Allowed

State Bank of India v. M/S Mohan Lal Vikas Kumar and Others

DRT6 Mar 2026OA/982/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed State Bank of India's application for recovery of a loan debt of Rs.25 Lakhs against borrower and guarantor. Tribunal fixed uniform simple interest at 8% p.a. and directed issuance of Recovery Certificate for execution.

What did the court decide?

Recovery of Rs.25,03,728.00 plus 8% simple interest p.a.; Issuance of Recovery Certificate.

State Bank of India versus M/S Mohan Lal Vikas Kumar and Others — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.982/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 25.07.2025

¶5

DATE OF DECISION: 06.03.2026

¶6

State Bank of India, a Body Corporate Constituted Under the State Bank of India Act, 1955, having its Central Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17, Chandigarh, having branches at different places and one of its AMCC Branch at Nabha District Patiala, Punjab through its Chief Manager Sh. Jatinder Kumar Salaria.

¶7

……..Applicant Versus

¶8

M/S Mohan Lal Vikas Kumar, Shop No. 26-B, New Grain Market, Nabha, Tehsil Nabha, District Patiala-147201, through its Proprietor Sh. Mohan Lal

¶9

Sh. Mohan Lal S/o Sh. Charan Dass, Proprietor M/S Mohan Lal Vikas Kumar, Shop No. 26-B, New Grain Market, Nabha, Tehsil Nabha, District Patiala-147201.

¶10

Smt. Salma Davi @ Smt. Salma Rani W/o Sh. Mohan Lal, R/o H. No. 241, Hira Mahal, Nabha, District Patiala-147201.

¶11

………Defendants

¶12

Advocates:

¶13

Argued by Sh. Aseem Kataria, Advocate for the applicant

¶14

Defendants already ex-parte vide order dated 23.01.2026

¶15

FINAL ORDER

¶16

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.25,03,728.00 (Rupees Twenty Five Lacs Three Thousand Seven Hundred Twenty Eight Only). The Original Application has been filed through Sh. Jatinder Kumar Salaria, Chief Manager of the applicant in terms of Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA.

¶17

2 OA NO.982/2025 STATE BANK OF INDIA VS. M/S MOHAN LAL VIKAS KUMAR AND OTHERS.

¶18

The brief facts of the OA are that the defendant no.1 through its proprietor of defendant no.2 approached the applicant for grant Cash Credit Limit of Rs.30.00 Lacs vide Loan Application dated 17.02.2014, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no.1 through its proprietor of defendant no.2 the applicant for renewal of the limit vide Loan application dated 21.01.2016, which is Annexure A8 to this OA. Thereafter, the defendant no.1 through its proprietor of defendant no.2 requested the applicant to renew the limit for Rs.24.00 Lacs vide Application dated 19.02.2021, which is Annexure A10 to this OA.

¶19

The applicant sanctioned the Cash Credit Limit of Rs.30.00 Lacs vide Letter of Arrangement dated 29.03.2014, which is Annexure A3 to this OA and the terms and conditions are accepted by defendants. Thereafter, the applicant sanctioned the renewal of the Limit vide Letter of Arrangement dated 12.02.2016, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned the renewal of the limit for Rs.24.00 Lacs vide Letter of Arrangement dated 20.02.2021, which is Annexure A11 to this OA.

¶20

Defendant no. 1 through its proprietor hypothecated book debts vide Agreement of Loan- Cum Hypothecation dated 29.03.2014, which is Annexure A4 to this OA. Defendant no.3 mortgaged her immovable property i.e. Commercial Shop No. 26-B, measuring 138.8/9 Sq. Yards Situated at New Grain Market Nabha, Tehsil Nabha, District Patiala, Punjab through equitable mortgage of sale deed bearing vasika No.513 dated 15.05.1991, along with its translation, which is Annexure A7 & A-7T to this OA and Letter of confirmation dated 31.03.2014 for creation of mortgage by deposit of title deeds, which is Annexure A7A to this OA. Documents executed : DP Note, Agreement of Guarantee, both dated 29.03.2014, which are Annexures A5 and A6 to this OA; Revival Letter dated 01.03.2017, which is Annexure A13 to this OA; Revival Letter dated 17.04.2018, which is Annexure A13 to this OA; Revival

¶21

3 OA NO.982/2025 STATE BANK OF INDIA VS. M/S MOHAN LAL VIKAS KUMAR AND OTHERS.

¶22

Letter dated 01.03.2020, which is Annexure A14 to this OA; Revival Letter dated 02.01.2023, which is Annexure A15 to this OA; Legal Notice dated 02.07.2024, which is Annexure A16 to this OA; Statement of Account, which is Annexure A17 to this OA.

¶23

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.25,03,728.00 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.

¶24

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 23.01.2026.

¶25

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

¶26

Heard ex-parte arguments and perused record.

¶27

It was argued by learned 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 A17 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.25,03,728.00 (Rupees Twenty Five Lacs Three Thousand Seven Hundred Twenty Eight Only). With interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶28

4 OA NO.982/2025 STATE BANK OF INDIA VS. M/S MOHAN LAL VIKAS KUMAR AND OTHERS.

¶29

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.85%p.a. with 2% penal interest and monthly rests from 17.07.2025 till the realization.

¶30

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.

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,03,728.00 (Rupees Twenty Five Lacs Three Thousand Seven Hundred Twenty Eight 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 assets /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.

¶32

12. Any other application pending stands disposed of .

¶33

Issue Recovery Certificate accordingly.

¶34

Parties to appear before Learned Recovery Officer of this

¶35

Tribunal on 24.03.2026.

¶36

5 OA NO.982/2025 STATE BANK OF INDIA VS. M/S MOHAN LAL VIKAS KUMAR AND OTHERS.

¶37

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.

¶38

Pronounced by me in the open Tribunal . Dated: 06.03.2026.

¶39

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

State Bank of India v. M/S Mohan Lal Vikas Kumar and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Mohan Lal Vikas Kumar and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus M/S Pansy Inc. and Others

Sarita Kumari versus Bank of Baroda

Yushutosh and Another versus Edelweiss Asset Reconstruction Company Ltd. and Others

Axis Bank Limited versus Ashoka Distributors and Others

Axis Bank Ltd. versus M/S Aggrwal Plastic Industries and Trading Co. and Another

Hdfc Bank Limited versus Sh. Sukhbir Singh @Sukhveer Singh and Others