Allowed

State Bank of India v. Sh. Harwinder Singh

DRT21 Oct 2025OA/490/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by State Bank of India for recovery of dues from Sh. Harwinder Singh. Upon an ex-parte hearing, the court granted uniform simple interest at 8% p.a. and directed the issuance of a Recovery Certificate under Section 19 of the RDB Act for the sale of hypothecated assets.

What did the court decide?

Recovery of Rs. 47,66,988.00 with costs and simple interest at 8% p.a. from filing date; Issuance of Recovery Certificate; Sale of hypothecated vehicles or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.490/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.03.2025

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DATE OF DECISION: 21.10.2025

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State Bank of India, a body corporate constituted under the provisions of The State Bank of India Act 1955, having its Corporate Office at Madam Cama Road, Mumbai carrying on its Business of Banking in India and abroad having one of its Local Head Office at Sector 17, Chandigarh and one of its specialized Branch known as Stressed Assets Recovery Branch at SCO 15, 1^st Floor, Sector 7C, Chandigarh through its General Power of Attorney holder Sh. Dilbagh Singh Reddu, Chief Manager of the Applicant.

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……..Applicant Versus Sh. Harwinder Singh son of Surjit Singh resident of H No. 24, Village Manimajra, Tehsil and District Malerkotla.

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…….Defendant

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Advocates:

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Argued by Sh. Amrit Singh Kang, Advocate for Applicant (through

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VC)

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Defendant 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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.47,66,988.00p (Rupees Forty Seven Lacs Sixty Six Thousand Nine Hundred Eighty Eight Only). The Original Application has been filed through Sh. Dilbagh Singh Reddu, Chief Manager, of the applicant, who is competent to institute the Original Application vide Notification dated 27.03.1987 and 31.08.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of Term Loan of Rs.26.00 Lacs for purchase of

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2 OA NO. 490/2025 STATE BANK OF INDIA VS SH. HARWINDER SINGH

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Combine Harvester vide Loan Application dated 21.03.2023, which is Annexure A2 to this OA. Thereafter, the defendant approached the applicant for grant of another Term Loan of Rs. 27.00 Lacs for purchase of another Combine Harvester vide Loan application dated 20.07.2023, which is Annexure A7 to this OA. 3. The applicant sanctioned Term Loan of Rs.26.00 Lacs and Rs. 22.00 Lacs for purchase of Combine Harvesters vide Letter of arrangement/sanction letter dated 24.03.2023 and 17.08.2023, which are Annexures A3 and A8 to this OA. 4. Defendant had hypothecated her movable properties i.e. Two Combine Harvesters detailed as under: - i. Combine Harvester Make: Rooprai Agro Industries Model: Rooprai 930, bearing registration no. PB28J0363, Chassis No. RAI930C230021, and Engine No. BXEI246028, vide hypothecation agreement dated 24.03.2023, which is Annexure A4 to this OA; Invoice dated 31.03.2023, which is Annexure A5 to this OA; Registration Certificate of Vehicle, which is Annexure A6 to this OA; ii. Combine Harvester Make: Rooprai Agro Industries Model: Rooprai 930, bearing Chassis No. RAI9300H23024 and Engine No. PGHM115547, vide hypothecation agreement dated 17.08.2023, which is Annexure A9 to this OA; Invoice dated 22.08.2023, which is Annexure A10 to this OA. Documents executed : - Legal notice dated 13.12.2024, which is Annexure A11 to this OA and Statements of Accounts, which is Annexure A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.47,66,988.00p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA NO. 490/2025 STATE BANK OF INDIA VS SH. HARWINDER SINGH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 26.09.2025. 7. In support of the OA, affidavit of Sh. Dilbagh Singh Reddu, Chief Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing 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 A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.47,66,988.00p (Rupees Forty Seven Lacs Sixty Six Thousand Nine Hundred Eighty Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with 2% penal interest in both accounts with Monthly rests from 25.01.2025 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 both the loan accounts from the date of filing of the

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4 OA NO. 490/2025 STATE BANK OF INDIA VS SH. HARWINDER SINGH

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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.47,66,988.00p (Rupees Forty Seven Lacs Sixty Six Thousand Nine Hundred Eighty Eight Only) with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 vehicles of the defendant 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 defendant. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 31.10.2025 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.

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Pronounced by me in the open Tribunal . Dated: 21.10.2025.

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

State Bank of India v. Sh. Harwinder Singh

Case brief

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State Bank of India v. Sh. Harwinder Singh

Case brief

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