Allowed

State Bank of India v. Sh. Mewa Singh

DRT23 Sept 2025OA/1940/2022

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed an original application filed by State Bank of India against a borrower for recovery of outstanding dues of Rs. 31.54 lakhs. The court reduced the claimed interest rate from penal to 8% per annum pending realization and ordered issuance of a recovery certificate for sale of mortgaged properties.

What did the court decide?

Recovery certificate issued for Rs. 31,54,311.00 plus simple interest @ 8% p.a.; applicant entitled to recover amount from sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1940/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.10.2022

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DATE OF DECISION: 23.09.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having its Corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17, Chandigarh and having its branches all over India one of its branch known as Agriculture Development Branch (ADB) at Phillaur, District Jalandhar, Punjab through its Branch Manager Sh. Pradeep Kumar Chauhan.

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……..Applicant Versus

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Sh. Mewa Singh S/o Sh. Ujagar Singh, R/o House No.242, Village Dholanwal, PO Mand Chaunta, Tehsil Ludhiana (East), District Ludhiana (Pb).

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….……Defendant

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Advocates:

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Argued by Sh. P. K. Arora, Advocate for the applicant

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Defendant already ex-parte

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FINAL ORDER 1. 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.31,54,311.00p (Rupees Thirty One Lacs Fifty Four Thousand Three Hundred Eleven Only). The Original Application has been filed through Sh. Pradeep Kumar Chauhan, Branch Manager, of the applicant, who is competent to institute the Original Application in the terms of notification dated 26.09.1959, 26.08.1972, 02.05.1987 and 29.10.2005 issued under regulations no.76 & 77 of State Bank of India General Regulations 1955, framed in exercise of powers conferred by section 50 of the

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2 OA/1940/2022 STATE BANK OF INDIA Vs SH.MEWA SINGH

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State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide loan application dated 04.03.2013, which is Annexure A1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Letter of arrangement dated 15.04.2013, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 25Kanal-13Marla situated at Village Mand Chaunta, Hadbast no. 26, Tehsil Kum Kalan, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing vasika no.1738 dated 26.03.2013, which is Annexure A4 to this OA. Documents executed: -Hypothecation agreement dated 15.04.2013, which is Annexure A3 to this OA; Revival letters dated 11.03.2016, 18.02.2016 and 10.01.2022, which are Annexures A5 to A7 to this OA; to this OA; Legal notice dated 02.07.2022, which is Annexure A8 to this OA and Statement of account, which is Annexure A9 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.31,54,311.00p, 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 28.03.2024. 7. In support of the OA, affidavit of Sh. Pradeep Kumar Chauhan, Branch Manager, State Bank of India, has been filed.

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3 OA/1940/2022 STATE BANK OF INDIA Vs SH.MEWA SINGH

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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 A9 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.31,54,311.00p (Rupees Thirty One Lacs Fifty Four Thousand Three Hundred Eleven Only) 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 [email protected]%p.a. with 2% penal interest with half yearly rests from 16.10.2022 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 @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

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4 OA/1940/2022 STATE BANK OF INDIA Vs SH.MEWA SINGH

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Rs.31,54,311.00p (Rupees Thirty One Lacs Fifty Four Thousand Three Hundred Eleven 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 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 15.10.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 23.09.2025

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

State Bank of India v. Sh. Mewa Singh

Case brief

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State Bank of India v. Sh. Mewa Singh

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