Allowed

State Bank of India v. Sh. Gurnam Singh

DRT14 Jan 2026OA/218/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an application for recovery of a term loan of Rs. 21,29,646.00. The court granted recovery of the principal amount along with future simple interest at 8.00% p.a. instead of the claimed 11.00%, and directed execution proceedings under the SARFAESI Act if dues remain unsatisfied.

What did the court decide?

Recovery of Rs. 21,29,646.00 with simple interest @ 8.00% p.a. from filing date; liberty to enforce via SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.218/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2025

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DATE OF DECISION: 14.01.2026

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State Bank of India, a body Corporate Constituted under the State Bank of India Act,1995 having its Central Office at Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Office at Sector-17-A, Chandigarh and one of its Branch at RACC Patiala, District Patiala through its Chief Manager Smt. Madhvi Sharma.

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……..Applicant Versus

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Sh. Gurnam Singh S/o Sh. Gurmeet Singh R/o village Majri Faqiran, P.O Ghanaur, Tehsil Ghanaur, District Patiala, Punjab

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….……Defendant

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Advocates:

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

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Defendant already ex-parte vide order dated 14.08.2025

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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.21,29,646.00 (Rupees Twenty One Lacs Twenty Nine Thousand Six Hundred Forty Six Only). The Original Application has been filed through Smt. Madhvi Sharma, Chief Manager o f the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulation No.76 & 77 of State Bank of India Regulations framed in exercise of the powers conferred by Sub-Section (3) of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

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2 OA/218/2025 STATE BANK OF INDIA VS. GURNAM SINGH

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The brief facts of the OA are that the defendant approached the applicant for the grant of Term loan of Rs.20.50 Lacs for purchase of Combine Harvester vide Loan application dated 15.07.2023, which is Annexure A1 to this OA.

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The applicant sanctioned the Term loan of Rs.20.50 Lacs for purchase of Combine Harvester vide Letter of arrangement dated 29.08.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. The defendant hypothecated Combine Harvester Make: Bansal Agriculture Implements, Model: 748, bearing registration no. PB-47-F7890, Engine No. CVZ410916, Chassis no. BAI748H230002 vide Agreement of Loan cum Hypothecation, dated 29.08.2023, which is Annexure A3 to this OA; Registration Certificate of Vehicle, is Annexure A4 to this OA.

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Documents executed: Legal Notice dated 29.01.2025 alongwith Postal Receipt which is Annexure A5 to this OA; Statement of Account with calculation sheet and certificates.

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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.21,29,646.00 which is recoverable and the defendant 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 notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 14.08.2025.

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In support of the OA, affidavit of Smt. Madhvi Sharma, Chief Manager, State Bank of India has been filed. 8. 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

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3 OA/218/2025 STATE BANK OF INDIA VS. GURNAM SINGH

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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 them and for that they had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,29,646.00 (Rupees Twenty One Lacs Twenty Nine Thousand Six Hundred Forty Six Only) with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. with 2% penal interest with monthly rests from 28.01.2025 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 instant case including nature of the hypothecated assets/mortgaged property, 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 uniform simple interest @8.00%p.a. in 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.

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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.21,29,646.00 (Rupees Twenty One Lacs Twenty Nine Thousand Six Hundred Forty Six Only) with costs, current and future simple 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

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OA/218/2025 STATE BANK OF INDIA VS. GURNAM SINGH

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entitled to recover aforesaid amount from the sale of hypothecated vehicle 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. 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 30.01.2026. 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. Pronounced by me in the open Tribunal . Dated: 14.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Gurnam Singh

Case brief

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State Bank of India v. Sh. Gurnam Singh

Case brief

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