Allowed

State Bank of India v. Sh. Bakhshish Singh and Others

DRT10 Oct 2025OA/99/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India against four borrowers for recovery of a Rs.37,35,810 outstanding KCC loan. The Tribunal granted a uniform simple interest rate of 8% p.a. instead of the claimed rate and directed the issuance of a Recovery Certificate after proceeding ex parte.

What did the court decide?

Defendants declared liable to pay Rs.37,35,810 with costs and uniform simple interest @8% p.a.; Recovery Certificate issued.

State Bank of India versus Sh. Bakhshish Singh and Others — Company and Corporate | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.99/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 30.08.2023

¶5

DATE OF DECISION: 10.10.2025

¶6

State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 and having its Central office at Madame Cama Road, Nariman Point, Mumbai and one of its Local head office at Sector-17-A, Chandigarh, and one of its branch at ADB Branch, The Mall, Kapurthala, Punjab through Sh. Balbir Singh Chief manager.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Bakhshish Singh S/o Sh. Chanan Singh, R/o Village Talwandi Piai, P.O.Khera Dona, District Kapurthala, Punjab.

¶10

Sh. Chanan Singh (Since deceased) S/o Sh. Ganda Singh through his LRs:

¶11

a. Smt. Mann Kaur Wd/o Late Sh. Chanan Singh, R/o Village Talwandi Piai, P.O.Khera Dona, District Kapurthala, Punjab.

¶12

b. Sh. Bakshish Singh S/o Late Sh. Chanan Singh, R/o Village Talwandi Piai, P.O. Khera Dona, District Kapurthala, Punjab.

¶13

c. Smt. Swaran Kaur D/o Sh. Chanan Singh, R/o Village Chabowal, District Kapurthala, Punjab.

¶14

….……Defendants

¶15

Advocates:

¶16

Argued by Ms. Anupama Takhi, Advocate for Applicant (through VC) Defendants are ex parte

¶17

FINAL ORDER

¶18

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.37,35,810.00p (Rupees Thirty Seven Lacs Thirty Five Thousand Eight Hundred Ten Only). The Original Application has been filed through Sh. Balbir Singh, Chief

¶19

¶20

OA NO.99/2024

¶21

STATE BANK OF INDIA Vs. SH. BAKHSHISH SINGH AND OTHERS

¶22

Manager of the applicant, who is competent to institute the Original Application in the terms of Gazette Notification published in Gazette of India dated 27.03.1987 and 17.05.2001 under regulations no.76 read with 77 of State Bank of India General Regulations framed in exercise of the powers conferred by Sub Section (3) of Section 50 of the State Bank of India, Act, 1955 with the previous sanction of the Central Government. Gazette Notification dated 27.03.1987, which is

¶23

Annexure A2 to this OA.

¶24

The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 19.09.2013, along with its translation which are Annexure A8 to this OA.

¶25

The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Memorandum of Sanction dated 15.10.2013, along with its translation which is Annexure A9 to this OA and letter of arrangement dated 15.10.2013, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants vide undertaking dated 15.10.2013, which is Annexure A12 to this OA.

¶26

Defendant no.2 (since deceased) had mortgaged his immovable property i.e. Land measuring 33kanal-08Marla Situated at Village Talwandi Pai, Hadbast No. 114, P.O. Khera Dona, District Kapurthala, Punjab vide Registered Mortgaged Deed bearing vaiska no.2244 dated 01.10.2013, along with its translation, w hich are Annexures A4 and A5 to this OA; Mortgage certificate dated 12.09.2019, which is Annexure A6 to this OA; Jamabandi for the year 2017-2018, along its translation, which is Annexure A7 to this OA.

¶27

Documents executed: Notifications dated 22.02.2017, which is Annexure A1 to this OA; Affidavit dated 19.09.2013, which is Annexure A3 to this OA; Hypothecation agreement dated 15.1.02013, which is Annexures A11 to this OA; Balance

¶28

Confirmation cum acknowledgement letters dated 08.10.2016 and

¶29

3 OA NO.99/2024 STATE BANK OF INDIA Vs. SH. BAKHSHISH SINGH AND OTHERS

¶30

30.08.2017, which are Annexures A13 and A14 to this OA; D.P. Note dated 12.12.2018, which is Annexure A15 to this OA; Death certificate of defendant no. 2 dated 02.10.2019, which is Annexure A16 to this OA; Notice dated 10.09.2021 and 02.03.2022, along with their translation, which are Annexures A17 & A19 to this OA; Revival letters dated 06.02.2020 and 21.04.2022, which are Annexures A18 & A22 to this OA; Legal notice dated 13.11.2021, 16.09.2022 & 17.01.2023, along with postal receipts, which are Annexures A20, A21 & A23 to A25 to this OA and Statement of account with interest calculation sheet and Banker’s Certificate, which are Annexures A26 and A27 to this OA; Collector rate, which is Annexure A28 to this OA.

¶31

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit Rs.37,35,810.00p, 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.

¶32

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 03.09.2025.

¶33

In support of the OA, affidavit of Sh. Balbir Singh, Chief Manager, State Bank of India, has been filed.

¶34

Heard ex-parte arguments and perused record.

¶35

It was argued by learned counsel through Video Conferencing for applicant 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 A28 to this OA, it is proved that the defendant no. 1 and defendant no. 2 (since deceased) approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in

¶36

¶37

OA NO.99/2024

¶38

STATE BANK OF INDIA Vs. SH. BAKHSHISH SINGH AND OTHERS

¶39

favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 and defendant no. 2 (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,35,810.00p (Rupees Thirty Seven Lacs Thirty Five Thousand Eight Hundred Ten Only) with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶40

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest with half yearly rests from 16.07.2023 till the realization.

¶41

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 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 @8.00%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.

¶42

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.37,35,810.00p (Rupees Thirty Seven Lacs Thirty Five Thousand Eight Hundred Ten Only) jointly and severally, with costs, current and future simple interest @8.00%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 defendants in execution

¶43

¶44

OA NO.99/2024 STATE BANK OF INDIA Vs. SH. BAKHSHISH SINGH AND OTHERS

¶45

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.

¶46

Any other application pending stands disposed of.

¶47

Issue Recovery Certificate accordingly.

¶48

Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2025.

¶49

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.

¶50

Pronounced by me in the open Tribunal .

¶51

Dated: 10.10.2025

¶52

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

State Bank of India v. Sh. Bakhshish Singh and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Bakhshish Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Smt. Gurmeet Kaur and Another

Union Bank of India versus Sh. Raj Kumar and Others

Punjab Gramin Bank versus Sh. Kashmir Singh

Axis Bank Ltd. versus Sh. Iqbal Singh and Another

Hdfc Bank Limited versus Sh. Kulwant Singh and Others

Punjab Gramin Bank versus Sh. Ram Gir