Allowed

State Bank of India v. M/S Poonam International and Another

DRT14 Jan 2026OA/278/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by State Bank of India for recovery of dues amounting to Rs. 1.25 crore from M/S Poonam International and Sh. Rajiv Luthra. The court modified the claimed interest rate to 8% p.a. and issued a recovery certificate.

What did the court decide?

Application allowed; Recovery Certificate issued; Defendants liable to pay Rs. 1,25,90,246 with 8% p.a. interest; Liberty granted to enforce claim via sale of assets.

State Bank of India versus M/S Poonam International and Another — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.278/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 11.02.2025

¶5

DATE OF DECISION: 14.01.2026

¶6

State Bank of India a Body Corporate constituted under the provisions of the State Bank of India Act, 1955 (23 of 1955), having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai (Maharashtra) 400021, carrying on its Business of Banking in India and Abroad having one of its Local Head Office at Sector 17, Chandigarh, having its SME Branch amongst other places at Adjoining Gulzar Petrol Pump, Dholewal Chowk, Ludhiana-141003 (Punjab) and one of the Specialized Branch known as Stressed Assets Recovery Branch at 3^rd Floor Admin Office Building at Fountain Chowk, Civil Lines, Ludhiana 141001 (Punjab) through its Chief Manager Shri Malkit Singh.

¶7

……..Applicant

¶8

Versus

¶9

M/S Poonam International, B/25/G/5/624, Street No.1, New Shivpuri, Ludhiana through its Proprietor Sh. Rajiv Luthra son of Sh. Harish Chander Luthra .

¶10

Sh. Rajiv Luthra son of Sh. Harish Chander Luthra, resident of 5563/2, Street No. 4, Haibowal, Near Baba Balak Nath Mandir, Raghvir Park, Jaasian Road, Ludhiana -141001.

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Ms. Sonal Chabra, Advocate for the applicant

¶14

Defendants already ex parte vide order dated 14.08.2025

¶15

FINAL ORDER

¶16

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.1,25,90,246.00 (Rupees One Crore Twenty Five Lacs Ninety Thousand Two Hundred Forty Six Only).

¶17

2 OA NO.278/2025 STATE BANK OF INDIA VS. M/S POONAM INTERNATIONAL AND ANOTHER

¶18

The Original Application has been filed throug h Sh. Malkit Singh, Chief Manager, o f the applicant, who is competent to institute the Original Application vide Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for grant of Cash Credit Limit of Rs.1.50 Crore and Term Loan of Rs.46.00 Lacs. Defendant no. 2 stood as guarantor. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Term Loan (WCTL) of Rs.25.00 Lacs and Term Loan of Rs.25.00 Lacs under GECL and Rs.12.00 Lacs under GECL extension. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs.86.00 Lacs vide loan application dated 12.09.2022, which is Annexure A21 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for renewal of existing facilities vide loan application dated 12.12.2023, which is Annexure A27 to this OA.

¶20

The applicant sanctioned Cash Credit Limit of Rs.1.50 Crore and Term Loan of Rs.46.00 Lacs vide letter of arrangement dated 26.10.2015, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the limit was renewed by the applicant for Rs.1.00 Crore vide letter of arrangement dated 23.03.2017, which is Annexure A7 to this OA. Thereafter, the limit was renewed by the applicant for Rs.75.00 Lacs along with sanction of Fresh Working Capital Term Loan (WCTL) of Rs.25.00 Lacs vide letter of arrangement dated 20.01.2020, which is Annexure A11 to this OA. Thereafter, the existing facilities were renewed by the applicant along with sanction of Fresh Term Loan of Rs.25.00 Lacs under GECL vide letter of arrangement dated

¶21

3 OA NO.278/2025 STATE BANK OF INDIA VS. M/S POONAM INTERNATIONAL AND ANOTHER

¶22

02.07.2020, which is Annexure A16 to this OA. Thereafter, the existing facilities were renewed by the applicant along with sanction of Fresh Term Loan of Rs.12.00 Lacs under GECL extension vide letter of arrangement dated 16.11.2021, which is Annexure A17 to this OA. Thereafter, the applicant renewed and enhanced the CC Limit for Rs.86.00 Lacs along with the renewal of Term Loan for Rs.13.00 Lacs, WCTL for Rs.17.00 Lacs, Term Loan (GECL) for Rs.14.00 Lacs and Term Loan (GECL Extension) for Rs.12.00 Lacs vide letter of arrangement dated 06.10.2022, which is Annexure A22 to this OA. Thereafter, the applicant renewed the existing facilities CC Limit for Rs.86.00 Lacs, Term Loan for Rs.6.00 Lacs, WCTL for Rs.12.00 Lacs, Term Loan (GECL) for Rs.4.00 Lacs and Term Loan (GECL Extension) for Rs.12.00 Lacs vide letter of arrangement dated 06.10.2022, which is Annexure A28 to this OA.

