Allowed

State Bank of India v. Gurwinder Singh through His Legal Heirs

DRT15 Oct 2025OA/231/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by State Bank of India for recovery of a term loan amount of Rs. 31,08,770.00 from the legal heir of the deceased borrower. The Tribunal deemed it appropriate to grant uniform simple interest at 8% p.a. instead of the claimed rate upon realization through execution proceedings.

What did the court decide?

Direction to pay Rs. 31,08,770.00 with interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce under SARFAESI Act or attachment of assets.

State Bank of India versus Gurwinder Singh through His… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.231/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2025

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DATE OF DECISION: 15.10.2025

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State Bank of India, a body corporate, constituted under the provisions of State Bank of India Act, 1955, having its Central Office at Madam Cama Road, Nariman Point, Mumbai, Maharashtra 400021, and one of its Local Head Office at Sector 17A, Chandigarh and one of its branch at RACC, Patiala through its Chief Manager Smt. Madhvi Sharma.

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……..Applicant Versus

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Late Sh. Gurwinder Singh S/o Sh. Karam Singh R/o House No. 15, Ward 11, Mohalla Kansiya Wala, Bir Sanaur, P.O. Sanaur, Tehsil and District Patiala, Punjab, Since Deceased through Legal Heir

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i. Smt Rajvir Kaur W/o Late Sh. Gurwinder Singh R/o House No. 15, Ward 11, Mohalla Kansiya Wala, Bir Sanaur, P.O. Sanaur, Tehsil and District Patiala, Punjab.

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………. Defendant

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Advocates:

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Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for the applicant

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Defendant 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.31,08,770.00 (Rupees Thirty One Lacs Eight Thousand Seven Hundred Seventy Only). The Original Application has been filed through Smt. Madhvi Sharma, Chief 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 02.05.1987 issued under State Bank of India

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OA/231/2025 STATE BANK OF INDIA VS LATE SH. GURWINDER SINGH THROUGH HIS LEGAL HEIR

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Regulations framed in exercise of powers conferred by sub section 3 of section 50 of the State Bank of India Act, 1955, with previous sanction of the Central Government.

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The brief facts of the OA are that the defendant (since deceased) had approached the applicant for grant of Term Loan of Rs.29.60 Lacs, for purchase of Combine Harvester vide Loan Application dated 10.11.2023, which is Annexure A1 to this OA.

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The applicant sanctioned Term Loan of Rs.29.60 Lacs, for purchase of Combine Harvester vide Letter of Arrangement dated 22.11.2023, which is Annexure A2 to this OA, and the terms and conditions were duly accepted by the defendant (since deceased). 4. Defendant (since deceased) had Hypothecated his moveable assets i.e. Combine Harvester Make: Mandeep Engendering Works Model No. L.S.981, Bearing Registration No. PB-47-F-7728, Engine No. PDHM121453, Chassis No. MEW981L230067, vide Hypothecation Agreement dated 22.11.2023, which is Annexure A3 to this OA; Registration certificate of Combine Harvester, is Annexure A4 to this OA.

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Documents executed: - Legal Notice dated 02.01.2025, along with postal receipt, which is Annexure A5 to this OA; Statement of Account, which is Annexures A6 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.31,08,770.00, which is recoverable and legal heir of the deceased defendant was served recall notices but she did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The legal heir of the deceased defendant was served notices to appear before this Tribunal but no one appeared on her behalf and she was proceeded ex-parte on 12.08.2025.

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OA/231/2025 STATE BANK OF INDIA VS LATE SH. GURWINDER SINGH THROUGH HIS LEGAL HEIR

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In support of the OA, affidavit of Smt. Madhvi Sharma, Chief Manager, State Bank of India h as been filed. 8. Heard ex-parte 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 A6 to this OA, it is proved that the defendant (since deceased) 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 (since deceased) failed to pay back the loan as per conditions of the agreement between the parties. Subsequently, account of the defendant (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,08,770.00 (Rupees Thirty One Lacs Eight Thousand Seven Hundred Seventy Only) along with interest from the legal heir of the deceased defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. with monthly rests plus 2% penal interest from 28.01.2025 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 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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OA/231/2025 STATE BANK OF INDIA VS LATE SH. GURWINDER SINGH THROUGH HIS LEGAL HEIR

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In the result, the application is allowed declaring that the legal heir of the deceased defendant is liable to pay to the applicant a total sum of Rs.31,08,770.00 (Rupees Thirty One Lacs Eight Thousand Seven Hundred Seventy 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 applicant 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.10.2025. 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. Pronounced by me in the open Tribunal . Dated: 15.10.2025 (MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Gurwinder Singh through His Legal Heirs

Case brief

What is this about?

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State Bank of India v. Gurwinder Singh through His Legal Heirs

Case brief

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