The Debt Recovery Tribunal allowed an ex-parte application by State Bank of India against a defendant for recovery of a term loan of Rs. 25,51,917.00, setting interest at 8% p.a. and directing issuance of a recovery certificate.
Recovery of Rs. 25,51,917.00 with simple interest @08.00%p.a. and issuance of Recovery Certificate.
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.655/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.05.2026
DATE OF DECISION: 20.06.2026
STATE BANK OF INDIA, a body Corporate constituted under State Bank of India Act 1955 and having its Corporate Centre, at Madame Cama Road, Nariman Point Mumbai and having branches all over India and one of its branches amongst other places at (J M Shahkot, District Moga) AMCC Guru Hargobind Nagar Phagwara through its Authorized Officer Sh. Naresh Kumar Rattan, Chief Manager.
……..Applicant
Versus
……..Defendant
Advocates:
Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Omkar Gupta, Advocate for the applicant
None for Defendant (Already ex-parte vide order dated 06.06.2026).
FINAL ORDER
2 OA NO.655/2026 STATE BANK OF INDIA VS SH. GURNAM SINGH
Sub Section (3) of Section 50 of State Bank of India Act with previous sanction of Central Government.
3 OA NO.655/2026 STATE BANK OF INDIA VS SH. GURNAM SINGH
From the perusal of all the Annexures A1 to A7 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.25,51,917.00 (Rupees Twenty Five Lacs Fifty One Thousand Nine Hundred and Seventeen 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 @11.00%p.a. with monthly rests from 22.04.2026 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 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.25,51,917.00 (Rupees Twenty Five Lacs Fifty One Thousand Nine Hundred and Seventeen 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
4
OA NO.655/2026 STATE BANK OF INDIA VS SH. GURNAM SINGH
shall be entitled to recover aforesaid amount from the sale of hypothecated Tractor along with Laser Land Leveller 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: 20.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount.
What rate of simple interest is appropriate for the loan account pending realization.
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
