Allowed

State Bank of India v. Bhagwant Singh

DRT7 Oct 2025OA/613/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by State Bank of India for recovery of Rs. 31.54 lakhs. The Tribunal held the defendant liable, declared their assets chargeable, and directed the issuance of a recovery certificate.

What did the court decide?

Relief to pay ₹31,54,872 plus future interest at 6% simple, recovery from hypothecated agricultural land and personal assets, and issuance of a recovery certificate.

State Bank of India versus Bhagwant Singh — Contract and Commercial Disputes | DRT (2025)

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Order pronounced on: 07.10.2025

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“ORIGINALAPPLICATION” No. 613 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 613 OF 2025

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DATE OF DELIVERY OF ORDER 07.10.2025

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STATE BANK OF INDIA , a Body Corporate constituted under the State Ban k of India Act,. 1955 (23 of 1955), having its Corporate Office at Corporate Centre, State Bank Bhawan, Madam Cama Road, Nariman Point, Mumbai-400021; and branch/offices all over India, including one of its Branch SARB, 3rd Floor, Matrix Mall, Near Lal Jain Mandir, Sector-4, Jawahar Nagar, Jaipur (Raj.), through its Chief Manager Mr. Jaidev Sharma.

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…..Applicant Bank…..

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VERSUS

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1. Sh. Bhagwant Singh S/o Sh. Makkhan Singh, R/o Chak 49 GB (A), Sri Vijay Nagar, Sri Ganganagar-335704 (Rajasthan).

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……Defendants…..

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Counsel for the Applicant Bank Sh. Kirti Kapoor Counsel for the Defendant

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Sh. Lakhvinder Singh

OA No. 613 of 2025

JUDGMENT

This Original Application was filed by the applicant bank on 13.03.2025 for recovery of outstanding amount of Rs. 31,54,872/- from the Defendants.

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As per the pleadings, Defendant had approached the applicant bank for availing KCC facility. After due consideration, KCC facility was sanctioned by the Applicant Bank in favour of Defendant in the year 2016 vide sanction letter dated 08.08.2016 which was subsequently renewed/reduced/modified/enhanced from time to time and lastly renewed for a total sum of Rs. 21,18,000/-. Defendant failed to maintain financial discipline and therefore, their loan account was classified as NPA. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendant.

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Summons were issued to the Defendant on 06.05.2025. Sh. Lakhvinder Singh filed Vakalatnama on behalf of the Defendant.

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Reply has been filed by the Defendant with delay though there is an objection from the counsel for the bank. As there is no application for taking the reply on record. Counsel for the Defendant made oral request submitting that he is bound to his native place after filing of Vakalatnama, therefore there is a delay on his part. Delay stands condoned. Reply be taken on record.

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Counsel for the Defendant submitted that the averments/allegations/contentions made by the Applicant Bank

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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against the Defendant are absolutely wrong, baseless, untenable, unfounded, and malicious and the same are made with an ulterior motive for causing harassment and prejudice to the Defendant. The answering Defendant categorically deny each & every statement, allegation and contention made against the answering Defendant by the Applicant Bank in its Original Application. Furthermore, nothing contained in the present Original Application shall be deemed to be admitted unless, the same is specifically admitted herein. The answering Defendant reserves its right to file further Affidavit or a detailed reply, if as and when required. It is further submitted that the Original Application filed by the Applicant Bank qua the answering Defendant is totally misconceived and deserves to be dismissed instantaneously as the same is not maintainable, apart from being contrary and in violation to the laws. Furthermore, the present Original not is maintainable for not being with all the relevant details and information.

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It is submitted that the manner in which the contents of the para 3A as stated is not accepted being wrong and whimsical. It is pertinent to mention herein that the applicant in order to construe the present O.A. have maliciously 4. and unscrupulously have charged/deducted excessive monies and interest over the loan facility. It is submitted that the contents of the Para No. 4· of the Application are legal in nature hence nee d no reply however it is pertinent to mention herein that the present Application is filed without arising any cause of action, thus is liable to get dismissed on this ground alone.

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It is submitted that the content of Para (5.3) is related to the document put on record by the applicant's bank, hence the applicant bank be put to strict proof for the same. It is submitted

