Allowed

State Bank of India v. Kiran Arora and Another

DRT26 Jun 2025OA/21/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an OA filed by State Bank of India for recovery of Rs.34.10 lakhs as housing loan dues. The Tribunal granted uniform simple interest at 8% p.a. instead of claimed rate and ordered recovery from mortgaged or personal assets.

What did the court decide?

Ordered to pay Rs.34,10,429 with costs and 8% p.a. simple interest; liable to execute sale of mortgaged/personal properties.

State Bank of India versus Kiran Arora and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.21/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.10.2021

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DATE OF DECISION: 26.06.2025.

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having Corporate Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17 A, Chandigarh and amongst others a Branch Office at Stressed Assets Recovery Branch (SARB) 3^rd floor, Main Branch, Building, Fountain Chowk, Civil Lines, Ludhiana 141001 through its Chief Manager Sh. Manoj Kumar Singh.

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……..Applicant

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Versus

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Ms. Kiran Arora D/o Sh. Pawa Kumar R/o House No.1226/A, Bhai Himmat Singh Nagar, Street No.7, Dugri Ludhiana.

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Sh. Pawan Kumar S/o Sh. Sikandar Lal R/o House No.1226/A, Bhai Himmat Singh Nagar, Street No.7, Dugri Ludhiana.

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….……Defendants

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Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Sh. Sumit Batra, Advocate for the applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.34,10,429.00p (Rupees Thirty Four Lacs Ten thousand Four Hundred Twenty Nine only). The Original Application has been filed through Sh. Manoj Kumar Singh, Chief Manager, o f the applicant, who is competent to institute the Original Application in terms of the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under regulations no.76 & 77 of State Bank of India General Regulations framed in exercising of the powers conferred by Sub section 3 of

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2 OA NO.21-2022 STATE BANK OF INDIA VS KIRAN ARORA AND ANOTHER

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section 50 of the State Bank of India Act, 1955 with the precious sanction of the central Government.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Housing Loan of Rs.30.00 Lacs vide Loan application dated 10.05.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned the House Loan of Rs.30.00 Lacs vide Sanction letter dated 04.06.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable property i.e. Residential Property bearing MC No.B-XXXVII-1226, measuring 172 sq yards situated at in Street No.7, Dugri Hadbast no.277, Abadi Dugri Near Bhai Himmat Singh Nagar, Tehsil and District Ludhiana Punjab vide Registered Mortgaged Deed bearing vasika no.20984 dated 29.01.2004, which is Annexure A7 to this OA. Documents executed: Letter of offer dated 05.05.2016, which is Annexure A1 to this OA; Arrangement letter for term loan under educational loan scheme, arrangement letter for term loan under educational scheme, Operation letters, Letter evidencing deposit of title deeds all dated 04.06.2016, which are Annexures A4 to A6 & A8 to this OA; Valuation report dated 20.02.2020, which is Annexure A9 to this OA; Revival letter dated 19.12.2018, which is Annexure A10 to this OA; Notice dated 03.08.2020, which is Annexure A11 to this OA; Call up notice dated 14.08.2020, which is Annexure A12 to this OA and Statement of accounts along with Calculation sheet & Banker Books Evidence act, which are Annexures A13 to A15 to this OA. 5. 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.34,10,429.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA NO.21-2022 STATE BANK OF INDIA VS KIRAN ARORA AND ANOTHER

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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. Defendant no.2 appeared in person on 27.12.2022 for himself and for defendant no.1. But thereafter no one appeared on behalf of defendants and they were proceeded ex-parte on 16.02.2024.

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In support of the OA, affidavit of Sh. Manoj Kumar Singh, Chief manager, State Bank of India, h as been filed. 8. Heard arguments and perused record. 9. 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 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 applicant. 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.34,10,429.00p (Rupees Thirty Four Lacs Ten thousand Four Hundred Twenty 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 @9.85%p.a. along with penal interest @2.00%p.a. with monthly rests from 15.10.2021 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

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4 OA NO.21-2022 STATE BANK OF INDIA VS KIRAN ARORA AND ANOTHER

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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.

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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.34,10,429.00p (Rupees Thirty Four Lacs Ten thousand Four Hundred Twenty Nine only) jointly and severally, 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.07.2025. 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 .

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Dated: 26.06.2025.

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

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OA NO.21-2022

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STATE BANK OF INDIA VS KIRAN ARORA AND ANOTHER

State Bank of India v. Kiran Arora and Another

Case brief

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State Bank of India v. Kiran Arora and Another

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