Allowed

State Bank of India v. Sh. Gurdeep Singh and Another

DRT23 Sept 2025OA/1494/2022

Case brief

AI extract

What is this about?

DRT allowed Original Application filed by Punjab Gramin Bank for recovery of Rs.28.62 million from Sh. Nachhatar Singh. The tribunal set uniform simple interest at 8% per annum and directed issuance of a Recovery Certificate to recover dues from sale of mortgaged properties.

What did the court decide?

Recovery of Rs.28,62,818 plus simple interest at 8% p.a. granted; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1494/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.12.2024

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DATE OF DECISION: 23.09.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No. 21 of 1976 having its Head Office, at Markfed Road Kapurthala, (Pb) and having its branches at different places including one at Aulakh District Shri Muktsar Sahib (Pb) through its Constituted Attorney/Manager Sh. Devinder Kumar.

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……..Applicant Versus Sh. Nachhatar Singh S/o Sh. Gurnam Singh R/o Village Kuraiwala, Tehsil Gidderbaha, District Sri Muktsar Sahib (PB). ….……Defendant Advocates: Argued by Sh. Karan Dev Ray, Advocate proxy for Sh. Bhushan Bhatia, Advocate for Applicant Defendant already ex-parte FINAL ORDER 1. 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.28,62,818.00p (Rupees Twenty Eight Lakh Sixty Two Thousand Eight Hundred Eighteen Only). The Original Application has been filed through Sh. Devinder Kumar, through its Manager, o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 25.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KGC Limit of Rs.20.00 Lacs vide Application dated 24.09.2020, which is Annexure A2 to this OA.

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2 OA NO. 1494/2024 PUNJAB GRAMIN BANK VS. SH. NACHHATAR SINGH

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The applicant sanctioned the KGC limit of Rs.20.00 Lacs vide Sanction letter dated 24.09.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. Total land measuring 69K-15M, situated at Village Kuraiwala, Tehsil Gidderbaha, District Sri Muktsar Sahib (Punjab) vide Declaration u/s 4(1) dated 28.09.2020, which is Annexure A5 to this OA. Documents executed : - Hypothecation Agreement dated 30.09.2020, which is Annexure A4 to this OA; Notice dated 03.07.2024, which is Annexure A6 to this OA; BC Letter dated 21.04.2023, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 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.28,62,818.00p, 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. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 15.09.2025. Thereafter, ex-parte arguments were heard on 17.09.2025 and case was posted for final order. Later, Sh. Amandeep Chhabra, Advocate filed an IA no. 1543/2025 vide diary no. 15419 dated 22.09.2022, on behalf of defendant for setting aside ex-parte order dated 15.09.2025. Sh. Arunjeet Singh Kakkar and Sh. Amandeep Chhabra, Advocates appeared on behalf of defendant today. This IA was heard today and vide separate order of even date, the same was dismissed today. 7. In support of the OA, affidavit of Sh. Devinder Kumar, Constituted Attorney, Punjab Gramin Bank has been filed.

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3 OA NO. 1494/2024 PUNJAB GRAMIN BANK VS. SH. NACHHATAR SINGH

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Heard ex-parte arguments and perused record.

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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 A8 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.28,62,818.00p (Rupees Twenty Eight Lakh Sixty Two Thousand Eight Hundred Eighteen 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 interest @11.50%p.a. with penal interest @2%p.a. with half yearly rests from 25.12.2024 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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4 OA NO. 1494/2024 PUNJAB GRAMIN BANK VS. SH. NACHHATAR 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.28,62,818.00p (Rupees Twenty Eight Lakh Sixty Two Thousand Eight Hundred Eighteen 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 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.

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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 Tribunal on 15.10.2025.

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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. Pronounced by me in the open Tribunal. Dated: 23.09.2025

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

State Bank of India v. Sh. Gurdeep Singh and Another

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State Bank of India v. Sh. Gurdeep Singh and Another

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