In an ex-parte application, the Tribunal decree against the defendant for an outstanding loan of Rs.42.66 lacs, fixing simple interest at 8% p.a. pending realization.
Recovery of Rs.42,66,497.00 with costs and simple interest @8.00% p.a. from the date of filing until realization.
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. 448/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 17.03.2026
DATE OF DECISION: 06.05.2026
State Bank of India, body corporate, constituted under State Bank of India Act 1955 and having its Corporate Centre at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office, Sector 17-A Chandigarh, one of its Recovery Branch, Stressed Assets Recovery Branch at SCO No 15, First Floor, Madhya Marg, Sector-7C, Chandigarh, through its Chief Manager & Principal Officer Sh. Mousam Pal.
Versus
Smt. Harmanraj Kaur W/o Sh. Satwinder Singh, R/o Village Baran, Sirhind Road, Patiala, District Patiala, Punjab-147004.
….……Defendant
Advocates:
Argued by Sh. Kanwar Harbir Singh Bath, Advocate for the applicant (through VC)
None for Defendant (already ex-parte vide order dated 29.04.2026)
FINAL ORDER
1.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.42,66,497.00 (Rupees Forty Two Lacs Sixty Six Thousand Four Hundred Ninety Seven Only). The Original Application has been filed through Sh. Mousam Pal, Chief Manager & Principal Officer of the applicant, who is competent to institute the Original Application vide terms of Gazette Notification published in the Gazette of lndia dated 26.09.1959, and 26.08. 1972 and dated 27.03.1987 issued under Regulation No. 76 & 77 of State Bank of lndia Regulations framed in Exercise of the powers conferred by Sub section (3) of Section 50 of the
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OA NO.448/2026 STATE BANK OF INDIA VS HARMANRAJ KAUR
State Bank of lndia Act 1955, with the previous sanction of the Central Government.
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OA NO.448/2026 STATE BANK OF INDIA VS HARMANRAJ KAUR
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 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 bank is entitled to recover a sum of Rs.42,66,497.00 (Rupees Forty Two Lacs Sixty Six Thousand Four Hundred Ninety Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.25%p.a. with monthly rests from 11.03.2026 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 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.
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OA NO.448/2026 STATE BANK OF INDIA VS HARMANRAJ KAUR
(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 and future interest.
Whether simple interest @8.00% p.a. should be granted instead of the claimed rate.
2 provisions across 2 enactments
State Bank of India
Smt. Harmanraj Kaur
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
