Allowed

State Bank of India v. M/S Satkar Industries and Another

DRT17 Feb 2026OA/911/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under the RD&B Act for recovery of Rs. 3.9 Crore. The court reduced the claimed interest rate to 8% per annum and directed issuance of a Recovery Certificate, with liberty to sell hypothecated or other assets.

What did the court decide?

Directing defendants to pay principal with simple interest @8% p.a. and issuance of Recovery Certificate.

State Bank of India versus M/S Satkar Industries… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.911/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2025

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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 Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17, Chandigarh and Branches all over India including one SBI, SARB at SCO No.15, First & Second Floor, Madhya Marg, Sector-7, Chandigarh through its Chief Manager Sh. Mousam Pal

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……..Applicant Versus

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M/s Satkar Industries, Sangrur Barnala Highway, NH-7, Near Mastuana Sahib, Village Bahadpur, Barnala Road, TehsilSangrur (Punjab)-148001 through its Proprietor Sh. Mahesh Kumar.

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Sh. Mahesh Kumar S/o Sh. Sewa Ram, R/o Village Badbar, District Barnala, Punjab-148106

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………Defendants

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Advocates:

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

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Defendants already ex-parte vide order dated 17.12.2025.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.3,90,40,823.00 (Rupees Three Crore Ninety Lacs Forty Thousand Eight Hundred Twenty Three Only). The Original Application has been filed through Sh. Mousam Pal, Chief Manager, State Bank of India of the applicant, who is competent to institute the Original Application in the terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and

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2 OA NO.911/2025 STATE BANK OF INDIA VS. M/S SATKAR INDUSTRIES AND ANOTHER

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27.03.1987 under regulation no. 76 and 77 of State Bank of India General Regulations framed in exercising of powers conferred by subsection 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 is a sole proprietor defendant no.2 approached the applicant for grant of Term Loan of Rs.4.58 Crore and Cash Credit Limit of Rs.7.00 Lacs vide Loan Application dated 14.06.2023, which is Annexure A1 to this OA. Thereafter, the defendant approached the applicant for enhanced the Term Loan of Rs.4.00 Crore vide Loan Application dated 01.08.2024, which is Annexure A6 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for review of Term Loan vide loan application dated 01.08.2024, which is Annexure A6 to this OA.

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The applicant sanctioned the Term Loan of Rs.4.00 Crore and Cash Credit Limit of Rs.7.00 Lacs vide Arrangement Letter dated 18.08.2023, which is Annexure A2 to this OA and terms and conditions are accepted by defendants. Thereafter, the applicant reviewed the Term Loan of Rs.3.48 Crore, vide Arrangement Letter

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dated 22.10.2024, which is Annexure A7 to this OA.

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Defendant no.1 through its proprietor defendant no. 2 hypothecated stocks, receivables, plant and machinery vide agreement of loan cum hypothecation dated 18.08.2023, which is Annexure A3 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. Factory Land and Building measuring 6Bigha-5Biswas-19Biswansi Situated at

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Sangrur Barnala Highway, NH-7, Near Mastuana Sahib, VPO Bhadurpur, District Sangrur, Punjab through equitable mortgage of sale deed bearing no.2022-23/128/1/2627 dated 16.11.2022 and Gift Deed No. 2023-24/128/1/1454 dated 18.07.2023, along with their

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translation, which is Annexure A4 to this OA; Letter dated

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3 OA NO.911/2025 STATE BANK OF INDIA VS. M/S SATKAR INDUSTRIES AND ANOTHER

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18.08.2023 of confirmation for creation of mortgage by deposit of title deeds, which is Annexure A5 to this OA. Documents executed : Loan Cum Hypothecation Letter of Confirmation dated 18.08.2023, which is Annexure A3 & A5 to this OA; Legal Notice dated 26.06.2025, which is Annexure A8 to this OA; Notice dated 05.02.2025 u/s 13(2) of SARFAESI Act, which is Annexure A9 to this OA; Statement of Account, which is Annexure A10 to this OA.

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The Term 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.3,90,40,823.00, which is recoverable and the defendants were served recall notice but defendants 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 defendant and he was proceeded ex-parte vide order dated 17.12.2025. 7. In support of the OA, affidavit of Sh. Mousam Pal, Chief Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by proxy counsel 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 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 applicant. The defendants failed to pay back the term loan as per terms and conditions of the agreement between the parties. Subsequently, 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. 3,90,40,823.00 (Rupees Three Crore Ninety Lacs

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4 OA NO.911/2025 STATE BANK OF INDIA VS. M/S SATKAR INDUSTRIES AND ANOTHER

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Forty Thousand Eight Hundred Twenty Three Only) along 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 interest @12.40%p.a. with 2% penal interest and monthly rests from 06.07.2025 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 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 @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.

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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. 3,90,40,823.00 (Rupees Three Crore Ninety Lacs Forty Thousand Eight Hundred Twenty Three 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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5 OA NO.911/2025 STATE BANK OF INDIA VS. M/S SATKAR INDUSTRIES AND ANOTHER

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.03.2026.

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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 .

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Dated: 17.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. M/S Satkar Industries and Another

Case brief

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State Bank of India v. M/S Satkar Industries and Another

Case brief

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