STATE BANK OF INDIA vs M/S DIGITAL CAFE on 14 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 17.06.2019 through its authorized representative under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.11,39,345/- (Rupees Eleven Lacs Thirty Nine Thousand Three Hundred Forty Five only) as on 15.09.2019 along with pendentelite and future interest @9.95% per annum with monthly rests till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendant vide his loan application along with KYC documents, ITR etc., the applicant bank sanctioned Cash Credit (Hypothecation) facility of Rs.10,00,000/- (Rupees Ten Lacs only) @10.80% interest per annum on 30.09.2016 for carrying out business of repairing and sale of mobiles against hypothecation of stock of mobiles and accessories etc. under Prime Minister Mudra Scheme.

3. In order to avail the credit facility, the defendant submitted loan application and executed Agreement of Loan Sd- cum Hypothecation (SME-2) and Letter of Arrangement with the applicant bank on 30.09.2016.

4. In order to secure the loan facilities, the defendant hypothecated the stocks of mobile, accessories and entire assets created from bank finance in favour of the applicant bank.

5. It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 22.02.2018 as per RBI guidelines and issued various letters on 06.11.2017, 08.11.2017 and 08.01.2018 as well legal demand notice dated 03.06.2019 to liquidate the outstanding but defendant failed to liquidate the outstanding amount and hence the applicant bank has approached this Tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 03.07.2026, the defendant has been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Naresh Kumar, authorized representative of the applicant bank who has proved the documents such as Gazette Notification, Loan application Form with KYC & ITR etc. under PMMY scheme, Letter of Arrangement, Agreement of Loan cum Hypothecation, Sd- Statement of Assets & Liabilities of defendant, Letters to defendant, Migration Letter, Postal Receipts, Legal Notice with Courier Receipts, Certified Statement of Account under Banker's Books of Evidence Act, Accrued Interest Statement, Certificate u/s 65B of Indian Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/12.

8. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

9. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

10. In the light of the above discussions, the Original Application deserves to be allowed.

**ORDER**

I, allow this OA and direct the defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.11,39,345/- (Rupees Eleven Lacs Thirty Nine Thousand Three Hundred Forty Five only) as on 15.09.2019 together with pendentelite and future interest @9.95% per annum with monthly rests from 15.09.2019 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock of mobiles, current assets etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

Sd-

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 14.12.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*Sd - Govind Ballabh Sharma*

**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 14.10.2026