Allowed

State Bank of India v. Sh. Satish Kumar and Others

DRT28 Jan 2026OA/1929/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the banking company's application for recovery of debt against loan defaulters. The court discharged its duty by ordering the defendants to pay the principal amount along with uniform simple interest from the date of filing.

What did the court decide?

Decree passed declaring respondents jointly and severally liable to pay Rs.23,34,588.42 with 7.20% simple interest until realization.

State Bank of India versus Sh. Satish Kumar and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1929/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.11.2022

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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 and having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and having branches all over India and one of its branches situated at Shahpur Chowk, Pathankot, District Pathankot, Punjab through its branch manager Sh. Gaurav Sharma.

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……..Applicant

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Versus

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Sh. Satish Kumar Son of Sh. Shiv Ram, R/o House No.375, Near Kabir Mandir, Baba Badhbagh Singh Colony, Village Sarna, Tehsil and District Pathankot, Punjab.

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Smt. Renu Bala W/o Sh. Satish Kumar, R/o House No.375, Near Kabir Mandir, Baba Badhbagh Singh Colony, Village Sarna, Tehsil and District Pathankot, Punjab.

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Smt. Santosh Kumari W/o Sh. Shiv Ram, R/o House No.375, Near Kabir Mandir, Baba Badhbagh Singh Colony, Village Sarna, Tehsil and District Pathankot, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Dinesh Chatrath, Advocate for the applicant

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Defendants already ex-parte vide order dated 23.09.2024.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,34,588.42 (Rupees Twenty Three Lacs Thirty Four Thousand Five Hundred Eighty Eight & Paise Forty Two Only). The Original Application has been filed through

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OA NO.1929/2022 STATE BANK OF INDIA VS. SATISH KUMAR AND OTHERS

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Sh. Gaurav Sharma, Branch 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 27.03.1987 issued by Executive Committee of the Central Board in exercise of powers conferred on it under regulation 76 & 77 of State Bank of India General Regulations made by RBI in exercise of powers conferred by SubSection 3 of Section 50 of State Bank of India Act, 1955. Gazette Notification dated 27.03.1987, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Housing Loan of Rs.20.00 Lacs & SBI Suraksha Loan (Funding of Home Loan Insurance Cover) of Rs.16,910.00.

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The applicant sanctioned the Housing Loan of Rs.20.00 Lacs & SBI Suraksha Loan (Funding of Home Loan Insurance Cover) of Rs. 16,910.00 vide Letter of arrangement dated 20.02.2017, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no.3 mortgaged her immovable properties i.e. House on land measuring 04Marla situated at Village Sarna, Hadbast No. 244, Tehsil and District Pathankot, Punjab through equitable mortgage of Title Deed bearing vasika no. 5432 dated 16.02.2017, along with its translation, which are Annexures A6, A6/T to this OA; Agreement to mortgage, Letter of deposit of title deeds, letter of confirmation of deposit of title deed all dated 20.02.2017, which are Annexures A5, A7 and A8 to this OA; Jamabandi for the year 2015, along with its translation, which is Annexure A9 and A9/T to this OA.

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Documents executed: - Gazette notification dated 22.02.2017, which are Annexure A2 to this OA ; Term Loan Agreement for Housing Loan dated 20.02.2017, which is Annexure A4 to this OA; Balance Confirmation letter dated 16.03.2017, which is Annexure A10 to this OA; Revival letter dated 03.01.2020, which is Annexure A11 to this

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OA NO.1929/2022 STATE BANK OF INDIA VS. SATISH KUMAR AND OTHERS

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OA; Notice dated 17.03.2018 u/s 13(2) of SARFAESI Act, which is Annexure A12 to this OA; Possession Notice dated 17.05.2018, which is Annexure A13 to this OA; DM Order u/s 14 dated 09.10.2018, which is Annexure A14, A14-T to this OA and Statement of accounts along with calculation sheet, which are Annexures A15 to A18 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 the loan account there was a debit of Rs.23,34,588.42, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 23.09.2024.

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In support of the OA, affidavit of Sh. Gaurav Sharma, Branch 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 counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, account 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.23,34,588.42 (Rupees Twenty Three Lacs Thirty Four Thousand Five Hundred Eighty Eight &

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OA NO.1929/2022 STATE BANK OF INDIA VS. SATISH KUMAR AND OTHERS

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Paise Forty 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 accounts.

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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 @7.25%p.a. with 2% penal interest and monthly rests in Housing loan & interest @7.20%p.a. with 2% penal interest and monthly rests in SBI Suraksha loan from 16.11.2022 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, 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 @7.20%p.a. in the 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.

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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.23,34,588.42 (Rupees Twenty Three Lacs Thirty Four Thousand Five Hundred Eighty Eight & Paise Forty Two Only) jointly and severally, with costs, current and future simple interest @7.20%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 mortgaged property of 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

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OA NO.1929/2022 STATE BANK OF INDIA VS. SATISH KUMAR AND OTHERS

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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 10.02.2026. 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: 28.01.2026.

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

State Bank of India v. Sh. Satish Kumar and Others

Case brief

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State Bank of India v. Sh. Satish Kumar and Others

Case brief

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