Allowed

State Bank of India v. Sh Maghar Singh

DRT7 May 2025OA/1799/2022

Case brief

AI extract

What is this about?

In this anticipated bail application under Section 19 of the RDB Act, the bank sought recovery of a defaulted agricultural loan. Being ex parte, the tribunal found the bank had advanced the loan and established due amounts. It allowed recovery of the principal and interest with costs and directed sale of mortgaged property.

What did the court decide?

Recovery of Rs.21,85,556/- with interest @11.45% p.a. allowed; liability joint and several; recovery via sale of mortgaged land/personal property; Recovery Certificate issued.

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

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1799/2022 Date of Institution: 30.08.2022 Date of Decision: 07.05.2025

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SBI having its branches all over India and a branch at Handiaya, District Barnala, Punjab.

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……..Applicant

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Vs.

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Sh. Maghar Singh s/o Sh. Puran Singh, r/o Village Bhaini Jassa, Tehsil and District Barnala, Punjab.

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Sh. Sukhdev Singh s/o Sh. Maghar Singh, r/o Village Bhaini Jassa, Tehsil and District Barnala, Punjab.

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……….Defendants

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Advocates

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Ms. Seerat proxy counsel for Pankaj Beri, Counsel for the applicant bank. Defendants- ex parte vide order dated 29.08.2023 .

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OA for the Recovery of Rs.21,85,556/- with interest @11.45% per annum with half-yearly rests from 30.08.2022.

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ORDER

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SBI (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.21,85,556/- with interest against Sh. Maghar Singh and another (defendants).

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Bank’s case is that on 06.07.2015, it had granted a loan of Rs.18.50 Lacs to Defendant Nos. 1 and 2 in the form of K.C.C Limit for agricultural purpose. To secure the loan, Defendant No.1 had mortgaged his agricultural land (fully detailed in para No.3A of the application). The loan was chargeable to interest @11.45% per annum with half-yearly rests. On 19.07.2022, a sum of Rs.21,85,556/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 14.11.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 29.08.2023, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Nagendra Singh, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-6. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.18.50 Lacs and on 19.07.2022, a sum of Rs.21,85,556/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.21,85,556/- (Rupees Twenty One Lacs Eighty Five Thousand Five Hundred Fifty Six Only) with interest @11.45% per annum with halfyearly rests from 30.08.2022, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged agricultural land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 10.06.2025, who is directed to distribute the sale proceeds of the mortgaged land and standing crops as per the provisions of Section 19(20AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 07.05.2025 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

State Bank of India v. Sh Maghar Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh Maghar Singh

Case brief

What is this about?

What did the court decide?

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