Allowed

State Bank of India v. Sh. Bawa Ram

DRT17 Feb 2026OA/325/2025

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by State Bank of India against Bawa Ram for recovery of a loan defaulting amount of approximately Rs. 36.64 lakhs. The Tribunal adjusted claimed interest rates to 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 36,64,378.00 plus future interest at 8% p.a. declared liable; Recovery Certificate issued; execution against sale of mortgaged properties permitted.

State Bank of India versus Sh. Bawa Ram — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.325/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2025

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DATE OF DECISION: 17.02.2026

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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 through its Branch Manager.

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……. Applicant Versus

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Sh. Bawa Ram S/o of Sh. Anant Ram, R/o Village Gochar, PO. Sialba, Sub- Tehsil Majri, Tehsil Kharar, District. Mohali.

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………Defendant

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Advocates:

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Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Rajeev Bhardwaj, Advocate for the applicant Defendant already ex-parte vide order dated 21.08.2025

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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 & Bankruptcy Act, 1993, against the defendant for recovery of Rs. 36,64,378.00 (Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Seventy Eight Only). The Original Application has been filed through Sh. Sartaj Singh, Branch Manager, State Bank of India of the applicant, who is competent to institute the Original Application vide Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for grant KCC Limit of Rs. 10.00 Lacs, vide Loan Application along with translation, dated 29.10.2013, which is Annexure A2 to this OA and for grant of Agriculture Term Loan of Rs.5.00 Lacs under KGC vide Loan Application along with Translation, dated 25.02.2014, which is Annexure A3 to this OA.

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2 OA NO.325/2025 STATE BANK OF INDIA VS. BAWA RAM

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The applicant sanctioned the KCC Limit of Rs. 10.00 Lacs vide Arrangement Letter dated 30.10.2013, which is Annexure A5 to this OA. Thereafter, the applicant sanctioned Agriculture Term Loan of Rs.5.00 Lacs vide Arrangement Letter dated 25.02.2014, which is Annexure A8 to this OA. The terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. Land Measuring 8 Kanal-0 Marla Situated at Village Gochar, Hadbast No. 328, Sub Tehsil Majri, Tehsil Kharar, District Mohali, Punjab vide Mortgage Deed bearing vasika no. 2093 dated 25.10.2023, along with its translation, which is Annexure A10 to this OA; Lien Verification Report by Advocate dated 20.11.2024, which is Annexure A11 to this OA.

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Documents executed : Hypothecation Agreement, Letter of Undertaking, both dated 30.10.2013, which is Annexure A4 & A6 to this OA; Hypothecation Agreement, Letter of Undertaking dated 25.02.2014, which is Annexure A7 & A9 to this OA; Govt Rate List which is Annexure A12 to this OA; Notices dated 11.08.2021, 12.08.2021, 03.01.2022, 07.04.2022, 15.04.2022 30.04.2022, 16.05.2022, 31.05.2022, 01.07.2023, 29.08.2023, 09.10.2023, which are Annexures A13 to A30 to this OA; Revival Letters dated 20.09.2016 and 20.01.2017, which are Annexures A31 and A32 to this OA; Legal Notice dated 28.04.2018 and 21.09.2021, with postal receipt, which are Annexures A33 to A36 Account Closure Statements with Certificate, which are Annexures A37 to A39 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there were a debit of Rs. 36,64,378.00 which is recoverable and the defendant was served recall notice but defendant did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA NO.325/2025 STATE BANK OF INDIA VS. BAWA RAM

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 21.08.2025.

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In support of the OA, affidavit of Sh. Sartaj Singh, Branch Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy of the applicant 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 A39 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which was granted to them and for that he had executed all the relevant documents in favour of the applicant. 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. 36,64,378.00(Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Seventy Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ @13.75%p.a. in KCC and @15.15%p.a. in KGC, including 2% penal interest with half yearly rests 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 mortgaged property/hypothecated assets, 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 @08.00%p.a. in both the loan accounts from the date of filing of the

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OA NO.325/2025 STATE BANK OF INDIA VS. BAWA RAM

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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.36,64,378.00 (Rupees Thirty Six Lacs Sixty Four Thousand Three Hundred Seventy Eight Only), with costs, current and future simple interest @8.00%p.a. in both 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 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.

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12. 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 05.03.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 17.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Bawa Ram

Case brief

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State Bank of India v. Sh. Bawa Ram

Case brief

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