Allowed

State Bank of India v. Sh. Paramjeet Singh

DRT15 Jul 2026OA/1430/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India against a defaulting borrower for recovery of a term loan amount of Rs. 26,25,173 along with interest, following an ex parte hearing due to the respondent's absence.

What did the court decide?

Declaration of liability to pay Rs. 26,25,173 with interest at 8% p.a. and recovery through sale of hypothecated machinery.

State Bank of India versus Sh. Paramjeet Singh — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1430/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2024

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DATE OF DECISION: 15.07.2026

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and branches all over India including one of its Branch at SBI, SARB at SCO No.15, First & Second Floor, Madhya Marg, Sector-7, Chandigarh, through its Chief Manager, Sh. Dilbagh Singh Reddu.

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……..Applicant Versus Sh. Paramjeet Singh S/o Sh. Bikker Singh, resident of Village Bapiana, Mansa, Punjab-151505.

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.……Defendant

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Advocate:

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Argued by Ms. Sonal Chabra, Advocate for the applicant (through VC) None for Defendant (already ex parte vide order dated 11.06.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.26,25,173.00 (Rupees Twenty Six Lac Twenty Five Thousand One Hundred Seventy Three only). The Original Application has been filed through Sh. Dilbagh Singh Reddu, Chief Manage r, of the applicant bank, who is competent to institute the Original Application 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 approached the applicant for the grant of Term Loan of Rs.24.50 Lacs for purchase of Combine Harvester vide Loan Application Form dated 01.03.2024, which is Annexure A2 to this OA.

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OA/1430/2024 STATE BANK OF INDIA VS SH. PARAMJEET SINGH

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The applicant sanctioned the Term Loan of Rs.24.50 Lacs vide Letter of Arrangement dated 16.03.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Combine Harvester that’s Make A.R. AGRO TECH, Model No. ARSHPREET-987, Engine No. PLMH192205, Chassis No. ART987C240028, vide Agreement of Loan-cumHypothecation dated 16.03.2024, which is Annexure A4 to this OA; As per affidavit of Sh. Ankush Kher, Chief Manager of the applicant, filed on 13.07.2026 vide Dairy no. 12619, hypothecated machinery has not registered with any Registration Authority by the defendant. Documents executed : Legal Notice dated 17.07.2024, which is Annexure A5 to this OA; Statement of Account duly certified, which is Annexure A6 to this OA.

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The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.26,25,173.00 (Rupees Twenty Six Lac Twenty Five Thousand One Hundred Seventy Three only), which is recoverable and the defendant was served recall notices but he 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 summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, he was proceeded ex-parte on 11.06.2026.

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In support of the OA, affidavit of Sh. Dilbagh Singh Reddu, Chief Manager, State Bank of India, has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned counsel through video conferencing, 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 A6 to this OA, it is proved that the defendant approached applicant for availing of the Term Loan, 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

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OA/1430/2024 STATE BANK OF INDIA VS SH. PARAMJEET SINGH

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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.26,25,173.00 (Rupees Twenty Six Lac Twenty Five Thousand One Hundred Seventy Three only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00% p.a. plus 2.00% p.a. penal interest with monthly rests from 13.11.2024 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 hypothecated machinery, 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.26,25,173.00 (Rupees Twenty Six Lac Twenty Five Thousand One Hundred Seventy Three 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 machinery 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

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OA/1430/2024 STATE BANK OF INDIA VS SH. PARAMJEET SINGH

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attachment and sale of personal assets of the defendant. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.07.2026 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: 15.07.2026

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

State Bank of India v. Sh. Paramjeet Singh

Case brief

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State Bank of India v. Sh. Paramjeet Singh

Case brief

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