Allowed

State Bank of India v. Sh. Harbant Singh

DRT23 May 2025OA/93/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 RDBFI Act filed by State Bank of India for recovery of Rs. 24.62 lakhs against a borrower who failed to repay a sanctioned KCC loan. Equating interest to 8% per annum.

What did the court decide?

Defendant liable to pay Rs. 24.62 lakhs plus 8% per annum simple interest and costs; recovery through sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.93/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2023

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DATE OF DECISION: 23.05.2025

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State Bank of India a body corporate constituted under State Bank of India Act, 1955 and having its corporate office at Madam Cama Road, Nariman Point, Mumbai and one of its local Head office at Sector-17, Chandigarh and having its branches all Over India and one of its branch at Railway Road Budhlada, District Mansa Punjab through its Chief Manager Sh. Sukhpreet Singh.

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……..Applicant

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Versus

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Sh. Harbant Singh S/o Sh. Hardial Singh R/o House No.251, Village Kalipur, Tehsil Budhlada, District Mansa -151502.

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….……Defendant

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Advocates:

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Argued by Sh. P.K. Arora, Advocate for the applicant Defendants 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.24,62,431.00p (Rupees Twenty Four Lacs Sixty Two Thousand Four Hundred Thirty One Only). The Original Application has been filed through Sh. Sukhpreet Singh, Chief Manager o f the applicant bank, who is competent to institute the Original Application in terms of gazette notification dated 26.09.1959, 26.08.1972 02.05.1987 and 29.10.2005 read with Regulations No.76 and 77 of State Bank of India General Regulations 1955 framed in exercise of powers conferred by Section 50 of the State Bank of India Act, 1955 and being successor to State Bank of Patiala under the Acquisition by way of Amalgamation of

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2 OA NO.93-2023 STATE BANK OF INDIA VS HARBANT SINGH

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State Bank of Patiala order dated 22.02.2017 passed by 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 of Rs.17.00 Lacs vide Loan Application dated 06.05.2013, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the KCC of Rs.17.00 Lacs vide Sanction letter dated 11.05.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 56Kanal-03Marla detailed as: a. land measuring 42Kanal-03Marla situated at Village Phulluwala Dogra, Tehsil Budhlada, District Mansa Punjab b. land measuring 14Kanal-0Marla situated at Village Kalipur, Tehsil Budhlada, District Mansa Punjab vide Registered Mortgage Deed bearing Vasika No.447 dated 08.05.2013 with its translation, which is Annexure A6 to this OA. Documents executed: -Gazette notification dated 22.02.2017, which is Annexure A1 to this OA; Gazette notification colly, which is Annexure A2 to this OA; Hypothecation agreement dated 11.05.2013, which is Annexure A5 to this OA; Sanction of mutation along with translations dated 08.05.2013 & 09.05.2013, which is Annexure A7 to this OA; Revival Letters dated 14.03.2016, 03.03.2019 & 02.02.2022, which are Annexures A8 to A10 to this OA; Legal notice dated 07.07.2021, which is Annexure A11 to this OA and statement of account with certificate, which is Annexure A12 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.24,62,431.00p, which is recoverable and the defendant were served recall notices but they did not repay the outstanding

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3 OA NO.93-2023 STATE BANK OF INDIA VS HARBANT SINGH

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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 19.12.2023.

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In support of the OA, affidavit of Sh. Sukhpreet Singh Chief 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 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 A12 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.24,62,431.00p (Rupees Twenty Four Lacs Sixty Two Thousand Four Hundred Thirty One 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 bank in relief clause has claimed interest @11.55%p.a. along with penal interest @2.00% with half yearly rests from 07.01.2023 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

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4 OA NO.93-2023 STATE BANK OF INDIA VS HARBANT SINGH

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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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,62,431.00p (Rupees Twenty Four Lacs Sixty Two Thousand Four Hundred Thirty One 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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Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.06.2025.

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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 .

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Dated: 23.05.2025.

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

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OA NO.93-2023 STATE BANK OF INDIA VS HARBANT SINGH

State Bank of India v. Sh. Harbant Singh

Case brief

What is this about?

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State Bank of India v. Sh. Harbant Singh

Case brief

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