Allowed

State Bank of India v. Sh. Tejinder Singh

DRT22 May 2026OA/220/2026

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a term loan default. The Tribunal ex-parte declared the defendant liable for the principal amount and awarded simple interest at 8% p.a., authorizing recovery via hypothecated assets under SARFAESI Act.

What did the court decide?

Recovery of Rs.25,21,976.00 with costs and simple interest at 8% p.a. from the date of filing till realization, enforceable through sale of hypothecated or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.220/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.02.2026

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DATE OF DECISION: 22.05.2026

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State Bank of India, a body corporate, constituted under State Bank of India Act 1955 and having its Corporate Centre at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office, Sector 17-A, Chandigarh, one of its Recovery Branch Stressed Assets Recovery Branch at SCO No. 15, First Floor, Madhya Marg, Sector-7-C, Chandigarh through its Chief Manager & Principal Officer Sh. Mousam Pal.

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……..Applicant

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Versus

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Sh. Tejinder Singh S/o Sh. Hardeep Singh, R/o Village Burj, Tehsil & District Malerkotla, Punjab - 148023.

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……. .Defendant

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Advocates:

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Argued by Ms. Parvinder Kaur, Advocate proxy for Sh. Kanwar Harbir Singh Bath, Advocate for the applicant None for Defendant (Already ex-parte vide order dated 20.05.2026).

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.25,21,976.00 (Rupees Twenty Five Lacs Twenty One Thousand Nine Hundred and Seventy Six Only). The Original Application has been filed through Sh. Mousam Pal, Chief Manager & Principal Officer of the applicant bank, who is competent to institute the Original Application in term of the Gazette Notifications dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by Executive Committee of the Central Board of Directors Of State Bank of India in exercises of the powers conferred on it under Regulations 76 & 77 of State Bank of India Regulations, vide Sub Section 3 of the Section 50

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OA NO.220/2026 STATE BANK OF INDIA VS SH.TEJINDER SINGH

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of the State Bank of India Act 1955 with the previous sanction of the Central Govt..

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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 Super Seeder of Rs.2,25,000.00 vide Application Form for Agricultural Credit dated 21.09.2023, which is Annexure A1 to this OA. Thereafter, the defendant approached the applicant for grant of Term Loan for purchase of Combine Harvester of Rs.26,00,000.00 vide Application Form for Agricultural Credit dated 30.01.2024, which is Annexure A5 to this OA.

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The applicant sanctioned the Term Loan I for purchase of Super Seeder of Rs.2,25,000.00 vide Letter of Arrangement dated 30.09.2023, which is Annexure A2 to this OA. Thereafter, the applicant sanctioned Term Loan II for purchase of Combine Harvester of Rs.26,00,000.00 vide Letter of Arrangement dated 14.02.2024, which is Annexure A6 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant hypothecated his moveable assets i.e.,

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(i) Landforce Super Seeder bearing Serial No. PU/363/3528/2023/0645, Model-LFSS1237 (12 Row), Manufacturer - S.G. Agri Sales, vide Tax Invoice dated 30.09.2023, which is Annexure A4 to this OA.

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(ii) Combine Harvester bearing Registration No. PB13BV2580, Engine No. RPHM402741, Chassis No. KS9300B2024907, Model - KS 9300, Manufacturer: K.S. Agricultural Industries Pvt Ltd., vide Tax Invoice dated 21.02.2024 along with copy of E Vahan details, which are Annexures A8 & A9 to this OA.

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Documents executed : Hypothecation Agreements, both dated 30.09.2023 & 21.02.2024, which are Annexures A3 & A7 to this OA; Legal Notice dated 28.05.2025, which is Annexure A10 to this OA; Notice U/s 13(2) dated 08.08.2025, which is Annexure A11 to this OA; Statements of Accounts along with certificate, which are Annexures A12 & A13 to this OA.

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OA NO.220/2026 STATE BANK OF INDIA VS SH.TEJINDER SINGH

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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.25,21,976.00, 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 the defendant and he was proceeded ex-parte vide order dated 20.05.2026.

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In support of the OA, affidavit of Sh. Mousam Pal, Chief Manager & Principal 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 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 A13 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,21,976.00 (Rupees Twenty Five Lacs Twenty One Thousand Nine Hundred and Seventy Six Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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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 @9.00%p.a. with monthly rests in both the loan accounts from 30.01.2026 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

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OA NO.220/2026 STATE BANK OF INDIA VS SH.TEJINDER SINGH

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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 @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.25,21,976.00 (Rupees Twenty Five Lacs Twenty One Thousand Nine Hundred and Seventy Six 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 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 15.06.2026.

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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: 22.05.2026

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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. Tejinder Singh

Case brief

What is this about?

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State Bank of India v. Sh. Tejinder Singh

Case brief

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