Allowed

State Bank of India v. M/S Sohan Singh Darshan Singh

DRT1 Oct 2025OA/418/2022

Case brief

AI extract

What is this about?

The DT-I, Chandigarh allowed an original application filed by SBI for recovery of Rs.1,10,64,486/- with interest against five defendants who were cautioned borrowers and guarantors holding a secured credit limit with the bank.

What did the court decide?

Application allowed; recovery of Rs.1,10,64,486/- with interest granted against defendants jointly and severally via sale of mortgaged or other properties.

State Bank of India versus M/S Sohan Singh Darshan Singh — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 418 of 2022 Date of Institution: 25.02.2022 Date of Decision: 01.10.2025

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SBI having its branches all over India and a branch at Railway Road, Tapa, District Barnala, Punjab.

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……..Applicant

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Vs.

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M/s Sohan Singh Darhsan Singh, Grain Market, Tapa, District Barnala, Punjab through its proprietor.

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Ramesh Lal s/o Dashrath Singh r/o Sukahanand Basti, Tapa, District Barnala, Punjab.

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Sohan Singh s/o Dashrath Singh.

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Buta Lal s/o Dashrath Singh.

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Darshan Singh s/o Dashrath Singh.

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All residents of Sukahanand Basti, Tapa, District Barnala, Punjab

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……….Defendants

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Advocates

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Sh. Gurinderjit Singh, Counsel for the applicant bank. Defendants - ex parte .

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OA for the Recovery of Rs.1,10,64,486/- with interest @12.05% per annum with monthly rests from 25.02.2022.

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ORDER

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SBI (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.1,10,64,486/- with interest against M/s Sohan Singh Darshan Singh and others (defendants).

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Bank’s case is that on 20.07.2012, it had enhanced the existing Limit from Rs.20.00Lacs to Rs.35.00Lacs, to defendant no.1 through its proprietor Defendant no.2 in the form of C.C Limit for business purpose. To secure the loan, Defendant nos. 2 to 5 had mortgaged their properties (fully detailed in para No.3A of the application). Defendant nos. 3 to 5

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stood as the guarantors. On 27.12.2013, the C.C Limit was enhanced to from Rs.35.00Lacs to Rs.50.00Lacs. On 13.03.2015, the limit was enhanced again for Rs.50.00Lacs. The loan was chargeable to interest @12.05% per annum with monthly rests. The defendants had acknowledged the liability towards the debt on 21.05.2016 & 31.03.2017. On 22.02.2022, a sum of Rs.1,10,64,486/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 14.03.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 16.07.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Dharamveer Singh, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-31.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.50.00Lacs and on 22.02.2022, a sum of Rs.1,10,64,486/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.1,10,64,486/- (Rupees One Crore Ten Lacs Sixty Four Thousand Four Hundred and Eighty Six Only) with interest @12.05% per annum with monthly rests from 25.02.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged properties fully detailed in para No.3A) of the application as well as from the personal movable and immovable property(ies) of the defendants.

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7. Pending IAs,	if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 04.11.2025, who is directed to distribute the sale proceeds of the mortgaged property(ies) as per the provisions of Section 19(20-AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 01.10.2025 Presiding Officer DRT-1, Chandigarh

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Amanpreet (Law Researcher)

State Bank of India v. M/S Sohan Singh Darshan Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Sohan Singh Darshan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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