Allowed

State Bank of India v. Sh. Sandeep Singh

DRT31 Dec 2025OA/594/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application under the RDB Act 1993 filed by State Bank of India against Sandeep Singh for the recovery of Rs.23,04,830.00 plus costs and interest. After observing that the defendant failed to appear and was proceeded ex parte, the Tribunal imposed a uniform simple interest rate of 8.00% p.a. ordered recovery via sale of mortgaged properties, and issued a Recovery Certificat

What did the court decide?

Recovery of Rs.23,04,830.00 with costs and simple interest at 8.00% p.a.; Recovery Certificate issued; recovery ordered via sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.594/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.04.2023

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DATE OF DECISION: 31.12.2025

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State Bank of India, a body Corporate constituted under The State Bank of India Act, 1955, having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh having branches all over India and one of its branch situated at Village Bara Pind, Tehsil Phillaur, District Jalandhar through Sh. Harish Kumar, Branch Manager and Authorized Officer of the Applicant.

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……..Applicant Versus

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Sh. Sandeep Singh S/o Sh. Avtar Singh, R/o Village Sarhala Ranua, Tehsil Nawanshahr, District Shaheed Bhagat Singh Nagar

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….……Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the 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.23,04,830.00 (Rupees Twenty Three Lacs Four Thousand Eight Hundred Thirty Only). The Original Application has been filed through Sh. Harish Kumar, Branch Manager and Authorized Officer of the applicant, who is competent to institute the Original Application vide State Bank of India Regulations dated 27.03.1987, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 31.07.2013, along with English Translation, which are Annexures A2 to A-2T to this OA.

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OA NO.594/2023 STATE BANK OF INDIA VS. SANDEEP SINGH

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 31.07.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 09K-8M, situated at Chak Guru, District Shaheed Bhagat Singh Nagar, Punjab vide Mortgage Deed bearing vasika No.996 dated 21.08.2013, along with its translation, which are Annexures A6 to A- 6T to this OA.

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Documents executed: Voter ID Proof of defendant in file 3, which is Annexure A3 to this OA; Hypothecation Agreement dated 29.08.2013 which is Annexure A5 to this OA; Legal notice dated 15.05.2020 and 15.04.2021 which are Annexures A7 and A8 to this OA; Statement of Account which is Annexure A9 to this OA.

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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.23,04,830.00 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex parte on 15.10.2025. 7. In support of the OA, affidavit of Sh. Harish Kumar, Branch Manager, State Bank of India, has been filed. 8. Heard ex-arguments and perused record. 9. 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 A9 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

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OA NO.594/2023 STATE BANK OF INDIA VS. SANDEEP SINGH

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applicant. 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.23,04,830.00 (Rupees Twenty Three Lacs Four Thousand Eight Hundred Thirty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.40%p.a. plus @2% penal interest with half yearly rests from 01.03.2023 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 @8.00%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.

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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.23,04,830.00(Rupees Twenty Three Lacs Four Thousand Eight Hundred Thirty Only) with costs, current and future simple interest @8.00%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

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OA NO.594/2023 STATE BANK OF INDIA VS. SANDEEP SINGH

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.01.2026. 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: 31.12.2025. (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Sandeep Singh

Case brief

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State Bank of India v. Sh. Sandeep Singh

Case brief

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