Allowed

State Bank of India v. Messrs Kohinoor Sales and Another

DRT9 Jan 2026OA/1288/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's application for recovery of Rs.27,30,625.00 outstanding against the defendants. The Tribunal decreed the debt payable with simple interest at 8% p.a. from the date of filing and authorized the applicant to recover the dues through sale of mortgaged assets or attachment of personal property.

What did the court decide?

Defendants declared liable to pay Rs.27,30,625.00 with simple interest at 8% p.a.; applicant entitled to recover amount via sale of mortgaged properties or attachment of assets.

State Bank of India versus Messrs Kohinoor Sales and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1288/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.07.2022

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DATE OF DECISION: 09.01.2026

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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 Corporate Centre at Madame Cama Road, Nariman Point, Mumbai and having branches all over India and one of its branches amongst others places at SBI Moti Bazar, Malerkotla, District Sangrur, Punjab and one of its Specialized Branch known as Stressed Assets Recovery branch (SARB) at SCO No. 15, Second Floor, Serctor-7, Chandigarh through its Authorized Signatory Sh. Sanjeev Parkash Verma, Chief Manager.

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……..Applicant Versus

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M/s Kohinoor Sales, proprietorship firm through its proprietor Sh. Kanwarjit Singh, Basant vihar Old Cotton Mill, Malerkotla, District Sangrur, Punjab.

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Sh. Kanwarjit Singh Son of Sh. Faqir Singh, Proprietor M/s Kohinoor Sales, Proprietorship firm, R/o Basant Vihar, Old Cotton Mill, Malerkotla, 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

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Defendants already ex-parte vide order dated 24.06.2024

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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.27,30,625.00 (Rupees Twenty Seven Lacs Thirty Thousand Six Hundred Twenty Five 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,

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OA NO.1288/2022 STATE BANK OF INDIA VS SH.MESSRS KOHINOOR SALES AND ANOTHER

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26.08.1972, 27.03.1987 and 29.10.2005 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulations no.76 & 77 of State Bank of India General Regulations made by RBI in exercise of the powers conferred by Sub section 3 of section 50 of the State Bank of India Act, 1955 with the previous sanction of the 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 grant of Cash Credit Limit of Rs.24.50 Lacs vide loan application dated 10.03.2019, which is Annexure A1 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.24.50 Lacs vide letter of arrangement dated 19.03.2019, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Later, applicant also sanctioned FITL COVID GECL Loan of Rs.1.99 Lacs on 27.08.2020.

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Defendant no.2 mortgaged his immovable property i.e. Property measuring 0K-9.2/3Marla i.e. 293.33 sq. yards situated at Old Cotton Mill, Railway Road, Malerkotla, Punjab through equitable mortgage of Title deed bearing vasika no. 2411 dated 30.10.2003, along with its translation, which is Annexures A5 to this OА; Letter of confirmation dated 25.03.2019 for creation of mortgage by deposit of title deeds, which is Annexure A6 to this OA; Memorandum for recording creation of mortgage by deposit of title deeds, which is Annexure A7 to this OA; CERSAI Registration dated 03.11.2018, which is Annexure A3 to this OA; Entry at Seva Kandra dated 06.11.2020 regarding mortgage, which is Annexure A13 to this OA.

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Documents executed : GST Registration certificate dated23.09.2017, which is Annexure A2 to this OA; Supplemental agreement of loan cum hypothecation, DP Note take delivery letter, DP Note, all dated 19.03.2019, which are Annexures A8 to A10 to this OA; Balance confirmation/Revival letter dated 27.02.2020, which are Annexures

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¶24

OA NO.1288/2022 STATE BANK OF INDIA VS SH.MESSRS KOHINOOR SALES AND ANOTHER

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A11 & A12 to this OA; Notice dated 04.02.2021 u/s 13(2) of SARFAESI Act, which is Annexure A14 to this OA and Statement of Accounts with certificate, which are Annexures A15 & A16 to this ОА.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.27,30,625.00, 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.

¶27

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 24.06.2024.

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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 A16 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.27,30,625.00 (Rupees Twenty Seven Lacs Thirty Thousand Six Hundred Twenty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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OA NO.1288/2022 STATE BANK OF INDIA VS SH.MESSRS KOHINOOR SALES AND ANOTHER

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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 @8.95% with 2% penal interest with monthly rests from 06.05.2022 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 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 both 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,30,625.00 (Rupees Twenty Seven Lacs Thirty Thousand Six Hundred Twenty Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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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OA NO.1288/2022 STATE BANK OF INDIA VS SH.MESSRS KOHINOOR SALES AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.01.2026.

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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: 09.01.2026.

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

State Bank of India v. Messrs Kohinoor Sales and Another

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State Bank of India v. Messrs Kohinoor Sales and Another

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