Allowed

State Bank of India v. Sh. Veer Singh

DRT2 Mar 2026OA/1501/2025

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed an Original Application filed by State Bank of India against Veer Singh for recovery of a term loan default. The court upheld the claim for Rs.33.18 Lacs and fixed pending interest at 8% per annum, directing recovery via sale of hypothecated assets or attachment of personal property if dues remain unsatisfied.

What did the court decide?

Recovery certificate issued for Rs.33,18,486.00 with costs and simple interest @8% per annum from filing date till realization.

State Bank of India versus Sh. Veer Singh — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1501/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.10.2025

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DATE OF DECISION: 02.03.2026

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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 at SBI, Kohara, District Ludhiana-141112, Punjab through its Branch Manager, Sh. Dhruv Angrup.

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……..Applicant

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Versus

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Sh. Veer Singh S/o Sh. Bhupinder Singh, R/o Village Lakhowal Kalan, Sub Tehsil Machhiwara, District Ludhiana, Punjab-141115

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…….Defendant

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Advocates:

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Argued by Ms. Sonia Gupta, Advocate for the applicant

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Defendant already ex-parte vide order dated 07.02.2026

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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 defendant for recovery of Rs.33,18,486.00 (Rupees Thirty Three Lacs Eighteen Thousand Four Hundred Eighty Six Only). The Original Application has been filed through Sh. Dhruv Angrup , Branch Manager, o f the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959, 26.08.1972 and 27.03.1987 under Regulation no. 76 and 77 of State Bank of India General Regulations framed in exercising of the powers conferred by sub-section 3 of section 50 of the State Bank of India Act, 1955 with previous sanction of the Central Government.

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The brief facts of the OA are that the defendant approached the

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applicant for grant of Term Loan of Rs.29.72 Lacs for purchase of

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OA NO.1501/2025 STATE BANK OF INDIA VS. VEER SINGH

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Combine Harvester vide Loan application dated 07.06.2024, which is Annexure A1 to this OA.

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The applicant sanctioned sanction the Term Loan of Rs.29.72 Lacs vide Letter of Arrangement dated 14.06.2024, which is Annexure A2 to this OA the terms and conditions were duly accepted by the defendant.

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Defendant hypothecated Combine Harvester Make: Jeet Agro Industries, Model: JEET-555, bearing No. Registration No. PB10JX5975, Engine No. MPNH516251 and Chassis No. JEET555F2024105 vide hypothecation agreement dated 14.06.2024, which is Annexure A3 to this OA. Registration Certificate/details of Combine Harvester, is Annexure A4 to this OA.

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Documents executed: Legal Notice dated 04.03.2025, which is Annexure A5 to this OA; Demand Notice dated 18.03.2025 u/s 13(2) of SARFAESI Act, which is Annexure A6 to this OA; Statement of A/c dated 01.10.2025 which is Annexure A7 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.33,18,486.00 which is recoverable and the defendant was served recall notice 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 notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 07.02.2026.

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In support of the OA, affidavit of Sh. Dhruv Angrup, Branch 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

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OA NO.1501/2025 STATE BANK OF INDIA VS. VEER SINGH

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Annexures A1 to A7 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.33,18,486.00 (Rupees Thirty Three Lacs Eighteen Thousand Four Hundred Eighty Six Only) the 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rests from 03.10.2025 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 @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.33,18,486.00 (Rupees Thirty Three Lacs Eighteen Thousand Four Hundred Eighty Six 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

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OA NO.1501/2025 STATE BANK OF INDIA VS. VEER SINGH

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entitled to recover aforesaid amount from the sale of hypothecated combine harvester 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.

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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 Tribunal on 19.03.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 02.03.2026

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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. Veer Singh

Case brief

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State Bank of India v. Sh. Veer Singh

Case brief

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