Allowed

State Bank of India v. Sh. Rafiq Ahmad and Another

DRT19 Feb 2026OA/61/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by the State Bank of India against two borrowers for the recovery of an outstanding principal sum of Rs. 21,97,943 along with costs and simple interest at 8% per annum.

What did the court decide?

Recovery of Rs. 21,97,943 with simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI Act or attachment of assets.

State Bank of India versus Sh. Rafiq Ahmad and Another — DRT (2026) — LawSathi Research

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.61/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 05.11.2023

¶5

DATE OF DECISION: 19.02.2026

¶6

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 specialized Branch known as SARB at SCO-15, 1^st Floor, Sector 7-C, Madhya Marg, Chandigarh 160009 through its Chief Manager Sh. Sanjeev Parkash Verma.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Rafid Ahmad S/o Sh. Abdul Latif, R/o of Amar Chand Colony, Old Rajpura, Tehsil Rajpura, District Patiala, Punjab.

¶10

Smt. Shahnaj W/o Sh. Rafid Ahmad, R/o of Amar Chand Colony, Old Rajpura, Tehsil Rajpura, District Patiala, Punjab

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Rishabh Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for Applicant

¶14

Defendants already ex-parte vide order dated 29.04.2025

¶15

FINAL ORDER

¶16

1.Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for recovery of Rs. 21,97,943.00 (Rupees Twenty One Lacs Ninety Seven Thousand Nine Hundred and Forty Three Only). The Original Application has been filed through Sh. Sanjeev Parkash Verma, Chief Manager of the applicant, who is competent to institute the Original Application vide terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972, 02.05.1987

¶17

¶18

OA NO.61/2024 STATE BANK OF INDIA VS. RAFIQ AHMAD AND ANOTHER

¶19

issued under Regulation No. 76 & 77 of State Bank of India Regulations framed in exercise of the 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.

¶20

The brief facts of the OA are that the defendants approached the applicant fir grant Housing Loan of Rs.18.75 Lacs, vide Loan Application dated 24.08.2021, which is Annexure A1 to this OA. The defendants also applied for loan of Rs.1,70,400.00 for payment of Life Insurance Premium vide request dated 27.10.2021, which is Annexure A4 to this OA.

¶21

The applicant sanctioned the Housing Loan of Rs.18.75 Lacs vide Arrangement Letter dated 26.10.2021, which is Annexure A2 to this OA and the terms and conditions are accepted by defendants. The applicant also sanctioned additional loan of Rs.1,70,400.00 for payment of Life Insurance Premium. Agreement dated 27.10.2021 for additional loan granted to existing Home Loan Borrowers for Insurance Premium amount, which is Annexure A5 to this OA.

¶22

Defendant no. 2 mortgaged her immovable property i.e. House Measuring 2-1/2Biswa (125 Sq. Yards) situated at Baba Deep Singh Colony, Dhakansu Kalan, Tehsil Rajpura, District Patiala, Punjab through equitable mortgage of Sale Deed bearing vasika no. 667 dated 18.05.2017, along with its translation, which is Annexure A7 & A7A to this OA; Confirmation Letter dated 26.10.2021 regarding mortgage, which is Annexure A6 to this OA; Valuation report dated 18.03.2023, which is Annexure A8 to this OA.

¶23

Documents executed: Memorandum of Loan Agreement for Housing Loan dated 26.10.2021, which is Annexure A3 to this OA; Legal Notice dated 20.05.2023, along with postal receipts, which is Annexure A9 to this OA; Statement of Accounts with certificates, which are Annexures A10 and A11 to and this OA.

¶24

¶25

OA NO.61/2024 STATE BANK OF INDIA VS. RAFIQ AHMAD AND ANOTHER

¶26

The loans accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 21,97,943.00 which is recoverable and the defendants were 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.

¶27

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 29.04.2025.

¶28

In support of the OA, affidavit of Sh. Sanjeev Parkash Verma, Chief Manager, State Bank of India, has been filed.

¶29

Heard ex-parte arguments and perused record.

¶30

It was argued by proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 21,97,943.00 (Rupees Twenty One Lacs Ninety Seven Thousand Nine Hundred and Forty Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶31

¶32

OA NO.61/2024 STATE BANK OF INDIA VS. RAFIQ AHMAD AND ANOTHER

¶33

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% p.a. with 2% penal interest with monthly rests from 22.10.2023 till the realization.

¶34

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 defendants, quantum of loans 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 @8.00%p.a. in both the loans accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶35

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,97,943.00 (Rupees Twenty One Lacs Ninety Seven Thousand Nine Hundred and Forty Three Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loans 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 mortgage property of defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

¶36

¶37

OA NO.61/2024

¶38

STATE BANK OF INDIA VS. RAFIQ AHMAD AND ANOTHER

¶39

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 07.03.2026.

¶40

Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶41

Pronounced by me in the open Tribunal .

¶42

Dated: 19.02.2026.

¶43

(MRIDULESH KUMAR SINGH)

¶44

Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Rafiq Ahmad and Another

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Rafiq Ahmad and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Roman Steel Pvt. Ltd. and Another versus Canara Bank and Another

Punjab National Bank versus Sh. Bhajan Singh and Another

Bank of Baroda versus Sh. Mangal Singh and Another

Union Bank of India versus Sh. Daljeet Singh

Union Bank of India versus Sh. Jatinder Singh Tiwana

Union Bank of India versus Sh. Gurvinder Singh