Allowed

State Bank of India v. Sh. Pushkar Singh Negi and Another

DRT20 May 2026OA/1299/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by State Bank of India against two respondents for recovery of Rs. 67,83,470. Following default, the account was classified as NPA. The Tribunal ordered payment of the principal plus simple interest at 8.00% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Order issued for recovery of Rs. 67,82,470.00 jointly and severally with simple interest at 8.00% p.a. Recovery Certificate to be issued. Claim enforceable via attachment and sale of mortgaged or pers

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1299/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.11.2024

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DATE OF DECISION: 20.05.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, one of its Local Head Office at Sector 17, Chandigarh and Branches all over India including one SBI, SARB at SCO no. 15, First and Second Floor, Madhya Marg, Sector 7, Chandigarh, through its Chief Manager, Sh. Mousam Pal

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… …..Applicant

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Versus

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Sh. Pushkar Singh Negi, S/o Sh. Thakur Singh Negi, R/o Plot no. 174, Flat no. B4, Sai Baba Shalimar Garden, Extension 2, Block B, Ghaziabad, Uttar Pradesh- 201005

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2nd Address: Flat no. 1101, 11^th Floor, Tower B, Sushma Chandigarh Grande, Chandigarh- Ambala Highway, Zirakpur, SAS Nagar (Mohali), Punjab- 140603

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3rd Address: Damua Dunga, Jawahar Jyoti, Shivpuri, Near Shiv

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Mandir, Bandobasti, Nainital, Uttarakhand- 263126

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4th address: C/o USB Private Limited, Community Center, C 2, Narayana Vihar, New Delhi- 110028

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M/S Sushma Buildtech Limited, Unit no. B-107, Business Complex, Elante Mall, 1^st Floor, Industrial Area Phase- 1, Chandigarh through its Director

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…Defendants

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Advocates:

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Argued by Ms. Sonia Gupta, Advocate for applicant

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None for defendants

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2 OA/1299/2024 STATE BANK OF INDIA VS. PUSHKAR SINGH NEGI AND ANOTHER

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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. 67,82,470.00 (Rupees Sixty Seven Lacs Eighty Two Thousand Four Hundred Seventy Only). The Original Application has been filed through Sh. Mousam Pal, Chief Manager of the applicant, who is competent to institute the Original Application in the terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under Regulation nos. 76 and 77 of State Bank of India General Regulations framed in exercising of the powers confirmed by sub-section 3 of section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of Home Loan Limit of Rs. 70.00 Lacs vide Loan Application dated 25.11.2021, which is Annexure A1 to this OA. 3. The applicant sanctioned Home Loan of Rs. 70.00 Lacs vide Sanction Letter dated 14.12.2021, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as a Private Limited Company in which defendant no. 1 purchased a home. 4. Defendant no. 1 mortgaged his immovable property i.e. Flat measuring 1885 Sq. Ft. situated at Flat no. B-1101, 11^th Floor, Sushma Chandigarh Grande, Mohali, Punjab vide Agreement to Mortgage dated 28.12.2021, which is Annexure A6 to this OA. Documents executed: Arrangement Letter and Housing Loan Agreement, both dated 28.12.2021, which are Annexure A3 and A4 to this OA; Documents of Title dated 30.11.2021, which is Annexure A5 to this OA; Tripartite Agreement dated 28.12.2021, which is Annexure A7 to this OA; Demand Notice dated 31.07.2024, which is Annexure A8 to this OA; Legal Notice dated 15.10.2024, which is Annexure A9 to this OA; SARFAESI Notice dated 26.07.2024, which is

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3 OA/1299/2024

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STATE BANK OF INDIA VS. PUSHKAR SINGH NEGI AND ANOTHER

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Annexure A10 to this OA and Statement of Account, which is Annexure A11 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 loan account there was a debit of Rs. 67,82,470.00 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 and after service upon defendants, Sh. Pramod Kumar, Advocate appeared on behalf of defendant no. 1 on 26.05.2025 and filed Power of Attorney on 12.08.2025. Paper book was supplied to him. WS was filed by defendant no. 1 on 06.03.2026 i.e. beyond stipulated time. Therefore, WS was not taken on record and defence was struck off vide order dated 18.05.2026. None appeared on behalf of defendant no. 2. Therefore, defendant no. 2 was proceeded ex-parte vide order dated 18.05.2026.

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In support of the OA, affidavit of Sh. Mousam Pal, chief Manager, State Bank of India has been filed.

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Heard arguments and perused record.

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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.

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From the perusal of all the Annexures A1 to A11 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 executed all the relevant documents in favour of the applicant. Defendant no. 2 stood as a Private Limited Company in which defendant no. 1 purchased a home. The defendants created charge/mortgage by executing tripartite agreement between the defendants and applicant for the loan obtained by defendant no. 1. By executing the Tripartite Agreement, all defendants become liable for

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4 OA/1299/2024

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STATE BANK OF INDIA VS. PUSHKAR SINGH NEGI AND ANOTHER

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loan repayment in case of any default. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 67,82,470.00 (Rupees Sixty Seven Lacs Eighty Two Thousand Four Hundred Seventy Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @08.50%p.a. with monthly rests w.e.f. 30.10.2024 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, 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 @8.00% 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.67,82,470.00 (Rupees Sixty Seven Lacs Eighty Two Thousand Four Hundred Seventy Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in 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 mortgaged property 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

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OA/1299/2024 STATE BANK OF INDIA VS. PUSHKAR SINGH NEGI AND ANOTHER 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. 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 11.06.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 20.05.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Pushkar Singh Negi and Another

Case brief

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State Bank of India v. Sh. Pushkar Singh Negi and Another

Case brief

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