Allowed

State Bank of India v. M/S Bhole Nath Trading Co. and Others

DRT20 Jan 2026OA/10/2023

Case brief

AI extract

What is this about?

The DRT allowed the Applicant's claim for recovery of dues. The Tribunal fixed the interest rate at 8% p.a. and directed recovery from mortgaged assets or personal assets via the SARFAESI Act.

What did the court decide?

Direction to Defendants to pay principal sum of Rs. 30,59,353 with 8% p.a. simple interest; recovery via sale of mortgaged assets or attachment of personal property.

State Bank of India versus M/S Bhole Nath Trading Co. and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.10/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.10.2022

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DATE OF DECISION: 20.01.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 having its Corporate Office at Madame Cama Road, Nariman Point Mumbai and carrying on the Business of Banking and having the branches at different places including one of its Specialized Branch known as Stressed Assets Recovery Branch at 2^nd Floor, SCO15 Sector-7C, Madhya Marg, Chandigarh-160019, through its Chief Manager Sh. Sanjeev Parkash Verma.

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……..Applicant

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Versus

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M/s Bhole Nath Trading Co., Shop No.4, Near Sabji Mandi, Rajpura through its Prop. Sh. Pankaj Kumar.

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Sh. Pankaj Kumar S/o Sh. Kishore Kumar, H.No.5, Block 8, Near NTC School, Rajpura Town, Teshil Rajpura, District Patiala.

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Sh. Jatinder Kumar S/o Sh. Kishore Kumar, R/o H.No.5 B-8, Near NTC School, Rajpura Town, Teshil Rajpura, District Patiala, Punjab.

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…….Defendants

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Advocates:

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Argued by Sh. Gurnam Singh, Advocate proxy for Sh. Iqbal Mohammad, Advocate for the applicant

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Defendants already ex-parte vide order dated 07.04.2025

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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.30,59,353.00 (Rupees Thirty Lacs Fifty Nine Thousand Three Hundred Fifty Three Only). The Original Application has been filed through Sh. Sanjeev Parkash, Chief Manager of the applicant, who is competent to institute the Original Application

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2 OA/10/2023 STATE BANK OF INDIA VS. M/S BHOLE NATH TRADING CO. AND OTHERS

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in terms of Gazette Notification dated 26.09.1959, 26.08.1972 & 02.05.1987 issued by Executive Committee of the Central Board in exercising of power conferred by sub section 3 of Section 50 of State Bank of India Act,1955 with previous sanction of Central Government. 2. The brief facts of the OA are that the defendant no.1 through its proprietor of defendant No.2 approached the applicant for the grant of Cash Credit Limit of Rs.20.00Lacs vide loan application dated 14.02.2015 which is Annexures A1 and A8 to this OA. Defendant no.3 stood as guarantor. Thereafter, the defendant no.1 through its proprietor of defendant No.2 approached the applicant for renewal of the limit vide loan application dated 17.03.2017, which is Annexures A8 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.20.00 Lacs vide Letter of Arrangement dated 17.02.2015 which is Annexures A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the limit was renewed by the applicant vide letter of arrangement dated 17.03.2017, which is Annexures A9 to this OA. The applicant also sanctioned a Term Loan of Rs.1,36,166.00 under Funded Interest Term Loan(FITL) scheme during COVID-19.

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Defendant no. 1 through its proprietor hypothecated stock of vegetables, receivables, etc. vide agreement of loan cum hypothecation dated 17.12.2015, which is Annexure A4 to this OA. Defendant no. 2 and 3 mortgaged their immovable property i.e. Part and House No. B-5, measuring 123.66 sq. yards, situated at Block B-8/3, Rajpura Town, Tehsil Rajpura, District Patiala through equitable mortgage of sale deed bearing vasika no. 1638 dated 17.06.20019, along with its translation, which is Annexure A6 to this OA. Title investigation report dated 31.07.2014, which is Annexure A7 to this OA. Letter of Conformation dated 17.02.2015 for extension of mortgage by deposit of title deeds, which is Annexure A10 to this OA.

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3 OA/10/2023 STATE BANK OF INDIA VS. M/S BHOLE NATH TRADING CO. AND OTHERS

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Documents executed: Promissory Note, Deed of Guarantee, both dated 17.02.2015, which are Annexures A3 and A5 to this OA; Revival Letter dated 17.03.2019 which is Annexures A11 to this OA; Recall Notice dated 21.10.2020 which is Annexure A12 to this OA; Statement of Accounts with certificate which are Annexure A13 to A15 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.30,59,353.00 which is recoverable and the defendants were served recall notices but he did not repay the outstanding 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 vide order dated 07.04.2025.

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In support of the OA, affidavit of Sh. Sanjeev Parkash Verma, 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 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 A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,59,353.00 (Rupees Thirty Lacs Fifty Nine Thousand Three Hundred Fifty Three Only) along with interest from the defendants, jointly and severally, from the date

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4 OA/10/2023 STATE BANK OF INDIA VS. M/S BHOLE NATH TRADING CO. AND OTHERS

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of filing of the present Original Application till realization of the accounts.

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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. plus 2% penal interest with monthly rests from 08.10.2022 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 loans 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 appropriate to grant uniform simple interest @8.00%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.30,59,353.00 (Rupees Thirty Lacs Fifty Nine Thousand Three Hundred Fifty Three Only) 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 amounts. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/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.

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12. Any other application pending stands disposed of.

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5 OA/10/2023

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STATE BANK OF INDIA VS. M/S BHOLE NATH TRADING CO. AND OTHERS

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.02.2026.

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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.

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Pronounced by me in the open Tribunal. Dated: 20.01.2026.

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

State Bank of India v. M/S Bhole Nath Trading Co. and Others

Case brief

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State Bank of India v. M/S Bhole Nath Trading Co. and Others

Case brief

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