Partly allowed

State Bank of India v. M/S Sant Attar Singh Ji Ksk and Another

DRT1 Jun 2026OA/170/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by the State Bank of India for recovery of Rs. 25,28,072 from the sole proprietorship concern and its proprietor due to NPA classification. The Tribunal granted a recovery certificate, ordered execution against hypothecated or personal assets, and modified interest to 8% p.a.

What did the court decide?

Declaratory that respondents are jointly and severally liable to pay Rs.25,28,072 with costs and 8% p.a. interest. Recovery Certificate issued. Liberty to recover from hypothecated or personal assets

State Bank of India versus M/S Sant Attar Singh Ji Ksk and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 170/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.02.2025

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DATE OF DECISION: 01.06.2026

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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 Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Near Civil Court, Patiala Road, Sunam, Tehsil Sunam, District Sangrur, through its Chief Manager, Sh. Chandan Kumar.

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……..Applicant

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Versus

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M/s Sant Attar Singh Ji KSK, a sole proprietorship concern situated at Cheema To Lehragaga Road, Tolawal, Tehsil Sunam District Sangrur (Punjab) through its sole proprietor, Sh. Narinder Singh Sidhu son of Sh. Amarjeet Singh.

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Sh. Narinder Singh Sidhu son of Sh. Amarjeet Singh resident of Patti Handu Tehsil Sunam District Sangrur, Punjab.

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.……Defendants

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Advocates:

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Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for applicant

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None for Defendants (already ex parte vide order dated 29.05.2026)

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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 defendants for recovery of Rs.25,28,072.00 (Rupees Twenty Five Lacs Twenty Eight Thousand Seventy Two Only). The Original Application has been filed through Sh. Chandan Kumar, Chief Manager,

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of the applicant , who is competent to institute the Original Application.

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2 OA/ 170/2025 STATE BANK OF INDIA VS M/S SANT ATTAR SINGH JI KSK AND ANOTHER

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The brief facts of the OA are that the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for OD Limit of Rs. 20.00 lacs vide Loan Application Form dated 07.03.2023, which is Annexure A1 to this OA.

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Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for CC Limit under e-DFS of Rs. 20.00 lacs vide Loan Application Form dated 05.05.2023, which is Annexure A6 to this OA.

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The applicant sanctioned the OD Limit of Rs. 20.00 lacs vide Letter of Arrangement dated 07.03.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants vide Addendum to Arrangement/Sanction Letter dated 24.05.2023, which is Annexure A3 to this OA. Thereafter, the applicant sanctioned the CC Limit under e-DFS of Rs. 12.50 lacs vide Letter of Arrangement dated 24.05.2023, which is Annexure A7 to this OA. 4. Defendants hypothecated their stocks and book debts vide Agreement of Loan-cum-Hypothecation dated 24.05.2023, which is Annexure A8 to this OA. Documents executed: Undertaking dated 24.05.2023, which is Annexure A4 to this OA; Credit Guarantee Fund Trust Scheme for Small Industries (Annex. I) dated 24.05.2023, which is Annexure A5 to this OA; Undertaking-cum-Indemnity Bond dated 19.04.2023, which is Annexure A9 to this OA; Agreement by Dealer under Electronic Dealer Financing Scheme dated 24.05.2023, which is Annexure A10 to this OA; Notice dated 11.09.2024, which is Annexure A11 to this OA; Statement of Account duly certified (OD) dated 18.01.2025, which is Annexure A12 to this OA; Statement of Account duly certified (CC) dated 18.01.2025, which is Annexure A13 to this OA; Calculation Sheet dated 18.01.2025, which is Annexure A14 to this OA; Banker’s Certificate dated 30.01.2025, which is Annexure A15 to this OA.

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3 OA/ 170/2025 STATE BANK OF INDIA VS M/S SANT ATTAR SINGH JI KSK AND ANOTHER

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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.25,28,072.00 (Rupees Twenty Five Lacs Twenty Eight Thousand Seventy Two Only), 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.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 29.05.2026.

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In support of the OA, affidavit of Sh. Chandan Kumar, 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 for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. They had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the 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.25,28,072.00 (Rupees Twenty Five Lacs Twenty Eight Thousand Seventy Two Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @14.15%p.a. in OD Limit and @10.00% p.a. in CC Limit, plus penal interest @2.00% p.a. with monthly rests from 19.01.2025 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

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4 OA/ 170/2025 STATE BANK OF INDIA VS M/S SANT ATTAR SINGH JI KSK AND ANOTHER

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instant case including nature of the 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 @8.00% p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,28,072.00 (Rupees Twenty Five Lacs Twenty Eight Thousand Seventy Two Only), jointly and severally, with costs, current and future simple interest @8.00% 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 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 22.06.2026 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: 01.06.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. M/S Sant Attar Singh Ji Ksk and Another

Case brief

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State Bank of India v. M/S Sant Attar Singh Ji Ksk and Another

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