STATE BANK OF INDIA vs RUTBAA BOUTIQUE on 25 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 05.06.2018 before DRT-III, Delhi and then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of Rs.12,24,132/- (Rupees Twelve Lacs Twenty Four Thousand One Hundred Thirty Two only) as on 30.05.2018 along with pendentelite and future interest @10.95% per annum with monthly rests plus @2% penal interest from the date of the application till its realization and costs.

A handwritten signature, possibly 'Sd/-', is written in dark ink inside a rectangular box.

2. The brief facts of the case are that at the request of defendant no.1 through defendant no.2 as proprietress vide their loan application with relevant documents, the applicant bank sanctioned Cash Credit facility for Rs.8,00,000/- (Rupees Eight Lacs only) and Term Loan of Rs.2,00,000/- (Rupees Two Lacs only) on 22.12.2015 under Pradhan Mantri Mudra Yojana for working capital and purchase of sewing machinery for stitching of fabrics @10.95% interest per annum in Cash Credit account & @10.45% interest per annum in Term Loan account respectively against hypothecation of stocks, book debts & machinery. The term loan was to repayable in 60 EMIs of Rs.4,350/- commencing w.e.f. 29.02.2016.

3. That in order to avail both the loan facilities, the defendants submitted SBI PMMY loan application with Self-attested KYC documents and executed Appraisal Note, Sanction Note, Agreement for Cash Credit limit & term Loan facility, Annexure-I, Affidavits, Arrangement/Sanction Letter and Undertaking with the applicant bank on 21.12.2015.

4. That in order to secure the loan facilities, defendants hypothecated the stock of fabrics, goods and sewing machines purchased out of term loan availed etc. in favour of applicant bank.

5. It has been submitted by the applicant bank that after availing both the loan facilities, the defendants failed to comply with the sanction terms and conditions, despite numerous requests of applicant bank by way of personal visits and letters. Ultimately, the applicant bank classified the account as Non-Performing Asset on 28.11.2016 and 06.02.2017 due to non deposit of interest and instalments and served legal notice dated 28.10.2017 and 25.05.2018 to clear the outstanding Sd- amount but defendants failed to comply the notice, hence, the applicant bank has approached this Tribunal for recovery of their dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 22.02.2017 was issued to the defendants but the defendants not reply to the notice nor clear the dues.

7. Notices of this O.A. were issued to the defendants and despite proper service, the defendants chose to absent from the proceedings and none appeared on behalf of defendants. As per order dated 09.12.2019, defendants have been proceeded ex-parte, due to non-filing of written statement, evidence and affidavit of assets before this Tribunal.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Rajiv Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Loan Application, Proposal Forms, Documents qua Intended House, Arrangement Letter, Loan Agreement, Affidavit, Notice u/s 13(2), Legal Notice, Postal Receipts, Statement of Account, Certificate under Section 2A and 65B of Evidence Act marked as Exhibit PW-1/A to Ex.PW-1/L

9. 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 proved.

sd-

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

11. In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank within 30 days, jointly or severally, a sum of Rs.12,24,132/- (Rupees Twelve Lacs Twenty Four Thousand One Hundred Thirty Two only) as on 30.05.2018 along with pendentelite and future interest @12.95% per annum with monthly rest from the date of filing of this application till the date of realization with costs, failing which the aforesaid amount shall be recovered from sale of hypothecated stocks and machinery etc. In case of default the same shall be recovered from the sale of movable and immovable assets of the defendants.

(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 25.05.2026.

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

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

(Dictated and pronounced in open court) Dated: 25.03.2026