Allowed

State Bank of India v. M/S Lakhwinder Enterprises and Another

DRT20 Apr 2026OA/1805/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by State Bank of India against borrowers for recovery of a term loan. The bank proved its case via documentary evidence as defendants appeared ex-parte. The Tribunal reduced the claimed interest rate and ordered payment of principal with 8% simple interest.

What did the court decide?

Recovery of Rs.30,07,834 plus costs and simple interest at 8% p.a. from filing until realization; Recovery Certificate issued.

State Bank of India versus M/S Lakhwinder Enterprises and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1805/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.12.2025

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DATE OF DECISION: 20.04.2026

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State Bank of India a Body Corporate, constituted under the State Bank of India Act, 1955 and having its corporate office at Madam Cama Road, Nariman Point, Mumbai carrying on its business of banking in India and abroad and having its Local Head Office at Sector 17-A, Chandigarh and Branch Office at State Bank of India, AMCC Rupnagar, Opposite HMT Resort, Bela Road, Rupnagar, Tehsil and District Rupnagar through its Chief Manager Ms. Purvi Khatri.

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……..Applicant

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Versus

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M/s Lakhwinder Enterprises through its proprietor Sh. Lakhwinder Singh, Village Khairabad, PO Phool Khurd, Tehsil and District Rupnagar.

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Sh. Lakhwinder Singh S/o Sh. Jarnail Singh, R/o Village Bela Tajowal, PO Majara Jattan, Teshil Balachaur, District SBS Nagar.

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……..Defendants

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Advocates:

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Argued by Sh. Gurinderjit Singh, Advocate for the applicant None for defendants (Already ex-parte vide order dated 19.02.2026)

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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.30,07,834.00 (Rupees Thirty Lacs Seven Thousand Eight Hundred and Thirty Four Only). The Original Application has been filed through Ms Purvi Khatri, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959, 26.08.1972, 27.03.1987 & 02.05.1987 issued by Executive Committee of the central Board in exercise of power conferred on it under

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2 OA/1805/2022 STATE BANK OF INIDA VS M/S LAKWINDER ENTEPRISES AND ANOTHER

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regulation 76 & 77 of State Bank of India General Regulations made by RBI in exercise of power conferred by Sub-Section 3 of Section 50 of SBI Act, with previous sanction of 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 the grant of Term Loan of Rs. 30.00 Lacs and Cash Credit Limit of Rs.15.00 Lacs vide Application for MSME Loan dated 30.01.2024, which is Annexure A1 to this OA.

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The applicant sanctioned Term Loan of Rs. 27.00 Lacs and Cash Credit Limit of Rs.4.50 Lacs vide Letter of arrangement dated 21.08.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no.1 through its proprietor defendant no. 2.

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Defendant no.1 through its proprietor defendant no. 2 had hypothecated its fixed assets i.e. Stocks and Machinery vide Agreement of Loan cum Hypothecation dated 21.08.2024, which is Annexure A4 to this OA.

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Documents executed: Udyam Registration Certificate dated 20.12.2023 which is Annexure A2 to this OA; Overdue Notice dated 17.03.2025 which is Annexure A5 to this OA; Legal Notice dated 18.10.2025 along with postal tracking report which is Annexure A6 to this OA; Statement of accounts along Certificate, which are Annexures A7 to A9 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.30,07,834.00 which is recoverable and the defendants were served recall noticed but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 19.02.2026.

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3 OA/1805/2022 STATE BANK OF INIDA VS M/S LAKWINDER ENTEPRISES AND ANOTHER

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In support of the OA, affidavit of Ms. Purvi Khatr i, 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.

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From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant no.1 through its proprietor defendant no.2 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 loan as per terms and conditions of the agreement between the 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 Rs.30,07,834.00 (Rupees Thirty Lacs Seven Thousand Eight Hundred and Thirty Four 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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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.25%p.a. with penal interest @2%p.a from 21.12.2025 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 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 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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4 OA/1805/2022 STATE BANK OF INIDA VS M/S LAKWINDER ENTEPRISES AND ANOTHER

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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.30,07,834.00 (Rupees Thirty Lacs Seven Thousand Eight Hundred and Thirty Four Only), jointly and severally, with costs, current and future simple interest @8.00%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 assets of the defendant no.1 through its proprietor defendant no.2 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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Parties to appear before Learned Recovery Officer of this Tribunal on 11.04.2026.

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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. Pronounced by me in the open Tribunal . Dated: 20.04.2026

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

State Bank of India v. M/S Lakhwinder Enterprises and Another

Case brief

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State Bank of India v. M/S Lakhwinder Enterprises and Another

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