Allowed

State Bank of India v. Sh. Navdeep Singh Sohal and Another

DRT25 Jul 2025OA/22/2025

Case brief

AI extract

What is this about?

Dr Dt Recovery Tribunal allowed an Original Application filed by State Bank of India against two borrowers for recovery of a defaulted secured home loan of approx Rs 2.62 crore, ordering repayment with 08% p.a. interest and issuance of a Recovery Certificate. The respondents were absent, and the debts were to be recovered from mortgaged properties.

What did the court decide?

Recovery of Rs. 2,61,98,033.33 with costs and simple interest @08% p.a. granted; Recovery Certificate issued; liberty to sell mortgaged properties.

State Bank of India versus Sh. Navdeep Singh Sohal and… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.22/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.01.2025

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DATE OF DECISION: 25.07.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 having its corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its local head office at Sector-17A, Chandigarh, having branches all over India and one of its branches situated at SARB, 3^rd Floor, Administrative Office Building, Fountain Chowk, Civil Lines, Ludhiana through Sh. Vinod Kumar Lakhanpal Chief Manager.

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……..Applicant

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Versus

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Sh. Navdeep Singh Sohal S/o Sh. Baldev Singh R/o House No.2-L, BRS Nagar, Ludhiana, Punjab.

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Smt. Neha W/o Sh. Navdeep Singh Sohal R/o House No.2-L, BRS Nagar, Ludhiana, Punjab.

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.….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for 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.2,61,98,033.33p (Rupees Two Crore Sixty One Lacs Ninety Eight thousand Thirty Three & Paise Thirty Three only). The Original Application has been filed through Sh. Vinod Kumar Lakhanpal, Chief Manager, o f the applicant, who is competent to institute the Original Application vide State Bank of in terms of gazette notifications published in the Gazette of India dated 26.09.1959, 26.08.1972, 02.05.1987 and 17.05.2001 issued by the Executive Committee of the Central Board in exercise of power

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OA NO.22/2025 STATE BANK OF INDIA VS SH. NAVDEEP SINGH SOHAL AND ANOTHER

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conferred on it under Regulation no. 76 & 77 of State Bank of India General Regulations, in exercise of power conferred by Sub section 3 of section 50 of the State Bank of India Act, 1955. State Bank of India Regulations, dated 27.03.1987, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for grant of Home Limit of Rs.2.30 Lacs vide loan application dated 23.09.2020, which is Annexure A2 to this OA. 3. The applicant sanctioned Home Limit of Rs.2.30 Lacs vide arrangement letter dated 06.02.2021, which is Annexure A2A to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. House build on plot nos. 6,7,15,16 and 17, total measuring 950 sq. yards, situated at Village Akalgarh, Hadbast No.292, Abadi East Ville Colony, Tehsil and District Ludhiana, Punjab vide equitable mortgage of title deed, bearing Vasika no. 2019-20/103/1/929 dated 18.04.2019 & with its translations, which is Annexure A6, A6/T .

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Documents executed:- Memorandum of loan agreement for home loan, Agreement to mortgage, Deed of undertaking and Consent letters all dated 06.02.2021, which are Annexures A3 to A5 to this OA; Letter of confirmation dated 09.06.2021, which is Annexure A7 to this OA; Consent letter dated 06.02.2021, which is Annexure A8 to this OA; Statements of account and interest calculation sheet which are Annexure A9 and A9A to this OA; Demand Notice dated 03.05.2023 U/S 13(2), which is Annexure A10 to this OA; Symbolic possession dated 10.07.2023, which is Annexure A11 to this OA and Legal notice dated 11.01.2024, which is Annexure A12 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.2,61,98,033.33p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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OA NO.22/2025 STATE BANK OF INDIA VS SH. NAVDEEP SINGH SOHAL 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 23.07.2025.

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In support of the OA, affidavit of Sh. Vinod Kumar Lakhanpal, Chief Manager, State Bank of India, has been filed.

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Heard ex- parte arguments and perused record.

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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 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.2,61,98,033.33p (Rupees Two Crore Sixty One Lacs Ninety Eight thousand Thirty Three & Paise Thirty Three 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 @9.30%p.a. with monthly rests plus 2%p.a. penal interest with Monthly rests from 01.12.2024 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 defendants, quantum of loan and prevalent market rates of

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OA NO.22/2025 STATE BANK OF INDIA VS SH. NAVDEEP SINGH SOHAL AND ANOTHER

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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 Rs.2,61,98,033.33p (Rupees Two Crore Sixty One Lacs Ninety Eight thousand Thirty Three & Paise Thirty Three 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

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Tribunal on 03.09.2025.

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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: 25.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Navdeep Singh Sohal and Another

Case brief

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State Bank of India v. Sh. Navdeep Singh Sohal and Another

Case brief

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