Allowed

State Bank of India v. Smt. Sandeep Kaur Sekhon

DRT4 Jun 2026OA/599/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India against a defendant for recovery of a loan debt of Rs. 30.78 lakhs. The defendant appeared ex-parte. The Tribunal confirmed the liability and ordered repayment of the principal amount with simple interest at 8% p.a., while granting directions for sale of hypothecated assets under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 30,78,615.00 plus costs and simple interest at 8% p.a. from date of filing. Entitlement to sale of hypothecated assets or attachment of personal assets under SARFAESI Act.

State Bank of India versus Smt. Sandeep Kaur Sekhon — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.599/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2026

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DATE OF DECISION: 04.06.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 and having its Central Office at Madam Cama Road, Nariman Point, Mumbai and its Local Head Office at Sector 17A, Chandigarh and one of its Branch Office amongst other places at Mullanpur Branch, District Ludhiana, Punjab through its Branch Manager and Principal Officer, Sh. Jaspreet Singh

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……..Applicant

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Versus

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Smt. Sandeep Kaur Sekhon, C/o Sh. Karanvir Singh Sekhon, R/o VPO Dakha, College Road, District Ludhiana, Punjab- 141102

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….……Defendant

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Advocates:

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Argued by Sh. Bhavya Sagar, Advocate for applicant None for defendant (already ex-parte vide order dated 02.06.2026)

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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. 30,78,615.00 (Rupees Thirty Lacs Seventy Eight Thousand Six Hundred Fifteen Only). The Original Application has been filed through Sh. Jaspreet Singh, Branch Manager of the applicant who is competent to institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972, 02.05.1987 and 29.10.2005 issued by Executive Committee of Central Board in exercise of power conferred on it under General Regulation nos. 76 and 77 of State Bank of India General Regulation framed in exercise of the powers conferred by sub-

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2 OA/599/2026 STATE BANK OF INDIA VS. SANDEEP KAUR SEKHON

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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 approached the applicant for the grant of KCC Limit of Rs. 37.50 Lacs vide Loan Application dated 08.06.2023, which is Annexure A1 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 37.50 Lacs vide Letter of Sanction dated 08.06.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant hypothecated her movable assets namely Maize Cutter, Kartar 4000 and Shaktiman Grimme Potato Planter QMF vide Hypothecation Agreement dated 08.06.2023 and Quotations, which are Annexure A3 and A4 to this OA. Documents executed: Legal Notice dated 18.12.2025, which is Annexure A5 to this OA; Recall Notice dated 25.03.2026, which is Annexure A6 to this OA and Statement of Account with certificate, which are Annexure A7 and A8 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. 30,78,615.00, which is recoverable and the defendant was served recall notices but she 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 summons to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte vide order dated 02.06.2026. 7. In support of the OA, affidavit of Sh. Jaspreet Singh, Branch Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

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3 OA/599/2026 STATE BANK OF INDIA VS. SANDEEP KAUR SEKHON

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From the perusal of all the Annexure A1 to A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she 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. 30,78,615.00 (Rupees Thirty Lacs Seventy Eight Thousand Six Hundred Fifteen Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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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 @9.00%p.a. plus @2% penal interest with monthly rests from 07.03.2026 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.30,78,615.00 (Rupees Thirty Lacs Seventy Eight Thousand Six Hundred Fifteen 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

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OA/599/2026

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STATE BANK OF INDIA VS. SANDEEP KAUR SEKHON

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entitled to recover aforesaid amount from the sale of hypothecated assets 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.06.2026. 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: 04.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Smt. Sandeep Kaur Sekhon

Case brief

What is this about?

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State Bank of India v. Smt. Sandeep Kaur Sekhon

Case brief

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