Allowed

State Bank of India v. Sh. Archit Verma

DRT28 Oct 2025OA/556/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's recovery of over Rs. 32.35 lacs from the defendant. The court modified the claimed interest rate from 8.25% to 8% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendant ordered to pay Rs. 32,35,496 with 8% p.a. interest; Claim enforceable via sale of mortgaged/personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.556/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2025

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DATE OF DECISION: 28.10.2025

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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 one of its Local Head Office at Sector 17-A, Chandigarh and Branches all over India including one of its Branch at SBI, SARB at SCO No.70, Sector-5 Panchkula through its

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Chief Manager Sh. Prem Kumar Arora.

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……..Applicant Versus Sh. Archit Verma son of Sh. Rajiv Kumar, resident of Chanakya Puri

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Colony, Near Peer Baba Abdulla Pur, Pinjore, Panchkula 134102.

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Second Address: Flat No.107, Fourth Floor, Block B, Sector-127, Sukhmani Enclave, Village Chajju Majra, Tehsil Kharar, Distt. SAS Nagar, Mohali-140307.

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3rd Address: Khasra No.821, Sector-2, Parwanoo, Solan, Himachal Pradesh-173220.

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4th Address: Outline System India (P) Ltd., Plot No.37, IT City, Sector83, Alpha Mohali-140306.

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…….Defendant

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Ms. Sonal Chabra, Advocate for Applicant

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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.32,35,496.00p (Rupees Thirty Two Lacs Thirty Five Thousand Four Hundred Ninety Six Only). The Original Application has been filed through Sh. Prem Kumar Arora, Chief Manager of the applicant, who is competent to institute the

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2 OA NO. 556/2025 STATE BANK OF INDIA VS SH. ARCHIT VERMA

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Original Application in terms Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No. 76 & 77 of State Bank of India Regulations framed in Exercise of the powers conferred by Sub section (3) of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant had approached the applicant for grant of Housing Loan of Rs.36.00 Lacs vide Loan Application dated 16.12.2023, which is Annexure A1 to this OA and also made a request for Loan of Rs. 67,932/- for Suraksha Loan for Life Insurance Cover vide application dated 16.12.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Housing Loan of Rs.30.00 Lacs vide arrangement letter dated 16.12.2023, which is Annexure A3 this OA and sanctioned Suraksha Loan of Rs. 67,932/- for payment of Insurance Premium vide arrangement dated 16.12.2023, which is Annexure A4 to this OA.

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The defendant had mortgage his immovable property i.e. Residential Flat no. 107, 4^th Floor, Block-B, Sukhmani Enclave, Chhaju Majra, Habast no. 33, Kharar, District SAS Nagar, Mohali, Punjab through equitable mortgage of sale deed bearing no. 202324/15/1/14221 dated 18.12.2023, along with its translation, which is Annexure A8 to this OA; Agreement to mortgage dated 16.12.2023, which is Annexure A7 to this OA. Documents executed : - Memorandum of loan agreement for home loan, Deed of undertaking, both dated 16.12.2023, which are Annexures A5 & A6 to this OA; Demand Notice dated 19.11.2024 u/s 13(2) of SARFAESI Act, which is Annexure 9 to this OA; Legal notice dated 25.11.2024, which is Annexure A10 to this OA and Statement of Accounts, which is Annexure A11 to this OA.

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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.32,35,496.00p, which is recoverable and the defendant

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3 OA NO. 556/2025 STATE BANK OF INDIA VS SH. ARCHIT VERMA

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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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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 22.10.2025.

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In support of the OA, affidavit of Sh. Prem Kumar Arora, Chief Manager , State Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A11 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 loans 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.32,35,496.00p(Rupees Thirty Two Lacs Thirty Five Thousand Four Hundred Ninety Six 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 @8.25%p.a. with monthly rests from 20.03.2025 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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4 OA NO. 556/2025 STATE BANK OF INDIA VS SH. ARCHIT VERMA

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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 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.32,35,496.00p (Rupees Thirty Two Lacs Thirty Five Thousand Four Hundred Ninety Six 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 mortgaged property 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. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.11.2025. 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: 28.10.2025.

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

State Bank of India v. Sh. Archit Verma

Case brief

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State Bank of India v. Sh. Archit Verma

Case brief

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