Allowed

State Bank of India v. Sh. Sukhbir Singh Sandhu Alias Sukhvir Singh through His Legal Heirs and Another

DRT12 Feb 2026OA/1343/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application by State Bank of India for recovery of dues from borrowers and guaranteeers. The court confirmed liability for the principal amount and fixed simple interest at 8% p.a., directing issuance of a Recovery Certificate.

What did the court decide?

Payment of Rs. 28,22,369.00 with costs and 8% p.a. simple interest from filing date; Recovery Certificate issued.

State Bank of India versus Sh. Sukhbir Singh Sandhu Alias… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1343/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.11.2024

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DATE OF DECISION: 12.02.2026

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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 one of its Local Head Office at Sector 17A, Chandigarh and one of its Branch at Jalalabad Road, Muktsar, District Sri Muktsar Sahib through its Chief Manager Sh. Vinod Kumar Lakhanpal posted at Stressed Assets Recovery Branch (SARB), Fountain Chowk, Civil Lines, Ludhiana.

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……..Applicant

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Versus

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Sh. Sukhbir Singh Sandhu @ Sukhvir Singh S/o of Sh. Pritam

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Singh

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since deceased survived by following Legal Heirs:

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(i) Smt. Parminder Kaur, Wife (ii) Sh. Surinder Pal Singh, Son

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All Resident of Akalgarh Road, Village Fattanwala, Tehsil and District Sri Muktsar Sahib

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Sh. Lakhveer Singh Sidhu S/o Sh. Pritam Singh, R/o Akalgarh

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Road, Fattanwala, Tehsil and District Sri Muktsar Sahib, Punjab.

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………Defendants

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Advocates:

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Argued by Ms. Sonal Chabra, Advocate for Applicant

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Defendants already ex-parte vide order dated 10.11.2025

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.28,22,369.00 (Rupees Twenty Eight Lacs Twenty Two Thousand Three Hundred Sixty Nine Only). The Original Application has been filed through of Sh. Vinod Kumar Lakhanpal, Chief Manager of the applicant, who is competent to

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2 OA NO.1343/2024 STATE BANK OF INDIA VS SH. SUKHBIR SINGH SANDHU ALIAS SUKHVIR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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institute the Original Application in the terms of notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under regulation no. 76 and 77 of State Bank of India Regulations framed by Reserve Bank of India framed in exercise of powers conferred by sub-section 3 of the State Bank of India Act, 1955, with the previous sanction of the Central Government . vide Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA;

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The brief facts of the OA are that the defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs. 20.00 Lacs vide Loan Application dated 17.02.2015, along its translation, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Letter of Arrangement dated 17.02.2015, which is Annexure A3 to this OA. 4. Defendant no.1 (since deceased) mortgaged his immovable property i.e. Land Measuring 47Kanal-07Marla situated at Village Fattanwala, Hadbast no. 127, Tehsil and District Sri Muktsar Sahib vide Declaration dated 27.02.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 along with Mortgaged Deed, which is Annexure A7 to this OA.

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Documents executed: Hypothecation Agreement, Letter of Undertaking, Deed of Guarantee, all dated 04.03.2015, which is Annexure A4 to A6 to this OA; Death Certificate dated 07.05.2022 of defendant no. 1, which is Annexure A8 to this OA; Revival Letter dated 08.03.2017, 25.11.2019, 08.11.2021, which are Annexure A9 to this OA; Legal Notice dated 14.10.2024, which is Annexure A10 to this OA; Statement of Account, which is Annexure A11 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.28,22,369.00 which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding

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3 OA NO.1343/2024 STATE BANK OF INDIA VS SH. SUKHBIR SINGH SANDHU ALIAS SUKHVIR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte vide order dated 10.11.2025. 7. In support of the OA, affidavit of Sh. Vinod Kumar Lakhanpal, 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 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 A11 to this OA, it is proved that the defendant no. 1 (since deceased) 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 guarantor. 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.28,22,369.00 (Rupees Twenty Eight Lacs Twenty Two Thousand Three Hundred Sixty Nine 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.20%p.a. with 2% penal interest with half yearly rests from 29.10.2024 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

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4 OA NO.1343/2024 STATE BANK OF INDIA VS SH. SUKHBIR SINGH SANDHU ALIAS SUKHVIR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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.28,22,369.00 (Rupees Twenty Eight Lacs Twenty Two Thousand Three Hundred Sixty Nine 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 amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/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

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Tribunal on 26.02.2026.

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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: 12.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Sukhbir Singh Sandhu Alias Sukhvir Singh through His Legal Heirs and Another

Case brief

What is this about?

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State Bank of India v. Sh. Sukhbir Singh Sandhu Alias Sukhvir Singh through His Legal Heirs and Another

Case brief

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What did the court decide?

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