Allowed

State Bank of India v. M/S H. K. Foods and Another

DRT6 Jul 2026OA/237/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India against M/S H.K. Foods and its proprietor for recovery of a loan of nearly Rs. 23 lakhs. The tribunal ordered the recovery of the principal sum along with simple interest at 8% per annum and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 22,89,943 jointly and severally with simple interest at 8% p.a. from filing till realization; issue of Recovery Certificate.

State Bank of India versus M/S H. K. Foods and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 237/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.02.2025

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DATE OF DECISION: 06.07.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India Act no. XXIII of 1955, having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai, Maharashtra, one of its Local Head Office situated at Sector 17B, UT Chandigarh, having its Branches all over India and one of its Branch at NRI Branch Phagwara, Doal Complex Court Road, Phagwara, District Kapurthala, Punjab through its Branch Manager, Ms. Mandeep Kaur

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……..Applicant

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Versus

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M/S H.K. Foods, Sutheri, Government College Road, Opposite Gurcharan Kanwal Hospital, Sutheri, Tulsi Nagar, Hoshiarpur, Punjab through its Proprietor Smt. Harpreet Kaur

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Smt. Harpreet Kaur , W/o Sh. Harminder Singh, R/o House no. 308, Kundi Niwas, New Satnampura, Phagwara, District Kapurthala, Punjab, Proprietor of M/S H.K. Foods

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…..Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for applicant None for defendants

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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. 22,89,943.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Nine Hundred Forty Three Only). The Original Application has been filed through Ms. Mandeep Kaur, Branch Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notifications dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the

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2 OA NO. 237/2025 STATE BANK OF INDIA VS. M/S H.K. FOODS AND OTHERS

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Central Board Directors under Regulation nos. 76 and 77 of State Bank of India General Regulations, 1955 in exercise of powers conferred on it by section 50 (3) 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 defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 1.80 Lac and Term Loan of Rs. 19.00 Lacs vide Application Form dated 10.01.2023, which is Annexure A1 to this OA.

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The applicant sanctioned CC Limit of Rs. 1.80 Lac and Term Loan of Rs. 19.00 Lacs vide Letter of Arrangement dated 04.02.2023, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks, receivables, plant and machinery vide Agreement of Loan cum Hypothecation dated 04.02.2023, which is Annexure A3 to this OA. Documents executed: Legal Notice dated 21.05.2024, which is Annexure A4 to this OA and Statement of Account with interest chart, which is Annexure A5 (Colly) to this OA. 5. 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. 22,89,943.00, 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 summons to appear before this Tribunal and after service upon defendants, Smt. Harpreet Kaur, defendant no. 2 appeared in person on 15.12.2025. Paper book was supplied to her but no WS was filed. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 13.02.2026.

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In support of the OA, affidavit of Ms. Mandeep Kaur, Branch Manager, State Bank of India has been filed. 8. Heard arguments and perused record.

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3 OA NO. 237/2025 STATE BANK OF INDIA VS. M/S H.K. FOODS AND OTHERS

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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. None was present on behalf of defendants for arguments.

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From the perusal of all the Annexure A1 to A5 (Colly) to this OA, it is proved that 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 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 is entitled to recover a sum of Rs. 22,89,943.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Nine Hundred Forty Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @12.40%p.a. from date of institution 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,89,943.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Nine Hundred Forty Three Only) jointly and severally, with costs, current

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4 OA NO. 237/2025 STATE BANK OF INDIA VS. M/S H.K. FOODS AND OTHERS

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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.

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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 21.07.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 06.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S H. K. Foods and Another

Case brief

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State Bank of India v. M/S H. K. Foods and Another

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