Allowed

State Bank of India v. M/S Shree Udyog

DRT18 Jul 2026OA/99/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal-I, Chandigarh, considered an application by SBI for recovery of ₹54.85 lakhs with interest against M/s Shree Udyog and partners. The Court accepted the bank's evidence, dismissed ex parte appearance, allowed recovery, and directed a recovery certificate for sale of hypothecated assets.

What did the court decide?

Recovery of ₹54,85,457.41 plus interest and costs allowed; Recovery Certificate issued; appearance before Recovery Officer directed for distribution of sale proceeds.

State Bank of India versus M/S Shree Udyog — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 99/2024

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Date of Institution: 22.11.2023 Date of Decision: 18.07.2026

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SBI having its branches all over India and a branch at SME Branch, The Mall Solan, Himachal Pradesh.

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……..Applicant

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Vs.

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M/s Shree Udyog, a Partnership Firm, at Near Tar Factory, Rajgarh Road, Village Jatoli, Post Office Shamti, Tehsil and District Solan, Himachal Pradesh, through its Partners Sh. Virender Aggarwal s/o Sh. Romesh Aggarwal, Ms. Mehak Aggarwal d/o Sh. Virender Aggarwal and Sh. Gavesh Aggarwal s/o Sh. Virender Aggarwal.

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Shri Virender Aggarwal s/o Sh. Romesh Aggarwal, Partner of M/s Shree Udyog, r/o House no.239, Near Sainik Rest House, The Mall, Solan, Himachal Pradesh.

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Ms. Mehak Aggarwal d/o Sh. Virender Aggarwal, Partner of M/s Shree Udyog, r/o no.239, Near Sainik Rest House, The Mall, Solan. Himachal Pradesh.

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Shri Gavesh Aggarwal s/o Sh. Virender Aggarwal, Partner of M/s Shree Udyog, r/o no.239, Near Sainik Rest House, The Mall, Solan, Himachal Pradesh.

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……….Defendants

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Advocates

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Sh. Vivek Verma, Counsel for the applicant bank along with Sh. Anil Kumar, Manager of the applicant bank. Defendants- ex parte vide order dated 24.09.2024 .

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OA for the Recovery of ₹54,85,457.41p with interest @17.25% per annum with monthly rests from 22.11.2023.

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ORDER

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SBI has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of

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₹54,85,457.41p with interest against M/s Shree Udyog and others (defendants).

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Bank’s case is that on 23.06.2021, it had granted C.C. Limit of ₹50.00 Lacs to defendant no.1 through its partners defendant Nos.2 to 4 for Business purpose. To secure the loan, Defendant nos. 2 to 4 being the partners of defendant no.1 had hypothecated assets (fully detailed in para No.3A of the application). Defendant Nos. 2 to 4 stood as guarantors vide Guarantee Agreement dated 23.06.2021. The loan was chargeable to interest @17.25% per annum with monthly rests. On 21.11.2023, a sum of ₹54,85,457.41p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 05.02.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 24.09.2024, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Akhil Goyal, Chief Manager along with the loan and security documents and marked them as Exhibit A-1 to A-6. 5. I have perused the evidence on the record. Sh. Anil Sharma, Manager, is present with the original documents which have been perused by me. The same have been returned to him after perusal. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹50.00 Lacs and on 21.11.2023, a sum of ₹54,85,457.41p was due. 6. Accordingly, the application of the bank for the recovery of ₹54,85,457.41p (Rupees Fifty Four Lacs Eighty Five Thousand Four

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Hundred Fifty Seven and Paise Forty One Only) with interest @17.25% per annum with monthly rests from 22.11.2023, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 21.08.2026, who is directed to distribute the sale proceeds of the hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 18.07.2026 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

State Bank of India v. M/S Shree Udyog

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Shree Udyog

Case brief

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What did the court decide?

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