¶23

The defendant no. 2 mortgaged his property bearing MC No. B- XXV-G-V-624 measuring 162 Sq. Yards situated at Taraf Sekhewal, Hadbast no. 277, Abadi New Shivpuri, Street No. 1-2, Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 19397 dated 12.03.2010, along with its translation, which are Annexures A3 and A3T to this OA. Letter dated 26.10.2015 and 21.01.2020 of confirmation for creation of mortgage by deposit of title deeds, which are Annexures A6 and A14 to this OA; Letter dated 16.11.2021 of confirmation of extension of mortgage by deposit of title deeds, which is Annexure A20 to this OA.

¶24

Defendant no. 1 through its proprietor defendant no. 2 hypothecated current assets, stock, book debts, machinery vide agreement of loan cum hypothecation dated 26.10.2015, which is Annexure 4 to this OA and supplemental agreement of loan cum hypothecation dated 23.03.2017, 20.01.2020, 16.11.2021 and 06.10.2022 which are Annexures A8, A12, A18 and A23 to this OA.

¶25

4 OA NO.278/2025 STATE BANK OF INDIA VS. M/S POONAM INTERNATIONAL AND ANOTHER

¶26

Documents executed: Guarantee Agreements dated 26.10.2015, 23.03.2017, 20.01.2020, 16.11.2021, 06.10.2022 which are Annexures A5, A9, A13, A19, A24 to this OA; Link Letter dated 23.03.2017, 20.01.2020, 06.10.2022 which are Annexures A10, A15 and A26 to this OA; Revival Letter dated 06.10.2022, which is Annexure A25 to this OA; Confirmation of loan documents and charges dated 28.03.2024, which is Annexure A29 to this OA; Legal Notice dated 05.06.2024, which is Annexure A30 to this OA; Notice dated 19.08.2024 u/s 13(2) of SARFAESI Act, which is Annexure A31 to this OA; Possession Notice dated 26.11.2024, which is Annexure A32 to this OA; Statement of accounts, which is Annexure A33 to this OA.

¶27

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.1,25,90,246.00, 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.

¶28

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

¶29

In support of the OA, affidavit of Sh. Malkit Singh, State Bank of India Ltd., h as been filed.

¶30

Heard ex-parte arguments and perused record.

¶31

It was argued by learned 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 A33 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

¶32

5 OA NO.278/2025 STATE BANK OF INDIA VS. M/S POONAM INTERNATIONAL AND ANOTHER

¶33

documents in favour of the applicant. 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.1,25,90,246.00 (Rupees One Crore Twenty Five Lacs Ninety Thousand Two Hundred Forty Six Only) with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶34

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed @ 17.25%p.a. in CC Limit, Term Loan and WCTL and @9.25%p.a. in GECL extension loan with 2% penal interest and with monthly rests from 11.02.2025 till the realization.

¶35

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 properties/ 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 all 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.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,25,90,246.00 (Rupees One Crore Twenty Five Lacs Ninety Thousand Two Hundred Forty Six Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan

¶37

6 OA NO.278/2025 STATE BANK OF INDIA VS. M/S POONAM INTERNATIONAL AND ANOTHER

¶38

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 mortgaged properties/hypothecated assets of the 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.

¶39

12. Any other application pending stands disposed of.

¶40

Issue Recovery Certificate accordingly.

¶41

Parties to appear before Learned Recovery Officer of this Tribunal on 30.01.2026.

¶42

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.

¶43

Pronounced by me in the open Tribunal . Dated: 14.01.2026

¶44

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

State Bank of India v. M/S Poonam International and Another

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Poonam International and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Messrs Anant Spinners Pvt. Limited and Another versus Punjab National Bank and Another

State Bank of India versus Smt. Gurdev Kaur and others

Union Bank of India versus Sh. Mohan Singh and Another

State Bank of India versus Sh. Gurnam Singh

Icici Bank Limited versus Sh. Gursewak Singh and Others

Punjab National Bank versus Sh. Shamsher Singh and Others