Allowed

State Bank of India v. Sh. Shamsher singh

DRT23 Sept 2025OA/95/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by State Bank of India against a borrower for recovery of an agricultural term loan. The defendant was absent. The Tribunal adjusted interest to 8% per annum and authorized recovery via hypothecated asset sale or personal attachment.

What did the court decide?

Declaration of liability to pay Rs.35,84,005/- with costs and simple interest @8% p.a., and authorization for recovery from sale of hypothecated vehicle or personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.95/2025

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 29.01.2025

¶5

DATE OF DECISION: 23.09.2025

¶6

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 having branches all over India one of its branch situated at Samrala Road Machhiwara, Tehsil Samrala, District Ludhiana, through its Branch Manager Sh. Dinesh Bishnoi, who is Authorized Officer.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Shamsher Singh S/o Sh. Baldev Singh R/o Village Nanowal Bet,

¶10

Rakran Bet, District SBS Nagar, Punjab.

¶11

………. Defendant

¶12

Advocates:

¶13

Argued by Ms. Lovepreet Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

¶14

Defendant already ex-parte

¶15

FINAL ORDER

¶16

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.35,84005.00p (Rupees Thirty Five Lacs Eighty Four Thousand Five Only). The Original Application has been filed through Sh. Dinesh Bishnoi, Branch Manager o f the applicant, who is competent to institute the Original Application in terms of Gazette Notifications dated 26.09.1959, 26.08.1972, 02.05.1987 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 section3 of section 50 of the State Bank

¶17

¶18

OA NO.95/2025 STATE BANK OF INDIAVS SH. SHAMSHER SINGH

¶19

of India Act, 1955. Notification dated 02.05.1987 is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant had approached the applicant for grant of Agri. Term Loan of Rs.33.00 Lacs for purchase of combine harvester (maize cutter) vide Loan application form dated 08.05.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned Agri. Term Loan of Rs.33.00 Lacs for purchase of combine harvester vide Letter of arrangement dated 16.05.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had had hypothecated his movable assets i.e. Combine Harvester namely KS 9300 HARVESTER KS 9300, Bearing registration No. PB13TC0073, Chassis No. KS9300L20225740 & Engine No. PMHM103223 vide Hypothecation agreement dated 16.05.2023, which is Annexure A4 to this OA. Invoice dated 29.05.2023, which is Annexure A5 to this OA.

¶21

However, in the OA it is mentioned that despite repeated requests by the applicant, the defendant did not supply the original certificate of registration of combine harvester with maize cutter purchased with the loan.

¶22

Documents executed: - Recall notice dated 08.08.2023, which is Annexure A6 to this OA; Legal Notice dated 29.11.2023, which is Annexure A7 to this OA and Statement of Account, which are Annexure A7 to this OA.

¶23

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.35,84005.00p, which is recoverable and the defendant 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.

¶24

¶25

OA NO.95/2025 STATE BANK OF INDIAVS SH. SHAMSHER SINGH

¶26

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 29.07.2025.

¶27

In support of the OA, affidavit of Sh. Dinesh Bishnoi, Branch Manager, State Bank of India h as been filed.

¶28

Heard ex-parte arguments and perused record.

¶29

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 A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facility 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 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.35,84005.00p (Rupees Thirty Five Lacs Eighty Four Thousand Five Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

¶30

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rests from 28.01.2025 till the realization.

¶31

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/hypothecated assets, 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

¶32

¶33

OA NO.95/2025 STATE BANK OF INDIAVS SH. SHAMSHER SINGH

¶34

@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.

¶35

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.35,84005.00p (Rupees Thirty Five Lacs Eighty Four Thousand Five 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 vehicle 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 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 15.10.2025 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: 23.09.2025.

¶36

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

State Bank of India v. Sh. Shamsher singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Shamsher singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus M/S New Dashmesh Agro Industries and Another

Icici Bank Limited versus Sh. Resham Singh and Another

Icici Bank Limited versus Smt. Neeru Khosla

Icici Bank Limited versus Sh. Ravideep Singh and Another

State Bank of India versus Sh. Beant Singh

State Bank of India versus Sh. Gurjind Singh