The DRT allowed the bank's application for recovery of Rs. 20,89,457 due from a defaulting term loan borrower. The Tribunal reduced the claimed interest rate from 12.60% p.a. to 8% p.a. and ordered issuance of a recovery certificate.
Recovery of Rs. 20,89,457 plus future simple interest at 8% p.a. by issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1400/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.12.2024
DATE OF DECISION: 10.06.2026
State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 having its Central Office at Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Offices at Sector 17, Chandigarh, having Branches at different places and one of its AMCC (RACC) Branch at Nabha, District Patiala, Punjab through its Chief Manager, Sh. Jatinder Kumar Salaria
……..Applicant
Versus
Sh. Jaspreet Singh, S/o Sh. Sukhvir Singh, R/o Village Majhi, Tehsil Bhawanigarh, District Sangrur, Punjab
….……Defendant
Advocates:
Argued by Sh. Amit Rishi, Advocate proxy for Sh. Aseem Kataria, Advocate for applicant
Sh. Vivek Verma, Advocate proxy for Sh. Bikkar Singh Khaira, Advocate for defendant
FINAL ORDER
2 OA/1400/2024 STATE BANK OF INDIA VS. JASPREET SINGH
3 OA/1400/2024 STATE BANK OF INDIA VS. JASPREET SINGH
From the perusal of all the Annexure A1 to A11 to this OA, it is proved that the defendant 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 bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 20,89,457.00 (Rupees Twenty Lacs Eighty Nine Thousand Four Hundred Fifty Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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 hypothecated asset, undertaking of the defendant, 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 @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.
4 OA/1400/2024 STATE BANK OF INDIA VS. JASPREET SINGH
Rs.20,89,457.00 (Rupees Twenty Lacs Eighty Nine Thousand Four Hundred Fifty Seven Only) 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 asset of the defendant 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 defendant. 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 24.06.2026. 15. Copy of this order be given Dasti to the applicant and be sent to defendant 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: 10.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount from the defendant.
What rate of interest should be granted on the outstanding loan amount.
Whether a recovery certificate should be issued against the defendant.
2 provisions across 2 enactments
State Bank of India
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
