Allowed

State Bank of India v. Sadhu Singh and Another

DRT16 Sept 2025OA/457/2024

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh, allowed the Bank's recovery application against defaulters who failed to repay a sanctioned loan facility enhanced to Rs.40 Lacs. The Tribunal declared the outstanding principal and adjusted interest jointly and severally payable by the mortgagor and guarantor.

What did the court decide?

Recovery certificate issued; respondents liable to pay Rs.54,77,245.00p with 8% p.a. interest; recovery via sale of hypothecated property or attachment of assets.

State Bank of India versus Sadhu Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.457/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.02.2024

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DATE OF DECISION: 16.09.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act,1955 and having Central Office at Madam Cama Road, Nariman Point, Mumbai and its Local Head Office at Sector-17-A, Chandigarh, and State Bank of India, Branch Office, The Mall, Kapurthala, through its Chief Manager Sh. Balbir Singh.

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……..Applicant Versus

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Sh. Sadhu Singh S/o Sh. Gurmukh Singh, R/o Village Talwandi Rajputan, Post Office Sangojla, District Kapurthala, Punjab.

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Sh. Gurwinder Singh S/o Sh. Sadhu Singh, R/o Village Talwandi

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Rajputan, Post Office Sangojla, District Kapurthala, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Gurinderjit Singh, Advocate for Applicant

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.54,77,245.00p (Rupees Fifty Four Lacs Seventy Seven Thousand Two Hundred Forty Five Only). The Original Application has been filed through Sh. Balbir Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide in terms of Gazette Notification dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by Executive Committee of Central Board in exercise of powers conferred on its under regulations no.76 & 77 of the State Bank of India General Regulations made by RBI in exercise of powers conferred by Sub Committee.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of PBKC Limit of Rs.25.00 Lacs

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2 OA NO.457/2024 STATE BANK OF INDIA Vs. SH.SADHU SINGH AND ANOTHER

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vide loan application dated 15.06.2012, along with its translation, which is Annexure A1 to this OA and thereafter for its enhancement to Rs. 40.00 Lacs vide Loan Application dated 04.12.2015, along with its translation, Annexure A4 to this OA. Defendant no.2 stood as a Guarantor.

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The applicant sanctioned the PBKC Limit of Rs.25.00 Lacs vide letter of arrangement dated 09.07.2012, which is Annexure A2 to this OA and further enhanced the same to Rs. 40.00 Lacs vide letter of arrangement dated 04.12.2015, along with its translation, which is Annexure A5 to this OA. The terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable property i.e. Land measuring 56 Kanal Situated at Village Talwandi Rajputan, Hadbast no. 61, Tehsil and District Kapurthala, Punjab vide Declaration u/s 4(1) dated 09.12.2018, along with its translation which is Annexure A8 to this OA and Jamabandi for the year 2010-2011 along with its translation which is Annexure A9 to this OA

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Documents executed: Hypothecation agreement dated 09.07.2012, which is Annexure A3 to this OA; Hypothecation agreement, Guarantee agreement, both dated 04.12.2015, which are Annexures A6 & A7 to this OA; Affidavit dated 20.06.2012, which is Annexure A10 to this OA; Bank Notices dated 19.07.2022, 18.12.2022 & 16.10.2023, which are Annexures A11 to A14 to this OA; Legal notices dated 22.10.2020, 08.01.2022 & 06.11.2023, which are Annexures A15 to A17 to this OA; BCL/Revival letters dated 31.03.2015, 02.06.2015, 20.01.2018, 15.03.2020 & 19.07.2022, which are Annexures A18 to A22 to this OA and Statement of account along with interest statement & Certificate under Banker’s Book Evidence Act, which are Annexures A23 to A25 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 Rs.54,77,245.00p, which is recoverable and the defendants were

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3 OA NO.457/2024 STATE BANK OF INDIA Vs. SH.SADHU SINGH AND ANOTHER

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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 28.08.2025.

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In support of the OA, affidavit of Sh. Balbir Singh, Chief 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 for applicant 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 A25 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 applicant. The defendants failed to pay back the loan 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.54,77,245.00p (Rupees Fifty Four Lacs Seventy Seven Thousand Two Hundred Forty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed @interest 13.15% per annum with half yearly rests from 18.02.2024 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 instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.457/2024 STATE BANK OF INDIA Vs. SH.SADHU SINGH AND ANOTHER

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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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.54,77,245.00p (Rupees Fifty Four Lacs Seventy Seven Thousand Two Hundred Forty Five Only) jointly and severally, with costs, current and future simple interest @8.00%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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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 07.10.2025. 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: 16.09.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sadhu Singh and Another

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State Bank of India v. Sadhu Singh and Another

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