Allowed

State Bank of India v. Sh. Rajwinder Singh

DRT15 May 2026OA/21/2026

Case brief

AI extract

What is this about?

In an ex-parte original application under Section 19 RDB Act, the Debt Recovery Tribunal allowed the State Bank of India's recovery of Rs. 24.48 lakhs from the defaulting borrower after finding no evidence to rebut the documentary proof of loan and NPA status. The Tribunal ordered simple interest.

What did the court decide?

Recovery of Rs. 24,48,174 plus simple interest at 8% p.a. from filing date till realization, enforceable via sale of hypothecated assets or attachment of personal assets.

State Bank of India versus Sh. Rajwinder Singh — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.21/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2026

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DATE OF DECISION: 15.05.2026

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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 AMCC Branch at Patiala, District Patiala through its Chief Manager Sh. Khushwant Singh.

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……..Applicant Versus

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Sh. Rajwinder Singh S/o Kulwinder Singh, R/o Village Zaffar Nagar @ Chotti Bhateri, P.O. Janherian, Tehsil and District Patiala, Punjab.

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……..Defendant

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Advocates:

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

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None for Defendant (Already ex-parte vide order dated 08.05.2026).

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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 defendant for recovery of Rs.24,48,174.00 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred and Seventy Four Only). The Original Application has been filed through Sh. Khushwant Singh, 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, 02.05.1987 issued by Executive Committee of the central Board in exercise of power conferred on it under regulation 76 & 77 of SBI General Regulations made by RBI in exercise of power conferred

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2 OA/21/2026 STATE BANK OF INIDA VS SH. RAJWINDER SINGH

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by Sub-Section 3 of Section 50 of SBI Act, 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 Term Loan for purchase of Combine Harvester of Rs.25,00,000.00 vide Loan Application dated 29.06.2024, which is Annexure A1 to this OA; 3. The applicant sanctioned the Term Loan for purchase of Combine Harvester of Rs.25,00,000.00 vide Letter of Arrangement dated 12.08.2024, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Movable Vehicle i.e., COMBINE HARVESTER, Bearing Registration No. PB11DH4305, Engine No. RMHM107793, Chassis No. RAW930G240009 vide Registration Certificate, which is Annexure A4 to this OA;

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Documents executed: Hypothecation Agreement dated 12.08.2024, which is Annexure A3 to this OA; Legal Notice dated 30.09.2025 along with postal receipt, which is Annexure A5 to this OA; Statement of Account along with Certificate, which is Annexure A6 to this OA; 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,48,174.00 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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The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 08.05.2026. 7. In support of the OA, affidavit of Sh. Khushwant Singh, Chief Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/21/2026 STATE BANK OF INIDA VS SH. RAJWINDER SINGH

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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 A6 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.24,48,174.00 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred and Seventy Four Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with penal interest @2%p.a. with monthly rests from 20.12.2025 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 instant case including nature of the 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 simple interest @8.00%p.a. the loan account 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 defendant is liable to pay to the applicant a total sum of Rs.24,48,174.00 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred and Seventy Four Only), with costs, current and future simple

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OA/21/2026

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STATE BANK OF INIDA VS SH. RAJWINDER SINGH

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interest @8.00%p.a. in the loan account 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 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 06.06.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 15.05.2026

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

State Bank of India v. Sh. Rajwinder Singh

Case brief

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State Bank of India v. Sh. Rajwinder Singh

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