The Tribunal allowed the banker applicant's application under Section 19 RDB Act for recovery of Rs. 34.44 lacs from the legal heirs of a deceased borrower, granting relief for sale of mortgaged properties to recover dues.
Decreed payment of Rs. 34,44,543.00 with 8% simple interest; ordered sale of mortgaged properties to recover dues.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.571/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 13.12.2022
DATE OF DECISION: 18.09.2025
State Bank of India, a body corporate constituted under the provisions of The State Bank of India, 1955 (23 of 1955) having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra) 400021, carrying on its Business of Banking in India and Abroad, having one of its Local Head Office at Sector 17, Chandigarh and Interalia having Branch amongst others places at Devigarh, District Patiala, Punjab 147111 through its Chief Manager Sh. Inderpal Singh.
……..Applicant Versus
Sh. Bhajan Singh (Since Deceased) through his Legal Representatives and Legal Heirs: -
(Defendant nos. 1 to 4 are Legal Representatives and Legal Heirs of Late Sh. Bhajan Singh, who was a borrower and Mortgagor)
……. Defendants
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OA NO. 571/2023 STATE BANK OF INDIA VS LATE SH. BHAJAN SINGH THROUGH HIS LEGAL HEIRS
Advocates:
Argued by Ms. Neha Arora, Advocate proxy for Sh. Vivek Sheel Kathuria, Advocate for the applicant
Defendants already ex-parte
FINAL ORDER
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OA NO. 571/2023 STATE BANK OF INDIA VS LATE SH. BHAJAN SINGH THROUGH HIS LEGAL HEIRS
Rs. 17.80 Lacs vide Sanction Letter dated 13.01.2016, which is Annexure A13 to this OA and sanctioned loan of Rs. 1.00 Lac for Debt Swap vide Sanction Letter dated 13.01.2016, which is Annexure A14 to this OA. The terms and conditions were duly accepted by the defendant (since deceased).
Documents executed:- Gazette notification dated 22.02.2017, which is Annexure A1 to this OA; Hypothecation Agreement, Letters of Undertaking and Consent of Disclosure of Information, all dated 23.08.2014, which are Annexures A6 to A8 to this OA; Hypothecation Agreements dated 13.01.2016, which are Annexures A15 & A16 to this OA; Self Declaration certificate dated 11.01.2016, which are Annexures A18 & A18T to this OA; Affidavit dated 08.01.2016, which is Annexure A19 to this OA; Balance Confirmation Letters dated 31.03.2017, which are Annexures A22 to A24 to this OA; Death Certificate dated 02.01.2018 and agreement with legal heirs dated 20.12.2018, which is Annexure A25 to this OA; Revival Letters dated 16.08.2021, which are Annexures A26 & A27 to this OA; Certificate of Title dated 08.01.2016, which is Annexure A28 to this OA; Legal notice dated 23.04.2022, which is Annexure A29 to
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OA NO. 571/2023 STATE BANK OF INDIA VS LATE SH. BHAJAN SINGH THROUGH HIS LEGAL HEIRS
this OA and Statement of Accounts which are Annexures A30 to A32 to this OA.
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OA NO. 571/2023 STATE BANK OF INDIA VS LATE SH. BHAJAN SINGH THROUGH HIS LEGAL HEIRS
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 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 all 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.
12. Any other application pending stands disposed of.
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OA NO. 571/2023 STATE BANK OF INDIA VS LATE SH. BHAJAN SINGH THROUGH HIS LEGAL HEIRS
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the legal heirs of the deceased borrower.
1 provisions across 1 enactments
State Bank of India
Paramjit Kaur
Jaswant Singh
Harbhajan Kaur
Gurwinder Kaur
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
