Allowed

State Bank of India v. Late Sh. Hardiyal Singh and Another

DRT28 Aug 2025OA/434/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 21,11,925. The court directed defendants to pay the principal amount with simple interest at 8% p.a. and authorized recovery from mortgaged/hypothecated properties under SARFAESI Act provisions.

What did the court decide?

Recovery of Rs. 21,11,925 plus costs and simple interest @ 8% p.a. from mortgaged properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.434/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.12.2021

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DATE OF DECISION: 28.08.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai, one of the Local Head Office at Sector 17-A, Chandigarh, and one of its local branch at Kahma, Tehsil Nawanshehr, District Shahid Bhagat Singh Nagar (Punjab) through its Deputy Manager, Sh. Ravish Rana.

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……..Applicant

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Versus

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Sh. Hardiyal Singh S/o Sh. Gurbax Singh now deceased through his Legal Heirs:

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a. Smt. Rajwinder Kaur W/o Late Sh. Hardiyal Singh R/o VPO Mukandpur, Tehsil Nawanshahr, District SBS Nagar (Punjab).

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b. Sh. Harpreet Singh S/o Late Sh. Hardiyal Singh R/o VPO Mukandpur, Tehsil Nawanshahr, District Shahid Bhagat Singh Nagar (Punjab).

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c. Smt. Navdeep Kaur D/o Late Sh. Hardiyal Singh R/o VPO Mukandpur, Tehsil Nawanshahr, District Shahid Bhagat Singh Nagar (Punjab).

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Sh. Harpal Singh S/o Sh. Gurbax Singh, R/o VPO Mukandpur, Tehsil Nawanshahr, District Shahid Bhagat Singh Nagar (Punjab).

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………Defendants

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Advocates:

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Argued by Sh. Vinish Singla, Advocate for Applicant

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Defendants 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,11,925.00p (Rupees Twenty One Lacs Eleven Thousand Nine Hundred Twenty Five Only). The Original

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OA NO.434/2022 STATE BANK OF INDIA VS. LATE SH. HARDIYAL SINGH AND ANOTHER

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Application has been filed through Sh. Ravish Rana, Deputy Manager o f the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972, & 27.03.1987, issued by the Executive Committee of Central Board in exercise of powers conferred on it under Regulation No.76 & 77 of State Bank of India Regulations , made by the framed in exercise of the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955.

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The brief facts of the OA are that the deceased defendant no.1 and the defendant no. 2 had approached the applicant for grant of KCC Limit of Rs.8.50 Lacs, vide Loan Application dated 12.04.2010, which is Annexure A1 to this OA.

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The applicant sanctioned KCC Limit of Rs.8.50 Lacs, vide Sanction dated 22.05.2010, which is Annexure A2 to this OA and letter of arrangement which is Annexure A3 to this OA and terms and conditions duly accepted by the deceased defendant no 1 and the defendant no. 2. 4. The deceased defendant no.1 and the defendant no. 2 had mortgaged their immovable properties i.e. Total land measuring 12K00M situated at Village Mukandpur, Hadbast no. 192, Tehsil Nawanshahr, vide Registered Mortgage Deed bearing Vasika No. 429 dated 26.05.2010, along with its translation which is Annexure A7 to this OA. Documents executed : - Hypothecation Agreement dated 28.05.2010, which is Annexure A4 to this OA; Letters of Undertaking, which are Annexures A5 & A6 to this OA; Statement of Account, which is Annexure A8 to this OA; Legal Notice dated 06.11.2021, which is Annexure A9 to this OA and Revival Letters dated 21.05.2013, 29.05.2015, 21.05.2018 & 19.11.2020, which are Annexures A10 to A13 to this OA.

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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.21,11,925.00p, which is recoverable and the defendants were

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OA NO.434/2022 STATE BANK OF INDIA VS. LATE SH. HARDIYAL SINGH AND ANOTHER

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served recall notice but the deceased defendant no.1 and the defendant no. 2 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.08.2025.

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In support of the OA, affidavit of Sh. Ravish Rana, Deputy Manager, State Bank of India h as been filed.

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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 A13 to this OA, it is proved that the deceased defendant no.1 and the defendant no. 2 approached applicant for availing of the loan facility which were granted to them and for that they had executed all the relevant documents in favour of the bank. The deceased defendant no.1 and the defendant no. 2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the deceased defendant no.1 and the defendant no. 2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,11,925.00p (Rupees Twenty One Lacs Eleven Thousand Nine Hundred Twenty 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 accounts.

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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. along with @2% p.a. with half yearly rests from 11.12.2021 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

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OA NO.434/2022 STATE BANK OF INDIA VS. LATE SH. HARDIYAL SINGH AND ANOTHER

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instant case including nature of the mortgaged property, undertaking of 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.21,11,925.00p (Rupees Twenty One Lacs Eleven Thousand Nine Hundred Twenty 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.09.2025.

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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 .

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Dated: 28.08.2025

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

State Bank of India v. Late Sh. Hardiyal Singh and Another

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State Bank of India v. Late Sh. Hardiyal Singh and Another

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