Allowed

State Bank of India v. Sh. Randhir Singh

DRT21 Oct 2025OA/127/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application under Section 19 of the RDB Act for recovery of a term loan. After hearing the applicant ex parte, the debt was classified as NPA. The Tribunal granted simple interest at 8% p.a. and directed the issuance of a Recovery Certificate for enforcement under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 21,33,862.00 p with interest @ 8% p.a. defined; Recovery Certificate issued; liberty to enforce under SARFAESI Act.

State Bank of India versus Sh. Randhir Singh — Insurance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.127/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.01.2025

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DATE OF DECISION: 21.10.2025

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State Bank of India, a body Corporate Constituted under the State Bank of India Act, 1955 having its Central Office at Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Office at Sector 17, Chandigarh having branches at different places and one of its AMCC Branch at Nabha, District, Patiala, Punjab through its Chief Manager Shri. Jatinder Kumar Salaria.

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……..Applicant Versus

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Sh. Randhir Singh Son of Sh. Jaspal Singh R/o Village Ajnauda Khurd, Tehsil Nabha, District Patiala (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh. Aseem Kataria, Advocate for applicant Defendant is 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.21,33,862.00p (Rupees Twenty One Lacs Thirty Three Thousand Eight Hundred Sixty Two Only). The Original Application has been filed through Shri. Jatinder Kumar Salaria , Chief Manager, o f the applicant, who is competent to institute the Original Application in the Gazette Notification published in Gazette of India dated 26^th September, 1959, 26^th August, 1972 and 27^th March, 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. Notification dated 27.03.1987, which is Annexure A1 to this OA.

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2 OA/127/2025 STATE BANK OF INDIA VS SH.RANDHIR SINGH

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The brief facts of the OA that the defendant had approached the applicant for the grant of Term loan of Rs.20.00 Lacs for purchase of Combine Harvester vide Loan Application form dated 27.02.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Term loan of Rs.20.00 Lacs vide Letter of arrangement dated 10.03.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his movable property i.e. Combine Harvester Make: Farmtech Agro Industries, Model FARMTECH S 60 bearing Registration no. PB11DD5464, Engine No. PLHM104279, Chassis No. FAIS60L220010, vide hypothecation agreement dated 10.03.2023, which is Annexure A4 to this OA and Registration certificate of vehicle, which is Annexure A5 to this OA; Insurance Policy of Vehicle, which is Annexure A6 to this OA; Tax Invoice dated 30.03.2023, which is Annexure A7 to this OA.

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Documents executed: -Gazette notification dated 02.05.1987, which is Annexure A1 to this OA; Notice dated 05.08.2024, which is Annexure A8 to this OA and Statement of account, which is Annexure A9 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.21,33,862.00p, which is recoverable and the defendant was served recall notices but they 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 08.10.2025. 7. In support of the OA, affidavit of Shri. Jatinder Kumar Salaria, Chief Manager, State Bank of India, h as been filed.

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3 OA/127/2025 STATE BANK OF INDIA VS SH.RANDHIR SINGH

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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 A9 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 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.21,33,862.00p (Rupees Twenty One Lacs Thirty Three Thousand Eight Hundred Sixty Two 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 in relief clause has claimed [email protected]%p.a. with 2% penal interest with monthly rest form the 25.01.2025.

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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/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 @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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OA/127/2025 STATE BANK OF INDIA VS SH.RANDHIR SINGH

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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.21,33,862.00p (Rupees Twenty One Lacs Thirty Three Thousand Eight Hundred Sixty Two 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 vehicle 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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12. 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

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Tribunal on 31.10.2025.

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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: 21.10.2025.

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

State Bank of India v. Sh. Randhir Singh

Case brief

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State Bank of India v. Sh. Randhir Singh

Case brief

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