Allowed

State Bank of India v. Amandeep Singh

DRT28 Jan 2026OA/1550/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of RDB Act for recovery of dues against a KCC loan defaulting borrower. Upon reviewing evidence, the Court adjusted the claimed interest rate to 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 54,44,798.54 along with simple interest at 8% p.a. from filing date; Recovery Certificate issued; liberty to enforce via sale of hypothecated or personal assets.

State Bank of India versus Amandeep Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1550/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.07.2022

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DATE OF DECISION: 28.01.2026.

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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 Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17, Chandigarh and a branch amongst other places at Jand Mangoli, District Patiala, Punjab through its Branch Manager and Principal officer Mr. Saurabh Gupta.

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……..Applicant

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Versus

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Amanadeep Singh, Son of Sh. Nirmal Singh, R/o Village Jand Mangoli, PO Jand Mangoli, Tehsil Rajpura, District Patiala, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Harmanjit Singh Sethi, Advocate for applicant (through

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VC)

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Defendant already ex parte vide order dated 18.05.2024.

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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. 54,44,798.54 (Rupees Fifty Four Lacs Forty Four Thousand Seven Hundred Ninety Eight & Paise Fifty Four Only). The Original Application has been filed through Sh. Saurabh Gupta, branch Manager and Principal officer of the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1969 and 26.08.1972 issued by the Executive Committee of the Central Board in exercise of the powers conferred on it under Regulation No. 76 of the State Bank of India Act, 1955.

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2 OA/1550/2022 STATE BANK OF INDIA VS AMANDEEP SINGH

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The brief facts of the OA that the defendant approached the applicant for the grant of KCC Limit of Rs.35.00 Lacs vide loan application dated 28.01.2016, which is Annexure A1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.35.00 Lacs vide Letter of Arrangement dated 02.03.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable properties i.e. land measuring 40 Bigha (8.33 acres) situated at Village Jand Mangoli, Sub Tehsil Ghanaur, Tehsil Rajpura, District Patiala, Punjab vide declaration u/s 4(1) dated 26.02.2016. Revival letter dated 02.01.2019 along with declaration u/s 4(1) dated 26.02.2016, w hich is Annexure A4 to this OA.

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Documents executed: Hypothecation agreement dated 02.03.2016, which is Annexure A3 to this OA; Revival letter dated 10.09.2021, which is Annexure A5 to this OA; Legal notice dated 29.03.2022, which is Annexure A6 to this OA and Calculation sheet, which is Annexure A7 to this OA.

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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.54,44,798.54, 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 18.05.2024.

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In support of the OA, affidavit of Sh. Saurabh Gupta, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1550/2022 STATE BANK OF INDIA VS AMANDEEP SINGH

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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. From the perusal of all the 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. 54,44,798.54 (Rupees Fifty Four Lacs Forty Four Thousand Seven Hundred Ninety Eight & Paise Fifty Four 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@15% p.a. with monthly rest from the 01.08.2022 till 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.

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4 OA/1550/2022 STATE BANK OF INDIA VS AMANDEEP SINGH

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54,44,798.54 (Rupees Fifty Four Lacs Forty Four Thousand Seven Hundred Ninety Eight & Paise Fifty Four 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 assets/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.

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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 10.02.2026.

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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: 28.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Amandeep Singh

Case brief

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State Bank of India v. Amandeep Singh

Case brief

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