Original application under Section 19 of RDB Act allowed ex-parte against defendant for recovery of Rs. 23 lakhs with adjusted interest at 8% per annum and direction to issue recovery certificate.
Recovery of principal sum of Rs.23,84,129.00 with interest @8% p.a. and issuance of recovery certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.693/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.05.2023
DATE OF DECISION: 29.07.2025
State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 and having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17A, Chandigarh having branches all over India and one of its branch situated at Lohat Baddi, Tehsil Raikot, District Ludhiana, through its Branch Manager Sh. Narender Kumar Gena, who is Authorized Officer.
……..Applicant Versus
Sh. Sher Singh son of Sh. Ranjit Singh resident of House No. 459, Part 2, Village Kalsian, Tehsil Raikot, District Ludhiana, Punjab.
………. Defendant
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant
Defendant already ex-parte
FINAL ORDER
2
OA NO.693/2023 STATE BANK OF INDIA VS SH. SEWAK SINGH
17.05.2001 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under regulation no.76 and 77 of State Bank of India General Regulations, in exercise of powers, conferred by the sub section 3 of section 50 of the State Bank of India Act, 1955. State Bank of India regulations dated 27.03.1987, which is Annexure A1 to this OA.
3
OA NO.693/2023 STATE BANK OF INDIA VS SH. SEWAK SINGH
25.06.2022 and 26.04.2023, which are Annexures A14 and A15 to this OA; Statement of Account, which is Annexures A16 to this OA.
4
OA NO.693/2023 STATE BANK OF INDIA VS SH. SEWAK SINGH
from the defendant, jointly and severally, 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 in relief clause has claimed interest @11.55%p.a. with half yearly rests plus @2% p.a. penal interest from 19.04.2023 till the realization.
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 loans 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. 11. In the result, the application is allowed declaring that the defendant are liable to pay to the applicant a total sum of Rs.23,84,129.00p (Rupees Twenty Three Lacs, Eighty Four Thousand One Hundred Twenty Nine 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 applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the
5
OA NO.693/2023 STATE BANK OF INDIA VS SH. SEWAK SINGH
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 04.09.2025. 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: 29.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount from the defendant?
Whether to grant interest on the recovered amount and issue a recovery certificate?
3 provisions across 3 enactments
State Bank of India
Sh. Sher Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
