Allowed

State Bank of India v. M/S Kailasa Coulture

DRT23 Jan 2026OA/363/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 27.39 Lakh plus interest against a proprietorship firm and its proprietor based on a term loan and restructuring of limits. The court found the debt due and granted a recovery certificate and order to distribute sale proceeds.

What did the court decide?

Recovery of Rs. 27,39,041.90 with interest @12.15% p.a. allowed; Recovery Certificate issued; Sale of hypothecated assets ordered.

State Bank of India versus M/S Kailasa Coulture — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 363/2023 Date of Institution: 01.02.2023 Date of Decision: 23.01.2026

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SBI having its branches all over India and a branch at Stressed Assets Resolution Branch (SARB), at Rail Head Complex, Administrative Building, Bahu Plaza, Jammu (J&K).

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……..Applicant

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Vs.

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M/s Kailasa Coulture, a Proprietorship Firm, at Nai Basti, Main Bazar, Satwari, Jammu (J&K), through its proprietor Sh. Sumeet Chandan s/o Sh. Ajit Kumar.

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Sh. Sumeet Chandan s/o Sh. Ajit Kumar, proprietor of M/s Kailasa Coulture, r/o Opposite Shiv Mandir, Nanak Nagar, Jammu (J&K).

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2^nd Address: Ward No.16, Shiva Nagar, Kathua, (J&K).

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……….Defendants

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Advocates

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Sh. Vivek Verma, Counsel for the applicant bank. Defendants - ex parte vide order dated 12.08.2024 .

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OA for the Recovery of Rs.27,39,041.90p with interest @12.15% per annum with monthly rests from 01.02.2023.

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ORDER

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SBI has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.27,39,041.90p with interest against M/s Kailasa Coulture and another (defendants).

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Bank’s case is that on 31.07.2020, it had granted C.C. Limit of Rs.15.00 Lacs and a Term Loan of Rs.7.50 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 for Business purpose. To secure both the loans, Defendant No.2 on behalf of defendant No.1 had hypothecated assets (fully detailed in para No.3A of the application).

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Again on 17.06.2021, at the request of the defendants, applicant bank restructured the existing limits and issued Funded Interest Term Loan (FITL) of Rs.3.60 Lacs to defendant No.1 through its proprietor i.e. defendant No.2. All the loans were chargeable at different rates of interest. On 29.01.2023, a sum of Rs.27,39,041.90p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 07.03.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 12.08.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Sourabh Bakshi, Manager along with the loan and security documents and marked them as Exhibit A-1 to A-10.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loans under various schemes and on 29.01.2023, a sum of Rs.27,39,041.90p was due.

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Accordingly, the application of the bank for the recovery of Rs.27,39,041.90p (Rupees Twenty Seven Lacs Thirty Nine Thousand Forty One and Paise Ninety Only) with interest @12.15% per annum with monthly rests from 01.02.2023, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 26.02.2026, who is directed to distribute the sale proceeds of the hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 23.01.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

State Bank of India v. M/S Kailasa Coulture

Case brief

What is this about?

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State Bank of India v. M/S Kailasa Coulture

Case brief

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What did the court decide?

What the court decided

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