Allowed

State Bank of India v. M/S Ab Trading Company

DRT20 May 2026OA/15/2024

Case brief

AI extract

What is this about?

DRT-I Chandigarh allowed SBI's application filed under Section 19 of the RDB Act for recovery of Rs 65,04,021.89 plus interest against several defendants. The court held the bank proved its case by affidavit evidence despite the defendants appearing ex parte and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs 65,04,021.89 with interest at 8.65% p.a. allowed; Recovery Certificate issued to Recovery Officer.

State Bank of India versus M/S Ab Trading Company — Specific Performance | 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: 15 of 2024 Date of Institution: 13.10.2023 Date of Decision: 20.05.2026

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SBI having its branches all over India and a branch at Stressed Assets Recovery Branch, SBI Administrative Office Building, 3rd Floor, Civil Lines, Fountain Chowk, Ludhiana, Punjab.

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……..Applicant

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Vs.

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M/s AB Trading Company, Shop No.114, New Grain Market, Fazilka, District Fazilka, Punjab through its Proprietor.

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Smt. Kanchan Babbar w/o Sh. Kharait Lal Babbar, Shop No.114, New Grain Market, Fazilka, District Fazilka 2nd address:- R/o #1162, near Namdhari Gurudwara, Prem Gali, Fazilka, District Fazilka, Punjab.

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Sh. Kharait Lal Babbar S/o Sh. Satnam Dass, R/o #1162, Near Namdhari Gurudwara, Prem Gali, Fazilka, District Fazilka, Punjab.

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……….Defendants

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Advocates

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Sh. K.P.S. Dhillon, Counsel for the applicant bank. Defendants - ex parte .

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OA for the Recovery of ₹65,04,021.89p with interest @8.65% per annum with monthly rests from 13.10.2023.

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ORDER

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SBI (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹65,04,021.89p with interest against M/s AB Trading Company and others (defendants).

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Bank’s case is that on 11.11.2014, it had granted a loan of ₹40.00Lacs to defendant nos.1 and 2 in the form of C.C Limit for business purpose. On 03.03.2016, the C.C. Limit was enhanced from

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₹40.00Lacs to ₹50.00Lacs to defendant nos.1 and 2. On 16.06.2020, Bank granted a loan of ₹10.00Lacs in the form of G.E.C.L. to Defendant nos. 1 and 2 during the COVID Period. On 24.12.2021, bank another loan in the form of G.E.C.L. (Extension) of ₹5.00Lacs to Defendant nos. 1 and 2 for business purpose. To secure the loan, Defendant no. 3 had mortgaged his property (fully detailed in para No.3A of the application). Defendant no.3 stood as the guarantor for all the facilities. The loans were chargeable to different rates of interest. On 10.10.2023, a sum of ₹65,04,021.89p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 19.01.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 23.09.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Dalip Mahajan, Authorised Officer along with the loan and security documents and marked them as Exhibit A-1 to A-24. 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 loans under different schemes and on 10.10.2023, a sum of ₹65,04,021.89p was due. 6. Accordingly, the application of the bank for the recovery of ₹65,04,021.89p (Rupees Sixty Five Lacs Four Thousand and Twenty One and Eighty Nine Paise Only) with interest @8.65% per annum with monthly rests from 13.10.2023, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 24.06.2026, who is directed to distribute the sale proceeds of the mortgaged property(ies) and 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: 20.05.2026 Presiding Officer DRT-1, Chandigarh

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(Law Researcher)

State Bank of India v. M/S Ab Trading Company

Case brief

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State Bank of India v. M/S Ab Trading Company

Case brief

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