The Tribunal allowed an application for recovery of a term loan of Rs. 23,49,804.00 outstanding to State Bank of India. An sanction and uniform simple interest at 8% p.a. were granted, and the recovery certificate was issued for execution.
Recovery of Rs.23,49,804.00 with simple interest at 8% p.a. directed; Recovery Certificate issued.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.59/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.01.2025
DATE OF DECISION: 19.03.2026
State Bank of India, a Body Corporate, constituted under the State Bank of India, Act, 1955 having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai, one of its Local Head Office at Sector 17, Chandigarh and Branches all over India including one SBI, SARB at SCO No. 15, First & Second Floor, Madhya Marg, Sector-7 Chandigarh, through its Chief Manager Sh. Mousam Pal.
……..Applicant Versus
Sh. Karam Singh son of Sh. Charan Singh, R/o Village Majri Faqiran, Ghanor, Tehsil Rajpura, District Patiala Punjab-140702.
….……Defendant
Advocates:
Argued by Ms. Sonia Gupta, Advocate for applicant
Defendant already ex-parte via order dated 26.12.2025
FINAL ORDER
2 OA/59/2025 STATE BANK OF INDIA VS. KARAM SINGH
Documents executed: Demand Notice dated 04.05.2024, which is Annexure A4 to this OA; Legal notice dated 30.07.2024, which is Annexure A5 to this OA and Statement of account, which is Annexure A6 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.23,49,804.00, which is recoverable and the defendant was 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 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 26.12.2025. 7. In support of the OA, affidavit of Sh. Mousam Pa l, Chief Manager, State Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record.
3
OA/59/2025 STATE BANK OF INDIA VS. KARAM SINGH
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 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.
4
OA/59/2025 STATE BANK OF INDIA VS. KARAM SINGH
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 vehicle of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2026. 15. 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: 19.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant was entitled to recovery of the outstanding loan amount from the defendant.
What rate of interest should be fixed pending realization of the decretal amount.
2 provisions across 2 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
