Allowed

State Bank of India v. M/S King of Spices and Another

DRT17 Feb 2026OA/903/2025

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by State Bank of India for recovery of Rs. 49 lakhs. The court held the defendants liable for the principal, costs, and modified the interest rate to 8% per annum, directing the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 49,14,818.00 along with costs and simple interest at 8% p.a.; Recovery Certificate directed; Liability declared joint and several.

State Bank of India versus M/S King of Spices and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.903/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2025

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DATE OF DECISION: 17.02.2026

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having its Corporate Centre at Madame Cama Road, Nariman Point Mumbai and having branches all over India and one of its branches amongst other places at Stressed Assets Recovery (SARB), Fountain Chowk, Civil Lines Ludhiana through its Chief Manager Sh. Vikas Kumar Chaurasiya.

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……..Applicant

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Versus

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M/S King of Spices, proprietorship firm, having its office at Shop no. 8, Lower Ground Floor, Main Block, PPR Mall, Mithapur Road, Jalandhar- 144001, Punjab through its Sole Proprietor Sh. Sachan S/o Sh. Roshan Lal.

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Sh. Sachan S/o Sh. Roshan Lal, R/o Village Sianiwala, Tehsil Nakodar, District Jalandhar- 144630, sole proprietor of M/s King of Spices, proprietorship firm having its office at Shop no.8, Lower Ground Floor, Main Block, PPR Mall, Mithapur Road, Jalandhar- 144001, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Omkar Gupta, Advocate for the applicant

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Defendants already ex-parte vide order dated 17.12.2025

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OA NO.903/2025 STATE BANK OF INDIA VS. M/S KING OF SPICES AND ANOTHER

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FINAL ORDER

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1.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. 49,14,818.00 (Rupees Forty Nine Lacs Fourteen Thousand Eight Hundred Eighteen Only). The Original Application has been filed through Sh. Vikas Kumar Chaurasiya, Chief Manager, of the applicant who is competent to institute the Original Application vide terms of Gazette Notification dated 26.09.1959, 26.08.1972, 27.03.1987 and 29.10.2025 issued by Executive Committee of the Central Board in exercise of the powers conferred on it under Regulation No. 76 & 77 of State Bank of India General Regulations made by RBI 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 approached the applicant for grant Cash Credit Limit of Rs. 11.00 Lacs and Term Loan of Rs. 46.31 Lacs vide Loan Application dated 13.10.2023, which is Annexure A1 to this OA. 3. The applicant sanctioned Cash Credit Limit of Rs. 4.00 Lacs and Term Loan of Rs. 39.00 Lacs, vide Letter of Arrangement dated 24.11.2023, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated stocks, receivables, machinery and equipment, vide Agreement of Loan Cum Hypothecation and Agreement Letter, both dated 24.11.2023, which are Annexures A3 and A4 to this OA. Documents executed: - Undertakings, DP Note, both dated 24.11.2023, which are Annexures A5 to A7 to this OA; Legal notice dated 17.05.2025, which is Annexure A8 to this OA; Statement of Accounts with Certificate, which is Annexures A9 and A10 to this OA. 5. The loans accounts became irregular and was classified as NPA and after adjusting debit and credit entries in the loans accounts there was a debit of Rs.49,14,818.00 which is recoverable and the

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OA NO.903/2025 STATE BANK OF INDIA VS. M/S KING OF SPICES AND ANOTHER

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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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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 17.12.2025

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In support of the OA, affidavit Sh. Vikas Kumar Chaurasiya, Chief Manager, State Bank of India has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A10 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 bank is entitled to recover a sum of Rs.49,14,818.00 (Rupees Forty Nine Lacs Fourteen Thousand Eight Hundred Eighteen Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.90%p.a. with 5% penal interest with monthly rests from 05.07.2025 till the realization. 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 loans and prevalent market rates of interest which have gone drastically

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OA NO.903/2025 STATE BANK OF INDIA VS. M/S KING OF SPICES AND ANOTHER

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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 both 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.49,14,818.00 (Rupees Forty Nine Lacs Fourteen Thousand Eight Hundred Eighteen Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 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 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 05.03.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 17.02.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S King of Spices and Another

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State Bank of India v. M/S King of Spices and Another

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