Allowed

State Bank of India v. Sh. Kewal Singh

DRT29 Aug 2026OA/1016/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by State Bank of India against a defendant for recovery of an agricultural loan. The defendant was absent. The Tribunal directed recovery of the principal amount along with interest at 8% p.a., reduced from the claimed 9%, and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 20,73,938/- with simple interest @ 8% p.a. from the date of filing, issuance of Recovery Certificate.

State Bank of India versus Sh. Kewal Singh — Money Laundering | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1016/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2026

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DATE OF DECISION: 29.08.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955, having its Corporate Centre at Mumbai, and a branch office, AMCC Phagwara, District Kapurthala, Punjab-144401, through its Chief Manager and Authorized Officer, Sh. Naresh Kumar Rattan. ……..Applicant Versus

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Sh. Kewal Singh S/o Sh. Tarsem Singh, Resident of Mohalla Baghwala, Tehsil Shahkot, Jalandhar-144702

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.……Defendant

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Advocate:

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Argued by Ms. Anupama Takhi, Advocate for the applicant None for Defendant (already ex parte vide order dated 25.08.2026)

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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 and Bankruptcy Act 1993, against the defendant for recovery of Rs.20,73,938.00 (Rupees Twenty Lac Seventy Three Thousand Nine Hundred Thirty Eight only). The Original Application has been filed through Sh. Naresh Kumar Rattan, Chief Manager, of the applicant bank, who is competent to institute the Original Application.

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The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs.19.80 Lacs for purchase of Tractor and other agricultural implements vide Application Form dated 02.12.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan of Rs.19.80 Lacs vide Appraisal-cum-Sanction Letter dated 26.12.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the

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2 OA/1016/2026 STATE BANK OF INDIA VS SH. KEWAL SINGH

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defendant vide Letter of Arrangement dated 31.12.2024, which is Annexure A4 to this OA.

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Defendant hypothecated his Tractor that’s FARMTRAC 60 F41, bearing Registration No. PB08FQ7609, Engine No. E2681588, Chassis No. T052687645EN , AND other agricultural implements i.e. Rotavator, Disc Ridger, Laser Land Leveler, Reversible MB Plough, Mulcher and Cultivator vide Hypothecation Agreement dated 31.12.2024, which is Annexure A5 to this OA; Invoice dated 01.01.2025, which is Annexure A6 to this OA; Invoice dated 30.11.2024, which is Annexure A7 to this OA; Registration Certificate dated 09.03.2025, which is Annexure A8 to this OA; Documents executed : Notifications dated 27.03.1987 and 17.05.2001, which are Annexure A1 to this OA; CERSAI Report dated 24.01.2025, which is Annexure A9 to this OA; Legal Notice dated 20.01.2026, which is Annexure A10 to this OA; Statement of Account, which is Annexure A11 to this OA; and Closure Balance dated 30.06.2026, which is Annexure A12 to this OA. 5. The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.20,73,938.00 (Rupees Twenty Lac Seventy Three Thousand Nine Hundred Thirty Eight only), which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, he was proceeded ex-parte on 25.08.2026. 7. In support of the OA, affidavit of Sh. Naresh Kumar Rattan, Chief Manager, State Bank of India, has been filed. 8. Heard ex parte arguments and perused record. 9. 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

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3 OA/1016/2026 STATE BANK OF INDIA VS SH. KEWAL SINGH

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Term Loan, 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.20,73,938.00 (Rupees Twenty Lac Seventy Three Thousand Nine Hundred Thirty Eight only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. 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. from 01.07.2026 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 hypothecated agricultural machinery, 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 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.20,73,938.00 (Rupees Twenty Lac Seventy Three Thousand Nine Hundred Thirty Eight 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 agricultural machinery 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

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4 OA/1016/2026 STATE BANK OF INDIA VS SH. KEWAL SINGH

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rema	in unsatisfied, it shall be entitled to recover the same by
attac	hment 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 14	.09.2026
15.	Copy of this order be given dasti to the applicant and be sent to
defen	dant through registered/speed post and this order be also
uploa	ded on the official website of this Tribunal and record be consigned.
Pron	ounced by me in the open Tribunal.
Date	d: 29.08.2026
	(MRIDULESH KUMAR SINGH)
	Presiding Officer,
	DRT-III, Chandigarh

State Bank of India v. Sh. Kewal Singh

Case brief

What is this about?

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State Bank of India v. Sh. Kewal Singh

Case brief

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