Allowed

State Bank of India v. Sh. Satnam Singh

DRT4 Nov 2025OA/1808/2022

Case brief

AI extract

What is this about?

The DRT allowed the ATMA's application to recover Rs. 22,02,337 from a defaulting borrower with a KCC loan. The Tribunal struck off the defense, accepted unchallenged documentary evidence of default, and awarded a uniform simple interest rate of 8% per annum, ordered recovery via sale of mortgaged or personal assets, and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 22,02,337 with costs and simple interest at 8% per annum; issuance of recovery certificate; liberty to enforce claim through execution proceedings.

State Bank of India versus Sh. Satnam Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1808/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.10.2022

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DATE OF DECISION: 04.11.2025

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State Bank of India, a body corporate constituted under the provision of the State bank of India (23 of 1955), and the successor to State Bank of Patiala, under the acquisition of State Bank of Patiala, order 22.02.2017 passed by the Central Government under Section 35 of the State Bank of India, Act, 1955 ( 23 of 1955) having its corporate office at Madame Cama Road, Nariman Road, Mumbai (Maharashtra), 400021, carrying on its business of banking in India and abroad, having one of its Local Head Office at Sector-17A, Chandigarh having its branch office at Civil hospital road, opposite Ram Leela Ground, Ropar district Roop Nagar (Punjab) through its branch manager Ms. Navjot Kaur.

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……. Applicant

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Versus

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Sh. Satnam Singh S/o Sh. Piara Singh R/o VPO Dhamana, Tehsil Anandpur Sahib, District Roopnagar, Punjab.

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……. Defendant

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for Applicant

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None for Defendant

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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.22,02,337.00p (Rupees Twenty Two Lacs Two Thousand Three Hundred Thirty Seven Only). The Original Application has been filed through Ms. Navjot Kaur, Branch Manager, of the applicant, who is competent to institute the Original Application vide to this OA in terms of Gazette Notifications

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2 OA NO. 1808/2022 STATE BANK OF INDIA VS SH. SATNAM SINGH

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dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the Central Board of Directors in exercise of the power conferred on it under Regulation no. 76 and 77 of State Bank of India General Regulation, 1955 made by Reserve Bank of India in exercise of power conferred on it by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 28.1.2016, which is Annexure A1 to this OA and thereafter, for its renewal vide application dated 18.02.2019, which is Annexure A8 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Letter of arrangement dated 28.01.2016, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendant. Thereafter, the limit was renewed vide letter of arrangement, which is Annexure A9 to this OA.

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Defendant had mortgaged his immovable properties i.e. Land measuring 38K-06M-8Sarsai situated at Village Dhamana, Hadbast No.517, Tehsil Nurpur Bedi, District Roopnagar, Punjab vide Declaration U/s 4(1) dated 27.01.2016, along with its translation, which is Annexure A3 to this OA; Letter to Sub Registrar dated 25.01.2016, for creation of charge, which is Annexure A4 to this OA; Legal search report of property dated 21.01.2016, along with affidavit of defendant and non-encumbrance certificate, which is Annexure A5 to this OA; Report of Investigation of title dated 12.02.2020 along with jamabandi for the year 2013-14, which is Annexure A10 to this OA; Documents executed : - Hypothecation agreement & Undertaking, both dated 28.01.2016, which are Annexures A6 and A7 to this OA; Hypothecation Agreement dated 18.02.2019, which is Annexure A11 to this OA; Revival letter dated 15.01.2019, which is Annexure A12

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3 OA NO. 1808/2022 STATE BANK OF INDIA VS SH. SATNAM SINGH

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to this OA; Legal notice dated 23.06.2022 along with postal receipt, which is Annexure A13 to this OA and Statement of Account along with certificate by the Officer Incharge of Computer System, which is Annexure A14(Colly) to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.22,02,337.00p, 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.

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The defendant was served notices to appear before this Tribunal. Ms. Palak Dev, Advocate appeared on behalf of defendant on 11.09.2024. Since no WS was filed by defendant even after expiry of stipulated period, opportunity to file WS by defendant was closed and defense was struck off on 15.04.2025.

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In support of the OA, affidavit of Ms. Navjot Kaur, Branch Manager , State Bank of India, has been filed.

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Heard arguments and perused record. No one appeared on behalf of defendant for arguments.

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It was argued by learned counsel for applicant 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 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.22,02,337.00p (Rupees Twenty Two Lacs Two Thousand Three Hundred Thirty Seven Only)

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4 OA NO. 1808/2022 STATE BANK OF INDIA VS SH. SATNAM SINGH

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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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.65%p.a. with half yearly rests from 30.09.2022 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/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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.22,02,337.00p (Rupees Twenty Two Lacs Two Thousand Three Hundred Thirty Seven 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/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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5 OA NO. 1808/2022 STATE BANK OF INDIA VS SH. SATNAM SINGH

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.11.2025. 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: 04.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Satnam Singh

Case brief

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State Bank of India v. Sh. Satnam Singh

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