Allowed

State Bank of India v. Smt. Gurpreet Kaur

DRT23 Jun 2026OA/360/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh, allowed a bank customer's application for recovery of a term loan principal along with adjusted interest. The court granted simple interest at 8% per annum instead of the claimed rate after adjusting for market conditions and discretionary principles. The applicant was permitted to execute the recovery via asset sale.

What did the court decide?

The defendant is liable to pay Rs. 25,94,219.00 plus costs and future simple interest at 8% p.a. The applicant may recover this via sale of hypothecated assets or attachment of personal assets; Issue

State Bank of India versus Smt. Gurpreet Kaur — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.360/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.03.2026

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DATE OF DECISION: 23.06.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai, one of the Local Head Office at Sector 17A, Chandigarh and one of its Local Branch at Sohian Branch, Tehsil Jagraon, District Ludhiana, Punjab through its Branch Manager, Sh. Gurpreet Singh

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……..Applicant

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Versus

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Smt. Gurpreet Kaur, W/o Sh. Makhan Singh, R/o VPO Kular, Tehsil Jagraon, District Ludhiana, Punjab- 142023

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…….Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Vinish Singla, Advocate for applicant

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None for defendant (already ex-parte vide order dated 20.06.2026)

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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 defendant for recovery of Rs. 25,94,219.00 (Rupees Twenty Five Lacs Ninety Four Thousand Two Hundred Nineteen Only). The Original Application has been filed through Sh. Gurpreet Singh, Branch Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notifications dated 26.09.1959, 26.08.1972 and 02.05.1987 issued by Executive Committee of the Central Board in exercise of powers conferred on it under Regulation nos. 76 and 77 of State Bank of India Regulations

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2 OA/360/2026 STATE BANK OF INDIA VS. GURPREET KAUR

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made by RBI in exercise of powers conferred by section 50 (3) of the State Bank of India Act, 1955.

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The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan of Rs. 22.20 Lacs vide Loan Application dated 02.01.2023, which is Annexure A1 to this OA. 3. The applicant sanctioned Term Loan of Rs. 21.50 Lacs vide Sanction Letter dated 17.01.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant hypothecated her Jersey Cows vide Hypothecation Agreement dated 10.03.2023, which is Annexure A4 to this OA. Documents executed: Letter of Arrangement, which is Annexure A3 to this OA; Account Statement, which is Annexure A5 to this OA and Legal Notice dated 12.07.2024, which is Annexure A6 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 25,94,219.00 which is recoverable and the defendant was served recall notice but she 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 defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte vide order dated 20.06.2026.

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In support of the OA, affidavit of Sh. Gurpreet 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 counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A6 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in favor of the bank. The defendant failed to pay

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3 OA/360/2026 STATE BANK OF INDIA VS. GURPREET KAUR

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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. 25,94,219.00 (Rupees Twenty Five Lacs Ninety Four Thousand Two Hundred Nineteen 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 @12.6% p.a. plus @2% penal interest with monthly rests from 30.01.2026 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 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 @8.00% 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,94,219.00 (Rupees Twenty Five Lacs Ninety Four Thousand Two Hundred Nineteen Only) with costs, current and future simple interest @8.00%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 hypothecated assets 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

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OA/360/2026 STATE BANK OF INDIA VS. GURPREET KAUR

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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. 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 08.07.2026. 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: 23.06.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Smt. Gurpreet Kaur

Case brief

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State Bank of India v. Smt. Gurpreet Kaur

Case brief

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