Allowed

State Bank of India v. Sh. Malkit Singh

DRT4 Jun 2025OA/678/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal upheld the applicant bank's claim for recovery of Rs. 31,52,031 owing from the defendant for defaulted KCC and term loans. The Tribunal granted a uniform simple interest rate of 8% p.a. instead of the claimed rates.

What did the court decide?

Recovery of Rs. 31,52,031 along with costs and uniform simple interest at 8% p.a. till realization; recovery via sale of mortgaged properties under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.678/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.03.2022

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DATE OF DECISION: 04.06.2025

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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 one of its branch office at Ghanaur, Tehsil Rajpura, District Patiala Punjab through its Branch Manager Sh. Pramod Kumar Sharma.

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……..Applicant Versus

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Sh. Malkit Singh S/o Sh. Mahinder Singh R/o Ward No.1, Ghanaur, Tehsil Rajpura, District Patiala, Punjab.

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….……Defendant

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Advocates:

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Present Sh. Samrat Ahuja, Advocate proxy for Sh. Rajnish K. Jindal, Advocate for the applicant Defendant is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.31,52,031.00p (Rupees Thirty One Lacs Fifty Two Thousand One Hundred Thirty One Only). The Original Application has been filed through Sh. Pramod Sharma, Branch Manager o f the applicant, who is competent to institute the Original Application in terms of gazette notifications published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under regulations no.76 & 77 of State Bank of India General Regulations framed in exercising of the powers conferred by Sub section 3 of section 50 of the State Bank of India Act, 1955 with the precious sanction of the central Government.

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2 OA NO.678-2022 STATE BANK OF INDIA VS MALKIT SINGH

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.18.00 Lacs & KGC Term Loan of Rs.7.00 Lacs vide Loan Applications dated 19.09.2016, which are Annexures A1 & A5 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.18.00 Lacs & KGC Term Loan of Rs.7.00 Lacs vide Sanction Letter & Letter of arrangement dated 26.10.2016 & 04.11.2016, which are Annexures A2 & A6 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage his immovable properties i.e. total land measuring 15Bigha-13Biswa situated at Village Ghanaur, Sub Tehsil Ghanaur, Tehsil Rajpura District Patiala Punjab vide Declaration u/s 4(1) dated 28.10.2016, which is Annexure A9 to this OA. Documents executed:- Hypothecation agreement, Letter of Undertaking dated 04.11.2016, which are Annexures A3 & A4, A7 & A8 to this OA; Balance Confirmation letter dated 04.10.2019, which is Annexure A10 to this OA; Notice dated 14.12.2021, which is Annexure A11 to this OA; Legal notice dated 12.03.2022, which is Annexure A12 to this OA and Statements of accounts duly certified which are Annexures A13 & A14 to this OA 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.31,52,031.00p, which is recoverable and the defendant were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 exparte on 28.07.2023. 7. In support of the OA, affidavit of Sh. Pramod Sharma, branch manager, State Bank of India, h as been filed.

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3 OA NO.678-2022 STATE BANK OF INDIA VS MALKIT SINGH

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Ld. proxy counsel for applicant present has not advanced any argument. Perused record

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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 A14 o 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 loan 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.31,52,031.00p (Rupees Thirty One Lacs Fifty Two Thousand One Hundred Thirty One 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 bank in relief clause has claimed interest @10.60%p.a. in KCC Limit & interest @10.05%p.a. KGC Term Loan along with penal interest @2.00%p.a. with half yearly rests from 11.03.2022 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, 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 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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4 OA NO.678-2022 STATE BANK OF INDIA VS MALKIT SINGH

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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.31,52,031.00p (Rupees Thirty One Lacs Fifty Two Thousand One Hundred Thirty One 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 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 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.

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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.06.2025.

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Copy of this order be given Dasti to the applicant bank 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.

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Pronounced by me in the open Tribunal . Dated: 04.06.2025.

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

State Bank of India v. Sh. Malkit Singh

Case brief

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State Bank of India v. Sh. Malkit Singh

Case brief

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