Demanded recovery of term loan default treated as NPA; allowed application for recovery of Rs.22,00,975.00; granted simple interest at 8% p.a.; ordered issue of recovery certificate.
Recovery of Rs.22,00,975.00 with simple interest at 8% p.a. from date of filing; Issue 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.682/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 24.05.2025
DATE OF DECISION: 20.03.2026
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 RACC Branch at Sherawara Gate, The Mall Patiala, District Patiala (Punjab) through its Chief Manager Smt. Madhvi Sharma.
……..Applicant
Versus
Sh. Sukhchain Singh S/o Piara Singh, resident of Village Gajju Majra, Patiala, District Patiala (Punjab). ….……Defendant Advocates: Argued by Sh. Gaurav Singla, Advocate for Applicant (through VC) Defendant already ex-parte vide order dated 21.01.2026
FINAL ORDER
2 OA/682/2025 STATE BANK OF INDIA VS. SUKHCHAIN SINGH
Combine Harvester vide Loan Application dated 15.09.2023, which is Annexure A1 to this OA.
3 OA/682/2025 STATE BANK OF INDIA VS. SUKHCHAIN SINGH
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.22,00,975.00 (Rupees Twenty Two Lacs Nine Hundred Seventy Five Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.
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 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 @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.
4
OA/682/2025 STATE BANK OF INDIA VS. SUKHCHAIN SINGH
| 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. |
| 13. Issue Recovery Certificate accordingly. |
| 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.04.2026. |
| 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: 20.03.2026. |
| (MRIDULESH KUMAR SINGH) Presiding Officer, |
| DRT-III, Chandigarh |
3 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount of Rs.22,00,975.00 from the defendant.
Whether to grant penal interest beyond the recess rates of interest @ 9% p.a.
Whether the Recovery Certificate can be issued in favour of the bank.
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
