Allowed

State Bank of India v. Sh. Swaran Singh

DRT6 Nov 2025OA/589/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's Original Application filed under Section 19 of the RDB Act for recovery of Rs. 33,21,916 due from the defendant. The Tribunal issued a Recovery Certificate and declared the defendant liable to pay the sum with 08% simple interest pendent lite and in future.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay principal amount with 08% p.a. simple interest and costs.

State Bank of India versus Sh. Swaran Singh — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.589/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 24.04.2025

¶5

DATE OF DECISION: 06.11.2025

¶6

State Bank of India, a body corporate constituted under The State Bank of India Act, 1955 (23 of 1955) having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point Mumbai and having one of its Local Head Office at Sector 17 Chandigarh, and one of its Branch at Kamalpur, District Patiala through its Branch Manager Sh. Maninder Singh.

¶7

……..Applicant Versus Sh. Swaran Singh S/o Sh. Gurbachan Singh resident of Village Dhanouri, Tehsil Samana, District Patiala.

¶8

……. Defendant Advocates:

¶9

Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Guarav Singla, Advocate for the applicant

¶10

Defendant already ex-parte

¶11

FINAL ORDER

¶12

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.33,21,916.00P (Rupees Thirty Three Lacs Twenty One Thousand Nine Hundred Sixteen Only). The Original Application has been filed through Sh. Maninder Singh , Branch Manager of the applicant, who is competent to institute the Original Application in terms of Gazette notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 under Regulation No. 76 read with 77 of State Bank of India General Regulation framed in exercise of the powers conferred by Sub-section (3) of Section 50 of the State Bank

¶13

2 OA/589/2025 STATE BANK OF INDIA VS SH. SWARAN SINGH

¶14

of India, Act, 1955, with the previous sanction of the Central Government.

¶15

The brief facts of the OA are that the defendant had approached the applicant for grant of KCC of Rs.20.00 Lacs vide Loan application dated 24.08.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC of Rs.20.00 Lacs vide Letter of arrangement dated 29.08.2015, whichis AnnexureA3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had Mortgaged his immovable properties i.e. land measuring 32K-00M situated at Village Dhanouri, Tehsil Samana District Patiala, Punjab vide Declaration u/s 4(1) dated 27.08.2015, which is Annexure A5 to this OA; Mutation sanction letter dated 27.08.2015; which is Annexure A6 to this OA.

¶16

Documents executed: -Gazette notification dated 20.03.2017, which is Annexure A1 to this OA; Hypothecation agreement dated 29.08.2015 which is Annexure A4 to this OA; Legal Notice dated 16.02.2024 along with postal receipts, which is Annexure A7 to this OA and Statement of Account along with Calculation sheet and Banker Books Evidence certificate, which are Annexures A8 to this OA.

¶17

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.33,21,916.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶18

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 30.10.2025.

¶19

In support of the OA, affidavit of Sh. Maninder Singh , Branch Manager, State Bank of India, h as been filed.

¶20

3 OA/589/2025 STATE BANK OF INDIA VS SH. SWARAN SINGH

¶21

Heard ex-parte arguments and perused record.

¶22

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 A8 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.33,21,916.00p (Rupees Thirty Three Lacs Twenty One Thousand Nine Hundred Sixteen Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶23

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.90%p.a. including 2% penal interest with monthly rests from 24.04.2025 till the realization.

¶24

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.

¶25

4 OA/589/2025 STATE BANK OF INDIA VS SH. SWARAN SINGH

¶26

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.33,21,916.00p (Rupees Thirty Three Lacs Twenty One Thousand Nine Hundred Sixteen 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 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.

¶27

12. Any other application pending stands disposed of.

¶28

Issue Recovery Certificate accordingly.

¶29

Parties to appear before Learned Recovery Officer of this Tribunal on 18.11.2025.

¶30

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 .

¶31

Dated: 06.11.2025.

¶32

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

State Bank of India v. Sh. Swaran Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Swaran Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Axis Bank Limited versus Late Sh. Gurnam Singh through His Legal Heirs and Others

Bank of India versus Sh. Joginder Singh and Others

Axis Bank Ltd. versus Smt. Manjit Kaur and Others

State Bank of India versus M/S Khalsa Agriculture Store and Others

State Bank of India versus Sh. Manpreet Singh

Union Bank of India versus M/s Saptal Cater and Decorator and another