Allowed

State Bank of India v. Sh. Narinder Singh

DRT6 Feb 2026OA/1189/2024

Case brief

AI extract

What is this about?

: The Delhi DRT disposed of an application filed by State Bank of India against Narinder Singh for recovery of a loan default. The tribunal allowed the application, directing the defendant to pay the outstanding amount along with adjusted interest.

What did the court decide?

Directing the defendant to pay Rs. 27,24,469.00 with costs and simple interest @8% p.a. and to issue a Recovery Certificate.

State Bank of India versus Sh. Narinder Singh — Cheque Dishonour | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1189/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.09.2024

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DATE OF DECISION: 06.02.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955, having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai and having amongst others, a branch at Kalajher, District Sangrur through its Branch Manager Smt. Suman Rani.

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……..Applicant Versus Sh. Narinder Singh Son of Sh. Ram Singh, resident of Village Tarora Kalan, PO Gajju Majra, Tehsil and District Patiala (Punjab)-147001 . …….Defendant Advocates:

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Argued by Sh. Aseem Kataria, Advocate for Applicant Defendant already ex parte vide order dated 02.04.2025. FINAL ORDER 1. 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.27,24,469.00 (Rupees Twenty Seven Lakh Twenty Four Thousand Four Hundred Sixty Nine Only). The Original Application has been filed through Smt. Suman Rani, 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 and 27.03.1987 under Regulation No.76 and 77 of State Bank of India Regulations framed in exercise of powers conferred by the sub-Section 3 of Section 50 of the State bank of lndia Act, 1955. Gazette Notification dated 02.5.1987, which is Annexure A1 to this OA.

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2 OA/1189/2024 STATE BANK OF INDIA VS. NARINDER SINGH

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs.10.00 Lacs and Term Loan of Rs. 10.00 Lacs under KGC vide loan applications dated 15.09.2015, which are Annexure A2 & A3 to this OA. 3. The applicant sanctioned of KCC Limit of Rs.10.00 Lacs and Term Loan of Rs. 10.00 Lacs under KGC vide Letters of arrangement dated 09.12.2015, which are Annexure A4 & A7 to this OA. 4. Defendant mortgaged his immoveable properties i.e. land measuring 19 Bigha 04 Biswa situated at Village Tarora Kalan, Tehsil and District Patiala, Punjab vide declaration dated under Section 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which are Annexures A10 to A12 to this OA. Letter dated 07.12.2015 to Sub Registrar for creation of charge, which is Annexure A11 to this OA; Jamabandi for the year 2016-17, along with its translation, which is Annexure A12 to this OA. Documents executed : - Hypothecation Agreements, Letters of Undertaking, all dated 09.12.2015, which are Annexure A5, A6, A8 and A9 to this OA; Legal notice dated 22.07.2022, along with its translation, which is Annexure A13 to this OA and Statements of accounts, which are Annexures A14 & A15 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.27,24,469.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 02.04.2025. 7. In support of the OA, affidavit of Smt. Suman Rani, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1189/2024 STATE BANK OF INDIA VS. NARINDER 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. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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, 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.27,24,469.00 (Rupees Twenty Seven Lakh Twenty Four Thousand Four Hundred Sixty Nine 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 @13.15%p.a. plus 2% penal interest in KCC and interest @13.60%p.a. plus 2% penal interest in KGC, with half yearly rests from 31.08.2024 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 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.27,24,469.00 (Rupees Twenty Seven Lakh Twenty Four Thousand Four Hundred Sixty Nine Only) with costs, current and future simple interest @08.00%p.a.

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OA/1189/2024 STATE BANK OF INDIA VS. NARINDER SINGH

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in both the loan 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 assets/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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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 18.02.2026.

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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: 06.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Narinder Singh

Case brief

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State Bank of India v. Sh. Narinder Singh

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