The DRT allowed the bank's application to recover a loan amount of Rs. 25.90 lakhs. The court ordered recovery of the principal along with interest at a uniform rate of 8% p.a. from the filing date, permitting enforcement via property sale.
Recovery of Rs. 25,90,154.00 plus costs and simple interest @ 8% p.a.; issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1266/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.11.2023
DATE OF DECISION: 17.12.2025
State Bank of India, A Body Corporate constituted under The State Bank of India Act, 1955 (23 of 1955), having its Corporate Centre at State Bank Bhawan Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Office at Sector 17, Chandigarh including one such Branch at Longowal, District Sangrur through Sh. Vikas Jangra, Branch Manager of the Applicant.
……..Applicant Versus
Sh. Amarjit Singh S/o Sh. Shyam Singh, R/o Village Mander Kalan, Tehsil and District Sangrur, Punjab.
….……Defendant
Advocates:
Argued by Sh. Gaurav Singla, Advocate for the applicant
Defendant already ex parte
FINAL ORDER
2
OA NO.1266/2023 STATE BANK OF INDIA VS. SH. AMARJIT SINGH
Term Loan of Rs.3.00 Lacs under KGC scheme vide loan applications dated 11.06.2014, which are Annexures A2 and A3 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.12.00 Lacs and Agriculture Term Loan of Rs.3.00 Lacs under KGC scheme vide Letters of Arrangement dated 28.06.2014 and 18.06.2014, which are Annexures A4 and A5 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 24K-0M, situated at Village Mander Kalan, Tehsil and District Sangrur, Punjab vide Mortgage Deed bearing vasika no.252 dated 19.06.2014, along with its translation, which is Annexures A8 to this OA; Mutation Sanction Letter dated 19.06.2014, along with its translation, which is Annexure A9 to this OA.
Documents executed: Gazette notification dated 20.03.2017 which is Annexure A1 to this OA; Hypothecation Agreement KCC, Hypothecation Agreement KGC, both dated 28.06.2014 which are Annexures A6 and A7 to this OA; Legal notice dated 17.06.2021, along with postal receipt and translation, which is Annexure A10 to this OA; Statement of Accounts with certificate, which are Annexures A11 and A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.25,90,154.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex parte on 25.02.2025. 7. In support of the OA, affidavit of Sh. Vikas Jangra, Branch Manager, State Bank of India, has been filed.
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OA NO.1266/2023 STATE BANK OF INDIA VS. SH. AMARJIT SINGH
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/hypothecated assets, 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 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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OA NO.1266/2023 STATE BANK OF INDIA VS. SH. AMARJIT SINGH
2 issues framed by the court
Whether the amount of Rs. 25,90,154.00 loaned to the defendant is recoverable under Section 19 of the RDB Act,
Whether the uniform simple interest rate of 8% per annum is appropriate given market conditions
3 provisions across 3 enactments
State Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
