Allowed

State Bank of India v. Sh. Ajmer Singh

DRT18 Sept 2025OA/1158/2024

Case brief

AI extract

What is this about?

This judgment allowed an application under the RDB Act by State Bank of India against Sh. Ajmer Singh for recovery of a defaulted agricultural loan. The Tribunal decreed the principal amount with future interest at 8% per annum and directed the issuance of a Recovery Certificate, authorizing sale of mortgaged properties.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 33,22,741.00 with interest at 8% p.a. from filing date; Execution via sale of mortgaged/personal assets.

State Bank of India versus Sh. Ajmer Singh — Money Laundering | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1158/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.09.2024

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DATE OF DECISION: 18.09.2025 State Bank of India, a body corporate constituted under the provisions of the State Bank of India, 1955 (23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of Patiala Order, No. G.S.R. 159(E) dated 22.02.2017 passed by the Central Government under Section 35 of the State Bank of India Act, 1955(23 of 1955) having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, One of its Local Head office at Sector 17A, Chandigarh, Branches all over India including one named as State Bank of India, Stressed Assets Recovery Branch Located at SCO No. 15, First & Second Floor, Madhya Marg, Sector-7, Chandigarh, through its Chief Manager Sh. Varun Kumar.

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……..Applicant Versus

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Sh. Ajmer Singh S/o Sh. Tikka Singh R/o House no. B2/1108, Banwari, Rajpura, District Patiala, Punjab-140401.

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………. Defendant

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Advocates:

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Argued by Ms. Sonia Gupta, Advocate for the applicant Defendant already 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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 33,22,741.00 (Rupees Thirty Three Lacs Twenty Two Thousand Seven Hundred and Forty One Only). The Original Application has been filed through Sh. Varun Kumar, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in

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OA NO. 1158/2024 STATE BANK OF INDIA VS SH. AJMER SINGH

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Gazette of India dated 26.09.1959, 26.08.1972 and dated 02.05.1987 issued under Regulations No.76 & 77 of State Bank of India 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.

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The brief facts of the OA are that the defendant had approached the applicant for grant of Agri. CC Limit (PBKC) of Rs. 10.00 Lacs vide Loan Application dated 23.05.2013, along with its translation, which is Annexure A1 to this OA. Thereafter, the defendant approached the applicant for enhancement of the Limit to Rs. 20.00 Lacs vide Loan Application dated 11.07.2015, along with its translation, which is Annexure A8 to this OA and again for its enhancement to Rs. 24.90 Lacs vide Loan application dated 15.03.2016, along with its translation which is Annexure A14 to this OA.

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The applicant sanctioned Agri. CC Limit (PBKC) of Rs. 10.00 Lacs vide Letter of Arrangement dated 04.06.2013 which is Annexure A2 to this OA. The terms and conditions were duly accepted by the defendant. Thereafter, the limit was enhanced by the applicant to Rs. 20.00 Lacs vide letter of arrangement dated 13.08.2015, which is Annexure A9 to this OA and again enhanced to Rs. 24.90 Lacs vide letter of Arrangement dated 18.03.2016, which is Annexure A15 to this OA.

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Defendant had mortgaged his immovable properties i.e. Land measuring 15B-00B situated at Village Mauja Pabra (61), Tehsil Rajpura, Distt. Patiala, Punjab vide Registered Mortgage Deed bearing vasika no. 952 dated 27.05.2013, w hich is Annexure A5 to this OA. Mutation dated 27.05.2013, which is Annexure A6 to this OA; Declaration u/s 4(1) & Mutation dated 16.07.2015, which is Annexure A12 to this OA; Declaration u/s 4(1) dated 09.03.2016, which is Annexure A18 to this OA.

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OA NO. 1158/2024 STATE BANK OF INDIA VS SH. AJMER SINGH

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Documents executed:- Hypothecation Agreements and Undertakings/Consents dated 04.06.2013, 13.08.2015 and 18.03.2016, which are Annexures A3, A4, A10, A11, A16 & A17 to this OA; Title Verification Report dated 24.05.2013, which is Annexure A7 to this OA; Title Verification Report dated 14.07.2015, which is Annexure A13 to this OA; Title Verification Report dated 02.03.2016 and 30.08.2022, which is Annexure A19 to this OA; Demand Notice dated 26.11.2022, 19.07.2023, 17.10.2023 & 07.02.2024, which is Annexure A20 to this OA; Acknowledgement Letters/Revival letters dated 23.07.2018, 09.06.2021 & 24.05.2024, which is Annexure A21 to this OA; Legal Notice dated 20.12.2023, which is Annexure A22 to this OA and Statement of Account which is Annexure A23 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 33,22,741.00, which is recoverable and the defendant was served recall notices but he 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.09.2025.

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In support of the OA, affidavit of Sh. Varun Kumar , Chief Manager, State Bank of India h as been filed. 8. Heard ex-parte 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 A23 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in

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OA NO. 1158/2024 STATE BANK OF INDIA VS SH. AJMER SINGH

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favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 33,22,741.00 (Rupees Thirty Three Lacs Twenty Two Thousand Seven Hundred and Forty One Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with half yearly rests from 08.09.2024 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 just and appropriate to grant uniform simple interest @08.00%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.

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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. 33,22,741.00 (Rupees Thirty Three Lacs Twenty Two Thousand Seven Hundred and Forty One Only), with costs, current and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI

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OA NO. 1158/2024 STATE BANK OF INDIA VS SH. AJMER SINGH

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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 defendant. 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.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.10.2025.

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Copy of this order be given dasti to the applicant 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 . Dated: 18.09.2025

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

State Bank of India v. Sh. Ajmer Singh

Case brief

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State Bank of India v. Sh. Ajmer Singh

Case brief

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