The DRT allowed the bank's application for recovery under Section 19 RDB Act. The tribunal held the bank proved its case via documentary evidence. It granted uniform simple interest at 7% p.a. and directed issuance of Recovery Certificate.
Recovery Certificate issued declaring liability to pay Rs. 36,58,299.00 plus costs and future simple interest @ 07% p.a.
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.607/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 21.04.2026
DATE OF DECISION: 29.06.2026
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, New Grain Market, Malout, Tehsil Malout, District Sri Muktsar Sahib through its Branch Manager Sh. Sukhpal Singh Vohra.
……..Applicant
Versus
Sh. Gurnoor Singh S/o Sh. Dara Singh, R/o near Railway Station, Village Karamgarh, PO Bhagwanpura, Tehsil Malout, District Sri Muktsar Sahib, Punjab - 152107.
……..Defendant
Advocates:
Argued by Sh. Rakshit Gupta, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant
None for Defendant (Already ex-parte vide order dated 24.06.2026).
FINAL ORDER
2 OA NO.607/2026 STATE BANK OF INDIA VS SH. GURNOOR SINGH
(3) of Section 50 of State Bank of India Act, 1955, with previous sanction of Central Government.
3 OA NO.607/2026 STATE BANK OF INDIA VS SH. GURNOOR SINGH
therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,58,299.00 (Rupees Thirty Six Lacs Fifty Eight Thousand Two Hundred and Ninety Nine Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rests, with penal interest @2% in Term Loan Account and interest @7.00%p.a. with monthly rests, with penal interest @2% in KCC Account from 14.04.2026 till the realization. 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while
4 OA NO.607/2026 STATE BANK OF INDIA VS SH. GURNOOR SINGH
exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @07.00%p.a. in both the loan accounts 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.36,58,299.00 (Rupees Thirty Six Lacs Fifty Eight Thousand Two Hundred and Ninety Nine Only), with costs, current and future simple interest @07.00%p.a. in both the loan accounts 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 Combine Harvester and Daw Maze Cutter 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 14.07.2026. 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: 29.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank proved its case under Section 19 of RDB Act for recovery of the outstanding loan amount.
What rate of interest should be granted for the period from filing of the application till realization.
3 provisions across 3 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
