Allowed

State Bank of India v. Smt. Kulwinder Kaur

DRT24 Feb 2026OA/1122/2025

Case brief

AI extract

What is this about?

The DRT allowed the State Bank of India's application for recovery of Rs. 22.25 lakhs against a defaulter. The court fixed a uniform simple interest rate of 8% p.a. on all dues from the date of filing and authorized recovery through sale of secured assets under SARFAESI Act.

What did the court decide?

Recovery of Rs. 22,25,021 plus future simple interest @ 8% p.a.; Recovery Certificate issued; Directed sale of secured assets or attachment of personal assets.

State Bank of India versus Smt. Kulwinder Kaur — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1122/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2025

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DATE OF DECISION: 24.02.2026

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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 having branches all over India and one of its Branch at Kamalpur, District. Patiala through its Branch Manager Sh. Maninder Singh.

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……..Applicant

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Versus

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Smt. Kulwinder Kaur W/o of Sh. Mehar Singh, R/o of Village Amam Nagar, PO Karhali, District Patiala-147101.

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….……Defendant

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Advocates:

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

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Defendant is ex-parte vide order dated 20.01.2026.

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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 defendant for recovery of Rs. 22,25,021.00 (Rupees Twenty Two Lacs Twenty Five Thousand Twenty One Only). The Original Application has been filed through Sh. Maninder Singh, Branch Manager, State Bank of India 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 the powers conferred on it under Regulation no.76 & 77 of State Bank of India General Regulations, in exercise of the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955. State Bank of India Regulations dated 27.03.1987, which is Annexure A1 to this OA.

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2 OA/ 1122/2025 STATE BANK OF INDIA VS. KULWINDER KAUR

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The brief facts of the OA that the defendant approached the applicant for grant KCC Limit of Rs. 9.30 Lacs and Agriculture Term Loan of Rs.2.00 Lacs under KGC vide Loan Application dated 01.10.2016, which is Annexure A2 & A5 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 9.30 Lacs and Agriculture Term Loan of Rs.2.00 Lacs under KGC vide Letters of Arrangement dated 20.10.2016, which is Annexure A3 & A6 to this OA.

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Defendant mortgaged her immovable property i.e. Land Measuring 32Kanal-0Marla (4 Acres) Situated at Village Amamnagar, Tehsil and District Patiala, Punjab vide Declaration dated 26.10.2016 u/s 4(1) of Punjab Credit Operation and Miscellaneous Provisions Act 1978, which is Annexure A10 to this OA; Letter to the Sub Registrar dated 20.10.2016 for creation of charge bearing charge registration vide rapat no.68 dated 20.12.2016, which is Annexure A9 to this OA. Documents executed: Letter of Undertaking, Hypothecation Agreement, Letter of Undertaking Hypothecation Agreement, all dated 28.10.2016, which are Annexures A3A, A4, A7 and A8 to this OA; Consent Letter dated 01.10.2016 for disclosure of information, which is Annexure A11 to this OA; Revival Letter dated 17.07.2018, 01.07.2021, 20.06.2024, which is Annexure A12 to this OA; Legal Notice dated 28.06.2019, which is Annexure A13 to this OA; Legal Notice dated 03.08.2020, which is Annexure A14 to this OA; Legal Notice dated 16.02.2024, which is Annexure A15 to thus OA; Legal Notice dated 25.07.2025, which is Annexure A16 to this OA; Statement of Account, which are Annexures A17 & A18 to this OA. 5. 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. 22,25,021.00 which is recoverable and the defendant was served recall notices but she did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA/ 1122/2025 STATE BANK OF INDIA VS. KULWINDER KAUR

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte vide order dated 20.01.2026

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

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Heard ex-parte arguments and perused record.

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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 approached applicant for availing of the loans facilities which were granted to her and for that she 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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 22,25,021.00 (Rupees Twenty Two Lacs Twenty Five Thousand Twenty One Only) along with interest from the defendant, 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 @12.20%p.a. in KCC Limit and @12% p.a. in KGC, with 2% penal interest and half yearly rests from 25.07.2025 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 defendant, 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

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4 OA/ 1122/2025 STATE BANK OF INDIA VS. KULWINDER KAUR

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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. 22,25,021.00 (Rupees Twenty Two Lacs Twenty Five Thousand Twenty One Only) with costs, current and future simple interest @08.00%p.a. in both the 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 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.03.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 24.02.2026.

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

State Bank of India v. Smt. Kulwinder Kaur

Case brief

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State Bank of India v. Smt. Kulwinder Kaur

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