STATE BANK OF INDIA vs M/S ADIL BAKERY AND ANOTHER on 14 January 2026

FINAL ORDER

1. Present Transfer Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.22,17,472.00 (Rupees Twenty Two Lacs Seventeen Thousand Four Hundred Seventy Two Only). The Application has been filed through Sh. Arshad Bashir Wani, Chief Manager of the applicant, who is competent to institute the Application in terms of Gazette Notification published in the Gazette of

India dated 26.09.1959, 26.08.1972 and 27.03.1987 read with Regulation No.76 & 77 of State Bank of India General Regulations framed in exercise of the powers conferred by Sub-Section (3) of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

2. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for the grant of Cash Credit Limit of Rs.9.50 Lacs and Term Loan of Rs.14.25 Lacs vide Loan application dated 18.10.2022, which is Annexure A2 to this OA.

3. The applicant sanctioned the and Cash Credit Limit of Rs.9.50 Lacs and Term Loan of Rs.14.25 Lacs vide letter of arrangement dated 20.10.2022, which is Annexure A1 to this OA and the terms and conditions were duly accepted by the defendants.

4. The defendant no. 1 through its proprietor hypothecated stock, etc. vide agreement of loan cum hypothecation dated 20.10.2022, which is Annexure A3 to this OA. However, as per the OA, there is NIL security and there is no property/assets from which recovery can be affected. Documents executed: Legal Notice, which is Annexure A4 to this OA; Statement of Accounts with certificate, which are Annexures A5 and A6 to this OA.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.22,17,472.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and that were proceeded ex-parte on 14.08.2025.

7. In support of the OA, affidavit of Sh. Arshad Bashir Wani, Chief Manager, State Bank of India has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A6 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,17,472.00 (Rupees Twenty Two Lacs Seventeen Thousand Four Hundred Seventy Two Only) with interest from the defendants, jointly and severally, from the date of filing of the present Application till realization of the accounts.

10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed future interest @11.80%p.a. with 2% penal interest from 01.01.2025 till the realization.

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the both loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

Rs.22,17,472.00 (Rupees Twenty Two Lacs Seventeen Thousand Four Hundred Seventy Two Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

12. Any other application pending stands disposed of.

13. Issue Recovery Certificate accordingly.

14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.01.2026.

15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 14.01.2026.

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh