Allowed

State Bank of India v. M/S K. P. S. Beverages and Others

DRT29 Jan 2026OA/189/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India against borrowers and guarantors for recovery of outstanding dues of Rs.30,84,979 along with interest, granting a uniform rate of 8% per annum and ordering issuance of Recovery Certificate.

What did the court decide?

Respondents declared liable to pay Rs.30,84,979 with 8% simple interest and costs; Recovery Certificate to be issued.

State Bank of India versus M/S K. P. S. Beverages and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.189/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.12.2021

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DATE OF DECISION: 29.01.2026

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State Bank of India, a Body Corporate Constituted Under the State Bank of India Act No. XXIII of 1955 and having its Corporate Centre, Madame Cama Road, Nariman Point Mumbai and one of its Local Head Offices situated at Sector 17-B, Chandigarh and having its branches all over India and one of its branch situated at Branch Office at Civil Hospital Road, Ropar, Punjab District Roop Nagar, Punjab through its Ms. Navjot Kaur.

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……..Applicant

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Versus

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M/s KPS Beverages, near PSPCL Office, Ranguilpur, District Roop Nagar, Punjab through its partners

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2^nd address: Vikram Nagar, Gate No.2, Nayagaon, District SAS Nagar (Mohali), Punjab.

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Sh. Sanjeev Bajaj S/o of Sh. Barjinder Krishan Bajaj, near PSPCL Office, Ranguilpur, District Roop Nagar, Punjab.

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2^nd address: R/o House No.310, Sector-35A, UT Chandigarh.

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Smt. Poonam Bajaj W/o Sh. Sanjeev Bajaj, Near PSPCL Office, Ranguilpur, District Roop Nagar, Punjab.

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2^nd address: R/o House No.310, Sector-35A, UT Chandigarh.

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….……Defendants

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for the applicant

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Defendants already ex-parte vide order dated 25.08.2023.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.30,84,979.00 (Rupees Thirty Lacs Eighty Four Thousand Nine Hundred Seventy Nine Only). The

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OA NO.189/2022 STATE BANK OF INDIA VS. M/S KPS BEVERAGES AND OTHERS

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Original Application has been filed through Ms. Navjot Kaur, Branch 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 the Executive Committee of the Central Board of Directors in exercise of power conferred on it under regulation 76 & 77 of State Bank of India General Regulations, 1955 made by Reserve Bank of India in exercise of powers conferred on it by Sub-Section 3 of Section 50 of State Bank of India Act, 1955 with previous sanction of Central Government.

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The brief facts of the OA are that the defendant no.1 through its partners defendant nos. 2 and 3 approached the applicant for grant of Cash Credit Limit of Rs.25.00 Lacs vide loan application dated 15.07.2019 along with partnership letter dated 17.09.2019 and GST Registration Certificate dated 09.05.2019, which are Annexure A1 (Colly) to this OA. Defendant nos. 2 and 3 stood as guarantors. Thereafter, the defendant no.1 through its partners defendant nos. 2 and 3 approached the applicant for renewal of the limit along with grant of Fresh Demand Loan of Rs.4.43 Lacs under GECL.

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The applicant sanctioned the Cash Credit of Rs.25.00 Lacs vide sanction dated 19.07.2019 and letter of arrangement dated 19.07.2019, which are Annexure A2 and A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanction renewal of the CC Limit along with sanction of Demand Loan of Rs.4.43 Lacs under GECL vide letter of arrangement dated 14.08.2020, which is Annexure A6 to this OA.

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Defendant no. 1 through its partners hypothecated stock vide agreement of loan cum hypothecation dated 19.07.2019, which is Annexure A4 to this OA and Supplemental agreement of loan cum hypothecation dated 14.08.2020, which is Annexure A7 to this OA.

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OA NO.189/2022 STATE BANK OF INDIA VS. M/S KPS BEVERAGES AND OTHERS

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Documents executed: Guarantee agreement dated 19.07.2019, which is Annexure A5 to this OA; Legal notice dated 14.09.2021 along with postal receipts, which is Annexure A8 to this OA and Statement of accounts with certificate, which is Annexure A9 (Colly) 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 the loan accounts there was a debit of Rs.30,84,979.00, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 25.08.2023.

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In support of the OA, affidavit of Mr. Navjot Kaur, Branch 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 that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendants 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 parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.30,84,979.00 (Rupees Thirty Lacs Eighty Four Thousand Nine Hundred Seventy Nine Only) along with interest from the defendants, jointly and severally,

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OA NO.189/2022

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STATE BANK OF INDIA VS. M/S KPS BEVERAGES AND OTHERS

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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 @9.90%p.a. with monthly rests in CC Limit & interest @7.40%p.a. with monthly rests in GECL Loan from 07.12.2021 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 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 account 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.30,84,979.00 (Rupees Thirty Lacs Eighty Four Thousand Nine Hundred Seventy Nine 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 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 .

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OA NO.189/2022 STATE BANK OF INDIA VS. M/S KPS BEVERAGES AND OTHERS

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.02.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 29.01.2026.

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

State Bank of India v. M/S K. P. S. Beverages and Others

Case brief

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State Bank of India v. M/S K. P. S. Beverages and Others

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