Allowed

State Bank of India v. Sh. Darshan Singh and Another

DRT25 Sept 2025OA/945/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant's application for recovery of debts. The court declared defendants liable to pay the outstanding loan amount including fixed simple interest and authorized recovery through sale of mortgaged properties or attachment of assets, issuing a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs.46,48,997.00 with 8% p.a. interest; Recovery Certificate issued; Enforcement via sale of mortgaged property or attachment of assets.

State Bank of India versus Sh. Darshan Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.945/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2022

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DATE OF DECISION: 25.09.2025

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State Bank of India, a body corporate Constituted under the provisions of the State Bank of India, 1955 (23 of 1955) and the successor to State Bank of Patiala under the acquisition of State Bank of Patiala, Order 22.02.2017, passed by the Central Government Under section 35 of the State Bank of India Act, 1955 (23 of 1955) having its branch office at Civil Hospital Road, Opposite Ram Leela Ground Ropar, District Roopnagar, (Punjab) through its Branch Manager Ms. Navjot Kaur.

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……..Applicant

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Versus

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Sh. Darshan Singh S/o Sh. Rattan Singh, R/o Village Khatana, Post Office Tibba Tapprian, Sub Tehsil Nurpur Bedi, Tehsil Anandpur Sahib, District Roop Nagar, (Punjab).

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Sh. Rupinder Singh S/o Sh.Major Singh, R/o House No.279, Gillco valley, Ropar, District Roopnagar, (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. P.K. Khurana, Advocate for the applicant Defendants 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.46,48,997.00P (Rupees Forty Six Lacs Forty Eight Thousand Nine Hundred Nineteen Seven only). The Original Application has been filed through Ms.Navjot Kaur, Branch Manager, o f the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959,

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OA NO.945/2022 STATE BANK OF INDIA VS SH. DARSHAN SINGH AND ANOTHER

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26.08.1972 and 27.03.1987 issued by the Executive Committee of the Central Board Directors in exercise of the power conferred on it under regulations Nos.76 & 77 of State Bank of India Regulations, 1955 made by Reserve Bank of India in exercise of 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.

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The brief facts of the OA are that the defendant no. 1 had approached the applicant for the grant of Agriculture CC Limit (PBKC) of Rs.20.00 Lacs and Agriculture Term Loan of Rs. 10.00 Lacs vide Loan Applications dated 26.02.2015, along with their translations, which are Annexures A1 & A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant sanctioned the Agriculture CC Limit (PBKC) of Rs.20.00 Lacs and Agriculture Term Loan of Rs. 10.00 Lacs vide Letters of arrangement dated 26.02.2015, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 had mortgaged his immovable properties i.e. i.e. Land measuring 33K-11M situated at Village Khatana, Hadbast no. 519, Tehsil Anandpur Sahib, District Roop Nagar (Punjab), vide Declaration u/s 4(1) dated 24.02.2015, letter to Sub-Registrar dated 26.02.2015 for creation of charge, Non encumbrance certificate, legal search report dated 24.02.2015, affidavit dated 24.02.2015, legal search report dated 12.02.2020 which are Annexure A5 (Colly) to this OA. Documents executed:- Hypothecation agreements, Undertakings, Letter of undertaking, Deed of guarantee, Letter of undertaking in respect of Waiving of insurance, Consent letter all dated 26.02.2015, which are Annexures A6 to A13 to this OA; Revival letters, dated 23.02.2018 & 12.11.2020, which are Annexures A14 (Colly) to this OA; Letters/Notice & Legal notice dated 11.02.2019 & 28.02.2020,

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OA NO.945/2022 STATE BANK OF INDIA VS SH. DARSHAN SINGH AND ANOTHER

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which are Annexures A15 (Colly) to this OA and Statements of accounts certified under Bankers Books Evidence Act, 1981, which are Annexures A16 (Colly) 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 loan accounts there was a debit of Rs.46,48,997.00P, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were 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 Ms.Navjot Kaur, Branch Manager, State Bank of India, h as been filed.

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Heard ex-arguments and perused record.

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It was argued by learned counsel through 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 A16 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.46,48,997.00P (Rupees Forty Six Lacs Forty Eight Thousand Nine Hundred Nineteen Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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OA NO.945/2022 STATE BANK OF INDIA VS SH. DARSHAN SINGH AND ANOTHER

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.60%p.a.in PBKC and interest @11.95%p.a.in ATL with half yearly rests from 04.06.2022 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 defendants, 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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.46,48,997.00P (Rupees Forty Six Lacs Forty Eight Thousand Nine Hundred Nineteen Seven only) jointly and severally, with costs, current and future simple interest @8.00%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 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

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Tribunal on 17.10.2025.

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OA NO.945/2022 STATE BANK OF INDIA VS SH. DARSHAN SINGH AND ANOTHER

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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. Pronounced by me in the open Tribunal . Dated: 25.09.2025

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

State Bank of India v. Sh. Darshan Singh and Another

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State Bank of India v. Sh. Darshan Singh and Another

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