Allowed

State Bank of India v. Smt. Gurmail Kaur and Another

DRT18 Dec 2025OA/1964/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of dues amounting to Rs.36,88,579.49 jointly and severally against the defendants. The court granted uniform simple interest at 8% per annum and ordered the issuance of a Recovery Certificate, permitting enforcement through sale of mortgaged or personal assets.

What did the court decide?

Declaratory order of liability for the principal and future simple interest at 8%; issuance of Recovery Certificate; liberty to enforce via sale of mortgaged or personal assets.

State Bank of India versus Smt. Gurmail Kaur and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1964/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.11.2022

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DATE OF DECISION: 18.12.2025

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State Bank of India, a body corporate constituted under the provisions of the State Bank of India, Act 1955 (23 of 1955) having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra) 400021 carrying on its business of banking in India and abroad having one of its Local Head Office at Sector 17, Chandigarh having its branch amongst other places at Main Bazar, Moga (Punjab) and one of the specialized branch known as Stressed Assets Resolution Branch (SARB), at 3^rd floor, Admin Office Building at Fountain Chowk, Civil Lines, Ludhiana (Punjab) through its Chief Manager Shri Chanchal Singh.

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……..Applicant Versus

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Smt. Gurmail Kaur W/o Sh. Kulwant Singh, Resident of House No.237, Village Landheke, Back side GS Filing Station and Sacred Heart School, Inside Dosanjh Link Road, Tehsil and District Moga, Punjab.

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Sh. Sukhpreet Singh son of Sh. Kulwant Singh, Resident of House no. 237, Village Landheke, Back side GS Filing Station and Sacred Heart School, Inside Dosanjh Link Road, Tehsil and District Moga, Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. Vivek Verma, 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.36,88,579.49 (Rupees Thirty Six Lacs Eighty Eight Thousand Five Hundred Seventy Nine & Paise Forty Nine Only). The Original Application has been filed through Sh.

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2 OA/1964/2022

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STATE BANK OF INDIA VS. GURMAIL KAUR AND ANOTHER

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Chanchal Singh, Senior Manager o f the applicant, who is competent to institute the Original Application in terms of Gazette notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 27.031987 read with regulation no. 76 and 77 of State Bank of India General Regulation framed in exercise of power conferred by sub section 3 of section 50 of State Bank of India Act, 1955 with previous sanction of Central Government.

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The brief facts of the OA are that the defendants had approached the applicant for grant of Housing Loan of Rs.13.22 Lacs vide Loan Application, which is Annexure A1 to this OA.

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The applicant sanctioned Housing Loan of Rs.13.22 Lacs vide Sanction letter dated 19.06.2010, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 mortgaged her immovable properties i.e. Residential property measuring 14Marle 13 sq. ft. situated at Village Landheke, Tehsil and District Moga, Punjab through equitable mortgage of sale deed bearing vasika no. 10176 dated 17.02.2009,

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along with its translation, which are Annexure A4 and A4T to this OA; Letter of confirmation of deposit of title deed dated 19.06.2010, which is Annexure A5 to this OA.

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Documents executed: Memorandum of Loan agreement dated 19.06.2010, which is Annexure A3 to this OA; Revival letter dated 05.10.2012, 15.07.2015, 03.07.2017, 20.01.2020, which are Annexure A6 to A10 to this OA; Legal Notice dated 11.09.2015, along with postal receipt, which is Annexure A11 to this OA; Statement of Account with certificate, which is Annexure A12 to this OA; Notice dated 18.02.2013 u/s 13(2) of SARFAESI Act, which is Annexure A13 to this OA; Possession notice dated 29.05.2014, along with newspapers publication which is Annexure A14 to this OA; valuation report dated 30.08.2022, which is Annexure A15 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.36,88,579.49, which is recoverable and the defendants

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3 OA/1964/2022 STATE BANK OF INDIA VS. GURMAIL KAUR AND ANOTHER

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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.

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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 12.04.2024.

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In support of the OA, affidavit of Sh. Chief Manager, Chief Manager, State Bank of India, h as been filed. 8. Heard ex-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 A15 to this OA, it is proved that the defendants 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,88,579.49 (Rupees Thirty Six Lacs Eighty Eight Thousand Five Hundred Seventy Nine & Paise Forty Nine Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.95%p.a. with monthly rests from 01.11.2022 till the realization. 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

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OA/1964/2022

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STATE BANK OF INDIA VS. GURMAIL KAUR AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,88,579.49 (Rupees Thirty Six Lacs Eighty Eight Thousand Five Hundred Seventy Nine & Paise Forty Nine 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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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.01.2026.

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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 .

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Dated: 18.12.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Smt. Gurmail Kaur and Another

Case brief

What is this about?

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State Bank of India v. Smt. Gurmail Kaur and Another

Case brief

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