Allowed

State Bank of India v. Messrs Ks Toor Commission Agent and Others

DRT29 Jan 2026OA/1076/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an application filed by State Bank of India for recovery of an outstanding loan of Rs.49,77,486.00 from a commission agent and guarantors. The Tribunal granted recovery of principal and costs with simple interest at 8% p.a.

What did the court decide?

Recovery Certificate issued for Rs.49,77,486.00 plus costs and simple interest @8% p.a. from filing date till realization.

State Bank of India versus Messrs Ks Toor Commission Agent and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1076/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2023

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DATE OF DECISION: 29.01.2026.

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State Bank of India, a body Corporate constituted under the provisions of the State Bank of India Act, 1955 and having its Corporate Centre at Madame Cama Road, Nariman Point Mumbai and having branches all over India and Abroad and one of its branches amongst other places at SBI Bhiwanigarh, District Sangrur, formerly, State Bank of Patiala, now known SBI (Transferee Bank of State Bank of Patiala, by way of amalgamation, the business including the assets and liabilities of the State Bank of Patiala vide notification dated 22.02.2017) and one of its specialized branches known as Stressed Assets Recovery Branch (SARB) at SCO-15, First Floor, Sector 7-C, Chandigarh through its Authorized Signatory Sh. Sanjeev Parkash Verma, Chief Manager.

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……..Applicant

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Versus

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M/S KS Toor Commission Agent, Proprietorship Firm through its Proprietor Sh. Kulwinder Singh, Booth No 23, New Grain Market Bhiwanigarh District Sangrur, Punjab

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Sh. Kulwinder Singh S/o Sh. Hardial Singh, Proprietor of M/S KS Toor Commission Agent Proprietorship Firm, R/o Ward No 8, Basant Nagar, Rampura Road, Bhiwanigarh, District Sangrur, Punjab.

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Sh. Hardial Singh S/o Sh. Sajjan Singh, R/o Ward No 8, Basant Nagar, Rampura Road Bhiwanigarh District Sangrur, Punjab .

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……….Defendants

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Advocates:

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Argued by Sh. Omkar Gupta, Advocate for the applicant Defendants already ex parte vide order dated 30.08.2024.

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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.49,77,486.00 (Rupees Forty

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OA NO.1076/2023 STATE BANK OF INDIA VS. MESSRS K.S.TOOR COMMISSION AGENT AND OTHERS

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Nine Lacs Seventy Seven Thousand Four Hundred Eighty Six Only). The Original Application has been filed through Sh. Sanjeev Parkash Verma, Chief Manager, of applicant who is competent to institute the Original Application in terms of gazette notification dated 26.09.1959, 26.08.1972, 27.03.1987 and 29.10.2005 issued by Executive Committee of the Central Board in exercise of powers conferred on it under Regulation No.76 and 77 of State Bank of India General Regulations, made by the RBI in exercise of powers conferred by subsub section 3 of section 50 of State Bank of India Act with previous sanction of Central Government.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for the grant of Cash Credit Limit of Rs.20.00 Lacs vide loan application dated 17.07.2014, which is Annexure A1 to this OA. Defendant no. 3 stood as guarantor. Thereafter, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs.30.00 Lacs vide loan application dated 20.06.2015, which is Annexure A10 to this OA and thereafter, for its renewal vide loan application dated 20.07.2016, which is Annexure A18 to this OA and again vide request letter dated 03.03.2018, which is Annexure A21 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.20.00 vide Letter of arrangement dated 17.07.2014, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant enhanced the limit to Rs.30.00 Lacs vide letter of arrangement dated 30.06.2015, which is Annexure A11 to this OA and thereafter, renewed the limit vide letter of arrangement dated 23.09.2016, which is Annexure A19 to this OA and was again renewed vide letter of arrangement dated 03.03.2018, which is Annexure A22 to this OA. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated book debts vide agreement of Loan Cum Hypothecation dated 17.07.2014 and 30.06.2015, which are Annexures A4 and A13 to this OA.

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OA NO.1076/2023 STATE BANK OF INDIA VS. MESSRS K.S.TOOR COMMISSION AGENT AND OTHERS

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Defendant no.3 mortgaged his immovable property i.e. Residential House measuring 357 Sq. yards situated at Ward No.8, Basant Nagar, Bhawanigarh, Tehsil and District Sangrur, Punjab vide Mortgage deed dated 16.07.2014 & mortgage deed bearing vasika no. 369 dated 25.06.2015, which are Annexures A3 & A12 to this OA; CERSAI Search report dated 25.10.2019, which is Annexure A29 to this OA.

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Documents executed :- Notification dated 22.02.2017, which is Annexure A1 to this OA; Consent letter for disclosure of information, pronote, Free access letter, Letter of Undertaking, guarantee agreement, all dated 17.07.2014, which are Annexures A4 to A9 to this OA; Consent letter for disclosure of information, Free access letter, pronote, Letter of Undertaking, guarantee agreement, all dated 17.07.2014,all dated 30.06.2015, which are Annexures A14 to A17 to this OA; Revival letter dated 27.03.2017, which is Annexure A20 to this OA; Letter dated 12.01.2019, which is Annexure A24 to this OA; Notice dated 01.03.2019 u/s 13(2) of SARFAESI Act, which is Annexure A25 to this OA; Possession notice dated 14.05.2019, which is Annexure A26 to this OA; Notice dated 08.07.2019 & 25.07.2019, which are Annexure A27 & A28 to this OA; Revival letter dated 08.12.2020, which is Annexure A30 to this OA; Letter dated 11.05.2022, along with translations, which is Annexure A31 to this OA; Notice dated 29.07.2023, which is Annexure A32 to this OA and Statement of account along with Certificate under Banker’s Book Evidence Act, which is Annexure A33 to this OA. 5. 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.49,77,486.00, 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. 6. 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 30.08.2024.

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OA NO.1076/2023 STATE BANK OF INDIA VS. MESSRS K.S.TOOR COMMISSION AGENT AND OTHERS

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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 counsel for applicant 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 A33 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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.49,77,486.00 (Rupees Forty Nine Lacs Seventy Seven Thousand Four Hundred Eighty Six 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.65% p.a. with 2% penal interest and monthly rests from 20.07.2023 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 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 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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OA NO.1076/2023 STATE BANK OF INDIA VS. MESSRS K.S.TOOR COMMISSION AGENT AND OTHERS

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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.49,77,486.00 (Rupees Forty Nine Lacs Seventy Seven Thousand Four Hundred Eighty Six 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/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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.02.2026.

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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 .

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Dated: 29.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Messrs Ks Toor Commission Agent and Others

Case brief

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State Bank of India v. Messrs Ks Toor Commission Agent and Others

Case brief

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