This debt recovery tribunal allowed the applicant bank's original application for recovery of Rs. 22,39,036 from the defendant. The court modified the interest rate to 8% p.a. and ordered recovery from hypothecated machinery or other assets.
Recovery of Rs. 22,39,036 with costs and simple interest @8% p.a. from hypothecated machinery or other assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 362/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.03.2026
DATE OF DECISION: 01.07.2026
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 Branches all over India, including one of its Branch at SBI, AMCC, Phagwara, District Kapurthala, through its Chief Manager, Sh. Naresh Kumar Rattan.
……..Applicant Versus
Sh. S atnam Singh son of Sh. Gurbachan Singh resident of Village Hussainpur, PO Rahon, SBS Nagar, Nawanshahr, Punjab-144517. .……Defendant
Advocate:
Argued by Ms. Neha Arora, Advocate proxy for Ms. Sonal Chhabra, Advocate for the applicant
None for Defendant (already ex parte vide order dated 20.06.2026)
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.22,39,036.00 (Rupees Twenty Two Lacs Thirty Nine Thousand Thirty Six only). The Original Application has been filed through Sh. Naresh Kumar Rattan, Chief Manager , of the applicant bank, who is competent to institute the Original Application vide Gazette Notification, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs.22.95 Lacs for purchase of Combine Harvester, vide Loan Application Form (Term Loan) dated 11.10.2023, which is Annexure A2 to this OA.
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OA/362/2026 STATE BANK OF INDIA VS SH. SATNAM SINGH
Documents executed : Sale Certificates and Bills dated 11.10.2023, which are Annexure A5 to this OA; Legal Notice dated 08.10.2025, which is Annexure A6 to this OA; Statement of Account duly certified, which is Annexure A7 to this OA.
From the perusal of all the Annexures A1 to A7 to this OA, it is proved that the defendant approached applicant for availing of the Term Loan, which was granted to him and for that he had executed all the
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OA/362/2026 STATE BANK OF INDIA VS SH. SATNAM SINGH
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.22,39,036.00 (Rupees Twenty Two Lacs Thirty Nine Thousand Thirty Six 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 machinery, 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.
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OA/362/2026 STATE BANK OF INDIA VS SH. SATNAM SINGH
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 16.07.2026 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: 01.07.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount from the defendant.
Whether the interest rate claimed by the applicant should be modified by the Tribunal.
2 provisions across 2 enactments
State Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
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