Allowed

State Bank of India v. Sh. Kewal Singh and Another

DRT30 Jan 2026OA/1258/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by State Bank of India against two defendants for Rs. 31,09,245 principal amount outstanding on a KCC facility. The Tribunal granted simple interest at 8% p.a. from the filing date and ordered issuance of a Recovery Certificate.

What did the court decide?

Defendants to pay Rs.31,09,245 with interest at 8% p.a. from filing date; Recovery Certificate issued.

State Bank of India versus Sh. Kewal Singh and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1258/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2023

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DATE OF DECISION: 30.01.2026

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State Bank of India, a Body Corporate, constituted under the State Bank of India Act, 1955 and having its Central Office at Madam Cama Road, Nariman Point, Mumbai and its Local Head Office at Sector 17-A, Chandigarh and State Bank of India, Branch Office, The Mall, Kapurthala through its Chief Manager Sh. Balbir Singh.

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……..Applicant Versus

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Sh. Kewal Singh son of Chanan Singh, resident of Village Dariyewal, Post Office Thathanawan, Tehsil Sultanpur Lodhi, District Kapurthala.

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Sh. Baljit Singh son of Kewal Singh, resident of Village Dariyewal, Post Office Thathanawan, Tehsil Sultanpur Lodhi, District Kapurthala.

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……….Defendants

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Advocates:

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Argued by Sh. Gurinderjit Singh, Advocate for the applicant

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Defendants already ex parte vide order dated 23.09.2024.

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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.31,09,245.00 (Rupees Thirty One Lacs Nine Thousand Two Hundred Forty Five Only). The Original Application has been filed through Sh. Balbir Singh, Chief Manager of applicant who is competent to institute the Original Application in terms of Gazette Notification dated 26.9.1959, 26.8.1972 and 27.03.1987 issued by Executive Committee of the Central Board in exercise of powers conferred on it under Regulation No.76 and 77 of

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OA NO.1258/2023 STATE BANK OF INDIA VS. KEWAL SINGH AND ANOTHER

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State Bank of India General Regulations, made by the RBI in exercise of powers conferred by sub-committee.

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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.10.00 Lacs vide Loan Application dated 21.09.2013, along with its translation, which is Annexure A1 to this OA. Thereafter, defendants approached the applicant for enhancement of the limit to Rs.15.00 Lacs vide loan application dated Application dated 17.03.2015, along with its translation, which is Annexure A4 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.10.00 Lacs vide Letter of arrangement dated 01.10.2013, along with its translation, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant enhanced the limit to Rs.15.00 Lacs vide arrangement letter dated 17.03.2015, which is Annexure A5 to this OA.

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Defendant no.1 mortgaged his immovable property i.e. land measuring 08Kanal situated at Vilage Seenpur, Tehsil and District Kapurthala, Punjab vide Mortgage deed bearing vasika no.2157 dated 24.09.2013, which is Annexure A7 to this OA; Declaration u/s 4(1) dated 16.03.2015, along with its translation, which is Annexure A8 to this OA; letter dated 16.03.2015 to Sub Registrar for creation of charge, which is Annexure A9 to this OA and Jamabandi for the year 2014-15, along with its translation, which is Annexure A10 to this OA. Documents executed : Hypothecation agreement dated 01.10.2013 & 17.03.2015, which are Annexures A3 & A6 to this OA; Bank notices dated 15.10.2016, 30.06.2021, 01.02.2022 & 13.04.2023, along with its translation, which are Annexures A11 to A14 to this OA; Legal notice dated 19.05.2018, 23.11.2020, 28.04.2023, which are Annexures A15 to A17 to this OA; Revival letter dated 07.03.2018, 01.03.2021, which are Annexures A18 and A19 to this OA and

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OA NO.1258/2023 STATE BANK OF INDIA VS. KEWAL SINGH AND ANOTHER

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Statement of account along with Certificate under Banker’s Book Evidence Act, which are Annexures A20 to A22 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.31,09,245.00, 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex parte vide order dated 23.09.2024.

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In support of the OA, affidavit of Sh. Balbir Singh, Chief Manager, State Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant that in view of

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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 A22 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.31,09,245.00 (Rupees Thirty One Lacs Nine Thousand Two Hundred Forty 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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OA NO.1258/2023 STATE BANK OF INDIA VS. KEWAL SINGH AND ANOTHER

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.75%p.a. with half yearly rests from 04.07.2023 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 @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.

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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.31,09,245.00 (Rupees Thirty One Lacs Nine Thousand Two Hundred Forty Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in 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/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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OA NO.1258/2023

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STATE BANK OF INDIA VS. KEWAL SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.02.2026.

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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 .

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Dated: 30.01.2026.

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

State Bank of India v. Sh. Kewal Singh and Another

Case brief

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State Bank of India v. Sh. Kewal Singh and Another

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