Allowed

State Bank of India v. Sh. Bharpur Singh Alias Bharpoor Singh

DRT21 Jan 2026OA/211/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the application filed by the State Bank of India for recovery of Rs. 36,17,159.00 against a defaulting borrower. The court reduced the claimed interest rate and ordered uniform simple interest at 8% p.a. from the date of filing.

What did the court decide?

Declaration that defendant is liable to pay Rs.36,17,159.00 with costs and simple interest at 8% p.a. permitting recovery via sale of mortgaged assets or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.211/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.02.2023

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DATE OF DECISION: 21.01.2026

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State Bank of India, a Body Corporate constituted under the provisions of The State Bank of India Act, 1955 (23 of 1955) having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra)400021, carrying on its Business of Banking in India and abroad having one of its Local Head Office at Sector-17, Chandigarh, having one of its Branch at Village Don Kalan, Tehsil and District Patiala (50146) through its Specialized Management known as Stressed Assets Recovery Branch situated at 2^nd Floor, S.C.O. 15, Sector 7, Madhya Marg, Chandigarh through its Authorized Officer Sh. Sanjeev Prakash Verma.

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……..Applicant Versus Sh. Bharpur Singh @ Bharpoor Singh son of Sh. Maghi Singh, resident of VPO Kheri Mandlan, Tehsil Rajpura, District Patiala. …….Defendant

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Advocates:

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Argued by Sh. Ajay Singla, Advocate for Applicant Defendant already ex-parte vide order dated 31.01.2024

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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.36,17,159.00 (Rupees Thirty Six Lacs Seventeen Thousand One Hundred Fifty Nine Only). The Original Application has been filed through Sh. Sanjeev Prakash Verma, Authorized Officer, of the applicant, who is competent to institute the Original Application vide in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulations No.76 & 77 of State Bank of India Act,1955 with the previous sanction of the Central Government. Notification dated 02.05.1987, is Annexure A1 to this OA.

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2 OA NO. 211/2023 STATE BANK OF INDIA VS BHARPUR SINGH ALIAS BHARPOOR SINGH

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.19.00 Lacs & Agriculture Term Loan of Rs. 13.00 Lacs under KGC vide Loan Applications dated 28.05.2014, which are Annexures A2 & A6 to this OA. Application for renewal/review dated 10.07.2018, which is Annexures A16 to this OA.

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The applicant sanctioned KCC Limit of Rs.19.00 Lacs & Agriculture Term Loan of Rs.13.00 Lacs under KGC vide Letter of arrangements dated 09.07.2014 & 26.06.2014, which are Annexures A3 & A8 to this OA; Sanction dated 19.06.2014, which is Annexure A7 to this OA. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 18Bighe-06Biswa situated at Village Kheri Mandla, Tehsil Ghanaur, District Patiala, Punjab vide mortgage deed bearing vasika no. 582 dated 24.06.2014, along with its translation, which is Annexures A11 to this OA; Sanction of Mutation dated 24.06.2014, along with its translation, which is Annexures A12 to this OA and jamabandi for the year 2012-2013, along with its translation, which is Annexures A13 to this OA. Documents executed : Hypothecation agreement, Undertaking both dated 09.07.2014, which are Annexure A4 & A5 to this OA; Hypothecation agreement, consent for disclosure of information, both dated 26.06.2014, which are Annexures A9 & A10 to this OA; Balance Confirmatory cum acknowledgement of security letters dated 15.11.2016, which are Annexures A14 & A15 to this OA; Revival letters dated 10.07.2018 and 05.05.2021, which are Annexures A16 to A19 to this OA; Legal notice dated 14.04.2022, which is Annexure A20 to this OA and Statements of Accounts with certificate, which are Annexures A21 & A22 to this OA. 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.36,17,159.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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3 OA NO. 211/2023 STATE BANK OF INDIA VS BHARPUR SINGH ALIAS BHARPOOR SINGH

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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 31.01.2024.

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In support of the OA, affidavit Sh. Sanjeev Prakash Verma, Authorized Officer, 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 had proved its case. From the perusal of all the Annexures A1 to A22 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 loans 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.36,17,159.00 (Rupees Thirty Six Lacs Seventeen Thousand One Hundred Fifty Nine 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 @11.30%p.a. with 2% penal interest with half yearly rests in KCC & interest @13.60%p.a. with 2% penal interest with half yearly rests in KGC from 31.01.2023 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 years, while exercising the discretion vested in this Tribunal, this

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4 OA NO. 211/2023 STATE BANK OF INDIA VS BHARPUR SINGH ALIAS BHARPOOR SINGH

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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.36,17,159.00 (Rupees Thirty Six Lacs Seventeen Thousand One Hundred Fifty Nine 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 assets/mortgaged properties 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 03.02.2026.

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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 . Dated: 21.01.2026.

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

State Bank of India v. Sh. Bharpur Singh Alias Bharpoor Singh

Case brief

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State Bank of India v. Sh. Bharpur Singh Alias Bharpoor Singh

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