Allowed

State Bank of India v. Sh. Ashwinder Singh And Others

DRT13 Apr 2026OA/125/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by State Bank of India against Ashwinder Singh and others for recovery of a home loan default. The tribunal ruled the defendants liable to pay the principal amount with interest and authorized issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 56,36,635.00 plus costs and simple interest at 7.50% p.a. from the filing date until realization; issuance of Recovery Certificate.

State Bank of India versus Sh. Ashwinder Singh And… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 125/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2021

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DATE OF DECISION: 13.04.2026

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State Bank of India, a Body Corporate, constituted under the State Bank of India Act no. XXIII of 1955, having its Corporate office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Offices situated at Sector 17B, Chandigarh and having its Branches all over India and one of its Branch situated at Branch office at SCF no. 32, Phase X, Sector 64, S.A.S. Nagar (Mohali), Punjab and one of its Specialized Branch known as State Bank of India, Stressed Assets Recovery Branch (SARB) at SCO 15, 2^nd Floor, Sector 7C, Madhya Marg, UT Chandigarh- 160019 through its duly Authorized Officer, Sh. Sanjeev Prakash Verma, Chief Manager- CLO

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……..Applicant Versus

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Sh. Ashwinder Singh, S/o Sh. Harmail Singh, R/o House no. 1045, 1^st Floor, Tower Sandalwood, Mahagun Mywoods, Sector 16C, Plot no. GH-04, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh- 201301

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M/S Sandwoods Infratech Projects Private Limited, SCO no. 222- 223, 3^rd Floor, Sector 34A, UT Chandigarh- 160022 through its Authorized Signatory/Managing Director 2^nd Address: Registered Office at 1108, Arunachal Building, 19, Barakhamba Road, New Delhi- 110001

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Sh. S.K. Baagolia, Managing Director/Authorized Signatory of M/S Sandwoods Infratech Projects Private Limited, SCO no. 222-223, 3^rd Floor, Sector 34A, UT Chandigarh- 160022

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………. Defendants

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for Applicant

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2 OA/125/2022 STATE BANK OF INDIA VS. ASHWINDER SINGH AND OTHERS

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None for defendants (already ex-parte vide order dated 18.02.2026)

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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 defendants for recovery of Rs. 56,36,635.00 (Rupees Fifty Six Lacs Thirty Six Thousand Six Hundred Thirty Five Only). The Original Application has been filed through Sh. Sanjeev Prakash Verma, Chief Manager o f the applicant, who is competent to institute the Original Application.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Home Loan of Rs. 55.00 Lacs vide LOS Application and Appraisal cum Control Report dated 26.06.2018 and 29.06.2018, which is Annexure A1 (Colly) to this OA.

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The applicant sanctioned the Home Loan of Rs. 55.00 Lacs vide Arrangement Letter dated 02.07.2018, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as Promoter Company in which defendant no. 1 purchased a home and applied for Home Loan to applicant and defendant no. 3 is the Managing Director/Authorized Signatory of defendant no. 2.

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Defendant no. 1 mortgaged his immovable property i.e. Residential Flat no. 44, Tower B2, 10^th Floor, Sandwoods, Opulencia, Sector 110, Mohali, Punjab- 140603 vide Memorandum of Deposit and Agreement to Mortgage, both dated 02.07.2018, which are Annexure A7 and A9 to this OA.

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Documents Executed: Allotment Letter, Tripartite Agreement, Agreement of Sale and Letter for Permission to Mortgage dated 04.06.2018, 26.06.2018 and 30.06.2018, which is Annexure A3 (Colly) to this OA; Document Execution Memo, Key Fact Statement,

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3 OA/125/2022 STATE BANK OF INDIA VS. ASHWINDER SINGH AND OTHERS

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Memorandum of Loan Agreement, Operations Letter, Deed of Undertaking, Consent Letter and Undertaking by promoters, all dated 02.07.2018, which are Annexure A4 to A6, A8, A10 to A12 to this OA; Recall Notices dated 26.09.2019, 09.10.2019, 21.11.2019, 10.12.2019, 26.12.2019, 02.11.2020, 11.11.2020, 15.06.2021 and 05.07.2021, which are Annexure A13 (Colly) to this OA; Legal Notice dated 22.10.2019, which is Annexure A14 to this OA; Criminal Complaint dated 15.10.2019, which is Annexure A15 to this OA; Letter for Revocation of clause contained in Tripartite Agreement dated 26.08.2021, which is Annexure A16 to this OA and Statement of Account with certificate, which is Annexure 17 (Colly) 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 the account there was a debit of Rs. 56,36,635.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal. Sh. Davinder Ratan, Advocate proxy for Sh. VK Mahajan, Advocate for defendant no. 2 appeared on 03.01.2023 and filed his Power of Attorney on behalf of defendant no. 2. WS on behalf of defendant no. 2 was filed on 17.02.2023. None appeared on behalf of defendant nos. 1 and 3 despite service of summons. No one appeared on behalf of defendants after 30.05.2025 and they were proceeded exparte vide order dated 18.02.2026.

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In support of the OA, affidavit of Sh. Sanjeev Prakash Verma, Chief Manager, State Bank of India h as been filed. 9. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant that in view of the documentary evidence brought on record, the applicant had proved its case. From the perusal of all the Annexure A1 to A17 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facility which was granted to him and for that he had

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4 OA/125/2022 STATE BANK OF INDIA VS. ASHWINDER SINGH AND OTHERS

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executed all the relevant documents in favour of the bank. Defendant no. 2 stood as Promoter Company in which defendant no. 1 purchased a home and applied for Home Loan to applicant and defendant no. 3 is the Managing Director/Authorized Signatory of defendant no. 2. 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. 56,36,635.00 (Rupees Fifty Six Lacs Thirty Six Thousand Six Hundred Thirty 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 account.

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In so far as pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.50%p.a. from date of filing of application 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, 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 simple interest @7.50%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.

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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.56,36,635.00 (Rupees Fifty Six Lacs Thirty Six Thousand Six Hundred Thirty Five Only), jointly and severally, with costs, current and future simple interest @7.50%p.a. in the loan account from the date of filing of OA till the date of realization of the amount.

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5 OA/125/2022

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STATE BANK OF INDIA VS. ASHWINDER SINGH AND OTHERS

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Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of mortgaged properties/hypothecated assets of 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. 13. Any other application pending stands disposed of. 14. Issue Recovery Certificate accordingly. 15. Parties to appear before Learned Recovery Officer of this Tribunal on 04.05.2026. 16. 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: 13.04.2026

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

State Bank of India v. Sh. Ashwinder Singh And Others

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State Bank of India v. Sh. Ashwinder Singh And Others

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