Allowed

State Bank of India v. Sh. Davinder Singh

DRT29 Jul 2025OA/694/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India to recover a debt of almost Rs. 22 lakhs from Sh. Davinder Singh. The court validated the NPA classification, granted uniform simple interest at 8% p.a., and issued a recovery certificate.

What did the court decide?

Defendant ordered to pay Rs. 21,79,528 with simple interest @8% p.a.; Recovery Certificate issued; Sale of mortgaged/attachment of personal assets permitted.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.694/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.05.2023

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DATE OF DECISION: 29.07.2025

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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 Lohat Baddi, Tehsil Raikot, District Ludhiana, through its Branch Manager Sh. Narender Kumar Gena, who is Authorized Officer.

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……..Applicant Versus

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Sh. Davinder Singh S/o Sh. Gurnam Singh R/o House No.55, Village Jalwana, Tehsil Malerkotla, District Sangrur, Punjab.

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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 & Bankruptcy Act 1993, against the defendant for recovery of Rs.21,79,528.00p (Rupees Twenty One Lacs Seventy Nine Thousand Five Hundred Twenty Eight Only). The Original Application has been filed through Sh. Narender Kumar Gena, Branch Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notifications dated 26.09.1959, 26.08.1972, 27.03.1987 and 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

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OA NO.694/2023 STATE BANK OF INDIA VS SH. DAVINDER SINGH

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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.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs, Term Loan of Rs. 2.00 Lacs Loan of Rs.1.00 Lac for Debt Swap (Total Facilities of Rs.13.00 Lacs) vide Loan applications forms dated 10.04.2014, which are Annexures A2, A2/T, A3, A3/T, A9 and A9-T to this OA.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs, Term Loan of Rs. 2.00 Lacs Loan of Rs.1.00 Lac for Debt Swap (Total Facilities of Rs.13.00 Lacs) vide Sanction Letters dated 10.04.2014, which are Annexures A5 and A6 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. land measuring 06Bighas situated at Village Jalwana, Tehsil Malerkotla, District Sangrur, Punjab vide Registered Mortgage Deed bearing vasikano.136 dated 07.05.2014, along with translations, which are Annexures A11 & A11T to this OA. Documents executed:- I.D Proof of Defendant in FILE 3,which is Annexure A4 to this OA; Hypothecation Agreement for KCC, KGC and for debt swap, all dated 10.04.2014, which are Annexure A7, A8 & A10 to this OA; Balance Confirmation letters dated 01.12.2016 & 13.03.2017, which are Annexures A12 & A12-A to this OA; Revival letters dated 22.08.2019 & 26.04.2022, which are Annexures A13 to A15 to this OA; Legal Notices dated 16.07.2020, 28.04.2022 & 28.04.2023, which are Annexures A16 & A17 to this OA and Statement of Accounts, which are Annexures A18 to A20 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.21,79,528.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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OA NO.694/2023 STATE BANK OF INDIA VS SH. DAVINDER SINGH

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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 defendants and they were proceeded ex-parte on 21.03.2024.

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In support of the OA, affidavit of Sh. Narender Kumar Gena, Branch Manager, State Bank of India h as been filed. 8. 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 A20 to 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 loans 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.21,79,528.00p (Rupees Twenty One Lacs Seventy Nine Thousand Five Hundred Twenty Eight Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.95%p.a.in KCC, interest @12.55%p.a. in KGC Term loan & interest @12.50%p.a.in Debt Swap Term Loan with half yearly rests plus @2%p.a. penal interest from 19.04.2023 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, undertaking

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OA NO.694/2023 STATE BANK OF INDIA VS SH. DAVINDER SINGH

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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 all 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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,79,528.00p (Rupees Twenty One Lacs Seventy Nine Thousand Five Hundred Twenty Eight Only) with costs, current and future simple interest @08.00%p.a. in all 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 defendants 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 defendants. 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 04.09.2025

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Copy of this order be given dasti to the applicant and be sent to defendants 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: 29.07.2025

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

State Bank of India v. Sh. Davinder Singh

Case brief

What is this about?

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State Bank of India v. Sh. Davinder Singh

Case brief

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