Allowed

State Bank of India v. Sh. Harmeek SIngh @ Harmik Singh

DRT2 Jul 2025OA/12/2023

Case brief

AI extract

What is this about?

In this Debt Recovery Tribunal case, the applicant bank sought recovery of Rs.22,66,259 from a defendant and legal heir for an unpaid KCC loan. In the absence of the defendant, the court allowed the application, recognizing the liability to repay the principal amount and determining a revised interest rate.

What did the court decide?

Recovery of Rs.22,66,259 with costs and simple interest at 08% p.a.; entitlement to recover via sale of mortgaged properties under SARFAESI Act, 2002.

State Bank of India versus Sh. Harmeek SIngh @… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.12/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.01.2023

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DATE OF DECISION: 02.07.2025

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State Bank of India, a body corporate, constituted under the state bank of India Act, 1955 having Corporate Office at Madame Cama Road, Nariman Point, Mumbai and having branches all over India and one of its branch at Kamalpur, District Patiala Punjab through its Branch Manager Sh. Ravindra Anand.

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……..Applicant

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Versus

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Sh. Harmeek Singh @Harmik Singh S/o Sh. Amar Singh and Late Smt. Gurmail Kaur Legal heir to the estate of Late Smt. Gurmail Kaur R/o House No.132, Village Mavisapan, Tehsil and District Patiala Punjab.

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….……Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, 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.22,66,259.00p (Rupees Twenty Two Lacs Sixty Six Thousand Two Hundred Fifty Nine Only). The Original Application has been filed through Sh. Ravindra Anand, Branch Manager of the applicant bank, who is competent to institute the Original Application vide in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under regulations no.76 & 77 of State Bank of India General 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.12-2023

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STATE BANK OF INIDA VS HARMEEK SINGH @HARMIK SINGH

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The brief facts of the OA that the defendant no.1 and Late Smt. Gurmail Kaur had approached the applicant bank for the grant of KCC Limit of Rs.13.30 Lacs vide Loan application dated 24.12.2015, which are Annexures A2 & A2/T to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.13.30 Lacs vide Sanction letter dated 11.01.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no.1 and Late Smt. Gurmail Kaur had mortgage their immovable properties i.e. total land measuring 20K-11-1/6M situated at Village Mavisapan, Tehsil and District Patiala Punjab Vide Declaration u/s 4(1) dated 04.01.2016 & Letter to Sub registrar for Creation of charge, which are Annexures A6, A7, A8 and A8/T to this OA.

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Documents executed:- State bank of India regulations, which is Annexure A1 to this OA; ID Proof of defendant in File 3, which is Annexure A3 to this OA; Hypothecation agreement, Consent letter both dated 11.01.2016, Which are Annexures A5 & A9 to this OA; Revival letter dated 15.03.2018, which is Annexure A10 to this OA; Letter promising to pay time barred debt dated 12.06.2020, which is Annexure A11 to this OA; Death certificate, which is Annexure A12 to this OA; Recall notice dated 06.07.2017,01.06.2020 & 25.03.2021,which is Annexure A13 to this OA; Legal notice dated 15.10.2022, along with its translations, which is Annexure A14 to this OA and Statement of account, which is Annexure A15 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.22,66,259.00p, which is recoverable and the defendant were 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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3 OA NO.12-2023

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STATE BANK OF INIDA VS HARMEEK SINGH @HARMIK SINGH

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The Defendant no.1 and being legal heir of Late Smt. Gurmail Kaur was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte on 24.07.2024.

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In support of the OA, affidavit of Sh. Ravindra Anand, Branch Manager, State Bank of India, has been filed.

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Heard 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 Annexures A1 to A15 to this OA, it is proved that the defendant no.1 and Late Smt. Gurmail Kaur 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 bank. defendant no.1 and Late Smt. Gurmail Kaur failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 and Late Smt. Gurmail Kaur was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,66,259.00p (Rupees Twenty Two Lacs Sixty Six Thousand Two Hundred Fifty Nine 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 pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.25%p.a. along with penal interest @2.00% with half yearly rests from 11.10.2022 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

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4 OA NO.12-2023 STATE BANK OF INIDA VS HARMEEK SINGH @HARMIK SINGH

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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.22,66,259.00p (Rupees Twenty Two Lacs Sixty Six Thousand Two Hundred Fifty Nine 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 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.07.2025.

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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 . Dated: 02.07.2025.

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

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OA NO.12-2023

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STATE BANK OF INIDA VS HARMEEK SINGH @HARMIK SINGH

State Bank of India v. Sh. Harmeek SIngh @ Harmik Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Harmeek SIngh @ Harmik Singh

Case brief

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What did the court decide?

What the court decided

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