Allowed

State Bank of India v. Sh. Gurcharan Singh

DRT3 Jul 2025OA/1079/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the State Bank of India's application for recovery of Rs.43.38 lacs from a defaulted borrower. The court fixed uniform simple interest at 8% p.a., validated interest claims, and directed recovery via mortgaged properties.

What did the court decide?

Recovery of Rs.43,38,805.13p plus costs and simple interest at 8% p.a., effective from filing date, to be recovered from mortgaged and personal assets.

State Bank of India versus Sh. Gurcharan Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1079/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.06.2022

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DATE OF DECISION: 03.07.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Scetor-17A, Chandigarh and having branches all over India and one of its branches situated at Sidhu Complex, Main Road, Sanaur, District Patiala Punjab through its Branch Manager Sh. Rajat Gupta.

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……..Applicant Versus Sh. Gurcharan Singh S/o Sh. Jagir Singh R/o House No.59, Jorian Sadkan, Pepsu School, Sanaur, Tehsil and District Patiala, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Dinesh Chatrath, Advocate for the applicant Defendant is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.43,38,805.13p (Rupees Forty Three Lacs Thirty Eight Thousand Eight Hundred Five & Thirteen Paise Only). The Original Application has been filed through Sh. Rajat Gupta , Branch Manager of the applicant bank, who is competent to institute the Original Application in terms of the Gazette notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the executive committee of the Central Board in exercise of the power conferred under regulations no.76 & 77 of State Bank of India General Regulations made by RBI in exercise of the powers conferred by the Sub section 3 of section 50 of the State Bank of India Act, 1955.

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The brief facts of the OA that the defendant had approached the

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applicant bank for the grant of Kisan Gold Card Term Loan of Rs.49.77

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2 OA NO.1079-2022 STATE BANK OF INDIA VS GURCHARAN SINGH

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Lacs & Kisan Credit Card Limit of Rs.10.00 Lacs (Total facilities of Rs.59.77 Lacs) vide Loan Application dated 07.10.2015 with their translations, which are Annexures A2, A/2T & A3 to this OA.

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The applicant sanctioned the Kisan Gold Card Term Loan of Rs.49.77 Lacs & Kisan Credit Card Limit of Rs.10.00 Lacs (Total facilities of Rs.59.77 Lacs) vide Arrangement letter of KGC & KCC dated 29.03.2016, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgage his immovable properties i.e. total land measuring 103K-00M situated at Village Sanaur, Hadbast No.271, Tehsil and District Patiala, Punjab Vide Registered Mortgaged Deed bearing vasika no.3503 dated 03.03.2016, which is Annexure A8 to this OA.

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Documents executed:- Gazette Notification dated 22.02.2017, which is Annexure A1 to this OA; Hypothecation agreement of KGC & KCC dated 29.03.2016, which are Annexures A6 & A7 to this OA; Copy of noting charge in Jamabandi dated 10.03.2016, which are Annexures A9 & A9/T to this OA; Revival letters dated 27.02.2019 & 30.12.2021, which are Annexures A10 & A11 to this OA; Legal notice dated 26.10.2021 along with its translation and postal receipt, which are Annexures A12 & A12/T to this OA and Statements of accounts with Certificate, which are Annexures A13 to A16 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 both the loan accounts there was a debit of Rs.43,38,805.13p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal. Sh. Munish Garg, advocate appeared on behalf of defendant and filed his Memo of Appearance on 17.05.2023. But thereafter no

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3 OA NO.1079-2022 STATE BANK OF INDIA VS GURCHARAN SINGH

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one appeared on behalf of defendant and he was proceeded ex-parte on 16.12.2024.

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In support of the OA, affidavit of Sh. Rajat Gupta , Branch Manager, State Bank of India, h as been filed.

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Heard arguments and perused record

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It was argued by learned 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 A16 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.43,38,805.13p (Rupees Forty Three Lacs Thirty Eight Thousand Eight Hundred Five & Thirteen Paise Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.95%p.a. in KGC Term Loan with half yearly rests with penal interest @2.00% & interest @10.60%p.a. in KCC with half yearly rests with penal interest @2.00% from 01.06.2022 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 defendant, 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

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4 OA NO.1079-2022 STATE BANK OF INDIA VS GURCHARAN SINGH

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just and appropriate to grant uniform simple interest @08.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.43,38,805.13p (Rupees Forty Three Lacs Thirty Eight Thousand Eight Hundred Five & Thirteen Paise Only) with costs, current and future simple interest @08.00%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 from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.07.2025. 15. Copy of this order be given Dasti to the applicant bank and be sent to defendant 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: 03.07.2025

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

State Bank of India v. Sh. Gurcharan Singh

Case brief

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State Bank of India v. Sh. Gurcharan Singh

Case brief

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