The DRT allowed the bank's Original Application against the defendant for recovery of Rs. 26.71 lakhs and declared the defendant liable to pay uniform simple interest at 7% p.a. from the date of filing.
Permission to recover the declared sum from the sale of mortgaged property under the SARFAESI Act or by attachment of personal assets. Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 309/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 24.02.2025
DATE OF DECISION: 24.06.2026
State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 carrying on the Business of Banking and having Branches at different places including Sialba Majri, Sub Tehsil Majri, Tehsil Kharar, District Mohali, Punjab through its Branch Manager
……..Applicant
Versus
Sh. Gurmeet Singh, S/o Sh. Piara Singh, R/o Village Mianpur, PO Kubbherri, Sub Tehsil Majri, Tehsil Kharar, District Mohali, Punjab
………. Defendant
Advocates:
Argued by Sh. P.S. Arora, Advocate proxy for Sh. Rajeev Bhardwaj, Advocate for applicant
None for defendant (already ex-parte vide order dated 22.06.2026)
FINAL ORDER
2 OA NO. 309/2025 STATE BANK OF INDI VS. GURMEET SINGH
Application dated 22.08.2016, which is Annexure A4 to this OA. Thereafter, defendant approached the applicant for grant of KGC vide Loan Application dated 13.09.2016, which is Annexure A5 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 3.00 Lacs. Thereafter, the applicant sanctioned enhancement of KCC Limit to Rs. 10.00 Lacs vide Arrangement Letter dated 20.02.2016, which is Annexure A7 to this OA. Thereafter, the applicant sanctioned Debt Swapping Loan of Rs. 1.00 Lac vide Arrangement Letter dated 22.08.2016, which is Annexure A10 to this OA. Thereafter, the applicant sanctioned KGC of Rs. 1.00 Lac vide Arrangement Letter dated 13.09.2016, which is Annexure A13 to this OA.
3 OA NO. 309/2025 STATE BANK OF INDI VS. GURMEET SINGH
From the perusal of all the Annexure A1 to A64 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,71,857.00 (Rupees Twenty Six Lacs Seventy One Thousand Eight Hundred Fifty Seven Only) along with interest from the defendant from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.00%p.a. in KCC Limit Account with yearly rests and @11.15% p.a. in KGC Account and @10.00% p.a. in Debt Swapping Account with half yearly rests plus @2% from 08.12.2024 till the realization.
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/mortgaged property, undertaking of the defendant, 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 @07.00% p.a. in all the loan accounts from the date of filing
4 OA NO. 309/2025 STATE BANK OF INDI VS. GURMEET SINGH
of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
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 09.07.2026. 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: 24.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendant.
Whether the rate of interest claimed by the applicant is tenable in the circumstances.
2 provisions across 2 enactments
State Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
