Allowed

State Bank of India v. Sh. Balvir Singh

DRT14 May 2026OA/470/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by State Bank of India for recovery of a term loan defaulting by Sh. Balvir Singh. The Tribunal accepted the claim and modified the pending interest rate to 8% per annum. An ex-parte Recovery Certificate was issued.

What did the court decide?

Allowed the application and ordered recovery of Rs.21,07,758 with interest @8% p.a.; directed issuance of Recovery Certificate.

State Bank of India versus Sh. Balvir Singh — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 470/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 20.03.2026

¶5

DATE OF DECISION: 14.05.2026

¶6

State Bank of India a Body Corporate, constituted under the State Bank of India Act, 1955 and having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai carrying on its business of banking in India and abroad and having its Local Head Office at Sector 17-A, Chandigarh and Branch Office at State Bank of India, AMCC, Patiala, Sheranwala Gate, Tehsil and District Patiala through its Chief Manager Sh. Khushwant Singh.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Balvir Singh S/o Sh. Gurmeet Singh, R/o Village Malakpur Kamboan, PO Mashingan, District Patiala, Punjab.

¶10

……..Defendant

¶11

Advocates:

¶12

Argued by Sh. Gurinderjit Singh, Advocate for the applicant None for defendant (Already ex-parte vide order dated 07.05.2026).

¶13

FINAL ORDER

¶14

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.21,07,758.00 (Rupees Twenty One Lacs Seven Thousand Seven Hundred and Fifty Eight Only). Original Application has been filed through Sh. Khushwant Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulation No. 76 & 77 of State Bank of India General Regulations framed in exercising of the powers confirmed by sub-section 3 of section 50 of

¶15

2 OA/ 470/2026 STATE BANK OF INDIA V/S SH. BALVIR SINGH

¶16

the State Bank of India Act, 1955 with the previous sanction of the Central Government.

¶17

The brief facts of the OA that the defendant approached the applicant for grant of Term Loan of Rs.23,40,000.00 for purchase of Combine Harvester vide Loan Application dated 01.08.2023, which is Annexure A1 to this OA; 3. The applicant sanctioned the Term Loan of Rs.23,40,000.00 for purchase of Combine Harvester vide Sanction Letter dated 19.08.2023, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendant.

¶18

Defendant hypothecated his movable property i.e., HARVESTER COMBINE Bearing Registration No. PB11DE1173, Engine No. PGHM115923, Chassis No. MAT997H23014 vide Registration Certificate, which is Annexure A6 to this OA;

¶19

Documents executed: Hypothecation Agreement, Mortgage Deed, both dated 21.08.2023, which are Annexures A4 & A5 to this OA; Overdue Notice along with Translation dated 03.11.2025, which is Annexure A7 to this OA; Notice Under Section 13(2) of SARFAESI ACT dated 04.12.2025, which is Annexure A8 to this OA; Possession Notice dated 07.03.2026, which is Annexure A9 to this OA; Statement of Account and Interest Statement along with Certificate under Banker Book Evidence Act, which are Annexures A10 to A12 to this OA;

¶20

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.21,07,758.00 which is recoverable and the defendant were served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶21

The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte order dated 07.05.2026.

¶22

3 OA/ 470/2026 STATE BANK OF INDIA V/S SH. BALVIR SINGH

¶23

In support of the OA, affidavit of Sh. Khushwant Singh, Chief Manager , State Bank of India has been filed.

¶24

Heard arguments and perused record.

¶25

It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶26

From the perusal of all the Annexures A1 to A12 t o 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,07,758.00 (Rupees Twenty One Lacs Seven Thousand Seven Hundred and Fifty Eight Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶27

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with penal interest@2%p.a. from 10.03.2026 till the realization.

¶28

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 asset/mortgaged property, 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.

¶29

¶30

OA/ 470/2026 STATE BANK OF INDIA V/S SH. BALVIR SINGH

¶31

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,07,758.00 (Rupees Twenty One Lacs Seven Thousand Seven Hundred and Fifty Eight Only), with costs, current and future simple interest @08.00%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 asset/mortgaged property 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 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.

¶32

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 05.06.2026.

¶34

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: 14.05.2026

¶35

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

State Bank of India v. Sh. Balvir Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Balvir Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Anoop Oswal Hosiery and Others versus Aditya Birla Finance Limited

State Bank of India versus Sh. Kartar Singh

Rohit Verma and Another versus Karnataka Bank Limited and Others

Hdfc Bank Limited versus Sh. Jagmal Singh

State Bank of India versus M/S G R Agriculture Works and Another

Punjab National Bank versus Sh. Satpreet Singh and Another