Allowed

State Bank of India v. M/S Mahaveer Sales and Others

DRT5 Feb 2026OA/300/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by State Bank of India to recover approx Rs.10.73 crore from M/s Mahaveer Sales and guarantors. The Tribunal fixed simple interest at 8% p.a. pending realization and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay Rs.10,73,08,352.89 with simple interest at 8% p.a. pending realization.

State Bank of India versus M/S Mahaveer Sales and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.300/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.01.2024

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DATE OF DECISION: 05.02.2026

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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 Madame Cama Road, Nariman Point, Mumbai, (Maharashtra) 400021, carrying on its Business 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, Fountain Chowk, Civil Lines, Ludhiana 141001 (Punjab) through its Chief Manager Shri Vinod Lakhanpal. ……..Applicant Versus 1. M/s Mahaveer Sales, a Partnership Firm, at B-XXXII-E-2/80 (Plot no.14) Guru Vihar, Rahon Road, Ludhiana (Punjab)-141007 through its Partners Shri Rajesh Jain son of Shri Joginder Pal Jain and Shri Sanjay Jain son of Shri Joginder Pal Jain

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Shri Rajesh Jain son of Shri Joginder Pal Jain, Partner of M/s Mahaveer Sales, Resident of House no. 89-F, Kitchlu Nagar, Ludhiana (Punjab)- 141001 3. Shri Sanjay Jain son of Shri Joginder Pal Jain, Partner of M/s Mahaveer Sales, Resident of House no. 89-F, Kitchlu Nagar, Ludhiana (Punjab)-141001 4. Shri Joginder Pal Jain son of Shri Rikhab Dass, Resident of House no. 89-F, Kitchlu Nagar, Ludhiana. (Punjab)-141001 ….……Defendants

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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Advocates:

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Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Vivek Verma, Advocate for applicant

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Defendants already ex parte vide order dated 05.01.2026.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.10,73,08,352.89 (Rupees Ten Crore Seventy Three Lacs Eight Thousand Three Hundred Fifty Two and Paisa Eighty Nine Only). The Original Application has been filed through Shri Vinod Lakhanpal, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulation No. 76 & 77 of State Bank of India General Regulation framed in exercise of the power conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. Gazette Notification dated 27.03.1987, along with State Bank of India Regulations, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its partners defendant nos.2 & 3 was availing Credit Facilities of Rs.53.00 Lacs from applicant since the year 2000 which were renewed/enhanced from time to time. Loan application for renewal of CC Limit for Rs.611.00 Lacs and for Term Loans of Rs.362.00 Lacs dated 04.08.2021, which is Annexure A15 to this OA. Defendants nos. 2 to 4 stood as guarantors. 3. The applicant sanctioned the Cash Credit Limit of Rs.175.00 Lacs, Loan of Rs.20.00 Lacs under SME Credit Plus Scheme and Term Loan (outstanding) of Rs.25.00 Lacs vide letter of arrangement dated 13.01.2005, which is Annexure A5 to this OA. Thereafter, the

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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applicant sanctioned CC Limit for Rs.240.00 Lacs, Term Loan-I (existing) of Rs. 14.00 Lacs, Term Loan-II (existing) of Rs. 08.00 Lacs, Term Loan-III (existing) of Rs. 31.00 Lacs and Letter of Credit of Rs.50.00 Lacs vide letter of arrangement dated 16.07.2010, which is Annexure A7 to this OA. Thereafter, the applicant sanctioned CC Limit for Rs.300.00 Lacs, Term Loan-I (existing) of Rs. 13.00 Lacs, Term Loan-II (existing) of Rs. 05.00 Lacs, Term Loan-III (existing) of Rs. 28.00 Lacs and Letter of Credit of Rs.50.00 Lacs vide letter of arrangement dated 08.03.2011, which is Annexure A8 to this OA. Thereafter, the applicant sanctioned CC Limit for Rs.400.00 Lacs, Term Loan-I (existing) of Rs. 03.00 Lacs, Term Loan-II (existing) of Rs. 16.00 Lacs, Term Loan-III (existing) of Rs. 19.00 Lacs and Letter of Credit of Rs.150.00 Lacs vide letter of arrangement dated 10.12.2012, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned CC Limit for Rs.460.00 Lacs, Term Loan (existing) of Rs. 17.00 Lacs, SLC of Rs.25.00 Lacs and Letter of Credit of Rs.100.00 Lacs vide letter of arrangement dated 22.04.2014, which is Annexure A10 to this OA. Thereafter, the applicant sanctioned CC Limit for Rs.550.00 Lacs, Term Loan-I (existing) of Rs.08.00 Lacs and Inland Letter of Credit of Rs.90.00 Lacs vide letter of arrangement dated 11.07.2015, which is Annexure A11 to this OA. Thereafter, the applicant sanctioned CC Limit for Rs.700.00 Lacs vide letter of arrangement dated 24.01.2017, which is Annexure A12 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit for Rs.700.00 Lacs vide sanction dated 10.04.2019, which is Annexure A13 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit for Rs.700.00 Lacs along with sanction of Working Capital Term Loan of Rs.140.00 Lacs under GECL vide letter of arrangement dated 02.06.2020, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit for Rs.611.00 Lacs along with Working Capital Term Loan of Rs.140.00

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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Lacs under GECL, sanction of Working Capital Term Loan of Rs.70.00 Lacs under GECL 2.0, Working Capital Term Loan of Rs.89.00 Lacs and Funded Interest Term Loan (FITL) of Rs.63.00 Lacs vide letter of arrangement dated 21.09.2021, which is Annexure A16 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit for Rs.571.00 Lacs along with Working Capital Term Loan of Rs.129.00 Lacs under GECL, Working Capital Term Loan of Rs.70.00 Lacs under GECL 2.0, Working Capital Term Loan of Rs.89.00 Lacs and Funded Interest Term Loan (FITL) of Rs.63.00 Lacs vide letter of arrangement dated 08.11.2022, which is Annexure A23 to this OA vide letter of arrangement dated 23.03.2023, which is Annexure A24 to this OA.