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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that the contents of the said para no (5.6.) relate to the alleged interest charged by the Bank, which are matters of record and stand disputed by the Applicant. It is submitted that the Bank has levied excessive, arbitrary, and compound interest contrary to the terms of sanction. The calculation of interest shown by the Bank is inflated and not in accordance with RBI guidelines. The Applicant craves leave of this Hon'ble Tribunal to verify the correctness of the same from Bank statements and relevant records. Hence, the contents of the para as stated by the Defendant arc denied. It is submitted that the content of Para (5.11.) are denied as being false and untenable that the applicant bank never served any legal notices and informed about the classification of the account as NPA. The bank has never orally requested for the regularization of the account. It is submitted that the contents of the para (5.13) regarding issuance of legal notice are denied. The Defendant never received any valid or proper legal notice from the Applicant Bank. Even otherwise, the alleged notice, if any, was defective, arbitrary, and contrary to law. Hence, the allegation of failure to deposit dues despite notice is baseless and misconceived. It is submitted that the content of Para (5.14.) are denied as being false calculations of the total due which has mentioned in the Para is illegal and arbitrary and there were no documents were annexed by the Bank for the charge of alleged rate of interest. The respondent was not aware about by such high rate of interest. It is submitted that the content of Para (5.15) is denied as being false as the cause of action was not continuing. That the bank has never informed the Respondent about the account has been classifies as NPA.

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It is submitted that the alleged outstanding sum of Rs. 31,54,872/as claimed by the Bank is highly disputed. The Defendant denies liability of the said amount. The Applicant Bank has not furnished

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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correct and reconciled statements of account duly certified under the Bankers' Books Evidence Act. Interest claimed at 13.65% p.a. with six monthly rests is usurious, penal and against RBI guidelines. It is submitted that the Defendant specifically objects to any order of sale of mortgaged property without proper valuation, settlement discussions and adherence to statutory procedure. It is submitted that the prayer for liberty to proceed against personal assets is premature and not maintainable at this stage. Unless the Bank proves its claim conclusively by producing admissible evidence, no such liberty can be granted. It is submitted that the claim for costs and future expenses is vague, excessive and liable to be rejected. That the Tribunal may not grant any relief beyond the pleadings and proof of the Applicant Bank.

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Counsel for the Defendant seeks waiver in the pendelite and future interest rate and leave it to the discretion of the Tribunal.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit of Shri Jaidev Sharma coupled with the recitals in the documents, viz Exhibit A/1 to A/12 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 613 of 2025 is allowed declaring that:-

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 31,54,872/- (Rupees Thirty One Lac Fifty Four Thousand Eight Hundred And Seventy Two only) with future interest @ 6% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and charged properties – 1) Agriculture Land of Khata No. 30, Stone No. 208/438, B. No. 13/1, 14 to 25, Stone No. 207/439, B. No. 11 to 14, 17 to 22, Stone No. 210/442, B. No. 1, 2, 3, 16 to 25 in Chak No. 49 GB (A), Tehsil Sri Vijay Nagar, District Sri Ganganagar, Admeasuring 8.856 Hectares as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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13.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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14.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 27.11.2025 .

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15.Prepare Recovery Certificate accordingly.

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16.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 07.10.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 613 OF 2025

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DATE OF DELIVERY OF ORDER 07.10.2025

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

1. Sh. Bhagwant Singh S/o Sh. Makkhan Singh, R/o Chak 49 GB (A), Sri Vijay Nagar, Sri Ganganagar-335704 (Rajasthan).

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……Defendants…..

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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Recovery Certificate for Rs. 31,54,872/-

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In terms of final order dated 07.10.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 31,54,872/- (Rupees Thirty One Lac Fifty Four Thousand Eight Hundred And Seventy Two only) with future interest @ 6% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and charged properties – 1) Agriculture Land of Khata No. 30, Stone No. 208/438, B. No. 13/1, 14 to 25, Stone No. 207/439, B. No. 11 to 14, 17 to 22, Stone No. 210/442, B. No. 1, 2, 3, 16 to 25 in Chak No. 49 GB (A), Tehsil Sri Vijay Nagar, District Sri Ganganagar, Admeasuring 8.856 Hectares as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 27.11.2025 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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This Certificate has been issued under my signatures and seal of the Tribunal on this 07.10.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 613 OF 2025

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DATE OF DELIVERY OF ORDER 07.10.2025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. Sh. Bhagwant Singh S/o Sh. Makkhan Singh, R/o Chak 49 GB (A), Sri Vijay Nagar, Sri Ganganagar-335704 (Rajasthan).

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……Defendants…..

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Order signed & upload on: 08.10.2025

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OA No. 613 of 2025

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	34,005.00
2	Process Fee (Inc. Publication)	NIL
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	10,000.00
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	45,255.00

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & upload on: 08.10.2025

OA No. 613 of 2025

07.10.2025

Counsel:

Sh. Kirti Kapoor, Counsel for Applicant Bank Sh. Lakhvinder Singh, Counsel for the Defendant

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & upload on: 08.10.2025

OA No. 613 of 2025

07.10.2025

Counsel:

Sh. Kirti Kapoor, Counsel for Applicant Bank Sh. Lakhvinder Singh, Counsel for the Defendant

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The Tribunal vide order dated 07.10.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 07.10.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & upload on: 08.10.2025

State Bank of India v. Bhagwant Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Bhagwant Singh

Case brief

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