Allowed

State Bank of India v. Jaswant Singh

DRT1 Oct 2025OA/1611/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant's recovery application for an outstanding loan of Rs. 25,95,971.00. The court granted simple interest at 8.00% p.a. from the filing date and ordered the issuance of a Recovery Certificate followed by execution proceedings.

What did the court decide?

Recovery Certificate issued; Defendant ordered to pay Rs.25,95,971.00 plus simple interest at 8.00% p.a. from the date of filing of Original Application.

State Bank of India versus Jaswant Singh — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1611/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.07.2022

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DATE OF DECISION: 01.10.2025.

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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 Maharashtra, 400021, and having one of its Local Head Office at Sector 17-A, Chandigarh, including one such branch at Tehsil Road, Jagraon, Ludhiana, through its Chief Manager Sh. Sunil Kumar Singla.

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……..Applicant

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Versus

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Sh. Jaswant Singh S/o Hari Singh R/o Village Sheikh Daulat, Tehsil Jagraon, Ludhiana, Punjab.

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….……Defendant

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Advocates:

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Argued by, Sh. Sumeet Sehgal, Advocate proxy for Sh. J.S. Sehgal, Advocate for 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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.25,95,971.00 (Rupees Twenty Five Lacs Ninety Five Thousand Nine Hundred Seventy One only). The Original Application has been filed through Sh. Sunil Kumar Singla, Chief Manager of the applicant, who is competent to institute the Original Application vide Gazette notification 27.03.1987, which is Annexure A2 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 KCC Limit of Rs.20.00 Lacs, vide Loan Application and its Translation, dated 23.05.2014, along with its

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OA NO.1611/2022 STATE BANK OF INDIA VS SH. JASWANT SINGH

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translation which is Annexure A3, A3A, A3B, A3C and A3D to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs, vide Sanction Letter dated 03.06.2014, which is Annexure A4 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 35K-11 ½ M situated at village Sheikh Daulat, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika no. 820 dated 28.05.2014, along with its translation, which are Annexures A7 and A8 to this OA; Mutation/ Rapat Certificate dated 28.05.2014, along with translations, which are Annexures A9 and A10 to this OA. Documents executed: Gazette notification dated 20.03.2017, which is Annexure A1 to this OA; Hypothecation Agreement, Annexure-I Consent letter, both dated 03.06.2014, which are Annexures A5 and A6 to this OA; Revival Letter, dated 31.05.2020, which is Annexure A11 to this OA; Notice dated 03.12.2020 along with Postal receipts, which are Annexures A12 to A13 to this OA; Statements of account, which is Annexure A14 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.25,95,971.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 05.04.2024. 7. In support of the OA, affidavit of through Sh. Sunil Kumar Singla, Chief Manager, State Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record.

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OA NO.1611/2022 STATE BANK OF INDIA VS SH. JASWANT SINGH

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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 A14 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 they 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.25,95,971.00 (Rupees Twenty Five Lacs Ninety Five Thousand Nine Hundred Seventy One only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest at 10.60% with half yearly rests from 21.08.2022 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,95,971.00 (Rupees Twenty Five Lacs Ninety Five Thousand Nine Hundred Seventy One only) with costs, current and future simple interest @8.00%p.a. in

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OA NO.1611/2022 STATE BANK OF INDIA VS SH. JASWANT SINGH

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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. 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 18.10.2025. 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: 01.10.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Jaswant Singh

Case brief

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State Bank of India v. Jaswant Singh

Case brief

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