Allowed

State Bank of India v. Sh. Davinder Singh

DRT7 Jan 2026OA/1201/2024

Case brief

AI extract

What is this about?

The DRT adjudicated an application filed by State Bank of India for recovery of Rs. 28,05,026 from the defendant. Upon hearing ex-parte arguments, the tribunal allowed the application, declaring the defendant liable to pay the principal sum with a uniform simple interest rate of 8% per annum. The recovery certificate was issued.

What did the court decide?

Recovery of Rs. 28,05,026 with future interest at 8% p.a.; Issuance of Recovery Certificate; Case remanded to Recovery Officer.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1201/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 12.09.2024

¶5

DATE OF DECISION: 07.01.2026

¶6

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 Kalazher, District Sangrur through its Branch Manager Smt. Suman Rani.

¶7

……..Applicant Versus Sh. Davinder Singh, Son of Sh. Ram Singh, R/o Village Tarora Kalan, P.O. Gajju Majra, Tehsil and District Patiala, Punjab-147001

¶8

…….Defendant

¶9

Advocates:

¶10

Argued by Sh. Sahaj Punj, Advocate proxy for Sh. Aseem Kataria, Advocate for Applicant

¶11

Defendant already ex-parte vide order dated 11.11.2025

¶12

FINAL ORDER

¶13

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.28,05,026.00 (Rupees Twenty Eight Lacs Five Thousand and Twenty Six Only). The Original Application has been filed through Smt. Suman Rani, Branch Manager, of the applicant, who is competent to institute the Original Application vide Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA.

¶14

The brief facts of the OA are that the defendant for grant of KCC Limit of Rs. 10.00 Lacs and Agriculture Term Loan of Rs.10.00 Lacs under KGC vide loan applications dated 07.12.2015, which are Annexure A2 and A3 to this OA.

¶15

2 OA NO. 1201/2024 STATE BANK OF INDIA VS. DAVINDER SINGH

¶16

The applicant sanctioned Agriculture Term Loan of Rs.10.00 Lacs under KGC vide letter of arrangement dated 09.12.2015, which is Annexure A4 to this OA and sanctioned KCC Limit of Rs. 10.00 Lacs vide letter of arrangement dated 11.12.2015, which is Annexure A7 to this OA.

¶17

Defendant mortgaged his immovable property i.e. land measuring i.e. total land measuring 14Bigha-08Biswa (3 Acers) situated at Village Tarora Kalan, Hadbast no 55, Tehsil and District Patiala, Punjab vide declaration u/s 4(1) dated 07.12.2015, which is Annexure A11 to this OA; Letter dated 07.12.2015, to SubRegistrar/Joint Sub-Registrar for creation of charge, which is Annexure A10 to this OA and Jamabandi for the year 2011-12, along with its translation, which is Annexure A12 to this OA.

¶18

Documents executed : Hypothecation agreements dated 12.09.2015 and 12.11.2015, which are Annexures A5 and A8 to this OA; Letters of Undertaking dated 12.09.2015 and 12.11.2015, which are Annexures A6 and A9 to this OA; Revival Letter dated 30.10.2018 and 30.09.2021, which are Annexures A13 and A14 to this OA; Notice dated 13.01.2024, along with its translation, which is Annexure A15 to this OA; Statements of accounts, which are Annexures A16 and A17 to this OA.

¶19

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.28,05,026.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶20

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 11.11.2025.

¶21

3 OA NO. 1201/2024 STATE BANK OF INDIA VS. DAVINDER SINGH

¶22

In support of the OA, affidavit of Smt. Suman Rani, Branch Manager, State Bank of India, has been filed.

¶23

Heard ex-parte arguments and perused record.

¶24

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 A17 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.28,05,026.00 (Rupees Twenty Eight Lacs Five Thousand and Twenty Six Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

¶25

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. including @2% additional interest with half yearly rests and [email protected]%p.a. including 2% additional interest with half yearly rests in Term Loan from 31.08.2024 till the realization.

¶26

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 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 uniform simple interest @08.00%p.a. in both the loan accounts from the date of filing of the

¶27

4 OA NO. 1201/2024 STATE BANK OF INDIA VS. DAVINDER SINGH

¶28

OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶29

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,05,026.00 (Rupees Twenty Eight Lacs Five Thousand and Twenty Six Only) 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. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated vehicles 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 20.01.2026. 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: 07.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Davinder Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Davinder Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Limited versus Sh. Sukhdeep Singh

State Bank of India versus Sh. Ajit Singh

Kotak Mahindra Bank Limited versus Sh. Chaichal Singh and Others

Union Bank of India versus Sh. Jaspal Singh

State Bank of India versus Sh. Amrik Singh and Another

State Bank of India versus Sh. Gurdial Singh