Allowed

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

DRT5 Sept 2026OA/180/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application to recover ₹21,17,269 with interest from the respondents for a defaulted business loan. The court directed the issuance of a Recovery Certificate and a sale of hypothecated assets.

What did the court decide?

Recovery of ₹21,17,269 with interest @12.40% p.a. via sale of hypothecated assets or personal properties. Recovery Certificate issued.

State Bank of India versus M/S R R Brothers — Contract and Commercial Disputes | 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: 180/2024 Date of Institution: 30.01.2024 Date of Decision: 05.09.2026

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SBI having its branches all over India and a branch at Personal Banking Branch (PBB) situated at Bank Square, Sector 1, Parwanoo, District Solan, Himachal Pradesh.

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……..Applicant

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Vs.

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M/s R.R. Brothers, a proprietorship concern, Plot No.6, Sector 2, Industrial Area-2, Parwanoo, Sector-5, District Solan, Himachal Pradesh, through its proprietor Smt. Rajdeep Kaur w/o Sh. Maninder Jeet Singh.

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Smt. Rajdeep Kaur w/o Sh. Maninder Jeet Singh, r/o Plot No.6, Sector 2, Industrial Area-2, Parwanoo, Sector-5, District Solan, Himachal Pradesh.

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2^nd Address: Anchal Vihar Colony 2, Nalagarh Road 136, Panchkula, Haryana.

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……….Defendants

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Advocates

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Sh. P.S. Arora, Counsel for the applicant bank. None for the defendants.

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OA for the Recovery of ₹21,17,269/- with interest @12.40%per annum with monthly rests from 30.01.2024.

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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 ₹21,17,269/- with interest against M/s R.R. Brothers and another (defendants).

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Bank’s case is that on 12.07.2021, it had granted C.C. Limit of ₹7.63 Lacs and Term Loan of ₹14.87 Lacs aggregating to ₹22.50 Lacs to defendant No.1 through its proprietor defendant No.2 for Business

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purpose. To secure the loan, Defendant No.2 being the proprietor of defendant No.1 had hypothecated assets (fully detailed in Agreement of Loan-cum-Hypothecation {Exhibit A-3} of the application). The C.C. Limit and Term Loan were renewed on 17.03.2023. Both the loan facilities were chargeable at different rates of interest. On 25.01.2024, a sum of ₹21,17,269/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 20.12.2024, defendants were directed to file the Written Statement and affidavit of assets within 30 days. However, they failed to file the Written Statement and affidavit of assets within the stipulated time. On 01.12.2025, the defendants were summoned for the purpose of admission and denial of the documents. The defendants admitted their signatures on the documents but denied the contents thereof.

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Seemant Prakash, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-8.

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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 loan of ₹22.50 Lacs (C.C. Limit of ₹7.63 Lacs and Term Loan of ₹14.87 Lacs) and on 25.01.2024, a sum of ₹21,17,269/- was due.

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Accordingly, the application of the bank for the recovery of ₹21,17,269/- (Rupees Twenty One Lacs Seventeen Thousand Two Hundred Sixty Nine Only) with interest @12.40%per annum with monthly rests from 30.01.2024, 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 the hypothecated assets fully detailed in Agreement of Loan-cum-Hypothecation {Exhibit

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A-3} prope	of the application as well as from personal movable and immovable rty(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
06.10	.2026.
10.	A Copy of this order along with Recovery Certificate be sent to
the R	ecovery Officer as well as the parties.
Pron Dated MANOJ KAL	ounced in the open Court. (A S Narang) : 05.09.2026 Presiding Officer DRT-1, Chandigarh RA

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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