Allowed

State Bank of India v. M/s Gobind Trading Co. and another

DRT13 Jan 2026OA/208/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the application filed by State Bank of India for recovery of Rs.29,96,958.00 as balance dues against M/s Gobind Trading Co. and legal heirs, who failed to repay. The amount includes principal and future interest at 8% p.a. and a Recovery Certificate was issued.

What did the court decide?

Declared respondents liable to pay Rs.29,96,958.00 with 8% p.a. simple interest; issued Recovery Certificate; reserved liberty to enforce via execution under SARFAESI Act.

State Bank of India versus M/s Gobind Trading Co. and another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.208/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.02.2025

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DATE OF DECISION: 13.01.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India, Act, 1955 and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Near Civil Court, Patiala Road, Sunam, District Sangrur-148028 through Its Chief Manager Sh. Chandan Kumar.

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……..Applicant

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Versus

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M/s Gobind Trading Co., a sole proprietorship concern situated at shop No. 138-B, Sunam Udham Singh Wala, Sunam, District Sangrur, Punjab-148028 through its Sole Proprietor Sh. Chand Singh Son of Sh. Gajjan Singh (since deceased) now represented through his legal heirs as arrayed herein under.

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Sh. Chand Singh Son of Sh. Gajjan Singh since deceased survived by following legal heirs:

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2.1 Smt. Mahinder Kaur W/o Late Sh. Chand Singh

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2.2 Smt. Charanjeet Kaur W/o Sh. Nirbhay Singh D/o Late Sh.

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Chand Singh

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Both residents of Village Neelowal, Tehsil Sunam, District Sangrur-148028

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….……Defendants

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Advocates:

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Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for applicant

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Defendants already ex parte vide order dated 14.08.2025

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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.29,96,958.00 (Rupees

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OA NO.208/2025 STATE BANK OF INDIA VS MESSRS GOBIND TRADING CO. AND ANOTHER

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Twenty Nine Lacs Ninety Six Thousand Nine Hundred Fifty Eight Only). The Original Application has been filed through Sh. Chandan Kumar, Chief Manager, of the applicant, who is competent to institute the Original Application vide in the terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No. 76 & 77 of State Bank of India Regulations framed in exercise of the powers conferred 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 proprietor defendant no.2 (since deceased) approached the applicant for the grant of Cash Credit Limit of Rs.20.00 Lacs vide Loan application dated 28.06.2011, which is Annexure A2 to this OA. Thereafter, the defendant no.1 through its proprietor defendant no.2 (since deceased) approached the applicant for renewal of the CC Limit vide loan application dated 30.07.2012, which is Annexure A8 to this OA. Thereafter, defendant no. 1 through its proprietor defendant no. 2 (since deceased) approached the applicant for enhancement of the limit to Rs.30.00 Lacs and letter for its renewal vide loan application dated 28.02.2018, which is Annexure A15 to this OA. Thereafter, defendant no. 1 through its proprietor defendant no. 2 (since deceased) approached the applicant for renewal of the limit for Rs.23.50 Lacs vide loan application dated 14.01.2022, which is Annexure A17 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.20.00 Lacs vide Letter of arrangement dated 08.07.2011, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant no. 1 and defendant no. 2 (since deceased). Thereafter, the limit was renewed by the applicant vide letter of arrangement dated 30.07.2012, which is Annexure A9 to this OA and again vide letter of arrangement dated 27.07.2013, which is Annexure A10 to this OA.

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OA NO.208/2025 STATE BANK OF INDIA VS MESSRS GOBIND TRADING CO. AND ANOTHER

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Thereafter, the limit was enhanced by the applicant to Rs.30.00 Lacs vide letter of arrangement dated 08.12.2014, which is Annexure A14 to this OA. Thereafter, the limit was renewed by the applicant vide letter of arrangement dated 25.04.2018, which is Annexure A16 to this OA. Thereafter, the limit was renewed by the applicant for Rs.23.50 Lacs vide letter of arrangement dated 18.01.2022, which is Annexure A18 to this OA

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Defendant no. 1 through its proprietor hypothecated stock and book debts vide arrangement of loan cum hypothecation dated 08.07.2011 and 27.07.2013, which are Annexures A4 and A11 to this OA.

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Defendant no.2 (since deceased) mortgaged its immovable properties detailed as under: -

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(i) Property measuring 1K-02M situated at Near Bus Stand, Village Neelowal, Tehsil Sunam, District Sangrur, Punjab through equitable mortgage of sale deed bearing vasika no. 524 dated 05.05.1999, along with its translation, which is Annexure A5 to this OA; Letter dated 11.07.2011 evidencing deposit of title deeds, which is Annexure A6 to this OA.

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(ii) Property measuring 0K-9½M situated at Village Neelowal, Tehsil Sunam, District Sangrur, Punjab through equitable mortgage of Sale Deed bearing vasika no. 476 dated 16.05.2013, along with its translation, which is Annexure A12 to this OA; Letter dated 27.07.2013 evidencing deposit of title deeds, which is Annexure A13 to this OA.

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Valuation report of properties dated 20.02.2023, which is Annexure A7 to this OA.

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Documents executed: Gazette notification dated 20.03.2017, which is Annexure A1 to this OA; Agreement of loan cum hypothecation both dated 08.07.2011 & 27.07.2013, which are Annexures A4 & A11 to this OA; Combined valuation report dated 20.02.2023, which is

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OA NO.208/2025 STATE BANK OF INDIA VS MESSRS GOBIND TRADING CO. AND ANOTHER

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Annexure A7 to this OA; Balance confirmation letter dated 14.07.2016, which is Annexure A19 to this OA; Revival letter dated 13.06.2019, 18.01.2022 & 18.01.2023, which are Annexures A20 to A22 to this OA; Legal notice dated 24.01.2025 along with postal receipts, which is Annexure A23 to this OA and Statement of account with calculation sheet and certificate, which is Annexure A24 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.29,96,958.00, 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 14.08.2025.

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In support of the OA, affidavit of Sh. Chandan Kumar, 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 proxy counsel 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 A24 to this OA, it is proved that the defendant no. 1 and defendant no. 2 (since deceased) approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank.

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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.29,96,958.00 (Rupees Twenty

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OA NO.208/2025 STATE BANK OF INDIA VS MESSRS GOBIND TRADING CO. AND ANOTHER

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Nine Lacs Ninety Six Thousand Nine Hundred Fifty Eight 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 2% penal interest and monthly rests from 19.01.2025 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 property/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 uniform simple interest @8.00%p.a. in 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.29,96,958.00 (Rupees Twenty Nine Lacs Ninety Six Thousand Nine Hundred Fifty Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 mortgaged properties/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

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OA NO.208/2025 STATE BANK OF INDIA VS MESSRS GOBIND TRADING CO. AND ANOTHER

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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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.01.2026. 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: 13.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/s Gobind Trading Co. and another

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/s Gobind Trading Co. and another

Case brief

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What did the court decide?

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