Allowed

State Bank of India v. Sh. Lakhvir Singh

DRT30 Jan 2026OA/1688/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by State Bank of India against Lakhvir Singh for recovery of Rs. 22,56,494. The bank proved the loan was granted but defaulted occurred. The court decreed the full amount plus uniform simple interest at 8% per annum from the date of filing.

What did the court decide?

Decreed payment of Rs.22,56,494 plus costs and simple interest at 8% p.a. from filing date, with liberty to recover via sale of mortgaged or personal assets and issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1688/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.09.2022 DATE OF DECISION: 30.01.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 (23 of 1955) having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17, Chandigarh including one such branch at Samana, (ADB), District Patiala, Punjab through its Chief Manager Sh. Sandeep Kumar Bajaj. ……..Applicant Versus Sh. Lakhvir Singh Son of Sh. Hardeep Singh, R/o Village Fateh Majri, P.O. Kutbanpur, Tehsil Samana, District Patiala, Punjab. …….Defendant

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Advocates:

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Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for Applicant (through VC) Defendant already ex parte vide order dated 18.07.2024. 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.22,56,494.00 (Rupees Twenty Two Lacs Fifty Six Thousand Four Hundred Ninety Four Only). The Original Application has been filed through Sh. Sandeep Kumar Bajaj, Chief Manager, of the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959, 26.08.1972 and 02.05.1987 under Regulation No.76 read with 77 of State Bank of India General Regulations, framed in exercise of powers conferred by the sub-Section 3 of Section 50 of the State bank of India Act, 1955 with previous sanction of Central Government.

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs.3.00 Lacs vide loan application dated 23.11.2009, which is Annexure A2 to this OA and thereafter,

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2 OA/1688/2022 STATE BANK OF INDIA VS. LAKHVIR SINGH

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for grant of Agriculture Term Loan of Rs.14.50 Lacs under KGC vide loan application dated 04.10.2013, which is Annexure A3 to this OA. 3. The applicant sanctioned KCC Limit of Rs.3.00 Lacs vide letter of arrangement dated 07.12.2009, which is Annexure A4 to this OA and sanctioned Agriculture Term Loan of Rs.14.50 Lacs under KGC vide letter of arrangement dated 04.10.2013, which is Annexure A5 to this OA.

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Defendant mortgaged his immoveable property i.e. Total land measuring 72K-13M detailed as under:

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(i) Land measuring 48K-0M situated at Village Majri, Tehsil Samana, District Sangrur, Punjab vide mortgage deed bearing vasika no. 2442 dated 03.12.2009, along with its translation, which are Annexures A8 and A8A to this OA

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(ii) Land measuring 24K-13M situated at Village Fateh Majri, Tehsil Samana, District Sangrur, Punjab vide mortgage deed bearing vasika no. 1671 dated 04.10.2013, along with its translation, which are Annexures A9 and A9A to this OA. Mutation sanction letter dated 04.12.2009 & 04.10.2013, along with their translations, which are Annexures A10, A10A, A11 and A11A to this OA.

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Documents executed : Notification dated 20.03.2017, which is Annexure A1 to this OA; Hypothecation agreements dated 07.12.2009 & 08.10.2013, which are Annexures A6 & A7 to this OA; Revival letters dated 25.11.2015, 20.11.2018 & 15.06.2020, which are Annexures A12 to A14 to this OA; Legal notice dated 20.08.2018 along with postal receipt, which is Annexure A15 to this OA and statements of accounts along with closure enquiry, which are Annexures A16 & A17 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.22,56,494.00, 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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3 OA/1688/2022 STATE BANK OF INDIA VS. LAKHVIR 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 18.07.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar Bajaj, Chief Manager, State Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A17 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,56,494.00 (Rupees Twenty Two Lacs Fifty Six Thousand Four Hundred Ninety Four Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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 @10.60%p.a. with 2% penal interest and half yearly rests in KCC Limit & interest @10.90%p.a. with 2% penal interest in KGC Term Loan and half yearly rests from 12.08.2022 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 both the loan accounts from the date of filing of the

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4 OA/1688/2022 STATE BANK OF INDIA VS. LAKHVIR SINGH

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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.22,56,494.00 (Rupees Twenty Two Lacs Fifty Six Thousand Four Hundred Ninety Four Only) with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.02.2026 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: 30.01.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Lakhvir Singh

Case brief

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State Bank of India v. Sh. Lakhvir Singh

Case brief

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