Allowed

State Bank of India v. Late Sh.Niranjan @ Naranjan Singh and Others

DRT18 Sept 2025OA/1809/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's application under Section 19 RDB Act. The Tribunal directed the legal heirs of the deceased borrower to jointly and severally repay Rs. 51,48,798.00 with 8% per annum interest, order for Recovery Certificate and upheld the right for execution sale of mortgaged properties.

What did the court decide?

Declaration of liability to pay Rs. 51,48,798 with 8% p.a. interest; Recovery Certificate issued; execution sale of properties authorized.

State Bank of India versus Late Sh.Niranjan @ Naranjan… — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1809/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2022

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DATE OF DECISION: 18.09.2025

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State Bank of India, a body corporate constituted under the State Bank of India, 1955 having its Central Office at Madame Cama Road,

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Nariman Point, Mumbai and its Local Head Office at Sector 17A, Chandigarh and State Bank of India, Branch Office, The Mall, Kapurthala through its Chief Manager Sh. Balbir Singh.

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……..Applicant Versus

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Sh. Niranjan @ Naranjan Singh (Since Deceased) through his Legal Heirs: -

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(i) Smt. Kartar Kaur, W/O Late Sh. Niranjan@ Naranjan Singh

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(ii) Sh. Balvir Singh @ Sh. Balbir Singh, S/O Late Sh. Niranjan @

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Naranjan Singh

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(iii) Sh. Sarabjit Singh S/O Late Sh. Niranjan @ Naranjan Singh

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All residents of Village Nau Abad, Post Office Khera Dona, Tehsil and District Kapurthala, Punjab

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…….Defendants

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Advocates:

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Argued by Gurinderjit Singh, Advocate for the applicant

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Defendants 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 defendants for recovery of Rs. 51,48,798.00 (Rupees Fifty One Lacs Forty Eight Thousand Seven Hundred Ninety Eight Only). The Original Application has been filed through Sh. Balbir Singh, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the

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OA NO. 1809/2022 STATE BANK OF INDIA VS LATE SH. NIRANJAN@NARANJAN SINGH THROUGH HIS LEGAL HEIRS

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Central Board in exercise of powers conferred on it under Regulation no. 76 and 77 of State Bank of India General Regulations made by the RBI in exercise of powers conferred by sub-committee.

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The brief facts of the OA are that the defendant no. 1 (since deceased) and defendant no. 1(ii) had approached the applicant for grant of KCC Limit of Rs. 40.00 Lacs vide loan application dated 13.12.2011, along with its translations which are Annexures A1 to this OA.

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The applicant sanctioned of KCC Limit of Rs. 40.00 Lacs vide Sanction Letter dated 19.12.2011 and Letter of Arrangement dated 30.12.2011, which are Annexures A2 and A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no. 1(ii).

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Defendant No. 1 (since deceased) had mortgaged his immovable properties i.e. Total Land measuring 64 Kanal-06 Marla detailed as under:

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(i) Land measuring 37 Kanal-13 Marla situated at Village Karhal Nau Abad, Tehsil and District Kapurthala, Punjab

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(ii) Land measuring 26 Kanal-13 Marla situated at Village Isharwal, Tehsil and District Kapurthala, Punjab

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vide Mortgage Deed bearing vasika no. 3923 dated 19.12.2011 dated 19.12.2011, along with its translation, which is Annexure A5 to this OA; Certificates issued by Patwari dated 23.12.2011 and 26.12.2011 along with their translations, which are Annexure A6 and A7 to this OA.

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Documents executed: Hypothecation Agreement dated 30.12.2011, which is Annexure A4 to this OA; Bank Notices 10.05.2021, 25.06.2021, 10.09.2021, 04.12.2021, along with their translation, which are Annexures A8 to A11 to this OA; Legal Notice dated 16.03.2020, 22.10.2020 and 13.11.2021 which are Annexures A12 to A14 to this OA; BCL/Revival Letters dated 15.11.2013, 30.10.2014,

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OA NO. 1809/2022 STATE BANK OF INDIA VS LATE SH. NIRANJAN@NARANJAN SINGH THROUGH HIS LEGAL HEIRS

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30.03.2017, 19.07.2018 and 19.03.2020, which are Annexures A15 to A19 to this OA; Undertaking from Legal Heirs dated 23.08.2022, which is Annexure A20 to this OA and statement of account along with certificates; which are Annexure A21 to A23 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. 51,48,798.00 (Rupees Fifty One Lacs Forty Eight Thousand Seven Hundred Ninety Eight Only) which is recoverable and the defendants were 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.04.2024.

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In support of the OA, affidavit of Sh. Balbir Singh, Chief Manager, State Bank of India h as been filed.

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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 A23 to this OA, it is proved that the Defendant No. 1 (since deceased) and defendant no. 1(ii) approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant No. 1 (since deceased) and defendant no. 1(ii) were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 51,48,798.00 (Rupees Fifty One Lacs Forty Eight Thousand Seven Hundred Ninety Eight Only) along with interest from the defendants,

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OA NO. 1809/2022 STATE BANK OF INDIA VS LATE SH. NIRANJAN@NARANJAN SINGH THROUGH HIS LEGAL HEIRS

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jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @11.75%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, undertaking of the defendants, 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 defendants are liable to pay to the applicant a total sum of Rs. 51,48,798.00 (Rupees Fifty One Lacs Forty Eight Thousand Seven Hundred Ninety Eight Only) jointly and severally, 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 Defendants 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 Defendants. 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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OA NO. 1809/2022 STATE BANK OF INDIA VS LATE SH. NIRANJAN@NARANJAN SINGH THROUGH HIS LEGAL HEIRS

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.10.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 18.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Late Sh.Niranjan @ Naranjan Singh and Others

Case brief

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State Bank of India v. Late Sh.Niranjan @ Naranjan Singh and Others

Case brief

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