.2018 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, assets, plant & machinery, electrical equipment and following mortgaged properties:

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a. Commercial property at 4120/2, Ground Floor, Burn Baston Road, Naya Bazar, Delhi measuring 38.32 sq. yards owned by defendant no.1;

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b. Industrial Building at Plot no.519, HSIIDC Food Park Industrial Estate, Rai, Dist. Sonipat, Haryana measuring 1012.50 sq. mtrs. in the name of defendant no.5;

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c. Industrial Building at Plot no.511, HSIIDC, Food Park Industrial Estate, Rai, Dist. Sonipat, Haryana measuring 1012.50 sq. mtrs. Owned by defendant no.6;

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d. Commercial Property at 4101 and 4157, Ground Floor, Naya Bazar, Delhi measuring 61.48 sq. mtrs. Owned by defendant no.2;

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e. Commercial property at 4111 & 4153 with Mezzanine on Ground Floor, Burn Baston Road, Naya Bazar, Delhi measuring 66.32 sq. mtrs. Owned by defendant no.1;

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f. Commercial Property bearing Shop No.3996, Municipal No.3995-3996, Plot No.16, Ward No.III, Naya Bazar, Delhi measuring 47 sq. mtrs. Owned by defendant no.1.

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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.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 02.01.2026.

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T.A. No.2792 of 2022