Allowed

State Bank of India v. M/S Satpal Prem Kumar and Others

DRT20 Jan 2026OA/904/2023

Case brief

AI extract

What is this about?

The DRT allowed an original application filed under the RDB Act. The court declared the defendants jointly and severally liable to repay Rs.32,83,546.00 with interest fixed at 8% p.a. An order was passed declaring the defendants liable to pay the total amount with joint and several liability. The recovery certificate is issued and parties are directed to appear before the Recovery Officer.

What did the court decide?

Recovery certificate issued directing defendants to pay Rs.32,83,546.00 with 8% per annum simple interest. Liberty to attach and sell assets if dues remain unsatisfied.

State Bank of India versus M/S Satpal Prem Kumar and Others — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 904/ 2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.06.2023

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DATE OF DECISION: 20.01.2026

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State Bank of India a body corporate constituted under the provisions of the State Bank of India, 1955 (23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of Patiala Order, 22.02.2017 passed by Central Government under Section 35 of the State Bank of India Act, 1955 (23 of 1955) having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra) 400021, Carrying on its Business of Banking in India and Abroad, having one of its Local Head Office at Sector 17, Chandigarh having its Branch Office at VPO Beesla, Tehsil Banga, District S.B.S. Nagar (Punjab) through its Branch Manager Smt. Ankita Dhawan.

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……..Applicant

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Versus

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M/S Satpal Prem Kumar (Commission Agents), VPO Dana Mandi Soondh, Tehsil Banga, District S.B.S. Nagar (Punjab) through its proprietor Sh. Prem Kumar

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Sh. Prem Kumar S/o Sh. Sai Dass, R/o VPO Dana Mandi Soondh, Tehsil Banga, District S.B.S. Nagar (Punjab) proprietor of M/S Satpal Prem Kumar

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Sh. Satpal S/o Sh. Sai Dass, R/o VPO Dana Mandi Soondh, Tehsil Banga, District S.B.S. Nagar (Punjab)

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Sh. Balwant Rai S/o Sh. Sai Dass, R/o VPO Dana Mandi Soondh, Tehsil Banga, District S.B.S. Nagar (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Banni Thomas, Advocate for Applicant

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Defendants already ex parte vide order dated 19.07.2024

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2 OA NO.904/ 2023 STATE BANK OF INDIA VS. M/S SATPAL PREM KUMAR & OTHERS

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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.32,83,546.00 (Rupees Thirty Two Lacs Eighty Three Thousand Five Hundred Forty Six Only). The Original Application has been filed through Smt. Ankita Dhawan, Branch Manager of the applicant, who is competent to institute the Original Application in the terms of Gazette Notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by Executive Committee of the Central Board of Directors in exercise of the power conferred on it under Regulations no.76 and 77 of State Bank of India General Regulations, 1955 made by Reserve Bank of India 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 the grant of Cash Credit Limit Rs.10.00 Lacs vide Loan Application dated 17.02.2010, which are Annexure A1 to this OA. Defendant nos. 3 and 4 stood as guarantors. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs.15.00 Lacs vide loan application dated 16.08.2013, which is Annexure A14 to this OA and thereafter, for its renewal vide loan application dated 11.11.2014, which is Annexure A20 to this OA, Loan application dated 15.10.2015, which is Annexure A21 to this OA, Loan application dated 20.12.2016, which is Annexure A22 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.10.00 Lacs vide Letter of arrangement dated 17.02.2010, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the limit was enhanced by the applicant to Rs.15.00 Lacs vide letter of arrangement dated 16.08.2013, which is

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3 OA NO.904/ 2023 STATE BANK OF INDIA VS. M/S SATPAL PREM KUMAR & OTHERS

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Annexure A15 to this OA and was later renewed vide letter of arrangement dated 20.12.2016, which is Annexure A23 to this OA.

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Defendant nos. 2 to 4 mortgaged their immovable property i.e. Land measuring 7 Marla situated at Village Soondh, Tehsil Nawanshahr, District SBS Nagar (Punjab) through equitable mortgage of Sale Deed dated 11.03.1992, which is Annexure A3 to this OA; Title Investigation Report (TIR) dated 08.02.2010, which is Annexure A4 to this OA; Confirmation Letter dated 18.02.2010 for Depositing of Sale Deed, which is Annexure A7 to this OA.

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Documents executed: Agreement for Hypothecation and Guarantee, Guarantee Form, Affidavit, D.P. Note Delivery Letter, Free Access Letter, No Lien Letter, Consent Letters, all dated 17.02.2010, which are Annexures A5, A6, A8 to A13 to this OA; Agreement for Hypothecation and Guarantee, D.P. Note Delivery Letter, D.P. Note Delivery cum continuity Letter, Free Access Letter, all dated 16.08.2013, which are Annexures A16 to A19 to this OA; Letters/ Bank Notices dated 01.05.2018, 01.08.2018, 01.10.2018, which is Annexure A24 to this OA; Balance & Security Confirmation Letter dated 28.07.2016, which is Annexure A25 to this OA; Revival Letter dated 19.06.2019, which is Annexure A26 to this OA; Revival Letter dated 06.03.2023, which is Annexure A27 to this OA; Statement of Account along with interest Chart and certificate, which is Annexure A28 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.32,83,546.00, 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 19.07.2024.

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4 OA NO.904/ 2023 STATE BANK OF INDIA VS. M/S SATPAL PREM KUMAR & OTHERS

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In support of the OA, affidavit of Smt. Ankita Dhawan, Branch Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for applicant 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 A28 to this OA, it is proved that the defendants 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,83,546.00 (Rupees Thirty Two Lacs Eighty Three Thousand Five Hundred Forty Six Only) with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]% p.a. from 21.06.2023 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 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 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.

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5 OA NO.904/ 2023 STATE BANK OF INDIA VS. M/S SATPAL PREM KUMAR & OTHERS

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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.32,83,546.00 (Rupees Thirty Two Lacs Eighty Three Thousand Five Hundred Forty Six Only) jointly and severally, with costs, current and future simple interest @8.00%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/mortgaged properties of the 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.

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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 02.02.2026.

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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.

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Pronounced by me in the open Tribunal . Dated: 20.01.2026

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

State Bank of India v. M/S Satpal Prem Kumar and Others

Case brief

What is this about?

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State Bank of India v. M/S Satpal Prem Kumar and Others

Case brief

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