Allowed

State Bank of India v. Sh. Ajaib Singh

DRT18 Sept 2025OA/1159/2024

Case brief

AI extract

What is this about?

In an ex-parte hearing, the Tribunal allowed the applicant’s recovery application under the RDB Act. It decreed the outstanding sum with a modified simple interest rate of 8% p.a. and directed issuance of a Recovery Certificate for sale of mortgaged and personal assets.

What did the court decide?

Decree of Rs.29,89,565.00 with costs and simple interest @8% p.a. Recovery Certificate issued. Recovery to be effected by sale of mortgaged and personal assets.

State Bank of India versus Sh. Ajaib Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1159/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.09.2024

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DATE OF DECISION: 18.09.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having Central Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17A, Chandigarh and one of its branch at ADB Mansa, through its Branch Manager Sh. Pardeep Kumar.

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……..Applicant Versus

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Sh. Ajaib Singh S/o Sh. Maghar Singh, Resident of Village Bajewala, Tehsil Mansa, District Mansa, Punjab.

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….……Defendant

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant

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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 & Bankruptcy Act, 1993, against the defendant for recovery of Rs.29,89,565.00p (Rupees Twenty Nine Lacs Eighty Nine Thousand Five Hundred Sixty Five Only). The Original Application has been filed through Sh. Pardeep Kumar, Branch Manager, of the applicant, who is competent to institute the Original Application in the terms of gazette notification published in the Gazette of India dated 26.09.1959, and 26.08.1972 and 02.05.1987 issued under Regulations nos.76 & 77 of State Bank of India Regulations framed in exercising of the powers conferred by Sub section (3) of section 50 of the State Bank of India Act, 1955 with the precious sanction of the Central Government

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2 OA NO. 1159/2024 STATE BANK OF INDIA VS SH. AJAIB SINGH

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 23.12.2014, along with its translation, which is Annexure A1 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Letter of arrangement dated 27.12.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 40K-00M situated at Village Bajewala, Tehsil Sardulgarh, District Mansa, Punjab vide Declaration bearing no. 495, dated 24.12.2014 u/s 4(1) of the Punjab Agriculture Credit Operation & Miscellaneous Provision (Banks) Act, 1948, which is Annexure A5 to this OA.

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Documents executed : - Hypothecation agreement, Undertaking both dated 27.12.2014, which are Annexures A3 & A4 to this OA; Notice dated 20.04.2024, which is Annexure A6 to this OA and Statement of account, which is Annexure A7 to this OA.

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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.29,89,565.00p, 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 notice to appear before this Tribunal but no one appeared and he was proceeded ex-parte on 09.09.2025. 7. In support of the OA, affidavit Sh. Pardeep Kumar, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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

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3 OA NO. 1159/2024 STATE BANK OF INDIA VS SH. AJAIB SINGH

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Annexures A1 to A7 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 favour of the applicant. 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.29,89,565.00p (Rupees Twenty Nine Lacs Eighty Nine Thousand Five Hundred Sixty Five 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 @11.90% p.a. with 2%p.a. penal interest with half yearly rests from 22.08.2024 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 @8.00%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.29,89,565.00p (Rupees Twenty Nine Lacs Eighty Nine Thousand Five Hundred Sixty Five Only) with costs, current and future simple interest @8.00%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

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4 OA NO. 1159/2024 STATE BANK OF INDIA VS SH. AJAIB SINGH

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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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.10.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 18.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Ajaib Singh

Case brief

What is this about?

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State Bank of India v. Sh. Ajaib Singh

Case brief

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