The DRT allowed an ex-parte recovery application filed by State Bank of India against Amritpal for a default of Rs. 41.63 lakhs. The Tribunal reduced the claimed interest rate from 11% p.a. to 8% p.a. and issued a Recovery Certificate.
Allowed the application; directed recovery of Rs. 41,63,600 with simple interest @ 8% p.a.; issued Recovery Certificate.
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.352/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.03.2026
DATE OF DECISION: 23.06.2026
State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and having Branches all over India, one of its Branch situated at Samrala, Chandigarh Road, Tehsil Samrala, District Ludhiana, Punjab through its Chief Manager, Sh. Satanand Singh who is Authorized Officer
……..Applicant
Versus
Sh. Amritpal, S/o Sh. Bal Krishan, R/o Village Hayatpur Bet, Tehsil Samrala, District Ludhiana, Punjab
….……Defendant
Advocates:
Argued by Sh. Ankit Kaushal, Advocate proxy for Ms. Puja Sharma, Advocate for applicant
None for defendant (already ex-parte vide order dated 20.06.2026)
FINAL ORDER
2 OA/352/2026 STATE BANK OF INDIA VS. AMRITPAL
Documents executed: Hypothecation Agreement dated 18.05.2024, which is Annexure A4 to this OA; Legal Notice dated 04.07.2025, which is Annexure A6 to this OA; Demand Notice dated 13.05.2025, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 to this OA.
3 OA/352/2026 STATE BANK OF INDIA VS. AMRITPAL
From the perusal of all the Annexure A1 to A8 to this OA, it is proved that the defendant 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, 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. 41,63,600.00 (Rupees Forty One Lacs Sixty Three Thousand Six Hundred Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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, 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 @08.00% 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.
4
OA/352/2026 STATE BANK OF INDIA VS. AMRITPAL
3 issues framed by the court
Whether the facts established in an ex-parte application justify recovery of the outstanding loan amount.
Whether the Tribunal is empowered to modify the rate of interest claimed by the applicant.
Whether the applicant is entitled to issue a Recovery Certificate and sell hypothecated assets.
2 provisions across 2 enactments
State Bank of India and Others
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
