Allowed

State Bank of India v. Sh. Bhupinder Singh and Others

DRT2 Jul 2025OA/309/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application filed by State Bank of India against three respondents for recovery of a loan of Rs.27,76,335. The court upheld the liability and adjusted the interest rate to 8% p.a., directing recovery from mortgaged and personal assets.

What did the court decide?

Allow application and declare respondents liable to pay Rs.27,76,335 jointly and severally with 8% p.a. interest; direct issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.309/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.10.2021

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DATE OF DECISION: 02.07.2025

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State Bank of India is a body corporate constituted under the State Bank of India Act, 1955(23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of Patiala Order, 22.02.2017 passed by Central Government under Section 35 of the State Bank of India Act, 1955 (23 to 1955) and having its Branch Office at Civil Hospital Road, Opposite Ram Leela Ground, Ropar, District Roop Nagar (Punjab) through its Branch Manager Ms. Navjot Kaur.

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……..Applicant

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Versus

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Sh. Bhupinder Singh S/o Sh. Didar Singh R/o Village Saini Majra and Post Office Rani Majra, Tehsil Kharar, District SAS Nagar, Mohali Punjab.

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Sh. Harvinder Singh S/o Sh. Dial Singh R/o Village Saini Majra and Post Office Rani Majra, Tehsil Kharar, District SAS Nagar, Mohali Punjab.

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Sh. Malkit Singh S/o Sh. Dial Singh R/o Village Saini Majra and Post Office Rani Majra, Tehsil Kharar, District SAS Nagar, Mohali Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. P. K. Khurana, 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.27,76,335.00 (Rupees Twenty Seven Lacs Seventy Six Thousand Three Hundred Thirty Five Only). The Original Application has been filed through Ms. Navjot Kaur, Branch Manager o f the applicant, who is

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2 OA NO.309-2022 STATE BANK OF INDIA VS BHUPINDER SINGH AND OTHERS

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competent to institute the Original Application in terms of the Gazette notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the executive committee of the Central Board in exercise of the power conferred under regulations no.76 & 77 of State Bank of India Regulations, 1955 made by RBI in exercise of the powers conferred by the 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 defendants had approached the applicant for grant of PBKC Limit of Rs.20.00 and vide Loan Application-cum-Appraisal and Sanction dated 22.02.2019, which is Annexure A1 to this OA.

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The applicant sanctioned PBKC Limit of Rs.20.00 vide Letter of Arrangements/ Sanction dated 22.02.2019, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. Land measuring 32 Kanal-18Marlas situated at Village Panjoli, Hadbast No.200, Tehsil and District Roop Nagar, Punjab vide Mortgage Deed bearing vasika no. 2296 dated 09.12.2013 along with Title Opinion/ Legal Search Reports by Advocate and affidavit regarding ownership of agriculture land belonging to Defendants/ Borrower, Non Encumbrance Certificate (13 Years) alongwith True Translation(Colly), which is Annexure A3 to this OA.

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Documents executed:- Hypothecation Agreement dated 22.02.2019, which is Annexure A4 to this OA; Notices / Letters(5 No.)(Colly) dated 06.05.2019 and 06.02.2020, which is Annexure A5 to this OA; Statement of Accounts attached and Certified under Banker Books Evidence Act, 1891 (Colly) dated 08.10.2021, which is Annexure A6 to this OA.

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The loan account became irregular and was classified as NPA and

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after adjusting debit and credit entries in loan account there was a debit

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3 OA NO.309-2022 STATE BANK OF INDIA VS BHUPINDER SINGH AND OTHERS

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of Rs.27,76,335.00, which is recoverable and the defendants were

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served recall notices but they did not repay the outstanding 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 29.07.2024.

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In support of the OA, affidavit of Ms. Navjot Kaur, Branch Manager, State Bank of India has been filed. 8. Heard 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 A6 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 loans 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.27,76,335.00 (Rupees Twenty Seven Lacs Seventy Six Thousand Three Hundred Thirty Five 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.60%p.a. from 08.10.2021 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 instant case including nature of the mortgaged property, undertaking of

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4 OA NO.309-2022 STATE BANK OF INDIA VS BHUPINDER SINGH AND OTHERS

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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 @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 defendants are liable to pay to the applicant a total sum of Rs.27,76,335.00 (Rupees Twenty Seven Lacs Seventy Six Thousand Three Hundred Thirty Five 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 21.07.2025. 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. Pronounced by me in the open Tribunal . Dated: 02.07.2025

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

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OA NO.309-2022

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STATE BANK OF INDIA VS BHUPINDER SINGH AND OTHERS

State Bank of India v. Sh. Bhupinder Singh and Others

Case brief

What is this about?

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State Bank of India v. Sh. Bhupinder Singh and Others

Case brief

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