Allowed

State Bank of India v. M/S Shri Balaji Rice Exports and Another

DRT27 Aug 2026OA/349/2026

Case brief

AI extract

What is this about?

Recovery Tribunal allowed the Debts Recovery Tribunal application filed by State Bank of India against a sole proprietorship concern for recovery of Rs.1.35 crore, approving a reduced interest rate of 8% p.a. and directing recovery from hypothecated assets.

What did the court decide?

Control granted of Rs.1,35,24,888.00 with costs and simple interest @8% p.a.; recovery directed from hypothecated assets under SARFAESI Act.

State Bank of India versus M/S Shri Balaji Rice Exports and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.349/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.03.2026

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DATE OF DECISION: 27.08.2026

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State Bank of India a body corporate, constituted under the State Bank of India Act, 1955 (Act No. 23 of 1955) and having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branches at SME Branch Dholewal Chowk, District Ludhiana, Punjab, its Manager Sh. Abhishek Nagra.

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……..Applicant

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Versus

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M/s Shri Balaji Rice Exports, a sole proprietorship concern having its place of business at Focal Point Village Rana Fazilka (Punjab) - 152123 through its sole proprietor, Smt. Sweety Bajaj.

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Smt. Sweety Bajaj W/o Sh. Vijay Bajaj, Sole proprietor M/s Shri Balaji Rice Exports, R/o Mandi Ladukha, Tehsil Jalalabad, District Fazilka (Punjab) - 152123.

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…….. Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate proxy for Sh. Rakesh Gupta, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 24.08.2026)

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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 and Bankruptcy Act 1993, against the defendants for recovery of Rs.1,35,24,888.00 (Rupees One Crore Thirty Five Lacs Twenty Four Thousand Eight Hundred and Eighty Eight Only). The Original Application has been filed through Sh. Abhishek Nagra, Manager of the applicant, who is competent to institute the Original Application in terms of the Gazette Notification

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2 OA NO.349/2026 STATE BANK OF INDIA VS M/S SHRI BALAJI RICE EXPORTS AND ANOTHER

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dated 27.03.1987 under Regulation No. 76 and 77 of State Bank of India Regulations, framed by RBI in exercise of Power conferred by Sub Section (3) of Section 50 of State Bank of India Act, 1955, with the previous sanction of the Central Government, which is Annexure A1(Colly) to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for grant of Cash Credit Limit of Rs.1,50,00,000.00 vide Loan Application Form dated 01.09.2023, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for renewal of Cash Credit Limit of Rs.1,25,00,000.00. 3. The applicant sanctioned the Cash Credit Limit of Rs.1,25,00,000.00 vide Letter of Arrangement dated 29.09.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no.2. Thereafter, the applicant renewed the Cash Credit Limit of Rs.1,25,00,000.00 vide Letter of Arrangement dated 03.04.2025, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no.2. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts, vide Agreement of Loan cum Hypothecation, dated 29.09.2023, which is Annexure A4 to this OA. Documents executed : Notice u/s 13(2), dated 13.10.2025, which is Annexure A6 to this OA; Statement of account along with certificate, which is Annexure A7 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.1,35,24,888.00, 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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3 OA NO.349/2026 STATE BANK OF INDIA VS M/S SHRI BALAJI RICE EXPORTS AND ANOTHER

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.08.2026.

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In support of the OA, affidavit of Sh. Abhishek Nagra, Manager, State Ban k of India h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant that in

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view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A7 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 approached applicant for availing of the loan facility, which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,35,24,888.00 (Rupees One Crore Thirty Five Lacs Twenty Four Thousand Eight Hundred and Eighty Eight 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 @12.15%p.a. with monthly rests, with penal interest @2%p.a. 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 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

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4 OA NO.349/2026 STATE BANK OF INDIA VS M/S SHRI BALAJI RICE EXPORTS AND ANOTHER

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just and appropriate to grant simple interest @08.00%p.a. in the loan account 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.1,35,24,888.00 (Rupees One Crore Thirty Five Lacs Twenty Four Thousand Eight Hundred and Eighty Eight Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 stocks and book debts of the defendant no. 1 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. 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 11.09.2026. 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. Pronounced by me in the open Tribunal . Dated: 27.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S Shri Balaji Rice Exports and Another

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State Bank of India v. M/S Shri Balaji Rice Exports and Another

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