Allowed

State Bank of India v. Sh. Gurdhian Singh

DRT28 Aug 2025OA/1814/2022

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed the applicant's OA for recovery of Rs. 23,81,053.00. The Tribunal confirmed the debt and adjusted the claimed interest rate to 8.00% p.a. simple interest, ordering recovery from mortgaged property.

What did the court decide?

Recovery Certificate issued. Applicant entitled to recover Rs. 23,81,053.00 plus costs and simple interest at 8.00% p.a. from sale of mortgaged or personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1814/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.10.2022

¶5

DATE OF DECISION: 28.08.2025.

¶6

State Bank of India is a body corporate, constituted under The State Bank of India Act, 1955 (23 of 1955), having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Office at Sector 17-A, Chandigarh, and having branches throughout India and one such branch is situated at Jand Mangoli, District Patiala, Punjab through its duly Authorized Officer cum Branch Head, Sh. Saurabh Gupta.

¶7

……..Applicant Versus

¶8

Sh. Gurdhian Singh S/o Hazura Singh R/o Village and PO Sandarsi, Tehsil Rajpura, District Patiala, Punjab.

¶9

….……Defendant

¶10

Advocates:

¶11

Argued by, Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, Advocate for Applicant

¶12

Defendants already ex parte

¶13

FINAL ORDER

¶14

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,81,053.00 (Rupees Twenty Three Lacs Eighty One Thousand Fifty Three only). The Original Application has been filed through Sh. Saurabh Gupta, Senior Manager of the applicant, who is competent to institute the Original Application in terms of Gazette notification dated 26.09.1959, 26.08.1972, 02.05.1987 and 29.10.2005 issued by Executive Committee of Central Board in exercise of power conferred on it under Regulation No. 76 and 77 of SBI General Regulations made by SBI in exercise of Power

¶15

¶16

OA NO.1814/2022 STATE BANK OF INDIA VS SH. GURDHIAN SINGH

¶17

conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955. Notification dated 27.03.1987 and 31.08.2005, which are Annexures A1 and A2 to this OA.

¶18

The brief facts of the OA are that the defendant had approached the applicant for the grant of Agriculture CC Limit of Rs.15.00 Lacs, vide Loan Application, dated 05.01.2015, which is Annexure A3 to this OA. 3. The applicant sanctioned the CC Limit of Rs.15.00 Lacs, vide Sanction Letter, dated 02.04.2015, which is Annexure A6 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Agriculture land measuring 12 Bigha, situated at Village Sandarsi, Sub- Tehsil Ghanaur, Tehsil Rajpura, District Patiala, v ide declaration u/s 4(1) and letter to Sub-Registrar for creation of charge bearing vasika no. 709 dated 17.03.2015, along with translation, which are Annexures A4 and A5 to this OA.

¶19

Documents executed: - Hypothecation Agreement dated 02.04.2015, which is Annexure A7 to this OA; Revival letters, dated 31.03.2018 and 26.03.2021, which are Annexures A8 and A9 to this OA; Legal Notice dated 25.05.2022 and postal receipt dated 26.05.2022, which are Annexures A10 and A11 to this OA and Account statement along with statement of uncharged interest, duly certified under Banker’s Book Evidence Act, 1891, which is Annexure A12 to this OA.

¶20

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.23,81,053.00, 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.

¶21

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.04.2024.

¶22

¶23

OA NO.1814/2022 STATE BANK OF INDIA VS SH. GURDHIAN SINGH

¶24

In support of the OA, affidavit of through Sh. Saurabh Gupta, Senior Manager, State Bank of India, h as been filed.

¶25

Heard ex-parte arguments and perused record.

¶26

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 A12 to this OA, it is proved that the defendant 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 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.23,81,053.00 (Rupees Twenty Three Lacs Eighty One Thousand Fifty Three only) rest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶27

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest at @10.25%p.a. plus penal interest @2%p.a. with half yearly rests from 01.08.2022 till the realization.

¶28

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 @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.

¶29

¶30

OA NO.1814/2022 STATE BANK OF INDIA VS SH. GURDHIAN SINGH

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,81,053.00 (Rupees Twenty Three Lacs Eighty One Thousand Fifty Three 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 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.

¶32

12. Any other application pending stands disposed of.

¶33

Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.09.2025. 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. Pronounced by me in the open Tribunal . Dated: 28.08.2025.

¶34

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

State Bank of India v. Sh. Gurdhian Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Gurdhian Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Ltd. versus Sh. Jaswant Singh Alias Jassa and Another

Axis Bank Ltd. versus Sh. Anmol Thor

Hdfc Bank Limited versus Sh. Gurmukh Singh and Others

Axis Bank Limited versus Late Smt. Madhu Kaushal

State Bank of India versus Sh. Jaswinder Singh

Satyam Malhotra versus Central Bank of India and Another