Allowed

State Bank of India v. Sh. Raghbir Singh and Another

DRT19 Feb 2026OA/670/2024

Case brief

AI extract

What is this about?

This judgment admits an Original Application under Section 19 of the RDB Act 1993 filed by State Bank of India against two borrowers and a guarantor. The Tribunal, proceeding ex-parte, allowed the application, declared the defendants liable for the principal sum, modified the interest rate to 8% p.a., and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 26,82,162.00 jointly and severally with interest at 8% p.a. from the date of filing till realization, via sale of mortgaged/covered properties or attachment of personal assets.

State Bank of India versus Sh. Raghbir Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.670/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.04.2024

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DATE OF DECISION:19.02.2026

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State Bank of India, a Body Corporate constituted under the State Bank of India Act, 1955 and having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and One of its Local Head Office at Sector -17 A, Chandigarh having branches all over India and one of its branch situated at Balbehra, District Patiala through its Branch Manager Sh. Sandeep Kumar, who is Authorized Officer.

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……..Applicant Versus

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Sh. Raghbir Singh S/o of Sh. Jagtar Singh, R/o of H.No.43 B, Village Bahadarpur Miranwala, P.O. Miranpur, District Patiala.

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Sh. Bhupinder Singh S/o of Sh. Raghbir Singh, R/o Village Bahadarpur Miranwala, P.O. Miranpur, District. Patiala.

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………Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

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Defendants already ex-parte vide order dated 15.04.2025

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.26,82,162.00 (Rupees Twenty Six Lacs Eighty Two Thousand One Hundred Sixty Two Only). The Original Application has been filed through Sh. Sandeep Kumar, Branch Manager of the applicant, who is competent to institute the Original Application in the terms of Gazette Notification dated 26.09.1959, 26.08.1972, 27.03.1987 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulation no.76 and 77 of State Bank of India General

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2 OA NO.670/2024 STATE BANK OF INDIA VS. RAGHBIR SINGH AND ANOTHER

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Regulations in exercise of powers conferred by sub-section 3 of the State Bank of India Act, 1955 with the previous sanction of the Central Government. State Bank of India Regulations dated 27.03.1987, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant Agriculture Term Loan of Rs. 10.00 under KGC and KCC Limit of Rs. 10.00 Lacs vide Loan Applications dated 09.05.2014, along with their translation, which are Annexure A2, A2T, A8 & A8T to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned Agriculture Term Loan of Rs. 10.00 Lacs under KGC vide Sanction Letter dated 21.05.2014, which is Annexure A3 to this OA and sanctioned KCC Limit of Rs.10.00 Lacs vide sanction Letter dated 03.06.2014, which is Annexure A9 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his immovable property i.e. Land Measuring 24 Kanals situated at Village Bahadarpur @ Miranwala, Tehsil Dudhan Sadhan, District Patiala, Punjab vide Mortgage Deed bearing vasika no.154 dated 21.05.2014, along with its translation, which are Annexure A12 & A12T to this OA.

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Documents executed : Hypothecation Agreement, Deed of Guarantee, Letter of Undertaking, Consent Letter, all dated 21.05.2014, which are Annexures A4 to A7 to this OA; Hypothecation Agreement, Deed of Guarantee, both dated 03.06.2014, which are Annexures A10 and A11 to this OA; Balance Confirmation Letters dated 31.03.2017, which is Annexure A13 to this OA; Legal Notice dated 06.02.2023, which is Annexure A14 to this OA; Legal Notice dated 07.11.2023, which is Annexure A15 to this OA; Statement of Accounts, which are Annexure A16 & A17 to this OA.

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The loans accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loans accounts there were a debit of Rs.26,82,162.00 which is recoverable and the defendants were served recall notice but defendants did not repay the

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3 OA NO.670/2024 STATE BANK OF INDIA VS. RAGHBIR SINGH AND ANOTHER

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 15.04.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Branch 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 A17 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 applicant. 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 is entitled to recover a sum of Rs.26,82,162.00 (Rupees Twenty Six Lacs Eighty Two Thousand One Hundred Sixty Two 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ @11.80% p.a. with 2% penal interest and half yearly rests in KCC and @14.60% p.a. with 2% penal interest and half yearly rests in KGC from 11.04.2024 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 mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent

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4 OA NO.670/2024 STATE BANK OF INDIA VS. RAGHBIR SINGH AND ANOTHER

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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 @08.00%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,82,162.00 (Rupees Twenty Six Lacs Eighty Two Thousand One Hundred Sixty Two Only), jointly and severally, with costs, current and future simple interest @8.00%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/mortgaged properties of the 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. 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. 15. 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. Pronounced by me in the open Tribunal . Dated: 19.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Raghbir Singh and Another

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State Bank of India v. Sh. Raghbir Singh and Another

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