STATE BANK OF INDIA vs HEEBA CLOTHING on 11 November 2026

FINAL ORDER

1. The present Transfer Application in short (TA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 4,11,51,382/- (Rupees Four Crores Eleven Lakhs Fifty-One Thousand Three Hundred and Eighty-Two Only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that, the defendants are availed the following credit facilities:  Cash Credit loan of Rs. 2,00,00,000/- (Rupees Two Crores).  Cash Credit enhanced of Rs. 3,80,00,000/- (Rupees Three Crores Eighty Lakhs Only).

3. It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with hypothecation agreement.

4. It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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5. In the above circumstances, the applicant approached this Tribunal by filing this TA seeking issuance of Recovery Certificate for the amount due in the account.

6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 02.07.2026.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A-1 to A-10 and got the same marked in evidence.

8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the TA in the light of documentary evidence and proof affidavit.

9. The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the TA claim as against the defendants? ii) What order are to be passed?

Both these issues are gone into and decided together.

10. The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the TA, creation of the security interest and the defaults committed in the

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accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

11. Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that TA is to be allowed.

12. Taking into consideration the facts that the credit facilities is availed for Business purpose and also that the TA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00%(simple).

13. In the result, TA.No.41/2022, stands allowed,

i) The applicant is allowed to recover an aggregate sum of Rs. 4,11,51,382/- (Rupees Four Crores Eleven Lakhs Fifty-One Thousand Three Hundred and Eighty-Two Only) with further interest @12.00p.a.(simple) from the date of filing TA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the TA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.

iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 14 days from the date of the order.

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

v) Interim application pending, if any, stands disposed of in terms of this final order.

14. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. [Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11th Day of November, 2026].

Sd/-

(T. RAJESH) PRESIDING OFFICE

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Jithin Rajagopalan, Manager, of Applicant Bank. Exhibits on the part of the Applicant: Exhibits Date Description of documents A1 28.03.2023 The copy of the acknowledgement of registration of firm A2 01.06.2023 Application form by 1st defendant A3 30.06.2023 Agreement of loan cum hypothecation by 1st defendant represented by 1st defendant represented by its partners A4 15.05.2024 Application form by defendants for enhancement of the limit A5 15.07.2024 Partnership letter by defendants giving out the details of the partners and undertaking to inform the applicant bank of any change in the partnership A6 15.07.2024 Letter of arrangement by applicant bank setting out the terms and conditions of sanction of the enhanced limit of Rs. 3 A7 15.07.2024 Supplemental agreement of loan cum hypothecation for the enhanced limit A8 15.07.2024 Guarantee agreement was executed by 2nd and 3rd defendants fastening themselves with the liability of repaying the enhanced limit A9 26.06.2025 Copies of legal notice A10 ------------ Statement of account Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

Sd/- (T. RAJESH) PRESIDING OFFICER