Allowed

State Bank of India v. Sh. Kartar Singh

DRT11 May 2026OA/116/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed under Section 19 of the RDB Act seeking recovery of Rs. 34,83,704.00. The defendant failed to appear. The Tribunal decreed the loan with interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 34,83,704.00 with costs and simple interest at 8% p.a. issued Recovery Certificate instructed to Recovery Officer.

State Bank of India versus Sh. Kartar Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 116/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.01.2026

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DATE OF DECISION: 11.05.2026

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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, one of its Branch situated at Samrala, Chandigarh Road, Tehsil Samrala, District Ludhiana, through its Chief Manager Sh. Satanand Singh, who is Authorized Officer.

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……..Applicant

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Versus

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Sh. Kartar Singh S/o Sh. Gurmukh Singh R/o. Village Bairsal Khurd, Tehsil Samrala, District Ludhiana.

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….……Defendant

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Advocates:

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Argued by Ms. Puja Sharma, Advocate for the applicant

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None for Defendant (already ex parte vide order dated 06.05.2026)

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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.34,83,704.00 (Rupees Thirty Four Lacs Eighty Three Thousand Seven Hundred Four Only). The Original Application has been filed through Sh. Satanand Singh, Chief Manager of 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

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2 OA 116/2026 STATE BANK OF INDIA Vs SH. KARTAR SINGH

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the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 vide Gazette Notification of India dated 02.05.1987, which is Annexure A1 to this OA;

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The brief facts of the OA that the defendant approached the applicant for the grant of Term Loan Facility of Rs. 31.86 Lacs vide Loan Application dated 11.07.2024, which is Annexure A2 to this OA; 3. The applicant sanctioned the Term Loan Facility of Rs. 31.86 Lacs vide Letter of Arrangement dated 01.08.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Movable Assets i.e. Baler, Rack, Trailer, Planter and other Implements purchased out of Term Loan vide Hypothecation Agreement dated 01.08.2024, which is Annexure A4 to this OA; Tax Invoice dated 05.08.2024 & 06.08.2024, which is Annexure A5 to this OA;

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Documents executed: Legal Notice dated 04.07.2025, which is Annexure A6 to this OA; Demand Notice dated 22.08.2025, which is Annexure A7 to this OA; Statement of Account with certificate, which is Annexure A8 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs. 34,83,704.00 which is recoverable and the defendant were 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 but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 06.05.2026. 7. In support of the OA, affidavit of Sh. Satanand Singh, Chief Manager , State Bank of India, has been filed. 8. Heard arguments and perused record.

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3 OA 116/2026 STATE BANK OF INDIA Vs SH. KARTAR SINGH

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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.

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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 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.34,83,704.00 (Rupees Thirty Four Lacs Eighty Three Thousand Seven Hundred Four 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. with monthly rests from 30.11.2025 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 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.34,83,704.00 (Rupees Thirty Four Lacs Eighty Three Thousand Seven Hundred Four Only), with costs, current and future simple interest @08.00% p.a. in

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4 OA 116/2026 STATE BANK OF INDIA Vs SH. KARTAR SINGH

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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 assets 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 02.06.2026 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. Pronounced by me in the open Tribunal . Dated: 11.05.2026

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

State Bank of India v. Sh. Kartar Singh

Case brief

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State Bank of India v. Sh. Kartar Singh

Case brief

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