Allowed

State Bank of India v. Smt. Nanni Devi and Another

DRT10 Feb 2026OA/1246/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by State Bank of India for recovery of a loan. The court declared respondents jointly and severally liable to pay Rs.45.75 Lakhs with simple interest at 8.00% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; recovery of Rs.45,74,805.00 with simple interest at 8.00% p.a. from hypothecated and personal assets.

State Bank of India versus Smt. Nanni Devi and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1246/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.10.2024

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DATE OF DECISION: 10.02.2026

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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 one of its Local Head office at Sector 17-A, Chandigarh and one of its Branch at SARB, SCO 15, First Floor, Sector 7-C, Chandigarh-160019 through its Chief Manager Sh. Dilbagh Singh Reddu.

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……..Applicant

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Versus

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Smt. Nanni Devi W/o Sh. Munshi Ram, R/o Village & Post Office Banarsi, Tehsil Moonak Distt. Sangrur, Punjab-148027

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Sh. Krishan Kumar s/o Sh. Munshi Ram, R/o Village & Post Office Banarsi, Tehsil Moonak District Sangrur, Punjab-148027

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…….Defendants

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Advocates:

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Argued by Sh. Devender Rattan, Advocate for the applicant Defendants already ex-parte vide order dated 25.04.2025

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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.45,74,805.00 (Rupees Forty Five Lacs Seventy Four Thousand Eight Hundred Five Only). The Original Application has been filed through Sh. Dilbagh Singh Reddu, Chief 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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2 OA/1246/2024 STATE BANK OF INDIA VS. NANNI DEVI AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for the grant of KCC limit of Rs.29.00 Lacs vide loan application dated 18.12.2015, which is Annexures A1 to this OA. 3. The applicant sanctioned KCC Limit of Rs.29.00 Lacs vide Letter of Arrangement dated 29.12.2015, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged her immovable property i.e. Land measuring 167Kanal-12Marla situated at Village Banarsi, Tehsil Moonak, District Sangrur, Punjab vide declaration dated 24.12.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA; Letter to Sub Registrar for creation of Charge dated 24.12.2015, which is Annexure A6 to this OA. Documents executed: Hypothecation Agreement, Undertaking both dated 29.12.2015, which are Annexures A3 and A4 to this OA; Revival Letters dated 10.11.2017, 01.01.2020 and 15.12.2022, which are Annexure A7 to this OA; Legal recall notice dated 15.06.2024 which is Annexure A8 to this OA; Statement of account with certificate, which is Annexure A9 to this OA. 5. 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.45,74,805.00 which is recoverable and the defendants 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 25.04.2025. 7. In support of the OA, affidavit of Sh. Dilbagh Singh Reddu, Chief Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1246/2024 STATE BANK OF INDIA VS. NANNI DEVI AND ANOTHER

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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 A9 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.45,74,805.00 (Rupees Forty Five Lacs Seventy Four Thousand Eight Hundred Five 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 @12.65% with 2% penal interest and half yearly rests from 16.10.2024 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 defendants, 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 @8.00%p.a. 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.

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4 OA/1246/2024 STATE BANK OF INDIA VS. NANNI DEVI AND ANOTHER

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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.45,74,805.00 (Rupees Forty Five Lacs Seventy Four Thousand Eight Hundred Five Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amounts. 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 24.02.2026.

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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. Dated: 10.02.2026.

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

State Bank of India v. Smt. Nanni Devi and Another

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State Bank of India v. Smt. Nanni Devi and Another

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