Allowed

State Bank of India v. Sh. Gurdial Singh

DRT7 Jan 2026OA/2095/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal decided an ex-parte application by State Bank of India for recovery of loan dues. The court allowed the application, declaring the defendant liable to pay the principal amount plus principal concern interest at 8% p.a. and directed recovery from hypothecated or personal assets.

What did the court decide?

Recovery certificate issued directing payment of Rs.38,68,623.00 with 8% simple interest and permission to recover from sale of vehicles or attachment of personal assets.

State Bank of India versus Sh. Gurdial Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2095/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.10.2020

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DATE OF DECISION: 07.01.2026

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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 State Bank House, Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office in Sector 17-A Chandigarh, and one of its branches at Railway Road, Budhlada-151502, District Mansa, Punjab through its duly authorized Officer Sh. Inder Paul Singla, Chief Manager.

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……..Applicant Versus Sh. Gurdial Singh, Son of Sh. Harnam Singh, R/o House No.76, Village Saidewala, Tehsil Budhlada, District Mansa, Punjab-151502.

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…….Defendant

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Advocates :

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Argued by Sh. Sahaj Punj, Advocate proxy for Sh. Vijay Sharma, Advocate for Applicant

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Defendant already ex-parte vide order dated 23.07.2024

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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.38,68,623.00 (Rupees Thirty Eight Lacs Sixty Eight Thousand Six Hundred Twenty Three Only). The Original Application has been filed through Sh. Inder Paul Singla, 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, 27.03.1987 and 17.05.2001 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulation no. 76 and 77 of State Bank of India General Regulation, made by the Reserve Bank of India in exercise of powers

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2 OA NO. 2095/2022 STATE BANK OF INDIA VS. GURDIAL SINGH

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conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with previous sanction of the 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.7.72 Lacs & Agriculture Term loan of Rs.20.00 Lacs under KGC vide Loan Applications dated 03.12.2012 which are Annexures A2 & A3 to this OA.

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The applicant sanctioned cash credit limit of KCC Limit of Rs.7.72 Lacs & Agriculture Term loan of Rs.20.00 Lacs under KGC vide Sanction letter/letter of arrangement dated 07.12.2012, which are Annexures A7 and A8 to this OA.

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Defendant mortgaged his immovable property i.e. land measuring i.e. land measuring 82K-09M situated at Village Saidewala, Tehsil Budhlada, District Mansa, Punjab vide mortgage deed bearing vasika no. 3284 dated 07.12.2012, along with translation, which is Annexure A10 to this OA. Affidavit dated 07.12.2012 regarding ownership of land, which is Annexure A4 to this OA; Certificate of Khasra-Girdwari, along with its translation, which is Annexure A5 to this OA; Taqavi Certificate dated 07.012.2012, along with its translation, which is Annexure A6 to this OA; Rapat dated 10.12.2012, along with its translation, which is Annexure A11 to this OA.

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Documents executed : Gazette Notification dated 22.02.2017, which is to this OA; Undertakings dated 07.12.2012, which is Annexure A9 to this OA; Hypothecation agreements dated 12.12.2012, which is Annexure A12 to this OA; Balance confirmatory cum acknowledgement of securities letters dated 30.11.2015 and 01.12.2015, which are Annexures A13 to this OA; Revival letter dated 15.11.2018, which is Annexure A14 to this OA; Legal notice dated 14.08.2019, which is Annexure A15 to this OA and Statement of Accounts, 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.38,68,623.00, which is recoverable and the defendant

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3 OA NO. 2095/2022 STATE BANK OF INDIA VS. GURDIAL SINGH

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was served recall notice 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 23.07.2024.

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In support of the OA, affidavit of Sh. Inder Paul Singla, 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 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.38,68,623.00 (Rupees Thirty Eight Lacs Sixty Eight Thousand Six Hundred Twenty Three Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. in KCC & interest @11.90%p.a. in Term loan ith half yearly rests from 21.07.2020 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 loans and prevalent market rates of interest which have gone drastically downhill in yester

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4 OA NO. 2095/2022 STATE BANK OF INDIA VS. GURDIAL SINGH

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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 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.38,68,623.00 (Rupees Thirty Eight Lacs Sixty Eight Thousand Six Hundred Twenty Three 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 vehicles 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

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Tribunal on 20.01.2026.

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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: 07.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Gurdial Singh

Case brief

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State Bank of India v. Sh. Gurdial Singh

Case brief

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