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Defendant no. 1 through its partners hypothecated stock, book debts, current assets, plant and machinery, etc. Supplemental Agreement of Loan-Cum Hypothecation dated 21.09.2021, which is Annexure A17 to this OA.

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Defendants mortgaged immovable properties detailed as under: (i) Defendant no. 1 through its partners mortgaged land and building measuring 500 Sq. yards situated at Plot No. 14 bearing MC No. B- XXXII-E-2/80, Village Gahlewal, Abadi Guru Vihar, Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 23291 dated 05.02.1998, along with its translation, which are Annexures A2 and A2T to this OA. Letter dated 23.02.2000 of confirmation of mortgage by deposit of title deed, which is Annexure A3 to this OA. Letter dated 22.09.2021 of confirmation of extension of mortgage by deposit of title deeds, which is Annexure A19 to this OA. (ii) Defendant nos.2 and 3 mortgaged their immovable propriety i.e. residential house measuring 149.50 sq. yards situated at House No. 89-F bearing MC No. B-XIX-1387/89F, Habowal Khurd, Abadi known as Kitchlu Nagar, Opposite Jain Mandir, Ludhiana, Punjab through equitable mortgage of transfer deed bearing no. 2021-22/101/1/13991

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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dated 07.01.2022 (pertaining to 74.72 sq. yards in the name of defendant no. 2), along with its translation, which are Annexures A20 and A20T to this OA and through equitable mortgage of transfer deed bearing no. 2021-22/101/1/13992 dated 07.01.2022 (pertaining to 74.72 sq. yards in the name of defendant no. 3), along with its translation, which are Annexures A21 and A21T to this OA. Title deed in the name of Late Smt. Virender Kumari bearing vasika no. 14473 dated 18.09.1996, along with its translation, which is Annexure A4 and A4T to this OA. Letter dated 15.03.2022 of confirmation of mortgage by deposit of title deeds, which is Annexure A22 to this OA.

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(iii) Defendant no. 4 mortgaged his immovable property i.e. Property measuring 200.00 sq. yards situated at Plot no. 22, Back Side Improvement Trust Flats, Village Barewal Awana, Abadi Amrit Colony, Dairy Complex, Hambran Road, Ludhiana, Punjab through equitable mortgage of Sale Deed bearing vasika no.4028 dated 12.05.1999 along with its translation, which are Annexures A6 and A6T to this OA.

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Documents executed: Guarantee Agreement both dated 21.09.2021, which is Annexure A18 to this OA; Call Up Notice along with its postal receipts 03.04.2023, which is Annexure A25 to this OA; Statement of accounts, which are Annexures A26 to A30 to this OA; Notice dated 30.05.2023 u/s 13(2) of SARFAESI Act, which is Annexure A31 to this OA and Valuation Report dated 01.07.2023, which is Annexure A32 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.10,73,08,352.89, which is recoverable and the defendants were served recall notices but they did not repay the

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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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. Sh. Puru Gupta, Advocate appeared on behalf of defendants on 10.12.2024 and filed his Memo of appearance Power of Attorney of Sh. Puru Gupta, Sh. V. Dharmani and Ms. Vaishali, Advocates was filed on behalf of defendants on 28.01.2025. WS on behalf of defendants was filed on 28.02.2025. On 22.12.2025, learned counsel for defendants submitted that he has no instructions from the defendants in this matter. In light of this submission, it appeared that defendants have no interest to defend this OA, therefore, they were proceeded exparte vide order dated 05.01.2026.

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In support of the OA, affidavit of Shri Vinod Lakhanpal, 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, the applicant had proved its case. From the perusal of all the Annexures A1 to A32 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 is entitled to recover a sum of Rs.10,73,08,352.89 (Rupees Ten Crore Seventy Three Lacs Eight Thousand Three Hundred Fifty Two and Paise Eighty Nine 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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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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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 @11.15%p.a. in CC Limit, @9.25%p.a.in Term Loans (GECL), @1.15%p.a. in WCTL and FITL, with 2% penal interest and monthly rests in all loan accounts from 31.01.2024 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 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.

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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.10,73,08,352.89 (Rupees Ten Crore Seventy Three Lacs Eight Thousand Three Hundred Fifty Two and Paise Eighty Nine Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 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 assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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OA NO.300/2024 STATE BANK OF INDIA VS. MESSRS MAHAVEER SALES AND OTHERS

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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 17.02.2026. 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 .

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Dated: 05.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S Mahaveer Sales and Others

Case brief

What is this about?

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State Bank of India v. M/S Mahaveer Sales and Others

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