STATE BANK OF INDIA vs YOGESH GUPTA on 20 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 29.03.2019 under section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.61,36,010/- (Rupees Sixty-One Lacs Thirty-Six Thousand Ten only) as on 27.03.2019 along with pendentelite and future interest @15.25% per annum with monthly rests and @2% simple overdue penal interest from 27.03.2019 till the date of its realization and costs.

2. The brief facts of the case are that on the request of defendant no.1 as proprietor of M/s Subhash P.L.Aggarwal & Co. was enjoying WCOD limit of Rs.48,00,000/- (Rupees Forty Eight lacs only) since November 2014 and requested for renewal of limit vide application dated 19.02.2016 against hypothecation of book debts of business of M/s Subhash P.L.Aggarwal & Co. as prime security. The defendant no.2 stood as guarantor to secure the credit facility availed by defendant no.1.

3. That in order to avail WCOD limit under Bank (Under SME SARAL LOAN CONNECT SCHEME, the defendant No.1 submitted renewal request Letter for renewal of limit on 19.02.2016 and already executed Letter of Arrangement / Sanction, Agreement of Loan-cum-Hypothecation in Form SME- 2, Certificate cum Undertaking to utilize loan, Undertaking for right to cancel the limit unconditionally, Letter of Undertaking about taking of loan and not any other loan from other bank on 24.11.2014. The defendants delivered Revival Letter dated 25.05.2017 extended the limitation of loan documents executed already.

4. That in order to secure the credit facility, the defendant no.1 created book debts of his business as prime security in favour of applicant bank by executing required documents. In addition, the defendant no.2 executed Form No.SME-3 giving her continuing, co-extensive and subsisting personal guarantee on 24.11.2014 and also created equitable mortgage of her immovable property bearing no.976, measuring 59.16 sq.yds. consisting of entire 1st & 2nd Floor with roof rights, Gali Telian, Khatra Shafi, Behind Novelty Cinema, Delhi along with chain of documents of the property as collateral security in favour of applicant bank on 24.11.2014. The applicant bank registered its charge with CERSAI for the credit facility granted to defendant no.1.

5. It has been submitted by the applicant that after availing the aforesaid loan facility, the defendant no.1 failed to comply with the terms and conditions despite several requests letters. The defendant no.1 failed to submit monthly statement of book debts and not routed their business proceeds thru the account with applicant bank due to which account became highly irregular, overdrawn and inoperative. The applicant bank classified the account as NPA on 28.12.2017 as per RBI guidelines and issued legal demand notice under Section 13(2) of SARFAESI Act dated 29.12.2017 but defendant not complied with, hence the applicant bank has approached this Tribunal for recovery of their dues. 5d—

6. The applicant bank took the physical possession of the mortgaged property under Section 14 of SARFAESI Act and sold through e-Auction on 10.06.2019 for Rs.25.70 lacs to the Auction Purchaser and issued Sale Certificate dated 08.07.2019 and appropriated the amount in the account.

7. Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to absent from the proceedings. As per order dated 25.08.2025, the defendants have been proceeded ex-parte as they have failed to file written statement, evidence and affidavit of assets.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Lalit Kumar Gupta and Sh.Giriraj Kishore Sharma, authorized representative of the applicant bank who has proved the documents such as Gazette Notification Ex.AW-1/1(Colly), Application cum Interview Form Ex.AW-1/2, Request for Renewal Ex.AW-1/3, Letter of Arrangement Ex.AW-1/4, Agreement of Loan-cum- Hypothecation Ex.AW-1/5, Certificate cum Undertaking Ex.AW- 1/6, Undertaking Ex.AW-1/7, Letter of Undertaking Ex.AW-1/8, Form SME-3 Ex.AW-1/9, Original Title Deed of Property Ex.AW- 1/10(OSR), Annexure-9 Ex.AW-1/11(OSR), Photocopy of Acknowledgement Ex.AW-1/12(OSR), CERSAI Registration Ex.AW-1/13(OSR), Revival Letter Ex.AW-1/14, Letters for Regularization Ex.AW-1/15 (Colly), Letter of Merger dated 22.02.2017 Ex.AW-1/16, Letter for Transfer dated 12.02.2018 Ex.AW-1/17(OSR), Demand Notice u/s 13(2) Ex.AW- 1/18(Colly), Legal Demand Notice Ex.AW-1/19, Postal Receipts Ex.AW-1/20,(Colly), Unserved Envelopes Ex.AW-1/21(Colly), Statement of Accounts under Banker's Book Evidence Act Ex.AW-1/22(Colly), Calculation Sheet and Overdue Penal Interest Statement Ex.AW-1/23, Calculation Sheet of penal interest Ex.AW-1/24, Affidavit of Assets & Liabilities of Defendant no.1 Ex.AW-1/25 & 26, Affidavit of Net Worth Ex.AW-1/27 and Ex.AW-1/28.

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.

10. 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.

11. 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, jointly or severally, within a period of 30 days, a sum of Rs.61,36,010/- (Rupees Sixty-One Lacs Thirty-Six Thousand Ten only) as on 27.03.2019 along with pendentelite and future interest @15.25% per annum with monthly rests from the date of filing of this application till the date of realization and costs. In case of default, the amount be realized from sale of other 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. 5d -

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 19.08.2026 (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: 20.06.2026