Allowed

State Bank of India v. M/S Apex Thermopack and Others

DRT10 Apr 2026OA/1799/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an ex-parte application by State Bank of India for recovery of debt. It declared respondents liable for Rs.79.35 Lakhs along with costs and fixed simple interest at 8% per annum from the date of filing till realization.

What did the court decide?

Declare respondents liable to pay Rs.79,35,951.00 with interest @8% p.a.; grant Recovery Certificate; authorise sale of mortgaged properties.

State Bank of India versus M/S Apex Thermopack and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1799/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.12.2025

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DATE OF DECISION: 10.04.2026

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State Bank of India, a body corporate constituted under the provisions of The State Bank of India Act, 1955 (23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of Patiala order No. G.S.R.159(E) dated 22.02.2017 passed by the Central Government under Section 35 of the State Bank of India Act, 1955 (23 of 1955) having its branches at various places in India including a Branch Office at Rajpura (Punjab) through its Chief Manager Sh. Sachin Kaushik.

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……..Applicant Versus

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M/s Apex Thermopack, through its partners Sh. Budh Singh S/o Sh. Gulzar Singh and Sh. Kamaljeet Singh S/o Sh. Tarlochan Singh, Industrial Area Kabulpur Road, Village Hasanpur, Tehsil Ghanour, Rajpura, Punjab-147001.

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Sh. Budh Singh S/o Sh. Gulzar Singh, R/o H. No. 1874/B-12, Geeta Nagari, Baldev Nagar, Ambala, Haryana-134007.

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Sh. Kamaljeet Singh S/o Sh. Tarlochan Singh, R/o Village Dharamgarh, PO Banur, Patiala, Punjab-140601.

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……..Defendants

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Advocates:

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Argued by Ms. Sonia Gupta, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 16.02.2026).

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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.79,35,951.00 (Rupees Seventy Nine Lacs Thirty Five Thousand Nine Hundred and Fifty One Only). The Original Application has been filed through Sh. Sachin

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OA NO. 1799/2025

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STATE BANK OF INDIA VS M/S APEX THERMOPACK AND OTHERS

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Kaushik, Chief Manager o f the applicant, who is competent to institute the Original Application vide Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under Regulation No. 76 & 77 of State Bank of India General Regulations framed in exercising of the powers confirmed 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 partners defendant nos. 2 & 3 approached the applicant for grant of Cash Credit Facility of Rs.30.00 lacs and Term Loan of Rs.90.00 lacs vide Application for MSME loan dated 03.12.2018, which is Annexure A1 to this OA. Thereafter, the defendant no.1 through its partners defendant nos. 2 & 3 approached the applicant for sanction of GECL Limit of Rs. 20.50 lacs vide Loan Application dated 29.05.2020, which is Annexure A7 to this OA. Thereafter, the defendant no.1 through its partners defendant nos. 2 & 3 approached the applicant for sanction of GECL 1.0 Limit of Rs.11.00 lacs vide Loan Application, which is Annexure A12 to this OA. Thereafter, the defendant no.1 through its partners defendant nos. 2 & 3 approached the applicant for renewal and enhancement of Cash Credit Limit of Rs.60.00 lacs, Term Loan of Rs.55.00 lacs, GECL(WCTL) limit of Rs.11.00 lacs and GECL 1.0 (WCTL II) Limit of Rs.11.00 lacs vide Loan Application dated 24.11.2023, which is Annexure A16 to this OA. Thereafter, the defendant no.1 through its partners defendant nos. 2 & 3 approached the applicant for renewal of Cash Credit Limit of Rs.60.00 lacs, Term Loan of Rs.27.00 lacs and GECL (WCTL) limit of Rs.7.00 lacs vide Loan Application dated 20.01.2025, which is Annexure A21 to this OA;

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The applicant sanctioned the Cash Credit Facility of Rs.30.00 lacs and Term Loan of Rs.90.00 lacs vide Letter of Arrangement dated 04.01.2019, which is Annexure A2 to this OA. Thereafter, the applicant sanctioned and renewed the Cash Credit Facility of Rs.30.00 lacs, Term Loan of Rs.82.00 lacs and GECL(WCTL) Limit of Rs.20.00

