The DRT allowed the applicant bank's application for recovery of Rs. 24,08,915. The court accepted the debt amount but exercised discretion to award interest at a uniform rate of 8% p.a. instead of the claimed higher rates.
Recovery certificate issued for Rs.24,08,915 plus costs and simple interest at 8% p.a. on all accounts.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 82/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 15.12.2021
DATE OF DECISION: 06.08.2026
State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai, one of the Local Head Offices at Sector 17-A, Chandigarh, and one of its local branches at SMECCC-I, Zonal Office, Fountain Chowk, Civil Lines, Ludhiana (Punjab) through its Chief Manager, Sh. Manish Arora.
……..Applicant
Versus
Advocates:
Argued by Sh. Vinish Singla, Advocate for applicant (through VC) None for Defendants (already ex parte vide order dated 04.08.2026)
FINAL ORDER
2 OA/ 82/2022 STATE BANK OF INDIA VS M/S MECH TECH ENGINEERS AND ANOTHER
Thereafter, the existing Term Loan settled and closed by the defendants.
Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for enhancement of CC Limit from Rs.13.00 lacs to Rs.21.00 lacs and Term Loan of Rs.1.09 lacs.
Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for FITL Loan of Rs.1,35,863.00 to convert accrued interest during period of COVID-19 pandemic vide Loan Application dated 01.09.2020, which is Annexure A15 to this OA. 3. The applicant sanctioned the CC Limit of Rs.13.00 lacs and Term Loan of Rs.14.65 lacs vide Arrangement Letter (SME-1) dated 26.09.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.
Thereafter, the applicant sanctioned the enhancement of CC Limit from Rs.13.00 lacs to Rs.21.00 lacs and a Term Loan of Rs.1.09 lacs vide Arrangement Letter (SME-1) dated 30.05.2019, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned the FITL Loan of Rs.1,35,863.00 to convert accrued interest during period of COVID-19 pandemic vide Arrangement Letter (SME-1) dated 01.09.2020, which is Annexure A16 to this OA. 4. Defendant no. 1, through its proprietor defendant no. 2, hypothecated its stock and book debts vide Hypothecation Agreement (SME-2) dated 26.09.2014, which is Annexure A3 to this OA; Documents executed: DP Note Delivery Cum Continuity Letter (SME3) dated 26.09.2014, which is Annexure A4 to this OA; DP Note Delivery Cum Continuity Letter (SME-3) dated 26.09.2014, which is Annexure A5 to this OA; Undertaking Letter dated 26.09.2014, which is Annexure A6 to this OA; Consent Form dated 26.09.2014, which is
3 OA/ 82/2022 STATE BANK OF INDIA VS M/S MECH TECH ENGINEERS AND ANOTHER
Annexure A7 to this OA; Account Statement of CC A/c No. 65212176528 up to 02.12.2021, which is Annexure A8 to this OA; Mortgage Deed Copy / Hypothecation Agreement (SME-2) dated 30.05.2019, which is Annexure A10 to this OA; Declaration Letter dated 30.05.2019, which is Annexure A11 to this OA; Undertaking Letter dated 30.05.2019, which is Annexure A12 to this OA; Acknowledgement Letter dated 30.05.2019, which is Annexure A13 to this OA; Letter for Availing Loan under CGTSME dated 30.05.2019, which is Annexure A14 to this OA; Account Statement of Term Loan A/c No. 39606609143 up to 02.12.2021, which is Annexure A17 to this OA; Legal Notice dated 15.10.2021, which is Annexure A18 to this OA; Revival Letter dated 16.03.2017, which is Annexure A19 to this OA.
4 OA/ 82/2022 STATE BANK OF INDIA VS M/S MECH TECH ENGINEERS AND ANOTHER
5 OA/ 82/2022 STATE BANK OF INDIA VS M/S MECH TECH ENGINEERS AND ANOTHER
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 hypothecated assets 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.
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the Original Application filed under Section 19 of the RDB Act for recovery of debt is valid and admissible.
Whether the Tribunal is entitled to modify the rate of interest claimed by the bank in the absence of the defendants.
1 provisions across 1 enactments
State Bank of India
M/s Mech Tech Engineers
Rajesh Khullar
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
