Allowed

State Bank of India v. Smt. Parneet Kaur

DRT23 Jun 2026OA/668/2026

Case brief

AI extract

What is this about?

Allowed the Original Application filed by State Bank of India under Section 19 RDB Act 1993. Held defendant liable to pay outstanding sum of Rs.23,86,484.00 with 8% interest. Directed issuance of Recovery Certificate and authorization for execution proceedings under SARFAESI Act.

What did the court decide?

Issuance of Recovery Certificate; declaration of liability for Rs.23,86,484.00 with 8% simple interest; entitlement to recover via sale of hypothecated machinery or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 668/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.05.2026

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DATE OF DECISION: 23.06.2026

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State Bank of India, a Body Corporate, constituted under the State Bank of India Act No XXIII of 1955 , having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai having one of its Local Head Office situated at Sector 17- B, Chandigarh and having one of its RBO – IV Jalandhar, Punjab and having one of its branches, situated at State Bank of India - AMCC Branch at Phagwara, District – Kapurthala, Doaba, Punjab, filed through its Authorized Officer cum Chief Manager, Sh. Naresh Kumar Rattan, Scale - IV Officer.

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……..Applicant Versus Smt. Parneet Kaur W/o Sh. Maninderjit Singh R/o Indira Colony, Village – Tehang, Tehsil – Phillaur, District – Jalandhar, Doaba, Punjab – PIN 144410. .……Defendant Advocate: Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Navpreet Singh, Advocate for the applicant

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None for Defendant (already ex parte vide order dated 20.06.2026)

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FINAL ORDER Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.23,86,484.00 (Rupees Twenty Three Lacs Eighty Six Thousands Four Hundred Eighty Four only). The Original Application has been filed through Sh. Naresh Kumar Rattan, Chief Manage r, of the applicant bank, who is competent to institute the Original Application vide Gazette Notification for Signing the OA dated 31.08.2005, which is Annexure A1 to this OA.

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OA/668/2026 STATE BANK OF INDIA VS SMT. PARNEET KAUR

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The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs.22.95 Lacs for purchase of Combine Harvester, vide Loan Application Form dated 02.01.2024, which is Annexure A3 to this OA.

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The applicant sanctioned the Term Loan of Rs.22.95 Lacs vide Letter of Sanction dated 14.03.2024, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendant vide Letter of Arrangement dated 14.03.2024, which is Annexure A5 to this OA.

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Defendant hypothecated her Combine Harvester bearing Registration No. PB37K4226, Make GAHIR ARGICULTURAL INDUSTIRES, Model No. GAHIR 930, Engine No. RNHM104032, Chassis No. GAI930C240016, vide Hypothecation Deed dated 14.04.2024, which is Annexure A8 to this OA; Registration Certificate of the Combine Harvester, which is Annexure A9 to this OA. Documents executed : Quotation for Purchase of Combine Harvester dated 14.12.2023, which is Annexure A2 to this OA; RTGS Debit Letter for Payment Directly to Manufacturer dated 18.03.2024, which is Annexure A6 to this OA; Delivery Certificate of Combine dated 29.03.2024, which is Annexure A7 to this OA; Statement of Accounts dated 24.04.2026, which is Annexure A10 to this OA; Statement of Accrued Interest dated 24.04.2026, which is Annexure A11 to this OA; Bankers Books Evidence Act Certificate dated 24.04.2026, which is Annexure A12 to this OA; Legal Notice with Postal Receipt dated 12.08.2025, which is Annexure A13 to this OA.

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The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.23,86,484.00 (Rupees Twenty Three Lacs Eighty Six Thousands Four Hundred Eighty Four only), 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.

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OA/668/2026 STATE BANK OF INDIA VS SMT. PARNEET KAUR

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The defendant was served summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, she was proceeded ex-parte on 20.06.2026. 7. In support of the OA, affidavit of Sh. Naresh Kumar Rattan, Chief Manager, State Bank of India, has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned proxy counsel, that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. 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 Term Loan, 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.23,86,484.00 (Rupees Twenty Three Lacs Eighty Six Thousands Four Hundred Eighty Four 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00% p.a. with monthly rests from 25.04.2026 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 machinery, 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

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OA/668/2026 STATE BANK OF INDIA VS SMT. PARNEET KAUR

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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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.23,86,484.00 (Rupees Twenty Three Lacs Eighty Six Thousands Four Hundred Eighty Four 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 machinery 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.

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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 08.07.2026 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: 23.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Smt. Parneet Kaur

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State Bank of India v. Smt. Parneet Kaur

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