Allowed

State Bank of India v. Sh. Diyal Singh Alias Dial Singh and Others

DRT4 Feb 2026OA/1083/2023

Case brief

AI extract

What is this about?

The DRT allowed an application filed by State Bank of India to recover Rs. 21,63,497 from legal heirs of a deceased borrower and co-borrower. The Tribunal directed payment of the principal sum along with simple interest at 8% per annum.

What did the court decide?

Recovery of Rs. 21,63,497 plus simple interest at 8% p.a. from filing date until realization of the amount.

State Bank of India versus Sh. Diyal Singh Alias Dial Singh… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1083/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.08.2023

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DATE OF DECISION: 04.02.2026

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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 one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Jalalpur (Kalomajra), Tehsil Rajpura, District Patiala through its Branch Manager Ms. Divya Pandey

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……..Applicant

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Versus

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Sh. Diyal Singh @ Dial Singh son of Sh. Variyam Singh, Resident of House No. 333, Part-2, Village Ramgarh urf Butta Singh Wala, Tehsil Banur, District Sahibzada Ajit Singh Nagar

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Since deceased survived by the following legal heirs:

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1.1 Sh. Jaswant Singh, Son

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1.2 Sh. Mohinder Singh, Son

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1.3 Sh. Mehar Singh, Son

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1.4 Sh. Sukhdev Singh, Son

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1.5 Sh. Paramjit Singh, Son

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All residents of House No. 333, Part-2, Village Ramgarh urf Butta Singh Wala, Tehsil Banur, District Sahibzada Ajit Singh Nagar.

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Sh. Jaswant Singh Son of Sh. Diyal Singh@ Dial Singh, Resident of House No. 333, Part-2, Village Ramgarh urf Butta Singh Wala, Tehsil Banur, District Sahibzada Ajit Singh Nagar

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…….Defendants

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Advocates:

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Argued by Ms. Seerat, Advocate proxy for Sh. Panjkaj Beri, Advocate for the applicant

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Defendants already ex-parte vide order dated 05.08.2024

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2 OA/1083/2023 STATE BANK OF INDIA VS. DIYAL SINGH ALIAS DIAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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.21,63,497.00 (Rupees Twenty One Lacs Sixty Three Thousand Four Hundred Ninety Seven Only). The Original Application has been filed through Ms. Madhvi Sharma, Branch Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 & 02.05.1987 issued under regulation 76 & 77 of State Bank of India Regulations framed in exercise of powers conferred by Sub-Section 3 of Section 50 of State Bank of India Act, 1955 with previous sanction of Central Government.

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The brief facts of the OA are that the defendant no. 1(since deceased) and defendant no. 2 approached the applicant for grant of KCC Limit of Rs. 8.00 Lacs and Agriculture Term Loan of Rs.8.00 Lacs under KGC vide Loan Applications dated 23.09.2013, which are Annexure A1 & A5 to this OA. Thereafter, the defendant no. 1(since deceased) and defendant no. 2 approached the applicant for enhancement of the KCC Limit to Rs. 13.12 Lacs vide loan application dated 20.01.2015, which is Annexure A10 to this OA.

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The applicant sanctioned KCC Limit of Rs. 8.00 Lacs and Agriculture Term Loan of Rs.8.00 Lacs under KGC vide Letter of arrangements dated 21.10.2013, which are Annexures A2 & A6 to this OA and terms and conditions were duly accepted by the defendant no.1 (since deceased) and defendant no.2. Thereafter, the applicant enhanced the KCC Limit to Rs. 13.12 Lacs vide letter of arrangement dated 23.02.2015, which is Annexure A11 to this OA.

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Defendant No.1 (since deceased) mortgaged his immovable property i.e. Land measuring 9Bigha-13Biswas situated at Village Ramgarh alias Buta Singh Wala, Sub Tehsil Banur, District SAS Nagar,

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3 OA/1083/2023 STATE BANK OF INDIA VS. DIYAL SINGH ALIAS DIAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Punjab vide mortgage deed bearing vasika no. 490 dated 11.10.2013, along with its translation, which is Annexure A9 to this OA and Declaration u/s 4(1) dated 30.01.2015, which is Annexure A14 to this OA.

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Documents executed : Hypothecation Agreements, Letters of Undertaking, all dated 21.10.2013, which are Annexure A3, A4, A7 and A8 to this OA; Hypothecation Agreement and Letter of Undertaking, both dated 23.02.2015, which are Annexure A12 and A13 to this OA; Revival Letters dated 30.06.2016, 04.02.2019 and 02.02.2022, which are Annexure A15 to this OA; Notice dated 01.08.2018, which is Annexure A16 to this OA; Statement of accounts, which are Annexure A17 & A18 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.21,63,497.00 (Rupees Twenty One Lacs Sixty Three Thousand Four Hundred Ninety Seven Only) which is recoverable and the defendants were served recall notice 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 defendant and they were proceeded ex-parte vide order dated 05.08.2024.

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In support of the OA, affidavit of Ms. Divya Pandey, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A18 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no. 2 approached applicant for availing of the loan facilities which were granted to them and for that

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4 OA/1083/2023 STATE BANK OF INDIA VS. DIYAL SINGH ALIAS DIAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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they had executed all the relevant documents in favour of the bank. They 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.21,63,497.00 (Rupees Twenty One Lacs Sixty Three Thousand Four Hundred Ninety 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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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.75%p.a. with 2% penal interest and half yearly rests in KCC and interest @12.15%p.a. with 2% penal interest and half yearly rests in KGC from 19.08.2023 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/hypothecated assets, 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 @08.00%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.21,63,497.00 (Rupees Twenty One Lacs Sixty Three Thousand Four Hundred Ninety Seven Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount.

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5 OA/1083/2023 STATE BANK OF INDIA VS. DIYAL SINGH ALIAS DIAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/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 Tribunal on 16.02.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 04.02.2026.

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

State Bank of India v. Sh. Diyal Singh Alias Dial Singh and Others

Case brief

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State Bank of India v. Sh. Diyal Singh Alias Dial Singh and Others

Case brief

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