Allowed

State Bank of India v. M/S R S Trading

DRT19 Mar 2026OA/1205/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDB Act for the recovery of ₹24,52,082.95p with interest against the respondents, who via proprietary firm and proprietor were dismissed for ex parte proceedings.

What did the court decide?

Recovery of ₹24,52,082.95p with interest @12.40% per annum from 22.06.2023, monthly rests, costs, and issue of Recovery Certificate.

State Bank of India versus M/S R S Trading — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1205/2023 Date of Institution: 22.06.2023 Date of Decision: 19.03.2026

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SBI having its branches all over India and a branch at Main Market, Nagrota Bagwan, Tehsil Nagrota Bagwan, District Kangra. (Himachal Pradesh).

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……..Applicant

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M/s RS Trading, a Proprietorship Firm, at Village and Post Office Tang Narwana, Tehsil Dharamshala, District Kangra. (Himachal Pradesh) through its Proprietor Ms. Riya Sharma daughter of Shri Rohit Sharma, IInd Address: At opposite Whirlpool Showroom, Village and Post Office Ichhi, Mastpur Gaggal, District Kangra. (Himachal Pradesh). IIIrd Address: At opposite Stone Crusher, Mastpur, Near GaggalDharamshala Road, District Kangra. (Himachal Pradesh).

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IVth Address: At Village and Post Office Bagli, Tehsil and District Kangra. (Himachal Pradesh).

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Ms. Riya Sharma daughter of Shri Rohit Sharma, Proprietor of M/s RS Trading, Village and Post Office Tang Narwana, Tehsil Dharamshala, District Kangra. (Himachal Pradesh). IInd Address: Resident of Ward no.49, Channi Rama, Tehsil Bahu, District Jammu. (Jammu & Kashmir). IIIrd Address: C/o Shri Rakesh Kumar son of Shri Prem Kapoor, at Village Andhrar, Post Office Tang Narwana, Tehsil Dharamshala, District Kangra. (Himachal Pradesh).

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IVth Address: Resident of House no.136, Lane-6, Lakkar Mandi, Jannipur, Tehsil and District Jammu. (Jammu & Kashmir).

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……….Defendants

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Advocates

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Sh. Vivek Verma, Counsel for the applicant bank. Defendants - ex parte vide order dated 15.01.2025 .

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OA for the Recovery of ₹24,52,082.95p with interest @12.40% per annum with monthly rests from 22.06.2023.

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ORDER

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SBI has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of

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₹24,52,082.95p with interest against M/s RS Trading and others (defendants).

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Bank’s case is that on 07.10.2020, it had granted C.C. Limit of ₹20.00 Lacs to defendant No.1 through its proprietor i.e. defendant no.2 for Business purpose. To secure the loan, Defendant No.2 on behalf of defendant no.1 had hypothecated assets (fully detailed in para No.3A of the application). Again on 30.09.2021, at the request of the defendants, applicant bank restructured the aforementioned C.C. Limit and converted the outstanding amount of C.C. Limit into FITL of ₹4.00Lacs. Both loans were chargeable at different rates of interest. On 21.06.2023, a sum of ₹24,52,082.95p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 31.07.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 15.01.2025, they were proceeded ex parte .

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4.	In order to prove its case, the Bank has placed on record the
affid secu	avit of Sh. Vinay Kumar, Branch Manager along with the loan and rity documents and marked them as Exhibit A-1 to A-11.
5.	I have perused the evidence on the record. I am of the considered
view	that the Bank has proved its case that it had advanced the total loan
of ₹ on 2	24.00 Lacs (₹20.00 Lacs in C.C. Limit and ₹4.00 Lacs in FITL) and 1.06.2023, a sum of ₹24,52,082.95p was due.
6.	Accordingly, the application of the bank for the recovery of
₹24,	52,082.95p (Rupees Twenty Four Lacs Fifty Two Thousand Eighty
Two	and Paise Ninety Five Only) with interest @12.40% per annum

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with monthly rests from 22.06.2023, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 28.04.2026, who is directed to distribute the sale proceeds of the hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 19.03.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

State Bank of India v. M/S R S Trading

Case brief

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State Bank of India v. M/S R S Trading

Case brief

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