Allowed

State Bank of India v. Sh. Kulwinder Singh

DRT31 Oct 2025OA/448/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by State Bank of India against Kulwinder Singh for recovery of a term loan. The court declared the defendant liable to pay Rs. 25,69,262.00p along with interest at 8% per annum and ordered the issue of a Recovery Certificate.

What did the court decide?

Recovery Certificate to be issued; Defendant to pay Rs. 25,69,262.00p with 8% simple interest from OA filing date. Defendant to appear before Recovery Officer.

State Bank of India versus Sh. Kulwinder Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.448/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.03.2025

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DATE OF DECISION: 31.10.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having its Corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17, Chandigarh and branches all over India including one at Specialized Branch known as Stressed Assets Recovery Branch situated at 1^st Floor, SCO No.15, Madhya Marg, Chandigarh through its Authorized Officer Sh. Varun Kumar, Chief Manager.

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……..Applicant Versus Sh. Kulwinder Singh S/o Sh.Jeet Singh, R/o Village Kalsana, Post Office Mallewal, Nabha, District Patiala, Punjab . ….……Defendant Advocates: Argued by Sh. Ajay Singla, Advocate for the applicant Defendant already ex-parte FINAL ORDER 1. 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.25,69,262.00p (Rupees Twenty Five Lacs Sixty Nine Thousand Two Hundred Sixty Two Only). The Original Application has been filed through Sh. Varun Kumar, Chief Manager, o f the applicant, who is competent to institute the Original Application in the terms of Gazette Notification dated 27.03.1987, which is Annexure A1 to this OA. 2. The brief facts of the OA that the defendant had approached the applicant for the grant of Term Loan of Rs.23.40 Lacs for purchase of Combine Harvester vide loan application dated 20.09.2023, which is Annexure A2 to this OA.

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OA/448/2025 STATE BANK OF INDIA Vs SH.KULWINDER SINGH

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The applicant sanctioned the Term Loan of Rs.23.40 Lacs for purchase of Combine Harvester vide Letter of arrangement, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had hypothecated his movable assets i.e. Combine Harvester Make: Surindra Agro Industries Model: Surindra 930 LEOPARD, bearing registration no. PB11DF4710, Engine No. PEHM118382 and Chassis No. SAI930J231519 vide Hypothecation agreement dated 30.09.2023, which is Annexure A7 to this OA; Quotation dated 26.09.2023, which is Annexure A4 to this OA; Receipt dated 26.09.2023, which is Annexure A5 to this OA; Invoice dated 03.10.2023, which is Annexure A6 to this OA; Registration certificate, which is Annexure A8 to this OA.

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Documents executed: - CERSAI dated 22.11.2024, which is Annexure A9 to this OA; Notice dated 06.09.2024, which is Annexure A10 to this OA and Account statement along with certificate, which is Annexure A11 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.25,69,262.00p, 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 23.09.2025. 7. In support of the OA, affidavit of Sh. Varun Kumar, Chief Manager, State Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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OA/448/2025 STATE BANK OF INDIA Vs SH.KULWINDER SINGH

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the applicant had proved its case. From the perusal of all the Annexures A1 to A11 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.25,69,262.00p (Rupees Twenty Five Lacs Sixty Nine Thousand Two Hundred Sixty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest with monthly rests from 06.03.2025 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.25,69,262.00p (Rupees Twenty Five Lacs Sixty Nine Thousand Two Hundred Sixty Two Only) with costs, current and future simple interest

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OA/448/2025 STATE BANK OF INDIA Vs SH.KULWINDER SINGH

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@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 vehicle 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.11.2025. 15. 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: 31.10.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Kulwinder Singh

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State Bank of India v. Sh. Kulwinder Singh

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