The Commercial Court No. 2 under the District and Sessions Court, Mandi, Himachal Pradesh, has passed an order in favour of State Bank of India (SBI) in a loan recovery case. The case involved SBI’s Gandhi Chowk branch in Mandi and M/s Vishal Kumar Contractor.
SBI had sanctioned a cash-credit limit of ₹7 lakh to the business unit under the Pradhan Mantri Mudra Yojana (Tarun category). The borrowers failed to make regular payments towards the loan and interest. As the respondents did not appear before the court during the proceedings, the case was decided ex parte, meaning the decision was made in their absence.
After examining the evidence submitted by the bank, the court ordered recovery of ₹7,63,604 from the respondents. The amount will also carry simple interest at the rate of 12.40% per annum.
PNB Loan Recovery Case
The second case involved Punjab National Bank (PNB), Moti Bazar branch, Mandi, and M/s Naina Art and Craft Center. The firm’s proprietor, Santosh Sachdeva, had taken a cash-credit loan of ₹5 lakh and later obtained a GECL loan of ₹90,000 under the Mudra Yojana.
The bank approached the court after the loan accounts became Non-Performing Assets (NPAs) and the outstanding amount remained unpaid. After examining the documents and evidence presented by the bank, the court ruled in favour of PNB. The court ordered recovery of ₹6,39,570.16 from the respondents. Interest will also be charged at the rate of 10.70% per annum.
Total Recovery Exceeds ₹13.50 Lakh
The two court orders together involve recovery of more than ₹13.50 lakh in outstanding bank loans. The cases involved loans provided to businesses under government-supported lending schemes.
Interest and Legal Costs
The court noted that both cases involved commercial transactions. Therefore, the banks are entitled to the specified interest from the date of filing of the suits until the amounts are fully recovered. The respondents will also have to bear the applicable costs of the litigation.
