STATE BANK OF INDIA vs IQBAL TRADERS ADN ANR on 16 May 2026

FINAL ORDER

This original application has been filed by the applicant bank before DRT-III, Delhi on 19.03.2019 and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.10,25,731/- (Rupees Ten Lacs Twenty Five Thousand Seven Hundred Thirty One only) as on 03.10.2018 along with pendentelite and future interest ©15.05% per annum from 04.10.2018 till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendants in the trading business of furnishing fabrics, the applicant bank sanctioned SME Cash Credit (CC) limit of Rs.10,00,000/- (Rupees Seventy Lacs only) under Pradhan Mantri Yojana Scheme on 01.12.2016 @15.05% interest per annum with monthly rests against hypothecation of stock.

3. That in order to avail the loan facility, the defendants submitted loan application dated 15.09.2015 and executed Letter of Arrangement, Agreement of Loan cum Hypothecation on 01.12.2016 in favour of the applicant bank.

4. It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to comply with the terms and conditions of sanction and not routed their transactions through the account and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 28.07.2018 as per RBI guidelines and issued loan recall notice dated 08.03.2019 calling upon the defendant to pay outstanding dues but defendants failed to liquidate the outstanding amount, hence the applicant bank has approached this tribunal for recovery of its dues.

5. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 09.02.2026, the defendants have been proceeded ex-parte as not appeared set before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Balram Mehra, authorized representative of the applicant bank who has proved the documents as Gazette Notification, Notification with respect to merger of SBM with SBI, Loan Application Form, Sanction Letter, Letter of Arrangement, Agreement of Loan cum Hypothecation, Statement of SME Cash Credit Limit, Loan Recall Notice, Postal Receipts, marked as Exhibit PW1/1 to Exhibit PW-1/8.

7. 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.

8. 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.

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

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.10,25,731/- (Rupees Ten Lacs Twenty Five Thousand Seven Hundred Thirty One only) as on 03.10.2018 s=d together with pendentelite and future interest @15.05% per annum from 04.10,2018 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock. In case of default / shortfall, the same shall be recovered from the sale of movable and immovable properties 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 15.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. Scl (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 16.05.2026 A