DRT allowed the bank's application for recovery of dues exceeding Rs. 33 Lacs. The Tribunal reduced the claimed interest rate to 8% p.a. and ordered recovery from mortgaged properties under SARFAESI or personal assets.
Recovery of Rs.33,78,047 with costs and uniform simple interest @08.00%p.a. from sale of hypothecated/mortgaged properties or personal assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.2069/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 13.10.2022
DATE OF DECISION: 16.06.2025
State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and central office at Madam Cama Road, Nariman Point, Mumbai and one of its local head office at Sector-17 A Chandigarh and one of its branch office at Govt. Ranbir college, Sangrur Punjab through its branch manager Sh. Jay Krishan.
……..Applicant Versus
Sh. Mukhtiar Singh S/o Sh. Ram Singh R/o village Kanoi Tehsil and district Sangrur Punjab.
….……Defendant
Advocates:
Present Ms. Parmeet Kaur, Advocate proxy for Sh. Rajnish K. Jindal, Advocate for Applicant Defendant is ex parte
FINAL ORDER
2 OA NO.2069-2022 STATE BANK OF INDIA VS MUKHTIAR SINGH
3 OA NO.2069-2022 STATE BANK OF INDIA VS MUKHTIAR SINGH
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
4 OA NO.2069-2022 STATE BANK OF INDIA VS MUKHTIAR SINGH
all the loan accounts 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 defendant is liable to pay to the applicant a total sum of Rs.33,78,047.00p (Rupees Thirty Three Lacs Seventy Eight Thousand Forty Seven Only) with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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 10.07.2025. 15. Copy of this order be given Dasti to the applicant bank 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: 16.06.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendant.
What rate of interest should be granted on the loan accounts after exercise of judicial discretion.
2 provisions across 2 enactments
State Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
