Allowed

State Bank of India v. Sh. Gurbachan Singh

DRT9 Feb 2026OA/677/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of loan dues. Acknowledging a drop in market rates, the court adjusted the interest rate to 8% p.a. and authorized recovery from mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs. 28,68,585.00 with simple interest @8.00%p.a. Recovery to be enforced via sale of hypothecated or personal assets. Recovery Certificate issued.

State Bank of India versus Sh. Gurbachan Singh — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.677/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2024

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DATE OF DECISION: 09.02.2026

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State Bank of India, a body corporate constituted under The State Bank of India Act, 1955 and having Central Office at Madam Cama

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Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Kot Bhai, Tehsil Gidderbaha and District Sri Muktsar Sahib through its Branch Manager Sh. Gurcharan Singh Mahi.

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……..Applicant Versus

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Sh. Gurbachan Singh S/o Sh. Thana Singh R/o of H.no 561, Madhir Road, Village Kot Bhai, Part-III, Tehsil Gidderbaha and District Sri Muktsar Sahib, Punjab.

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………. Defendant

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Advocates

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant

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Defendant already ex parte vide order dated 18.12.2024

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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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 28,68,585.00 (Rupees Twenty Eight Lacs Sixty Eight Thousand Five Hundred and Eighty Five Only). The Original Application has been filed through Sh. Gurcharan Singh Mahi, Branch Manager o f the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972, 02.05.1987 issued under Regulation no.76 & 77 of State Bank of India Regulations framed in exercise of the powers conferred by Sub Section

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OA NO.677/2024 STATE BANK OF INDIA VS. GURBACHAN SINGH

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3 of Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs. 14.00 Lacs vide Loan Application dated 09.10.2015, which is Annexure A1 to this OA. 3. The applicant sanctioned KCC Limit of Rs.14.00 Lacs vide Letter of Arrangement dated 20.10.2015, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Land measuring 40Kanal situated at Village Kotbhai-IInd, Hadbast no. 10, Tehsil Giddarbaha, District Sri Muktsar Sahib, Punjab vide Declaration dated 14.10.2015, under Section 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 which is Annexure A5 to this OA. Documents Executed: Hypothecation Agreement, Undertaking, both dated 20.10.2015, which are Annexures A3 and A4 to this OA; Revival letters dated 26.03.2017, 04.03.2020, 24.02.2023, which are Annexures A6 to A8 to this OA; Notice dated 20.12.2022, along with its translation, which is Annexure A9 to this OA; Statement of Account, which is Annexure A10 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 28,68,585.00 which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 18.12.2024 7. In support of the OA, affidavit of Sh. Gurcharan Singh Mahi, Branch Manager, State Bank of India h as been filed.

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OA NO.677/2024 STATE BANK OF INDIA VS. GURBACHAN SINGH

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant 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 A10 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, 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.28,68,585.00 (Rupees Twenty Eight Lacs Sixty Eight Thousand Five Hundred and Eighty Five Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.25%p.a. with half yearly rests from 03.04.2024 the realization.

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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/mortgaged properties, 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 uniform simple interest @8.00%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.

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In the result, the application is allowed declaring that the

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defendant is liable to pay to the applicant a total sum of

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OA NO.677/2024 STATE BANK OF INDIA VS. GURBACHAN SINGH

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Rs.28,68,585.00 (Rupees Twenty Eight Lacs Sixty Eight Thousand Five Hundred and Eighty Five Only) with costs, current and future simple interest @8.00%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 assets/mortgaged properties 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.02.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 09.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Gurbachan Singh

Case brief

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State Bank of India v. Sh. Gurbachan Singh

Case brief

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