Allowed

State Bank of India v. Sh. Avtar Singh

DRT22 Jul 2025OA/298/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of outstanding dues from the respondent borrower. The Tribunal granted a uniform simple interest rate of 8% per annum and ordered the recovery of the principal amount along with costs from the mortgaged properties.

What did the court decide?

Recovery certificate issued for principal sum of Rs.28,19,302 with interest @ 8% p.a. and costs, enforceable against mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.298/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.10.2022

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DATE OF DECISION: 22.07.2025

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State Bank of India, a statutory corporation constituted under the provisions of the State Bank of India Act 1955 (23 of 1955) and the being the successor to State Bank of Patiala under the “Acquisition of State Bank of Patiala Order 22.02.2017” passed by the Central Government under Section 35 of the State Bank of India Act, 1955 (23 of 1955) having its branch at VPO Sahiba, Tehsil Balachaur, District S.B.S. Nagar(Punjab) through its Branch Manager Mohammad Istekar.

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……..Applicant

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Versus

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Sh. Avtar Singh S/o Sh.Balwant Singh R/o Village Dayal, PO Saroya, Tehsil Balachaur, District S.B.S.Nagar, (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh. Banni Thomas, 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.28,19,302.00p (Rupees Twenty Eight Lacs Nineteen Thousand Three Hundred Two Only). The Original Application has been filed through Sh. Mohammad Istekar, Branch Manager, o f the applicant, who is competent to institute the Original Application vide in terms of Gazette Notifications dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the Central Board Directors in exercise of powers conferred on it under Regulations no.76 & 77 of State Bank of India General Regulations,1955 made by the Reserve Bank of India in exercise of the powers conferred on it by Sub section 3 of section 50 of

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2 OA/298/2023 STATE BANK OF INDIA V/S SH. AVTAR SINGH

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the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit (Under PBKC Scheme) of Rs.17.00 Lacs vide loan application dated 12.09.2014 which is Annexure A1 to this OA and thereafter for enhancement of the same to Rs.20.00 Lacs vide Loan Application dated 15.03.2016, which is Annexure A7 to this OA. 3. The applicant sanctioned the KCC Limit (Under PBKC Scheme) of Rs.17.00Lacs vide Letter of arrangement dated 22.09.2014, which is Annexure A2 to this OA and thereafter enhanced the limit to Rs. 20.00 Lacs vide Letter of arrangement dated 10.03.2016, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 16K-12M situated at Village Dayal, Hadbast No.240, Tehsil Balachaur, District S.B.S.Nagar, (Punjab) vide Registered Mortgage Deed dated 18.09.2014 and 16.03.2016 along with Declaration u/s 4(1), Letter for entering the mutation in revenue record, Legal Search Report, which are Annexures A3 (Colly) & A9 (Colly) to this OA. Documents executed:-Hypothecation agreement, Undertaking, Consent letter, all dated 22.09.2014 & 18.03.2016, which are Annexures A4 to A6, A10 & A11 to this OA; Revival letter dated 24.12.2018, which is Annexure A12 to this OA; Letter/ Communications & Legal notices dated 24.09.2018, 29.03.2019, 16.07.2021, 16.04.2022, 17.07.2022, which are Annexure A13 (Colly) to this OA and Statements of account, which is Annexure A14 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.28,19,302.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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3 OA/298/2023 STATE BANK OF INDIA V/S SH. AVTAR SINGH

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.01.2025.

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In support of the OA, affidavit of Sh. Mohammad Istekar, Branch Manager, State Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record

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It was argued by learned 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 A14 t o 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.28,19,302.00p (Rupees Twenty Eight Lacs Nineteen Thousand Three Hundred Two Only) along with interest from the defendant, 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 bank in relief clause has claimed [email protected]%p.a. with half yearly rests from 24.09.2022 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 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

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OA/298/2023 STATE BANK OF INDIA V/S SH. AVTAR SINGH

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,19,302.00p (Rupees Twenty Eight Lacs Nineteen Thousand Three Hundred Two 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 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 27.08.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 22.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Avtar Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Avtar Singh

Case brief

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What did the court decide?

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