Allowed

State Bank of India v. Sh. Hardial Singh Alias Hardyal Singh through His Legal Heirs and Another

DRT12 Mar 2026OA/535/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of Rs 33.87 lakhs owed by deceased borrower and guarantor. The Tribunal modified the claimed interest rate to 8% per annum simple interest and directed issuance of a Recovery Certificate.

What did the court decide?

Debt recovery award of Rs. 33,87,640 plus 8% simple interest p.a.; Issuance of Recovery Certificate.

State Bank of India versus Sh. Hardial Singh Alias Hardyal… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.535/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.02.2024

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DATE OF DECISION: 12.03.2026

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State Bank of India, a body corporate, constituted under State Bank of India Act, 1955(23 of 1955) and having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai (Maharashtra)–400021, carrying on its Business of Banking in India and Abroad, having one of Local Head Office at Sector 17, Chandigarh and having its Branch amongst other places known as Stressed Assets Recovery Branch, SCO no.15, 1^st Floor, Sector 7, Chandigarh through its Chief Manager Sh. Sanjeev Prakash Verma.

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……..Applicant

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Versus

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Sh. Hardial Singh @ Hardyal Singh S/o Sh. Jagat Singh, R/o Village Gajjpur Bela, P.O. Kotla, Tehsil Anandpur Sahib, District Ropar, Punjab-140116 through his Legal Heirs namely:

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(a) Smt. Jaswinder Kaur W/o Late Sh. Hardial Singh

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(b) Sh. Manjit Singh S/o Late Sh. Hardial Singh

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All Residents of Village Gajjpur Bela, P.O. Kotla, Tehsil Anandpur Sahib, District Ropar, Punjab-140116

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Sh. Rajesh Bhalla S/o Sh. Jog Raj Bhalla, R/o Village Attari, Rupnagar, Punjab-140114.

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kumar, Advocate for applicant

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Defendants already ex parte vide order dated 06.12.2024

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OA NO.535/2024 STATE BANK OF INDIA VS. HARDIAL SINGH ALIAS HARDYAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.33,87,640.00 (Rupees Thirty Three Lacs Eighty Seven Thousand Six Hundred Forty Only). The Original Application has been filed through Sh. Sanjeev Prakash Verma, Chief Manager the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with regulations nos.76 & 77 of State Bank of India General Regulations framed in exercise of powers conferred by sub section 3 of section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant no.1 (since deceased) approached the applicant for grant Agriculture Cash Credit Limit of Rs.23.50 Lacs vide Loan Application dated 17.06.2016, which is Annexure A3 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the Agriculture Cash Credit Limit of Rs.23.50 Lacs vide Letter of Arrangement dated 30.06.2016, which is Annexure A4 to this OA.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land Measuring 72Kanal-09Marla situated at Village Gajpur, Hadbast No.374, Tehsil Anandpur Sahib, District Rupnagar, Punjab vide Declaration dated 23.06.2016 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, along with its translation, which is Annexure A7 to this OA; Legal Report dated 26.04.2022, which is Annexure A10 to this OA; Valuation Report dated 19.09.2023, which is Annexure A11 to this OA.

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OA NO.535/2024 STATE BANK OF INDIA VS. HARDIAL SINGH ALIAS HARDYAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Documents executed: Notification/order dated 22.02.2017, which is Annexure A1 to this OA; Death Certificate dated 06.01.2023, which is Annexure A2 to this OA; Hypothecation Agreement, Consent for disclosure of information, both dated 30.06.2016, which are Annexures A6 & A8 to this OA; Undertaking by Borrower & Guarantor dated 01.07.2016, which is Annexure A9 to this OA; Balance Confirmation dated 10.06.2019, which is Annexure A12 to this OA; Balance Confirmation dated 06.01.2022, which is Annexure A13 to this OA; Document Depicting NPA Date and Statement of Account, which are Annexures A14 & A15 to this OA; Legal Notice dated 09.05.2022, which is Annexure A16 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs. 33,87,640.00, which is recoverable and the defendant no. 1 (since deceased) and defendant no. 2 were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 06.12.2024.

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In support of the OA, affidavit of Sh. Sanjeev Prakash Verma, Chief Manager , State Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record.

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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 A16 to this OA, it is proved that the defendant no. 1 (since deceased) approached applicant for availing of the loan facility for which defendant no. 2 stood as guarantor. The loan facility which

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OA NO.535/2024 STATE BANK OF INDIA VS. HARDIAL SINGH ALIAS HARDYAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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was granted to them and for that they had executed all the relevant documents in favour of the bank. They failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account 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.33,87,640.00 (Rupees Thirty Three Lacs Eighty Seven Thousand Six Hundred Forty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.15%p.a. with 2% penal interest with monthly rests from 01.02.2024 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 mortgaged property/hypothecated assets, undertaking of the defendants, 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 uniform 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,87,640.00 (Rupees Thirty Three Lacs Eighty Seven Thousand Six Hundred Forty Only), jointly and severally, 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

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OA NO.535/2024 STATE BANK OF INDIA VS. HARDIAL SINGH ALIAS HARDYAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets /mortgaged properties of defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.04.2026.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 12.03.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Hardial Singh Alias Hardyal Singh through His Legal Heirs and Another

Case brief

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State Bank of India v. Sh. Hardial Singh Alias Hardyal Singh through His Legal Heirs and Another

Case brief

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