Allowed

State Bank of India v. M/S Sarita Traders

DRT12 Dec 2025TA/3042/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by State Bank of India for recovery of Rs.27,15,124/- along with interest and costs. The court, finding the case unrebutted, awarded interest at 12% p.a. instead of the varied rates claimed. The recovery certificate was issued for execution against the respondents' properties.

What did the court decide?

Order allowed directing respondents to pay principal amount of Rs.27,15,124/- plus interest at 12% p.a. from 25.05.2022 and costs within 30 days; recovery certificate issued for enforcement against as

State Bank of India versus M/S Sarita Traders — Banking and Recovery | DRT (2025)

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T.A. No. 3042 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.3042 of 2022

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State Bank of India Stressed Assets & Recovery Branch-II SBI, IV 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 Sarita Traders Through its Proprietor Sh.Saurabh Khanna Office: WZ-90, Matkewali Gall Jwalaheri Market, New Delhi-110063

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Sh.Saurabh Khanna s/o M.B.Khanna R/o 143, Gh-12, Paschim Vihar New Delhi-110087

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Smt. Sarita Khanna w/o Sh.M.B.Khanna R/o 143, Gh-12, Paschim Vihar New Delhi-110087

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Sh.Mahendra Bhushan Khanna R/o 143, Gh-12, Paschim Vihar New Delhi-110087 Defendants

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Present: Sh.Anshuman Srivastava, Counsel for applicant bank

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Date of Reserve: 28.11.2025

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Date of Pronouncement: 12.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 13.06.2022 through Mr.Sudhir Kumar Sinha, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the

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ca-

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T.A. No. 3042 of 2022

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defendants for recovery of a sum of Rs.27,15,124/- (Rupees Twenty Seven Lacs Fifteen Thousand One Hundred Twenty Four only) as on 25.05.2022 along with pendentelite and future interest @10.55% per annum in Cash Credit, @14.65% in Term Loan, @7.80% in GECL facility and @14.15% in FITL facility with monthly rests plus 2% penal interest till its realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 through its proprietor being defendant no.2, the applicant bank sanction Cash Credit facility for a sum of Rs.2,00,000/- 30.06.2010 which was reviewed/ enhanced from time to time lastly for Rs.18.00 lacs (Rupees Eighteen lacs only) on 06.07.2020. The applicant bank further sanctioned GECL loan for Rs.3.60 lacs on 06.07.2020. Due to pandemic, the defendants requested to restructure the debts and applicant bank sanctioned MSME-CC for Rs.5.00 lacs, GECL for Rs.3.60 lacs, FITL for Rs.0.55 lac and WCTL for Rs.13.00 lacs on 28.11.2020 against hypothecation of stocks, book debt and mortgage of property. The defendant no.3 and 4 stand as guarantors for the credit facilities availed by defendant no.1.

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That in order to avail the credit facilities, the defendants submitted loan application and executed Affidavit of Borrowing, Cash Credit Agreements, Undertaking Letters, Consent Clause, Guarantee Agreements, Agreements of Loan cum Hypothecation, Link Letters, Sole Proprietorship Letters, Revival Letter, Letter of Arrangement, Supplementary Agreement of Loan cum Hypothecation on 30.06.2010, 09.04.2011, 27.04.2015 & 20.06.2020. In addition, the defendants executed various documents on account of restructuring of the account viz. Sanction of Credit Facility

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T.A. No. 3042 of 2022

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under Covid FITL, Standing Instruction to deduction from CC account to WCTL, FITL & GECL loan towards applicant bank. The defendant no.3 and 4 executed Guarantee Agreement on 08.04.2011, 26.10.2012, 27.04.2015 and 16.08.2019.

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In order to secure the credit facilities, the defendants no.3 and 4 created equitable mortgage of property being DDA LIG Flat No.663, New Highway Apartment, Ground Floor, Pocket D, Lok Nayak Puram, New Delhi-41 by depositing conveyance deed registration no.21629, Book No.I, Vol. No.3192, Page No.27 to 28 on 22.10.2008 with SR VII, INA New Delhi and extended on 08.04.2011 and 27.04.2015 by executing Memorandum for Recording Extension of Mortgage by Deposit of Title Deed on various dates lastly on 28.06.2020.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and not routed their transactions through the account and failed to regularize the account with the applicant bank. The applicant bank classified the account as NPA on 18.06.2021 as per RBI guidelines and issued legal demand notice dated 28.07.2021 for clearing the dues but no response, hence the applicant bank has approached this tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 27.07.2021 to the defendants but they failed to regularize the account. The applicant bank issued notice u/s 13(4) of Sarfaesi Act on 24.11.2021.

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T.A. No. 3042 of 2022

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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 28.08.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sudhir Kumar Sinha, authorized representative of the applicant bank who has proved the documents as Gazette Notification, demand Promissory Note, Affidavit, Cash Credit Agreements, Undertakings, Consent Clause, Letters of Arrangement, Guarantee Agreements, Agreement of Loan cum Hypothecation, Link Letters, Letter of Confirmation for Extension of Mortgage by Deposit of Title Deeds, Sole Proprietorship Letter, Sanction Letters, Agreement to Loan cum Hypothecation, Revival Letter SME 11, Supplementary Agreement, Offer Letter as well as Approved Letter, Letter to Transfer GECL amount to CC Facility, Application to Restructure Loan account, Sanction of FITL, Standing Instruction Letters, Legal Demand Notice, Notice u/s 13(2), Possession Notice u/s 13(4), Letter for Migration of Account, Statement of Loan Account with closure reports duly Certified under Bankers' Books Evidence Act and IT Act marked as Ex-AW1/1 to Ex.AW-1/44 (Colly).

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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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T.A. No. 3042 of 2022

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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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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.27,15,124/- (Rupees Twenty Seven Lacs Fifteen Thousand One Hundred Twenty Four only) as on 25.05.2022 together with pendentelite and future interest @12.00% per annum with monthly rests from 25.05.2022 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of Hypothecated stocks and mortgaged property being DDA LIG Flat No.663, New Highway

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SI-

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T.A. No. 3042 of 2022

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Apartment, Ground Floor, Pocket D, Lok Nayak Puram, New Delhi-41. 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 10.02.2026.

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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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54— -

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 12.12.2025