Allowed

State Bank of India v. Sh. Aasa Singh and Another

DRT5 Jan 2026OA/1692/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under RDB Act for recovery of Rs. 23.23 Lakhs from two borrowers defaulting on KCC and term loans. Tribunal granted uniform 8% simple interest and directed preparation of Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.23,23,470.53 with 8% simple interest; entitlement to enforce claim via SARFAESI Act proceedings.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1692/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.09.2022

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DATE OF DECISION: 05.01.2026

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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 Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17A, Chandigarh and one of its branch at ADB Muktsar, District Sri Muktsar Sahib, through its Chief Manager Sh. Rajesh Kumar Ahuja.

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……..Applicant

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Versus

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Sh. Aasa Singh Son of Sh. Gurdit Singh, R/o Village Khappianwali, Tehsil and District Sri Muktsar Sahib, Punjab.

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Sh. Surinder Singh Son of Sh. Assa Singh, R/o Village Khappianwali, Tehsil and District Sri Muktsar Sahib, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate Proxy for Sh. Pankaj Beri, Advocate for the applicant (through VC)

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Defendants ex-parte vide order dated 02.08.2024

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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 defendants for recovery of Rs.23,23,470.53 (Rupees Twenty Three Lacs Twenty Three Thousand Four Hundred Seventy & Paise Fifty Three Only). The Original Application has been filed through Sh. Rajesh Kumar Ahuja, Chief Manager of applicant who is competent to institute the Original Application in terms of the Gazette Notification dated 26.09.1959, 26.08.1972 and 02.05.1987 under regulations no.76 & 77 of State Bank of India General Regulations framed in exercising of the powers conferred by Sub section 3 of section 50 of

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OA NO.1692/2022 STATE BANK OF INDIA VS. AASA SINGH AND ANOTHER

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the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendants approached the applicant for grant of KCC Limit of Rs.13.00 Lacs & Term Loan of Rs.1.00 Lac for Debts Swap vide loan applications dated 06.02.2015, which are Annexures A1 & A4 to this OA.

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The applicant sanctioned KCC Limit of Rs.13.00 Lacs & Term Loan of Rs. 1.00 Lac for Debt Swap vide Letter of arrangements dated 30.03.2015, which are Annexure A2 & A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos. 1 & 2 had mortgaged their immovable property i.e. Agricultural Land measuring 31K-04M situated at Village Noorpur Kirpal Ke, Tehsil and District Sri Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 24.03.2016, along with its translation which is Annexure A7 to this OА. Documents executed : Hypothecation agreements dated 30.03.2015, which are Annexures A3 & A6 to this OA; Notice dated 10.12.2019 along with translation, which is Annexure A8 to this OA and Statement of Accounts with unapplied interest, which are Annexures A9 & A10 to this ОА. 5. 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.23,23,470.53, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 02.08.2024. 7. In support of the OA, affidavit of Sh. Rajesh Kumar Ahuja, Chief Manager, State Bank of India, has been filed.

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OA NO.1692/2022 STATE BANK OF INDIA VS. AASA SINGH AND ANOTHER

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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 for applicant 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 A10 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,23,470.53 (Rupees Twenty Three Lacs Twenty Three Thousand Four Hundred Seventy & Paise Fifty Three Only) along with interest from the defendants, jointly and severally, 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 @10.45% with 2% penal interest in KCC and interest @8.00% p.a. with 2% penal interest Debt swap account with half yearly rests from 10.08.2022 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 defendants, quantum of loans 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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OA NO.1692/2022 STATE BANK OF INDIA VS. AASA SINGH AND ANOTHER

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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 defendants are liable to pay to the applicant a total sum of Rs.23,23,470.53 (Rupees Twenty Three Lacs Twenty Three Thousand Four Hundred Seventy & Paise Fifty Three Only) jointly and severally, 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/mortgaged properties of the defendants 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 defendants. 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 15.01.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 05.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Aasa Singh and Another

Case brief

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State Bank of India v. Sh. Aasa Singh and Another

Case brief

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