Allowed

State Bank of India v. Sh. Malkit Singh

DRT25 Sept 2025OA/692/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the State Bank of India's application for recovery of a defaulting loan. The court adjusted the interest rate to 8% per annum and ordered recovery from mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs. 20,74,183 along with costs and simple interest at 8% p.a.; order to issue Recovery Certificate; liberty to enforce claim through sale of assets.

State Bank of India versus Sh. Malkit Singh — Cheque Dishonour | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.692/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.05.2024

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DATE OF DECISION: 25.09.2025

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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, Chandigarh having branches all Over India and one of its branch situated at ADB Phillaur, District Jalandhar, Punjab through its Branch Manager Sh. Pradeep Kumar Chauhan, who is authorized Officer.

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……..Applicant Versus

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Sh. Malkit Singh S/o Sh. Chint Singh R/o House No. HL311, Ward No.14, Sukhdev Nagar, Jamalpur Colony, Focal Point, Ludhiana.

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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 bank under Section 19 of the Recovery of Debts and Bankruptcy Act,1993, against the defendant for recovery of Rs.20,74,183.00p (Rupees Twenty Lacs Seventy Four Thousand One Hundred Eighty Three Only). The Original Application has been filed through Sh. Pradeep Kumar Chauhan, Branch Manager, o f the applicant, who is competent to institute the Original Application in terms of gazette notification dated 26.09.1959, 26.08.1972, 27.03.1987, 17.05.2001 issued by the Executive Committee of the Central Board in exercise of the power conferred on it under regulations Nos.76 & 77 of State Bank of India General Regulations made by Reserve Bank of India in exercise of

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2 OA/692/2024 STATE BANK OF INDIA VS SH.MALKIT SINGH

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powers conferred on it by sub section 3 of section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. State Bank of India Regulations dated 27.03.1987, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide Loan Application dated 21.01.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs vide Letter of arrangement dated 11.02.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgage his immovable properties i.e. total land measuring 12Kanal situated at Village Kumkalan, Hadbast No.28, Tehsil and District Ludhiana (Punjab) vide Mortgage Deed bearing vasika no.1472 dated 07.02.2013, along with true translations, which is Annexures A5 & A5-T to this OA.

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Documents executed: - Hypothecation agreement, Consent letter, both dated 11.02.2013, which are Annexures A4 & A6 to this OA; Revival letter dated 14.01.2016, which is Annexure A7 to this OA; Legal notice dated 26.12.2015, 09.02.2018, 08.01.2020, 11.03.2022 & 19.03.2024, which are Annexures A8 & A9 to this OA and Statement of account, which is Annexure A10 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.20,74,183.00p, 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. 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 06.01.2025.

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3 OA/692/2024 STATE BANK OF INDIA VS SH.MALKIT SINGH

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In support of the OA, affidavit of Sh. Pradeep Kumar Chauhan, Branch Manager, State Bank of India, h as been filed.

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Heard ex-parte arguments and perused record

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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 A10 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.20,74,183.00p (Rupees Twenty Lacs Seventy Four Thousand One Hundred Eighty Three 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2%p.a. penal interest with half yearly rests from 17.03.2024 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 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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4 OA/692/2024 STATE BANK OF INDIA VS SH.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.20,74,183.00p (Rupees Twenty Lacs Seventy Four Thousand One Hundred Eighty Three 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 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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12. 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 17.10.2025.

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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 .

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Pronounced by me in the open Tribunal .

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Dated: 25.09.2025

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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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