The Debts Recovery Tribunal allowed State Bank of India's application for recovery of ₹52,28,327 with interest against Mashooq Ali who failed to repay a term loan. The Tribunal ordered recovery via sale of the hypothecated vehicle or the defendant's other property.
Recovery of ₹52,28,327 with interest; Sale of hypothecated vehicle; Issuance of Recovery Certificate.
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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
OA No: 314/2025 Date of Institution: 29.01.2025 Date of Decision: 13.05.2026
SBI having its branches all over India and a branch at SBI Mohalla, Janipur, Jammu (07974) and now migrated to one of its specialized branch known as Stressed Assets Resolution Branch (SARB) at Rail Head Complex. Administrative office, at Bahu Plaza, Jammu.
……..Applicant Vs. Mr. Mashooq Ali s/o Sh. Gulam Rasool, r/o Ragoora Near Batra Hospital, Majeen Sidhra, Jammu, J&K.
……….Defendant
Advocates Sh. Sumit Batra, Counsel for the applicant bank. Defendant- ex parte vide order dated 11.12.2025 . OA for the Recovery of ₹52,28,327/- with interest @12.40% per annum with monthly rests from 29.01.2025.
ORDER 1. SBI has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹52,28,327/- with interest against Mr. Mashooq Ali (defendant). 2. Bank’s case is that on 30.08.2023, it had granted Term Loan of ₹49.50 Lacs to defendant for vehicle purpose. To secure the loan, Defendant had hypothecated his vehicle bearing Registration No.JK-02DG-4813 (fully detailed in para No.3A of the application). The loan was chargeable to interest @12.40% per annum with monthly rests. On 21.01.2025, a sum of ₹52,28,327/- was due from the defendant. Despite repeated requests, defendant did not make the repayment. Hence, this application.
2
3 issues framed by the court
Whether the Debt Recovery Tribunal should allow the bank's application for recovery of dues arising from a term loan secured by hypothecation of a vehicle.
Whether the Tribunal can direct the sale of the hypothecated vehicle to recover the secured loans of the applicant bank.
Whether the provisions of Section 19 of the RDB Act apply to the issuance of a recovery certificate.
2 provisions across 1 enactments
State Bank of India
Mashooq Ali
A S NARANG
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
