Allowed

State Bank of India v. Satpal Singh

DRT16 Jun 2025OA/520/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an NPA loan, deeming the debt proven under documentary evidence. The court reduced interest from 10.60% to 8% per annum and directed execution against mortgaged properties or personal assets.

What did the court decide?

Recovery certificate issued; Defendant to pay Rs. 22,02,970 with simple interest at 8% per annum; enforcement via sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.520/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2022

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DATE OF DECISION: 16.06.2025

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having its Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Scetor-17A, Chandigarh and one of its Branch at Kharar, Punjab through its Branch Manager Sh. Rupendra Mani Trupathi S/o B D M Tripathi.

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……..Applicant Versus Sh. Satpal Singh S/o Sh. Matho Ram R/o VPO Cholta Khurd, Tehsil Kharar, Punjab. ….……Defendant

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Advocates:

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Present Ms. Parmeet Kaur, Advocate proxy for Sh. R.S. Bhatia, Advocate for the applicant Defendant is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.22,02,970.00 (Rupees Twenty Two Lacs Two Thousand Nine Hundred Seventy Only). The Original Application has been filed through Sh. Rupendra Mani, Branch Manager o f the applicant bank, who is competent to institute the Original Application in terms of gazette notifications published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under regulations no.76 & 77 of State Bank of India General Regulations framed in exercising of the powers conferred by Sub section 3 of section 50 of the State Bank of India Act, 1955 with the precious sanction of the central Government.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated23.02.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs vide Letter of arrangement dated 05.03.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage his immovable properties i.e. total land measuring 22K-01½M situated at Village Cholta Khurd, Hadbast No.385, Tehsil Kharar, District SAS Nagar Mohali, Punjab v ide Declaration u/s 4(1) dated 23.02.2016, which is Annexure A6 to this OA. Documents executed:- Copy of gazette notification dated 22.02.2017 & 02.05.1987, Which are Annexures A/A & A1 to this OA; Hypothecation agreement, Copy of Undertaking both dated 05.03.2016, which are Annexures A4 & A5 to this OA; Copy of renewal dated 05.06.2018,which is Annexure A7 to this OA; Copy of revival letter dated 21.02.2019, which is Annexure A8 to this OA; Copy of notice dated 11.03.2020, which is Annexure A9 to this OA and Statement of account, which is Annexure A10 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 of Rs.22,02,970.00, which is recoverable and the defendant were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 31.08.2023. 7. In support of the OA, affidavit of Sh. Rupendra Mani, Branch manager, State Bank of India, h as been filed.

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Ld. proxy counsel for applicant present has not advanced any argument. Perused record

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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 A/A, A1 to A10 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.22,02,970.00p (Rupees Twenty Two Lacs Two Thousand Nine Hundred Seventy 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 pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.60%p.a. with half yearly rests from 09.02.2022 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, 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.22,02,970.00p (Rupees Twenty Two Lacs Two Thousand Nine

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Hundred Seventy Only) 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 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.

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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 10.07.2025.

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Copy of this order be given Dasti to the applicant bank 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 .

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Dated: 16.06.2025.

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

State Bank of India v. Satpal Singh

Case brief

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State Bank of India v. Satpal Singh

Case brief

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