Debts Recovery Tribunal allowed the applicant's application for recovery of dues amounting to Rs. 39.49 lakhs from the respondents, declaring them jointly and severally liable with reduced interest.
Recovery of Rs. 39,49,835/- jointly and severally with costs and simple interest @8.00%p.a.; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.140/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.11.2021
DATE OF DECISION: 03.03.2026
State Bank of India, a body corporate constituted under The State Bank of India Act, 1955 having its Corporate Centre at Madame Cama
Road, Nariman Point, Mumbai, one of the Local Head Office at Sector 17A, Chandigarh and one of its branch at SME Samana, Amedkar Chowk, Samana, District Patiala, Punjab through its Chief Manager Sh. Manoj Prakash
……..Applicant
Versus
…….Defendants
Advocates:
Argued by Sh. Jugraj Singh, Advocate proxy for Sh. Vinish Singla, Advocate for the applicant
Defendants already ex-parte vide order dated 10.03.2025
FINAL ORDER
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OA/140/2022
STATE BANK OF INDIA VS. M/S SHARMA INDUSTRIES AND OTHERS
Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959, 26.08.1972 and 02.05.1987 issued by Executive Committee of the Central Board in exercise of power conferred on it under regulation 76 & 77 of State Bank of India Regulations, made by the RBI in exercise of powers conferred by Sub-Section 3 of Section 50 of State Bank of India Act, 1955.
3 OA/140/2022 STATE BANK OF INDIA VS. M/S SHARMA INDUSTRIES AND OTHERS
Defendant nos. 3 and 4 mortgaged their immovable properties detailed as under:
(i) Defendant no. 4 mortgaged residential property measuring 0K-04M situated at Village Kularan, Tehsil Samana, District Patiala, Punjab through equitable mortgage of sale deed bearing vasika no. 2548 dated 11.12.2009 and Tatima deed bearing vasika no. 2538 dated 16.12.2013.
(ii) Defendant no. 4 mortgaged residential property measuring 0K-16½M situated at Village Kularan, Tehsil Samana, District Patiala, Punjab through equitable mortgage of sale deed bearing vasika no. 745 dated 23.06.2008 and Tatima deed bearing vasika no. 2537 dated 16.12.2013.
(iii) Defendant no. 3 mortgaged Commercial property measuring 0K-4½M situated at Village Kularan, Tehsil Samana, District Patiala, Punjab through equitable mortgage of sale deed bearing vasika no. 2536 dated 16.12.2013.
(iv) Defendant no. 3 mortgaged Commercial property measuring 0K-3¾Marla situated at Village Kularan, Tehsil Samana, District Patiala, Punjab through equitable mortgage of sale deed bearing vasika no. 1375 dated 13.06.2005 and Tatima deed bearing vasika no. 2594 dated 19.12.2013.
Letter dated 04.01.2014, 10.07.2017 and 07.10.2017 of confirmation for creation of mortgage by deposit of title deeds, which are Annexures A5, A10, A11 and A17 to this OA. Title deeds of properties with their translation filed on 09.02.2026 vide diary no. 2675 in compliance to order dated 08.01.2026. Documents executed: Guarantee Agreement dated 03.01.2014 which is Annexure A3 to this OA; Statement of Accounts, which are Annexures A6 and A12 to this OA; Guarantee Agreement dated
4 OA/140/2022
STATE BANK OF INDIA VS. M/S SHARMA INDUSTRIES AND OTHERS
10.07.2017, which is Annexure A9 to this OA; Guarantee Agreement dated 07.10.2017, which is Annexure A15 to this OA; Legal notice dated 16.03.2018, which is Annexure A18 to this OA; Notice dated 30.08.2018 u/s 13(2) of SARFAESI Act, which is Annexure A19 to this OA; Possession Notice dated 09.11.2018 u/s 13(4) of SARFAESI Act, which is Annexure A20 to this OA; Revival Letters dated 01.10.2016 and 05.02.2019, which are Annexures A21 and A22 to this OA; Certificate to this OA.
5 OA/140/2022
STATE BANK OF INDIA VS. M/S SHARMA INDUSTRIES AND OTHERS
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.39,49,835.00 (Rupees Thirty Nine Lacs Forty Nine Thousand Eight Hundred Thirty 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.
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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OA/140/2022
STATE BANK OF INDIA VS. M/S SHARMA INDUSTRIES AND OTHERS
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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 20.03.2026. 15. 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. Pronounced by me in the open Tribunal. Dated: 03.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding dues from the defendants.
Whether the Tribunal has the discretion to adjust the rate of interest claimed.
2 provisions across 2 enactments
State Bank of India
M/s Sharma Industries
Mukesh Kumar
Darshna Devi
Manjeet Kaur
Mridulesh Kumar Singh
As recorded by the court registry
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