Allowed

State Bank of India v. M/S Aasmeen Enterprises and Another

DRT5 Feb 2026OA/331/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India against borrowers for recovery of dues of Rs.22 lakhs. The court deemed 8% p.a. simple interest appropriate for all loan accounts.

What did the court decide?

Ordered payment of Rs.22,71,494 along with costs and simple interest at 8% p.a.; issued Recovery Certificate; recovery from sale of secured or personal assets.

State Bank of India versus M/S Aasmeen Enterprises… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.331/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.02.2022

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DATE OF DECISION: 05.02.2026

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai one of its Local Head Office at Sector 17, Chandigarh and branches all over India including one of its branches at Jalalabad Road, Muktsar, Punjab through its Branch Manager.

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……..Applicant

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Versus

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M/s Aasmeen Enterprises, Proprietorship Firm, Jalalabad Road, Old Grain, Market, Sri Muktsar Sahib, Punjab through its Proprietor.

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Gaurav Dabra S/o Sh. Roshan Lal Dabra, Proprietor M/s Aasmeen Enterprises, R/o House No. 3381, Jalalabad Road, Near Dabra Oil Store, Sri Muktsar Sahib, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Vivek Verma, Advocate for Applicant

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Defendants already ex parte vide order dated 20.04.2023.

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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.22,71,494.00 (Rupees Twenty Two Lacs Seventy One Thousand Four Hundred Ninety Four Only). The Original Application has been filed through Sh. Deepak Bhargav, Branch Manager of the applicant, who is competent to institute the Original Application the 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 Regulations

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OA/331/2022 STATE BANK OF INDIA VS. M/S AASMEEN ENTERPRISES AND ANOTHER

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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 had approached the applicant for the grant of Cash Credit Limit of Rs.15.00 Lacs vide loan application dated 01.03.2016, which is Annexure A1 to this OA. Thereafter, the defendant no. 1 thought its proprietor defendant no. 2 for grant of Term Loan of Rs.3.00 Lacs under GECL and for a Funded Interest Term Loan. 3. The applicant sanctioned the Cash Credit Limit of Rs.15.00 Lacs vide Arrangement letter dated 17.03.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan of Rs.3.00 Lacs under GECL vide letter of arrangement dated 16.07.2020, which is Annexure A7 to this OA. The applicant also sanctioned Funded Interest Term Loan of Rs. 91,129.00 under relief package during COVID-19 for service of interest.

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Defendant no. 1 through its proprietor defendant no.2 hypothecated stock and book debts vide agreement of loan cum hypothecation dated 17.03.2016, which is Annexure A3 to this OA; Supplemental agreement of loan cum hypothecation dated 16.07.2020, which is Annexure A8 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. land measuring 16½Marla situated at Muktsar-3, Hadbast no. 54, Tehsil & District Muktsar, Punjab through equitable mortgage of sale deed bearing vasika no.4278 dated 17.02.2016, along with its translation, which is Annexure A5 to this OA; Confirmation letter dated 21.03.2016 for creation of mortgage by deposit of title deed, which is Annexure A6 to this OA; Confirmation letter dated 16.04.2021 for extension of mortgage by deposit of title deeds, which is Annexure A9 to this OA.

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OA/331/2022 STATE BANK OF INDIA VS. M/S AASMEEN ENTERPRISES AND ANOTHER

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Documents executed: DP Note dated 17.03.2016, which is Annexure A4 to this OA; Legal notice dated 13.01.2021, which is Annexure A10 to this OA; Notice dated 22.01.2021 u/s 13(2) of SARFAESI Act, which is Annexure A11 to this OA and Statement of accounts with calculation sheet and certificate, which are Annexures A12 to A16 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.22,71,494.00, 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. 6. 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 20.04.2023. 7. In support of the OA, affidavit of Sh. Deepak Bhargav, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A16 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.22,71,494.00 (Rupees Twenty Two Lacs Seventy One Thousand Four Hundred Ninety Four Only) along with interest from the defendants,

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OA/331/2022 STATE BANK OF INDIA VS. M/S AASMEEN ENTERPRISES AND ANOTHER

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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 @14.75% per annum in CC Limit, interest @7.40% per annum in GECL & interest @14.75% per annum in FITL, with monthly rests from 01.02.2022 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 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.22,71,494.00 (Rupees Twenty Two Lacs Seventy One Thousand Four Hundred Ninety Four 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

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OA/331/2022 STATE BANK OF INDIA VS. M/S AASMEEN ENTERPRISES AND ANOTHER

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.02.2026.

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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. Pronounced by me in the open Tribunal . 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 Aasmeen Enterprises and Another

Case brief

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State Bank of India v. M/S Aasmeen Enterprises and Another

Case brief

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