Allowed

State Bank of India v. Sunny Chem (India) (Borrower)

DRT20 May 2026TA/1639/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by the State Bank of India to recover dues of approximately Rs. 1.84 crore from the borrowers and guarantors. The court rejected defenses regarding blank documents, excessive interest, limitation, and incomplete execution of guarantees, directing payment with interest.

What did the court decide?

Directed respondents to pay jointly and severally Rs. 1,84,65,334.95 along with interest and costs within 30 days; directed sale of hypothecated/mortgaged assets for recovery if payment is not made.

State Bank of India versus Sunny Chem (India) (Borrower) — Money Laundering | DRT (2026)

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Before susHIL^{KUMAR RASTOGI,Presiding officer} Debts RecovelY^{Tribunal-Il,Delhi}

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TA/163912022

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STATE BANK^{OF INDIAVS SUNNY CHEM (INDIA)& ORS}

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Reserued on =^t,7.04-2026 Pronounced on^{: 2O'05.2026}

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State Bank of^India

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Applicant bank

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Sunny Chem^(India)

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Sanjay Singhal

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Renu Singhal

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Defendants

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Present: Shri. Parth^{Tandon and Ms. Prerana} Sabharwal,^{Counse!appearsfor applicant} bank.

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None for defendants.

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FINAL ORDER

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Thisoriginalapplicationhasbeenfiledbythe applicant bank,^{on 24.02.2016through Mr. surender} Kumar Kaushik,^{Deputy Manager of the applicant bank} under section^{19 of the RDB Act, 1993 against the} defendants^{for recovery of a sum of Rs.L,84,65,334.95} together with^{cost, chargesand pendentellite and} future interest @14.30o/o^{from date of filing of this O'A'} till the realization^{in full}

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The brief^{facts of the case are that at the request} of defendant^{no.1, the applicant bank sanction a cash} credit Facility^{of Rs.1,60,00,000/-for its working capital} requirement^{in the ordinary course of its business,vide} its arrangement^{letter dated 25.02.20L3. Under the} cash credit^agreementaQ Tilu'V^securitythe SA

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TA NO/163912022²

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defendant no.1 created exclusive^{hypothecation} charge on entire current asset^{(present and future) of} the company comprising^{i.e., (a). All types of stocks of} raw materials, stocks in^{process,finished goods, stores} and spares, consumables etc., at^itsplant sites/godowns including stock^{in transitand cash credit} batance in their loan account.^{(b). Presentand future} book debts/receivables as also^{the clean and} documentary bills, domestic or^{export, whether} accepted or otherwise and^thecheques/ drafts/instruments etc.,^{drawn in its favour.In order to} fufther secure the said credit^{facility, the defendant} nos.2 & 3 created an equitable^{mortgage and deposited} the title deeds and also^{created the hypothecationin} favour of the applicant bank^{of the mortgaged propefi} i.e., EM of commercial^{propefi no.208, GroundFloor &} First Ftoor^(Mezzanine type)^{located at Gali Siras Katra} Peran, Pathak Hasbash^{Khan, TilakBazar, Khari Baoli,} Delhi-110006. In order^{to fufthersecurethe said credit} facility, the defendant^{nos.2 & 3 executeda guarantee} agreement in their^{personalcapacity. Further,the} defendant nos.2 & 3^{in their personal capacity created} an equitable moftgage^{by way of deposit of title deed.} Further, the defendant^{no.3 by letter of confirmation} confirmed the creation^{of equitablemoftgaged propefi} i.€., Equitable^{mortgageof propefi Built up Ground} Floor shop bearing h/t.^{No. 208 without roof rights} admeasuring 9.81^{Sq. Mtrs App.Being part of built up} propefi bearing Mpl No. 204-2L2^{situatedat Gali siras,} Katra Peran, Phatak^{Habash Khan,Tilak Bazar, Khari} Baoli, Delhi-110006. sA"

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TA NO/l 63912022

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maintain the^{financialdiscipline and failed to} repay the due^{amounts.The applicant requested the} defendants to^{regularize the loan account by visits and} letters, but there^{was no response from the defendants.} Hence, the account^{was classified as NPA dated} 01.05.2015.^{Therefore, the applicant serued a demand} notice dated^{11.05.2015 to the defendantsbut failedto} recover the same^{Thus, the present O'Aff} 'A'^is preferred by the applicant^{bank to recover its dues.}

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on notice^{by this Tribunal, the defendants put} appearance through^{counsel and filed written} statement and^evidence.

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In their^{writtenstatementthe defendants have} denied the facts^{mentioned in the OA. It is submitted} that the applicant^{banlVfinancialinstitution generally} obtain blank documents^{from the borrower,those are} then later on^{filed up without the consent or knowledge} of the borrower,^{the same is the positionin the instant} case also. These^{documents are void abinitio in the eyes} of law. It is^{submitted that no amount is due to the} applicant banks,^{as the applicant bank has charged} from the defendants^{illegal and excessive rate of} interest in violation^{of RBI guidelines. It is submitted} that the originat^{applicationhas been filed by the} financial institution^{is without any cause of action} against the^{defendants and is devoid of merits,} therefore, liable^{to dismissedon this short ground} alone. The original^{applicationfiled by the applicant} bank is barred^{by limitation. It is submitted the original} application filed^{by the applicant bank is barred by} limitation. It^{is further submitted that the statement of} account filed^{is against the principles of naturejustices} and opposed^{to public poli_cy:s the same has been filed}

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,r:

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TA NO/163912022⁴

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against the^{judgment passed by the Hon'ble} Supreme Court^{of India in the matter of Central Bank of} India vs Ravindra^{and Ors. Therefore, the statement of} account cannot^{be taken on recordand as such the} original application^{is liable to be dismissed on this} ground alone. It is submifted^{that the presentoA is} legally not maintainable^{for the specific reasonthat the} defendant no.3^{has not signed and executed the} documents for^{the entirefacilities which have been} sanctioned by the^{applicant from time to time,} therefore, oA is^{liable to be dismissed on the sole} ground. It is^prayed that^{this Hon'bleTribunal may} dismiss the Preset^O.A.

