Allowed

State Bank of India v. Sh. Jaswinder Singh

DRT3 Nov 2025OA/253/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed State Bank of India's original application for recovery of Rs.21.73 lacs against Sh. Jaswinder Singh. The court adjudicated interest rates and ordered recovery through sale of mortgaged properties or attachment of assets.

What did the court decide?

Recovery certificate issued; Defendant liable to pay Rs.21,73,036 plus costs and simple interest at 8% per annum; entitlement to recover via sale of mortgaged/hypothecated properties or attachment of

State Bank of India versus Sh. Jaswinder Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.253/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.02.2023

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DATE OF DECISION: 03.11.2025

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State Bank of lndia, a body corporate constituted under the State Bank of lndia Act, 1955 having its Corporate Office at Madame Cama Road, Nariman point, Mumbai and one of its Local Head Office at Sector 17_A, Chandigarh having branches all over lndia and one of its branch situated at New Grain Market, Nabha Distt. Patiala through its Branch Manager Sh. Sandeep Kumar, who is Authorized Officer.

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……..Applicant Versus

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Sh. Jaswinder Singh S/o. Sh. Kehar Singh R/o. H. No. 9/A, Village Lohar Majra P.O Birahari, Tehsil Nabha, District Patiala.

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….……Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, 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 defendant for recovery of Rs.21,73,036.00p(Rupees Twenty One Lacs Seventy Three Thousand Thirty Six Only). The Original Application has been filed through Sh. Sandeep Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide State Bank of India Regulations dated 27.03.1987, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.3.00 Lacs vide loan application dated 18.12.2009, along with its translation, which is Annexure A2 and A2T to this OA. Thereafter, the defendant

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2 OA/253/2023 STATE BANK OF INDIA VS SH.JASWINDER SINGH

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approached the applicant for enhancement of the KCC Limit to Rs.8.00 vide loan applications dated 14.03.2013, which is Annexure A8 to this OA. Thereafter, the defendant again approached for enhancement of the Limit to Rs. 15.00 Lacs vide loan application dated 27.10.2014, which is Annexure A12 to this OA.

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The applicant sanctioned the KCC Limit of Rs.3.00 Lacs vide sanction letter dated 21.01.2010, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. Thereafter, the KCC Limit was enhanced to Rs.8.00 Lacs vide Sanction letter dated 15.03.2013, which is Annexure A9 to this OA. Thereafter, the KCC Limit was again enhanced to Rs.15.00 Lacs vide Sanction letter dated 02.12.2014, which is Annexure A13 to this OA 4. Defendant had mortgaged his immovable property i.e. land measuring 40K-00M as under: (i) Land measuring 24K-00M situated at Village Lohar Majra, Tehsil Nabha, District Patiala, Punjab vide Mortgage deed bearing vasika no. 3987 dated 12.01.2010, along with is translation which is Annexure A5 to this OA;

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(ii) Land measuring 16K-00M situated at Village Lohar Majra, Tehsil Nabha, District Patiala, Punjab vide Declaration u/s 4 (1) dated 20.11.2014, which is Annexure A16 to this OA; Letter to Sub Registrar for creation of charge and charge registered vide rapat no. 129 dated 21.11.2014, which is Annexure A15 to this OA. Documents executed: - ID Proof of defendant in file 3, which is Annexure A3 to this OA; Hypothecation agreements dated 21.01.2010, 15.03.2013 and 02.12.2014, which are Annexure A5, A10 and A14 to this OA; Consent letters, both dated 21.01.2010, 14.03.2013, which are Annexures A6 and A11 to this OA; Revival letter dated 04.03.2013, 30.11.2017 and 30.06.2020, which are Annexures A17 to A19 to this OA; Legal notice dated 25.08.2021 and 05.01.2023, which are Annexures A20 and A21 to this OA;

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3 OA/253/2023 STATE BANK OF INDIA VS SH.JASWINDER SINGH

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Statement of account along with certificate, which is Annexure A22 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.21,73,036.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 25.04.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Branch Manager , State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. No one appeared on behalf of defendant for arguments. 9. It was argued by learned proxy counsel for defendant through 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 A22 to this OA, it is proved that the defendant 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 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,73,036.00p (Rupees Twenty One Lacs Seventy Three Thousand Thirty Six Only) along with interest from the 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

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4 OA/253/2023 STATE BANK OF INDIA VS SH.JASWINDER SINGH

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@10.95%p.a. with 2% penal interest with half yearly rests from 03.01.2023 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/hypothecated assets, 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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,73,036.00p (Rupees Twenty One Lacs Seventy Three Thousand Thirty Six 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.11.2025.

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OA/253/2023

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STATE BANK OF INDIA VS SH.JASWINDER SINGH

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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: 03.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Jaswinder Singh

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State Bank of India v. Sh. Jaswinder Singh

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