Allowed

State Bank of India v. Sh. Rajinder Singh

DRT14 Jan 2026OA/221/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by State Bank of India against a defendant for recovery of a crop loan. The court granted a recovery certificate, adjusted interest rates, and authorized execution proceedings including sale of hypothecated assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 20,22,802/- with costs and specific interest @ 8.00% p.a.; liberty to enforce via sale of hypothecated vehicle or attachment of personal assets

State Bank of India versus Sh. Rajinder Singh — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.221/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.01.2025

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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 Offices at Sector-17, Chandigarh having branches at different places and one of its AMCC Branch at Nabha, District Patiala, Punjab through its Chief Manager Sh. Jatinder Kumar Salaria.

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……..Applicant

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Versus

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Sh. Rajinder Singh S/o Sh. Gurmukh Singh R/o VPO Tarkheri Kalan, Tehsil Nabha, District Patiala (Punjab)

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….……Defendant

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Advocates:

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Argued by Sh. Aseem Kataria, 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.20,22,802.00 (Rupees Twenty Lacs Twenty Two Thousand Eight Hundred Two Only). The Original Application has been filed through Sh. Jatinder Kumar Salaria, 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 27.03.1987 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. Gazette Notification dated 02.05.1987, which is

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Annexure A1.

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2 OA/221/2025 STATE BANK OF INDIA VS. RAJINDER 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.20.00 Lacs for purchase of Combine Harvester vide Loan application dated 28.02.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Term loan of Rs.19.50 Lacs for purchase of Combine Harvester vide letter of arrangement dated 12.04.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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The defendant hypothecated Combine Harvester Make: New Deve Agro Works, Model: New Deve 4800, Bearing Registration no. PB-11-DO-2443, Engine No. PKHZ107902, Chassis no. NDAW4800L220197 vide hypothecation agreement dated 12.04.2023, which is Annexure A4 to this OA; Registration Certificate of Vehicle, which is Annexure A5 to this OA; Insurance Policy/Provisional Cover, which is Annexure A6 to this OA; Retail Tax Invoice dated 04.05.2023, which is Annexure A7 to this OA. Documents executed: Hypothecation agreement, dated 12.04.2023, which is Annexure A4 to this OA; and Notice dated 25.01.2025 which is Annexure A8 to this OA and Statement of account which is Annexure A9 to this OA.

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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.20,22,802.00 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. 6. 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. 7. In support of the OA, affidavit of Sh. Jatinder Kumar Salaria, Chief Manager, State Bank of India h as been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/221/2025 STATE BANK OF INDIA VS. RAJINDER SINGH

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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 A9 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 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.20,22,802.00 (Rupees Twenty Lacs Twenty Two Thousand Eight Hundred Two 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 @10.60%p.a. with monthly rests and 2% penal interest from 25.01.2025 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 mortgaged property/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 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.20,22,802.00 (Rupees Twenty Lacs Twenty Two Thousand Eight

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4 OA/221/2025 STATE BANK OF INDIA VS. RAJINDER SINGH

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Hundred Two Only) jointly and severally, 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 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. Rajinder Singh

Case brief

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What did the court decide?

State Bank of India v. Sh. Rajinder Singh

Case brief

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What did the court decide?

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