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The applicant^{and defendantshave filed their} respective evidence.

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Heard the^{Ld. counsel of the applicant bank and} perused the record.

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B. The^{main contentionof the defendantsis that the} applicant bank^{has obtained signatureson the blank} proformas and therefore,^{the said paper cannotbe} relied upon.^{But the contention of the defendantshas} no force. The^{defendants are well educated} businessman,^{therefore, it cannotbe presumedthat} they have signed^{the papers without going through the} conditions of^{the sanctionletter. Further, the} defendants^{have never filed any complaint before the} competent forum^{in this regard.}

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The^{next contention of the defendants is that the} applicant bank^{has chargedexorbitant rate of interest'} on the other^{hand, the Ld. counsel of the bankhas} submitted that^{the interest has been chargedas per} agreement^{between the parties. In this regard I have}

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TA NO/163912022⁵

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gone through the record. From^{perusal ofthe} statement of account,^{it is clear that the applicant bank} has charged interest^{as per agreement.Therefore,it} cannot be said^{that the applicantbank is charging} exorbitant rate of^interest.

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The next contention^{of the defendants in the} written statement^{is that the OA has been filed without} any cause of^{action.In this regard I have gone through} the record.^{From perusal of the record, it is clear that} the applicant bank^{has issued legal notice to the} defendant to^{repay the amount due and the defendant} has failed to^{repay the entire due amountand therefore,} the cause of^{actionto file the oA has duly arise and} therefore, the^{contentionof the defendanthas no force'}

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The next^{contention of the defendants is that the} application^{is barred by limitation. But from perusalof} the record,^{it is clear that the OA has been filed within} limitation Period.

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L2. The next^{contention of the defendants is that the} applicant bank^{has not filed the complete statement of} account as^{required as per the judgment given by the} Honble supreme^{court in central Bank of India Vs.} Ravindra and^{ors. In this regard I have perused the} record. on^{perusa! of the record, it is clear that the} applicant bank^{has filed the completestatement of} account.^{Therefore, there is no force in the contention} of the defendants.

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The next of^{the defendant in the written} statement that^{defendantno.3 has not signed and} executed the^{documentsfor the entire facilitieswhich} have been^{sanctionedby the applicant bank from time} to time. In^{this regard} *I IuE^{perused the evidence.} eN\

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TA NO/l 63912022

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From perusal of^{the evidence, it is clear that} defendant no.3^{has duly signed and executedthe} documents from the^{entire facilitieswhich have been} sanctioned by the applicant^{bank from time to time.} Therefore, there is no^{force in the contention of the} defendants.

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L4. From^{perusal of the entire evidence, it is clear that} the defendants^{have failed to prove their case as} claimed in the written^{statement. On the other hand,} the applicant has^{proved his case againstthe} defendants and^{therefore,the defendants are liable to} pay the amount claimed by^{the applicant bank and the} O.A of the applicant^{bank is liable to be allowed'}

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In the light of the^{above discussions,the present} O.Aff.A. deserues^{to be allowed.}

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ORDER

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I hereby^{allow this T.A. of the applicant bank and} direct the defendant^{nos. 1 to 3 to pay jointly and} severally to the^{applicant within 30 days from today, a} sum of Rs.L,84,65,334.95^{along with cost, expenses} and interest @12.70o/o^{from the date of filing of this O'A} which has become^{T.A. till the date of realization}

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In case of^{failure to deposit the above amount} within the stipulated^{period, the same shall be} recovered from^{the sale of hypothecatedassets and the} sale of mortgaged^{propertiesi.e., commercialPropefi} at Ground Floor^{shop BearingNo. 208 without roof} rights admeasuring^{9.81 Sq. Mtrs App. Beingpart of} built up^{property bearing Mpl No. 204-212 situated at} Gali siras, Katra^{Peran, Phatak Habash Khan, Tllak} Bazar, Khari^{Baoli, Delhi-110006.In case of short fall,} the same shall^{be recovered-.$om the sale of personal}

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e.\

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TA NO/163912022⁷

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movable and immovable^{assets of the defendant} nos.1 and 3.

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Recovery Certificate^{be issued forthwith and be} sent to Recovery Officer,^{DebtsRecovery Tribunal-Il,} Delhi.

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The registry of this^{Tribunalis herebydirected to} issue free copy of the^{order and send the same to both} the parties.

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Parties are direct to^{appear before the Ld.} Recovery Officer,^{DRT-II, Delhi on 20.07.2026.Pending} IAs, if dry, stand disPosed^of.

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File be consigned to^records. .-.

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Date: 20.05.2026

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sA (susH r L,l6lqn{ nAsrocr ) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been^signed, pronounced in oPen court.

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dated and

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Date :20.05.2026

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(SUSHIL KUMAR RASTOcI;' PRESIDING OFFICER DRT-II, Delhi

State Bank of India v. Sunny Chem (India) (Borrower)

Case brief

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State Bank of India v. Sunny Chem (India) (Borrower)

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