Allowed

State Bank of India v. Sh. Narinder Singh

DRT24 Mar 2026OA/23/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India against a borrower for recovery of dues. The court ex-parte admitted the case proved by documents, declared the borrower liable, and adjusted the interest rate to 8% p.a. before granting a recovery certificate.

What did the court decide?

Recovery of Rs. 22,30,444 + costs + simple interest @8% p.a. granted; Recovery Certificate issued; liberty to enforce via sale of hypothecated machinery or personal assets. Any pending applications di

State Bank of India versus Sh. Narinder Singh — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.23/2026

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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: 24.03.2026

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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. Narinder Singh S/o Sh. Harbans Singh, R/o Village Behru (235), PO Devigarh, Tehsil Dudhan Sadhan, District Patiala, Punjab147111

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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 the applicant.

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Defendant is ex parte vide order dated 11.03.2026.

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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.22,30,444.00 (Rupees Twenty Two Lacs Thirty Thousand Four Hundred Forty 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,

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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 by Sub-Section 3 of Section 50 of SBI Act, with previous sanction of Central Government.

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OA NO. 23/2026 STATE BANK OF INDIA VS SH. NARINDER 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.24.30 Lacs for purchase of Combine Harvester vide application form for agriculture credit dated 08.11.2023, which is Annexure A1 to this OA. 3. The applicant sanctioned the Term Loan of Rs.24.30 Lacs vide Letter of Agreement dated 24.11.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his movable property i.e. Combine Harvester Bearing Registration No. PB-83-3408, Engine No. HJKM403461, Chassis No. PTC1220237572 vide Registration Certificate dated 01.02.2024 which is Annexure A4 to this OA. Documents executed:- Agreement of Loan cum Hypothecation accompanied by unstamped letter furnishing particulars of assets/vehicles dated 24.11.2023 which is Annexure A3 to this OA; Legal notice dated 03.10.2025 along with postal receipt which is Annexure A5 to this OA; Statement of account and Calculation Sheet along with bankers certificated which are Annexure A6(Colly) 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.22,30,444.00 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 that was proceeded ex-parte vide order dated 11.03.2026. 7. In support of the OA, affidavit of Sh. Khushwant Singh , Chief Manager, State Bank of India has been filed. 8. Heard arguments and perused record. 9. 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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OA NO. 23/2026 STATE BANK OF INDIA VS SH. NARINDER 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 defendant 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.22,30,444.00 (Rupees Twenty Two Lacs Thirty Thousand Four Hundred Forty Four Only) along 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 @9.00%p.a. with penal interest @2% 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 mortgaged property/hypothecated machinery, 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. 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. 22,30,444.00 (Rupees Twenty Two Lacs Thirty Thousand Four Hundred Forty Four 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 entitled to recover aforesaid amount from the sale of hypothecated

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OA NO. 23/2026 STATE BANK OF INDIA VS SH. NARINDER SINGH

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machinery 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 16.04.2026. 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: 24.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Narinder Singh

Case brief

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State Bank of India v. Sh. Narinder Singh

Case brief

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