Allowed

State Bank of India v. Ranjodh Singh

DRT2 Jul 2025OA/776/2023

Case brief

AI extract

What is this about?

The adjudicating officer allowed the applicant bank's application for recovery of dues totaling Rs.31,38,741.88p. The court directed uniform simple interest at 8% p.a. and authorized recovery via sale of hypothecated properties or personal assets under the SARFAESI Act if dues remain unsatisfied. Recovery certificates were issued.

What did the court decide?

Recovery certificate issued; defendant liable to pay Rs.31,38,741.88p plus costs and 8% simple interest from filing date via sale of mortgaged properties or personal assets.

State Bank of India versus Ranjodh Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.776/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.06.2023

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DATE OF DECISION: 02.07.2025

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State Bank of India, a body corporate, constituted under the provisions of the state bank of India Act, 1955 (23 of 1955) having its Corporate office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra) 400021 carrying on its business of banking in India and abroad having one of its local head office at Sector 17 Chandigarh having its branch amongst other places at Village and Post office Nadampur, Tehsil and district Sangrur148026 Punjab through its branch manager Ms. Renuka.

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……..Applicant

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Versus

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Sh. Ranjodh Singh S/o Sh. Apar Singh R/o Village Bimbar Post Office Majhi, Tehsil Bhawanigarh, District Sangrur (Punjab)-148026.

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….……Defendant

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Advocates:

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Argued by Sh. Sanjay Sagar, Advocate proxy for Sh. Vivek Verma, 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.31,38,741.88p (Rupees Thirty One Lacs Thirty Eight Thousand Seven Hundred Forty One & Eighty Eight Paise Only). The Original Application has been filed through Ms. Renuka, Branch Manager of the applicant bank, who is competent to institute the Original Application vide 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

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2 OA NO.776-2023 STATE BANK OF INDIA VS RANJODH SINGH

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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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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 Limit of Rs.10.00 Lacs (Total credit facilities of Rs.28.00Lacs) vide Loan application dated 16.03.2016, which are Annexures A2 & A3 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs & KGC Limit of Rs.10.00 Lacs (Total credit facilities of Rs.28.00Lacs) vide Letter of arrangements dated 22.03.2016 & 02.04.2016, which are Annexures A4 & A5 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 28Bigha 16Biswa situated at Village Bimbar, Hadbast No.21, tehsil and district Sangrur Punjab Vide Declaration u/s 4(1) dated 28.03.2016 bearing vasika no.3035 dated 28.03.2016, which is Annexure A9 to this OA.

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Documents executed:- Notification dated 22.02.2017, which is Annexure A1 to this OA; Hypothecation agreement, Letter of undertaking all dated 22.03.2016 & 02.04.2016, which are Annexures A6 to A8 to this OA; Affidavit dated 23.02.2016, which is Annexure A10 to this OA; Mutation verification report dated 02.01.2017, which is Annexure A11 to this OA; Legal search report dated 24.06.2022, Which is Annexure A12 to this OA; CERSAI Report dated 21.10.2020, which is Annexure A13 to this OA; Revival letters (KGC & KCC) dated 15.03.2019,10.02.2022 & 15.03.2019 which are Annexures A14 to A17 to this OA; Legal notice dated 14.0.2022 & 29.11.2022 along with postal receipts, which are Annexures A18, A19 and A19/T to this

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3 OA NO.776-2023 STATE BANK OF INDIA VS RANJODH SINGH

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OA and Statements of accounts with certificate, which are Annexures

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A20 & A21 to this OA

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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.31,38,741.88p, 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 29.07.2024.

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In support of the OA, affidavit of Ms. Renuka, Branch Manager, State Bank of India, h as been filed.

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Heard 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 A21 t o this OA, it is proved that the defendant approached applicant for availing of the loan facilities 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, 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.31,38,741.88p (Rupees Thirty One Lacs Thirty Eight Thousand Seven Hundred Forty One & Eighty Eight Paise Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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4 OA NO.776-2023 STATE BANK OF INDIA VS RANJODH SINGH

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.55%p.a. in KCC Limit & interest @10.45%p.a. in KGC Limit along with penal interest @2.00%p.a. with half yearly rests from 09.05.2023 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 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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.31,38,741.88p (Rupees Thirty One Lacs Thirty Eight Thousand Seven Hundred Forty One & Eighty Eight Paise 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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5 OA NO.776-2023 STATE BANK OF INDIA VS RANJODH SINGH

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Parties to appear before Learned Recovery Officer of this TrSibunal on 21.07.2025.

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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 .

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Dated: 02.07.2025.

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

State Bank of India v. Ranjodh Singh

Case brief

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State Bank of India v. Ranjodh Singh

Case brief

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