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OA NO. 1799/2025

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STATE BANK OF INDIA VS M/S APEX THERMOPACK AND OTHERS lacs vide Arrangement Letter dated 30.05.2020, which is Annexure A8 to this OA; Thereafter, the applicant sanctioned and renewed the Cash Credit Facility of Rs.30.00 lacs, Term Loan of Rs.63.00 lacs, GECL(WCTL) limit of Rs.17.00 lacs and GECL 1.0 (WCTL II) limit of Rs.11.00 lacs vide Arrangement Letter dated 07.12.2021, which is Annexure A13 to this OA. Thereafter, the applicant enhanced the Cash Credit Facility to Rs.60.00 lacs and renewed the Term Loan of Rs.55.00 lacs, GECL (WCTL) limit of Rs.11.00 lacs and GECL 1.0 (WCTL) limit of Rs.11.00 lacs vide Arrangement Letter dated 06.12.2022, which is Annexure A17 to this OA; Thereafter, the applicant sanctioned and renewed the Cash Credit Facility Rs.60.00 lacs, Term Loan of Rs.27.00 lacs and GECL(WCTL) limit of Rs.7.00 lacs vide Arrangement Letter dated 04.04.2025 , which is Annexure A22 to this OA and the terms and conditions were duly accepted by the defendants. Defendant Nos. 2 & 3 stood as guarantors.

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Defendant nos 2 & 3 mortgaged their immovable properties i.e., Factory Land and Building Measuring 01 Bigha 10 Biswas(1500 sq. yards) comprised in Khata no. 89/129, Khasra no. 560/324min(1-10), now as per Jamabandi for the year 2018-19, new Khata no. 95/136, Khasra no. 560/324/1(1-0), situate at Village Hasanpur, Sub-Tehsil Ghanour, Tehsil Rajpura, District Patiala, Punjab vide Sale Deed no.858 dated 02.02.2018, which is Annexure A5 to this OA and Letter of Confirmation of mortgage by deposit of Title Deeds date 07.01.2019, which is Annexure A6 to this OA;

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Documents Executed: Agreement of Loan cum Hypothecation, Guarantee Agreement, both dated 04.01.2019, which are Annexures A3 & A4 to this OA; Supplemental Agreement of Loan cum Hypothecation, Guarantee Agreement, both dated 30.05.2020, which are Annexures A9 & A10 to this OA; Letter of confirmation for exetension of mortgage by deposit of Title Deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for securing the existing limits and/or enhanced limits and additional

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OA NO. 1799/2025 STATE BANK OF INDIA VS M/S APEX THERMOPACK AND OTHERS facilities dated 02.06.2020, which is Annexure A11 to this OA; Supplemental Agreement of Loan cum Hypothecation, Guarantee Agreement, both dated 07.12.2021, which are Annexures A14 & A15 to this OA; Agreement of Loan cum Hypothecation, Guarantee Agreement, both dated 06.12.2022, which are Annexures A18 & A19 to this OA; Revival Letter date 24.05.2024, which is Annexure A20 to this OA; Guarantee Agreement dated 04.04.2025, which is Annexure A23 to this OA; Legal Notice date 28.07.2025 along with postal receipts, which is Annexure A24 to this OA; SARFAESI Notice dated 07.08.2025 along with postal receipts, which is Annexure A25 to this OA; Statement of Accounts along with certificate, which is Annexure A26 to this OA;

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.79,35,951.00, 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 16.02.2026. 7. In support of the OA, affidavit of Sh. Sachin Kaushik, Chief Manager, State Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A26 to this OA, it is proved that the defendant no.1 through its partners defendant nos. 2 & 3 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

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OA NO. 1799/2025 STATE BANK OF INDIA VS M/S APEX THERMOPACK AND OTHERS

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parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.79,35,951.00 (Rupees Seventy Nine Lacs Thirty Five Thousand Nine Hundred and Fifty One Only(Rs.45,95,003.00 in Cash Credit Limit, Rs.26,52,135.00 in Term Loan Account and Rs.6,88,813.00 in GECL Account)) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.25%p.a. with monthly rests with penal interest @2%p.a. from 04.12.2025 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 properties, 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 simple interest @08.00%p.a. in all 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.79,35,951.00 (Rupees Seventy Nine Lacs Thirty Five Thousand Nine Hundred and Fifty One Only(Rs.45,95,003.00 in Cash Credit Limit, Rs.26,52,135.00 in Term Loan Account and Rs.6,88,813.00 in GECL Account)) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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

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OA NO. 1799/2025

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STATE BANK OF INDIA VS M/S APEX THERMOPACK AND OTHERS

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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 defendant. 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 30.04.2026. 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: 10.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. M/S Apex Thermopack and Others

Case brief

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State Bank of India v. M/S Apex Thermopack and Others

Case brief

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