Allowed

State Bank of India v. Sh. Jagdish Singh

DRT14 Jan 2026OA/561/2023

Case brief

AI extract

What is this about?

A Debts Recovery Tribunal allowed an original application filed by State Bank of India against a loan defaulting borrower for recovery of Rs. 31,59,868. The Tribunal granted recovery of the principal sum along with adjusted simple interest at 8% p.a.

What did the court decide?

Recovery certificate issued for Rs. 31,59,868.00 plus simple interest at 8% p.a. from date of filing till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.561/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.04.2023

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DATE OF DECISION: 14.01.2026

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State Bank of India, a body Corporate Constituted under the State Bank of India Act No. XXIII of 1955, having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and having its branches all over India, having one of its Local Head Office at situated at Sector17, Chandigarh and having its Regional Business Office situated at RBO-4, Patiala, Punjab and having one of its Branch Office situated at State Bank of India, Jakhal Road, Patran City, Tehsil Patran, District Patiala, Punjab filed through its Authorized Officer Cum Chief Manager Sh.Kamaljit Singh.

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……..Applicant Versus

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Sh. Jagdish Singh, Son of Sh. Sampuran Singh, R/o House No. 212, Part-2, Village Khang, Post Office Gulhar, Tehsil Patran, District Patiala, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Navpreet Singh, Advocate for applicant

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Defendant already ex-parte vide order dated 04.07.2024

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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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.31,59,868.00 (Rupees Thirty One Lacs Fifty Nine Thousand Eight Hundred Sixty Eight Only). The Original Application has been filed through Sh. Kamaljit Singh, Chief Manager, of the applicant, who is competent to institute the Original Application in the Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by Executive Committee of the Central Board of Directors in exercise of power

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2 OA/561/2023 STATE BANK OF INDIA VS. JAGDISH SINGH

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conferred on it under Regulations No.76 & 77 of State Bank of India Regulations, 1955 made by Reserve Bank of India 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. Notification dated 27.03.1987, is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.24.50 Lacs vide Loan Application dated 11.08.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.24.50 Lacs vide sanction dated 22.08.2014, which is Annexure A3 to this OA and letter of arrangement dated 25.08.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant vide terms and conditions letter dated 25.08.2014, which is Annexure A5 to this OA.

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Defendant mortgaged his movable property i.e. land measuring 24kanal situated at Village Khanewal, Tehsil Patran, District Patiala, Punjab vide mortgage deed bearing vasika no. 1703 dated 22.08.2014, which is Annexure A8 to this OA. Documents executed: Consent clause, which is Annexure A6 to this OA; Hypothecation Deed dated 25.08.2014, which is Annexure A7 to this OA; Statements of account along with statement of accrued interest & Bankers Books Evidence certificate, which are Annexures A9 to A11 to this OA; NPA Notice dated 02.06.2021, along with its translation, which is Annexure A12 to this OA; Notice dated 15.08.2022, along with its translation, which is Annexure A13 to this OA and Letter of revival dated 31.07.2017, which is Annexure A14 to this OA. 5. 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.31,59,868.00, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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3 OA/561/2023 STATE BANK OF INDIA VS. JAGDISH SINGH

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 04.07.2024.

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

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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 A14 to 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, 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.31,59,868.00 (Rupees Thirty One Lacs Fifty Nine Thousand Eight Hundred Sixty Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.95%p.a. with half yearly rest from 13.04.2023 till 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 defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester

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4 OA/561/2023 STATE BANK OF INDIA VS. JAGDISH SINGH

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years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform 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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.31,59,868.00 (Rupees Thirty One Lacs Fifty Nine Thousand Eight Hundred Sixty 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 assets/mortgaged properties 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.

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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 30.01.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 14.01.2026.

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

State Bank of India v. Sh. Jagdish Singh

Case brief

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State Bank of India v. Sh. Jagdish Singh

Case brief

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