Allowed

State Bank of India v. Smt. Amarjeet and Another

DRT11 Jun 2025OA/101/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's application under Section 19 RDDBFI Act, 1993. The court directed the defendants to repay the outstanding loan of Rs.21,07,094.00 along with future interest at a uniform rate of 7.50% p.a. The order also authorized recovery from mortgaged property or personal assets if dues remain unsatisfied.

What did the court decide?

Recovery of Rs.21,07,094.00 jointly and severally with costs and future simple interest @7.50% p.a. from sale of mortgaged properties or attachment of personal assets.

State Bank of India versus Smt. Amarjeet and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.101/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.11.2022

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DATE OF DECISION: 11.06.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act No. XXIII of 1955 having its corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its local head office situated at Sector-17A, Chandigarh and having its branches all over Indian, and one of its Branch Office situated at RACPC, Ludhiana (Punjab). Later on, the account has been maintained by State Bank of India, 2^nd floor, Zonal Business Office Building, Fountain Chowk, Civil Lines, Ludhiana (Punjab) through its chief manager Sh. Raj Kumar Bali.

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……..Applicant

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Versus

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Smt. Amarjeet W/o Sh. Vijay Kumar R/o House No.32, Peeru Banda, Salem Tabri, Ludhiana (Punjab)-141001.

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Sh. Vijay Kumar S/o Sh. Chaman Lal R/o House No.32, Peeru Banda, Salem Tabri, Ludhiana (Punjab)-141001.

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….……Defendants

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Advocates:

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Argued by, Ms. Deepika Mittal, Advocate proxy for Sh. Gagandeep Toni Advocate for Applicant Defendants are ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,07,094.00p (Rupees Twenty One Lacs Seven Thousand Ninety Four only). The Original Application has been filed through Sh. Raj Kumar Bali, Chief manager of the applicant, who is competent to institute the Original Application vide in terms of gazette notification dated 26.09.1959, 26.08.1972 02.05.1987 and 29.10.2005 read with

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2 OA NO.101-2023 STATE BANK OF INDIA VS AMARJEET AND ANOTHER

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Regulations No.76 and 77 of State Bank of India General Regulations 1955 framed in exercise of powers conferred by Section 50 of the state bank of India Act, 1955 and being successor to state bank of Patiala under the Acquisition by way of Amalgamation of state bank of Patiala order dated 22.02.2017 passed by the central government.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of Housing Loan of Rs.11.80 Lacs & SBI Home Top Up Loan of Rs.2.60 Lacs vide Loan applications dated 27.01.2017 & 29.06.2017, which are Annexures A1/A & A10 to this OA and further for SBI Live Term Loan of Rs. 33,630.00 vide Request for additional loan dated 19.02.2018, which is Annexure A14 to this OA.

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The applicant sanctioned the Housing Loan of Rs.11.80 Lacs & SBI Home Top Up Loan of Rs.2.60 Lacs vide arrangement letters dated 30.05.2017 & 29.06.2017, which are Annexures A2 & A11 to this OA and further for SBI Live Term Loan of Rs. 33,630.00 vide Sanction Letter dated 19.02.2018, which is Annexure A15 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. House measuring 75 sq. yards situated at Village Bhattian Bet, Hadbast No.89, Abadi Ajit Nagar, Ludhiana (Punjab) vide Equitable Mortgage of Sale Deed bearing vasika no.4684 dated 03.08.2015 with its translation, which is Annexure A3 to this OA. Documents executed: - notification/Order dated 22.01.2017, which is Annexure A1 to this OA; Memorandum of loan agreement, Agreement to mortgage, Affidavit, Deed of Undertaking, Operations letter, Annexure-I all dated 30.05.2017, which are Annexures A4 to A9 to this OA; Loan agreement, home top up loan, Operations letters both dated 29.06.2017, which are Annexures A12 & A13 to this OA; Revival letter dated 13.02.2020, which is Annexure A16 to this OA; Notice u/s 13(2) dated 17.04.2018, which is Annexure A17 to this OA

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3 OA NO.101-2023 STATE BANK OF INDIA VS AMARJEET AND ANOTHER

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and Statements of accounts with certificate, which is Annexure A18 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.21,07,094.00p, 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.

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The defendants were served notices to appear before this Tribunal. Smt. Amarjeet, defendant no.1 appeared in person for herself as well as for defendant no.2 on 16.04.2024. Thereafter no one appeared on behalf of defendants and they were proceeded ex-parte on 29.10.2024.

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In support of the OA, affidavit of Sh. Raj Kumar Bali, Chief Manager, State Bank of India, has been filed. 8. Heard arguments and perused record.

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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/A, A1 to A18 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 loan 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.21,07,094.00p (Rupees Twenty One Lacs Seven Thousand Ninety Four only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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4 OA NO.101-2023 STATE BANK OF INDIA VS AMARJEET AND ANOTHER

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.50%p.a. in Home loan & interest @7.70%p.a. in Top Loan and Term Loan along with @2.00%p.a. penal interest with Monthly rests from 16.09.2022 till the realization.

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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 mortgaged property, undertaking of the defendants, quantum of loan 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 @7.50%p.a. in the loan account 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.21,07,094.00p (Rupees Twenty One Lacs Seven Thousand Ninety Four only) jointly and severally, with costs, current and future simple interest @7.50%p.a. in the loan account 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 from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12.	Any other application pending stands disposed of.
13.	Issue Recovery Certificate accordingly.

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5 OA NO.101-2023 STATE BANK OF INDIA VS AMARJEET AND ANOTHER

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 03.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 11.06.2025.

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

State Bank of India v. Smt. Amarjeet and Another

Case brief

What is this about?

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State Bank of India v. Smt. Amarjeet and Another

Case brief

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