Allowed

State Bank of India v. Sh. Amrik Singh and Another

DRT7 Jan 2026OA/299/2022

Case brief

AI extract

What is this about?

The DR T allowed an original application for recovery of Rs. 39,57,028.74. The court dismissed arguments, found defendants liable, and ordered uniform simple interest at 7.25% p.a., authorizing execution against mortgaged or personal assets.

What did the court decide?

Recovery certificate issued for Rs. 39,57,028.74 with costs and 7.25% p.a. interest; enforcement via sale of properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.299/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2022

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DATE OF DECISION: 07.01.2026

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State Bank of India, a body corporate constituted under provision of the State Bank of India Act, 1955 (23 of 1955), having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra)400021, having one of its Local Head Office at Sector 17, Chandigarh, having its Branch amongst other places at Lala Lajpat Rai Road, Jagraon, District Ludhiana-142026 (Punjab) through its Chief Manager, Sh. Mahabeer Prasad.

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……..Applicant

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Versus

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Sh. Amrik Singh son of Shri Gurnam Singh, Proprietor of M/s Amrik Singh and Sons Jewellers, Resident of House no. 3382/A, Mahavir Colony, Agwar Ladhai, Jagraon, District Ludhiana (Punjab)-142026

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2^nd Address: Resident of House no. 5941, Agwarh LOPO Near Mori Gate Gurudwara, Jagraon, Ludhiana-142026 (Punjab)

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3^rd Address: C/o Sh. Amit Loomba, Street no. 3, Geeta Colony, Near Anandpur Kuti, Jagraon, Ludhiana-142026 (Punjab)

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Smt. Paramjit Kaur wife of Sh. Amrik Singh, Resident of House no. 3382/A, Mahavir Colony, Agwar Ladhai, Jagraon, District Ludhiana (Punjab)-142026

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2^nd Address: Resident of House no. 5941, Agwarh LOPO Near Mori Gate Gurudwara, Jagraon, Ludhiana-142026 (Punjab)

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3^rd Address: C/o Sh. Amit Loomba, Street no. 3, Geeta Colony, Near Anandpur Kuti, Jagraon, Ludhiana 142026 (Punjab)

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….……Defendants

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2 OA NO.299/2022 STATE BANK OF INDIA Vs. AMRIK SINGH AND ANOTHER

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Advocates:

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Argued by Sh. Sanjay Sagar, Advocate proxy for Sh. Vivek Verma, Advocate for Applicant

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Defendants already ex-parte vide order dated 14.08.2023

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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 defendants for recovery of Rs.39,57,028.74 (Rupees Thirty Nine Lacs Fifty Seven Thousand Twenty Eight & Paise Seventy Four Only). The Original Application has been filed through Sh. Mahabeer Prasad, Chief Manager o f the applicant, who is competent to institute the Original Application in the terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulation no.76 and 77 of State Bank of India General Regulation 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. 2. The brief facts of the OA are that the defendants approached the applicant for the grant of Home Loan of Rs. 15.00 Lacs vide Loan Application dated 16.08.2016, which is Annexure A2 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Cash Credit Limit of Rs. 10.00 Lacs for his proprietorship firm vide loan application, which is Annexure A9 to this OA. Defendant no. 2 stood as guarantor in this Loan. 3. The applicant sanctioned the Home Loan of Rs. 15.00 Lacs and Rinn Raksha (Funding of Home Loan Insurance) of Rs. 2,07,965.00 vide Letter of Arrangement dated 22.08.2016, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Cash Credit Limit of Rs. 10.00 Lacs to proprietorship firm of defendant no. 1 vide Letter of Arrangement dated 25.01.2017, which is Annexure A10 to this OA.

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3 OA NO.299/2022 STATE BANK OF INDIA Vs. AMRIK SINGH AND ANOTHER

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Defendant no.1 mortgaged his immovable property i.e. Land measuring 05 Marlas situated at Village Agwad Ladhai, Hadbast No. 128, Tehsil Jagraon, District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 2093 dated 26.08.2016, along with its translation, which are Annexures A5 and A5T to this OA; Affidavit dated 26.08.2016, which is Annexure A6 to this OA; Letter of Confirmation of mortgage dated 28.08.2016, which is Annexure A7 to this OA; Title Deed Register dated 26.08.2016, which is Annexure A8 to this OA; Letter dated 27.01.2017 of confirmation for extension of mortgage by deposit of title deed, which is Annexure A16 to this OA; Title Deed Register dated 27.01.2017, which is Annexure A17 to this OA; CERSAI Report dated 14.10.2016, which is Annexure A18 to this OA; Title Investigation Report dated 16.07.2018, which is Annexure A19 to this OA; Valuation report dated 04.08.2021, which is Annexure A29 to this OA.

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Defendant no.1 being proprietor of his firm hypothecated stock of gold and gold jewellery vide agreement of loan cum hypothecation dated 27.01.2017, which is Annexure A11 to this OA.

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Documents executed: Notification/Order dated 22.02.2017, which is Annexure A1 to this OA; Memorandum of Agreement of Term Loan dated 26.08.2016, which is Annexure A4 to this OA; Demand Promissory Note, D.P. Note Delivery Letter, Free Access Letter, Guarantee Agreement, all dated 27.01.2017, which are Annexures A12 to A15 to this OA; Voucher dated 01.01.2019, which is Annexure A20 to this OA; Revival Letter dated 22.02.2019, which is Annexure A21 to this OA; Letters dated 04.12.2017, 05.12.2017, 18.05.2018 which are Annexure A22 to this OA; Statement of Accounts, which are Annexures A23 to A25 to this OA; Notice dated 11.02.2019 u/s 13(2) of SARFAESI Act, which is Annexure A26 to this OA; Possession Notice dated 12.06.2019 u/s 13(4) of SARFAESI Act, with publication, which is Annexure A27 to this OA; Possession

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4 OA NO.299/2022 STATE BANK OF INDIA Vs. AMRIK SINGH AND ANOTHER

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Notice dated 16.03.2020 u/s 13(4) of SARFAESI Act, which is Annexure A28 to this OA.

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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 Rs.39,57,028.74, which is recoverable and the defendants were served recall notices but they 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 14.08.2023.

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In support of the OA, affidavit of Sh. Mahabeer Prasad, Chief Manager, State Bank of India has been filed.

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Heard ex-parte arguments and perused record. 9. 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. From the perusal of all the Annexures A1 to A29 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.39,57,028.74 (Rupees Thirty Nine Lacs Fifty Seven Thousand Twenty Eight & Paise Seventy Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed

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5 OA NO.299/2022 STATE BANK OF INDIA Vs. AMRIK SINGH AND ANOTHER

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[email protected]%p.a. in Home Loan, @7.20%p.a. in Rinn Raksha and @11.65% p.a. in CC Limit, with 2% penal interest and monthly rests in all accounts, from 11.01.2022 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 defendants, 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 Tribunal deems it just and appropriate to grant uniform simple interest @7.25%p.a. in all 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 defendants are liable to pay to the applicant a total sum of Rs.39,57,028.74 (Rupees Thirty Nine Lacs Fifty Seven Thousand Twenty Eight & Paise Seventy Four Only) jointly and severally, with costs, current and future simple interest @7.25%p.a. in all 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/mortgaged properties of the defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

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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 Tribunal on 20.01.2026.

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6 OA NO.299/2022 STATE BANK OF INDIA Vs. AMRIK SINGH AND ANOTHER

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Copy of this order be given dasti to the applicant and be sent to defendants 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: 07.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Amrik Singh and Another

Case brief

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State Bank of India v. Sh. Amrik Singh and Another

Case brief

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