DRT allowed applicant's recovery application ex parte. Court declared defendant liable to pay outstanding loan amount with interest at 8% p.a. and authorized enforcement via asset sale.
Recovery certificate issued. Defendant to pay Rs.29,69,409.00 plus costs and 8% p.a. simple interest. Enforcement via sale of assets authorized.
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. 429/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.03.2026
DATE OF DECISION: 07.07.2026
State Bank of India, a body corporate constituted under the State Bank of India Act, 1955, having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai-400021, and one of its Local Head Offices at Sector 17, Chandigarh and one of its branches, State Bank of India, AMCC Phagwara, District Kapurthala, Punjab-144401, through its Chief Manager and Authorized Officer, Shri Naresh Kumar Rattan.
…..Applicant
Sh. Kamaljeet Singh S/o Sh. Rashpal Singh, Resident of Village Malliwal Nangal, P.O. Malupur, Tehsil Shahkot, District Jalandhar, Punjab144701.
………. Defendant
Advocates:
Argued by Ms. Anupama Takhi, Advocate for Applicant None for Defendant (Already ex parte vide order dated 23.04.2026)
FINAL ORDER
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OA/429/2026 STATE BANK OF INDIA VS SH. KAMALJEET SINGH
dated 10.05.2024 and 01.06.2024 along with Appraisal Form and Sanction Letter (Colly), which are Annexure A2 to this OA. 3. The applicant sanctioned two Term Loans of Rs.23.50 lacs and Rs.7.40 Lacs for purchase of combine harvester and maize cutter vide Letters of Arrangement along with Addendums dated 30.05.2024 and 11.07.2024 (Colly.), which are Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his agricultural machinery as under: i. Combine Harvester with Model Sukhwindera 975, Engine no. PEHM119357 and Chassis no. SAI975F20240002; ii. Maize Cutter with Make Preet Agro Industries Private Limited, Chassis no. PTC05202402064; vide Hypothecation Agreements (AB-1) dated 30.05.2024 and 11.07.2024 (Colly.), which are Annexure A4 to this OA; As per Affidavit of Sh. Naresh Kumar Rattan , Chief Manager, of the applicant, filed on 23.06.2026 vide Dairy no. 11305, Combine Harvester has not been registered with any registration authority by the defendant. Documents executed : Legal Notices along with Postal Receipts dated 27.11.2025 and 20.12.2025 (Colly), which are Annexure A5 to this OA; Statement of Account certified under the Bankers' Books Evidence Act up to 05.03.2026 (Colly), which is Annexure A6 to this OA; Closure Balance/Discharge Quote, which is Annexure A7 to this OA; Closure Balance/Discharge Quote, which is Annexure A8 to this OA; Copies of Invoices and Insurance Policies of Hypothecated Assets dated 15.10.2023 (Colly), which are Annexure A9 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.29,69,409.00 (Rupees Twenty Nine Lacs Sixty Nine Thousand Four Hundred Nine Only), which is recoverable and the defendant was served recall notices but he did not repay the outstanding
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OA/429/2026 STATE BANK OF INDIA VS SH. KAMALJEET SINGH
amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte on 23.04.2026 7. In support of the OA, affidavit of Sh. N aresh Kumar Rattan , Chief Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that 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 A9 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, both the 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.29,69,409.00 (Rupees Twenty Nine Lacs Sixty Nine Thousand Four Hundred Nine 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00% p.a. with monthly rests from 06.03.2026 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 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
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OA/429/2026 STATE BANK OF INDIA VS SH. KAMALJEET SINGH
deems it just and appropriate to grant simple interest @08.00%p.a. in both the loan accounts from the date of filing 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.
Dated:07.07.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of outstanding debt from the defendant.
Whether interest on the recovered amount should be fixed at 8% p.a. instead of the claimed 9% p.a.
1 provisions across 1 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
