Allowed

State Bank of India v. Sh. Hira Singh

DRT23 Jan 2026OA/146/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed application by State Bank of India for recovery of Rs. 59,02,805.00 from defendant Hira Singh, declaring him liable to pay the sum with interest at 8% p.a. and permitting enforcement through sale of mortgaged properties under SARFAESI Act.

What did the court decide?

Recovery of Rs. 59,02,805.00 plus costs and interest @08.00% p.a. from the date of filing till realization, enforceable via sale of mortgaged properties under SARFAESI Act.

State Bank of India versus Sh. Hira Singh — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.146/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.01.2024

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DATE OF DECISION: 23.01.2026

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

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……..Applicant Versus

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Sh. Hira Singh S/o Sh. Kashmir Singh, resident of Village Mundi, Post Office Fattu Dhinga, District Kapurthala

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……….Defendant

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Advocates:

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Argued by Sh. Gurinderjit Singh, Advocate for the applicant

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Defendants are ex-parte vide order dated 15.12.2025

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 59,02,805.00 (Rupees Fifty Nine Lacs Two Thousand Eight Hundred and Five Only). The Original Application has been filed through Sh. Balbir Singh, Chief Manager of the Applicant, who is competent to institute the Original Application in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulation no. 76 and 77 of State Bank of India Regulations made by the Reserve Bank of India in exercise of powers conferred by sub committee.

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs. 25.00 Lacs vide Loan Application

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OA/146/2024 STATE BANK OF INDIA VS. HIRA SINGH

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dated 04.12.2012 which is Annexure A1 to this OA and thereafter, approached the applicant for enhancement of the limit to Rs. 40.00 Lacs vide Loan Application dated 12.02.2015 which is Annexure A4 to this OA.

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The applicant sanctioned KCC Limit of Rs. 25.00 Lacs vide Letter of Arrangement dated 13.12.2012, which is Annexure A2 to this OA and thereafter, sanctioned enhancement of the limit to Rs. 40.00 Lacs vide Letter of Arrangement dated 12.02.2015, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. Land measuring 41K-5M situated at Village Fattu Dhinga, Tehsil and District Kapurthala, Punjab vide Declaration u/s 4(1) dated 04.02.2015, along with its translation, which is Annexures A7 to this OA and Jamabandi for the year 2015-2016, along with its translation, which is Annexures A8 to this OA.

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Documents executed : Hypothecation Agreement dated 13.12.2012 and 12.02.2015, which are Annexures A3 & A6 to this OA; Bank Notices dated 30.09.2023 and 17.11.2023 which are Annexures A9 & A10 to this OA; Legal notices dated 16.09.2022, 17.01.2023 and 06.11.2023, which are Annexures A11 to A13 to this OA; Revival Letters dated 12.02.2015, 16.11.2017, 17.11.2020 and 29.09.2023, which are Annexures A14 to A17 to this OA; Statement of account with certificates, which are Annexure A18 to A20 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.59,02,805.00, 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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OA/146/2024 STATE BANK OF INDIA VS. HIRA SINGH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 15.12.2025.

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In support of the OA, affidavit of Sh. Balbir Singh, Chief Manager, State Bank of India h as 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 A20 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 Rs. 59,02,805.00 (Rupees Fifty Nine Lacs Two Thousand Eight Hundred and Five Only) along with interest from the defendant from the date of filing of the present Original Application till realization of the account.

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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 in @11.75%pa. with half yearly rests from 29.12.2023 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 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 uniform simple interest

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OA/146/2024 STATE BANK OF INDIA VS. HIRA SINGH

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@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 defendant is liable to pay to the applicant a total sum of Rs.59,02,805.00 (Rupees Fifty Nine Lacs Two Thousand Eight Hundred and Five 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/mortgaged properties 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 05.02.2026. 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: 23.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Hira Singh

Case brief

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State Bank of India v. Sh. Hira Singh

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