Allowed

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

DRT25 Jun 2026OA/30/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's Original Application for recovery of Rs. 31,98,306.87 against the primary borrower. Interest was fixed at 7.40% p.a., and directions were issued to enforce recovery via sale of mortgaged property or attachment of personal assets.

What did the court decide?

Recovery of Rs.31,98,306.87 with costs and simple interest @7.40% p.a.; Issuance of Recovery Certificate; Enforcement via sale of mortgaged property or attachment of personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.30/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 05.01.2026

¶5

DATE OF DECISION: 25.06.2026

¶6

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 Branch at Stressed Assets Recovery Branch, SCO 70, Sector 5, Panchkula, Haryana through its Deputy Manager Sh. Deepak Chand.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Samrinder Singh S/o Sh. Jagdeep Singh, R/o Village Chudhred, Tehsil Dehra Kangra – 177101, Himachal Pradesh. 2nd Address: Flat No.B-101, 1^st Floor, 2 BHK, Block B, Sky Rock City, Sukhmani Enclave, Sector 127 Chhaju Majra, Tehsil Kharar, District Mohali, Punjab-140301.

¶10

Sh. Joga Singh S/o Sh. Ujagar Singh, R/o House no. 63, Village Mankheri, Ropar, Tehsil Morinda, District Rupnagar, Punjab - 140143.

¶11

……..Defendants

¶12

Advocates:

¶13

Argued by Sh. Kamal, Advocate proxy for Sh. Manish Singla, Advocate for the applicant

¶14

None for Defendants (Already ex-parte vide order dated 23.06.2026).

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.31,98,306.87 (Rupees Thirty One Lacs Ninety Eight Thousand Three Hundred Six and Eighty Seven Only). The Original Application has been filed through Sh. Deepak

¶17

Chand, Deputy Manager of the applicant bank, who is competent to

¶18

2 OA NO.30/2026

¶19

STATE BANK OF INDIA VS SH. SAMRINDER SINGH AND ANOTHER

¶20

institute the Original Application in terms of the Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 & 02.05.1987 issued under General Regulation No. 76 and 77 of State Bank of India Regulations framed in Exercise of the Powers conferred by Sub Section (3) of Section 50 of State Bank of India Act, 1955, with previous sanction of Central Government.

¶21

The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Housing Loan of Rs.36,00,000.00 vide Loan Application Form dated 19.01.2024, which is Annexure A1 to this OA.

¶22

As per the OA defendant no. 2 removed the signage and identification marks from the property, thereby hindering the Bank’s enforcement of its security interest after execution of the Sale Deed. Therefore, defendant no. 2 is impleaded as a proforma defendant for issuance of suitable directions restraining such interference and for protection of the Bank’s rights over the mortgaged property.

¶23

The applicant sanctioned the Housing Loan of Rs.32,50,000.00 vide Final Sanction Letter & Arrangement Letter, both dated 31.01.2024, which are Annexures A2 & A3 to this OA and terms and conditions were duly accepted by the defendant no. 1.

¶24

Defendant no. 1 mortgaged his Immoveable Property i.e., Residential Flat measuring 0.75 Marla covered area 1050 square feet situated at Flat No. B-101 (2 BHK), Block B, 1^st Floor, Sukhmani Enclave, Sector 127, Village Chhajumajra, , Hadbast No.33, Tehsil Kharar, District SAS Nagar, Mohali as per Jamabandi of the year 201718 vide Registered Sale Deed No. 2023-24/15/1/17255 dated 02.02.2024 along with its translation, which is Annexure A8 to this OA. Documents executed : Memorandum of Loan Agreement, Agreement to Mortgage, Deed of Undertaking, Sharing of Information with National E-Governance Services Limited (Annexure -I), all dated 31.07.2024, which are Annexures A4 to A7 to this OA; Valuation

¶25

3 OA NO.30/2026 STATE BANK OF INDIA VS SH. SAMRINDER SINGH AND ANOTHER

¶26

Report dated 28.01.2024, which is Annexure A9 to this OA; Legal Notice dated 25.11.2024, along with postal receipts, which is Annexure A10 to this OA; Statement of account along with certificate, which is Annexure A11 to this OA.

¶27

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.31,98,306.87, 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.

¶28

The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 23.06.2026.

¶29

In support of the OA, affidavit of Sh. Deepak Chand, Deputy Manager, State bank of India has been filed. 8. 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.

¶30

From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant no. 1 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 bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,98,306.87 (Rupees Thirty One Lacs Ninety Eight Thousand Three Hundred Six and Eighty Seven Only), along with interest from the defendant no. 1, from the date of filing of the present Original Application till realization of the amount.

¶31

As per the OA defendant no. 2 removed the signage and identification marks from the property, thereby hindering the

¶32

4 OA NO.30/2026

¶33

STATE BANK OF INDIA VS SH. SAMRINDER SINGH AND ANOTHER

¶34

Bank’s enforcement of its security interest after execution of the Sale Deed, therefore, defendant no. 2 is impleaded as a proforma defendant for issuance of suitable directions restraining such interference and for protection of the Bank’s rights over the mortgaged property. However, no loan facility was availed by defendant no. 2 from the Applicant. Therefore, no relief can be granted to applicant against defendant no. 2.

¶35

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.40%p.a. with monthly rests with penal interest @2%p.a. from 16.11.2025 till the realization.

¶36

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, undertaking of the defendant no. 1, 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 @07.40%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.

¶37

In the result, the application is allowed declaring that the defendant no.1 is liable to pay to the applicant a total sum of Rs.31,98,306.87 (Rupees Thirty One Lacs Ninety Eight Thousand Three Hundred Six and Eighty Seven Only), with costs, current and future simple interest @07.40%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 mortgaged property of the defendant no. 1 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

¶38

5 OA NO.30/2026

¶39

STATE BANK OF INDIA VS SH. SAMRINDER SINGH AND ANOTHER

¶40

defendant no. 1. 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 10.07.2026. 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: 25.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Kotak Mahindra Bank Limited versus M/S Kiyansh Traders Co. and Others

Maninder Kaur and Another versus Au Small Finance Bank Limited and Others

Icici Bank Limited versus M/S Jagdambay Life Style and Others

Prince and Another versus Dcb Bank Limited

State Bank of India versus Sh. Sikander Singh

Punjab National Bank versus Sh. ravinder singh