The Tribunal allowed the applicant's application for recovery of a term loan facility defaulting to the tune of Rs. 28,80,879.00, granting a Recovery Certificate and modifying interest rates.
Recovery Certificate issued; Defendant declared liable to pay Rs. 28,80,879.00 with simple interest at 8% p.a. from date of filing till 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.591/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.04.2026
DATE OF DECISION: 11.08.2026
State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Chandigarh Road, Samrala, District Ludhiana through its Chief Manager Sh. Satanand Singh.
……..Applicant
Versus
Sh. Kulwinder Maan S/o Sh. Jagan Nath, R/o Purani Gaushala Road, Machhiwara (M C), Machhiwara, Tehsil Samrala, District Ludhiana, Punjab - 141115.
……. .Defendant
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for the applicant
None for Defendant (Already ex-parte vide order dated 14.07.2026).
FINAL ORDER
2 OA NO.591/2026 STATE BANK OF INDIA VS SH. KULWINDER MAAN
Documents executed : Hypothecation Agreement, dated 06.03.2024, which is Annexure A4 to this OA; Legal Notice dated 22.12.2025, along with postal receipt, which are Annexures A9 & A10 to this OA; Statement of account along with certificate, which is Annexure A11 to this OA.
3 OA NO.591/2026 STATE BANK OF INDIA VS SH. KULWINDER MAAN
From the perusal of all the Annexures A1 to A11 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, 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.28,80,879.00 (Rupees Twenty Eight Lacs Eighty Thousand Eight Hundred and Seventy Nine Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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 @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 NO.591/2026 STATE BANK OF INDIA VS SH. KULWINDER MAAN
Rs.28,80,879.00 (Rupees Twenty Eight Lacs Eighty Thousand Eight Hundred and Seventy Nine 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 Tractor, Trolley and its Agriculture Implements 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.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal . Dated: 11.08.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant was entitled to issue a Recovery Certificate under Section 19 of RDAB Act 1993 after classification of the loan account as NPA.
2 provisions across 2 enactments
State Bank of India
Sh. Kulwinder Maan
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
