Allowed

State Bank of India v. Sh. Narinder Pal Singh

DRT23 Jun 2026OA/688/2026

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of the RDB Act, 1993, the Tribunal declared the defendant liable to pay the applicant Rs. 54,23,288 plus interest at 8% p.a. and granted a Recovery Certificate for enforcement through asset sale.

What did the court decide?

Recovery Certificate to be issued. Defendant liable to pay Rs. 54,23,288 with costs and interest at 8% p.a. Claim enforceable via attachment and sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.688/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.05.2026

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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, 1955 having its Central Office at Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Offices at Sector 17, Chandigarh having branches at different places and one of its AMCC Branch at Phagwara, District. Kapurthala, Punjab through its Chief Manager Sh. Naresh Kumar Rattan.

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……..Applicant Versus

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Sh. Narinder Pal Singh S/o Sh. Ravinder Singh, R/o Village Manguwal, PO Manguwal Tehsil & District SBS Nagar (Nawanshahr) District SBS Nagar, Punjab – 144512.

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…….. Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Aseem Kataria, 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

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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.54,23,288.00 (Rupees Fifty Four Lacs Twenty Three Thousand Two Hundred and Eighty Eight Only). The Original Application has been filed through Sh. Naresh Kumar Rattan, Chief Manager of the applicant bank, who is competent to institute the Original Application in terms of the Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 & 27.03.1987 under Regulation No. 76 and 77 of State Bank of India Regulations framed in Exercise of the Powers conferred by Sub Section (3) of Section 50 of State Bank of India Act, 1955, with previous sanction of Central Government vide Gazette Notification dated 02.05.1987, which is Annexure A1 to this OA.

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2 OA NO.688/2026 STATE BANK OF INDIA VS SH. NARINDER PAL SINGH

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The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan facility for purchase of Agriculture Implements of Rs.2,60,000.00 vide Application Form for Agricultural Credit dated 17.05.2024, which is Annexure A2 to this OA. Thereafter, the defendant approached the applicant for grant of Term Loan facility for purchase of Tractor of Rs.13,90,000.00 vide Application Form for Agricultural Credit dated 22.07.2024, which is Annexure A6 to this OA. Thereafter, the defendant approached the applicant for grant of Term Loan facility for purchase of Combine Harvester of Rs.36,30,000.00 vide Application Form for Agricultural Credit dated 24.12.2024, which is Annexure A12 to this OA.

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The applicant sanctioned the Term Loan facility for purchase of Agriculture Implements of Rs.2,60,000.00 vide Letter of Arrangement dated 12.06.2024, which is Annexure A3 to this OA. Thereafter, the applicant sanctioned the Term Loan facility for purchase of Tractor of Rs.13,90,000.00 vide Letter of Arrangement dated 13.08.2024, which is Annexure A7 to this OA. Thereafter, the applicant sanctioned the Term Loan facility for purchase of Combine Harvester of Rs.36,30,000.00 vide Letter of Arrangement dated 16.01.2025, which is Annexure A13 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Moveable Assets i.e., (i) Laser Land Leveller and its implements vide Tax Invoice dated 27.06.2024, which is Annexure A4-A to this OA. (ii) New Holand Tractor 3630, bearing Chassis no. NHN36300ZRE695699, Engine no. 446430DX, Registration No. PB32AD5953 vide Registration Certificate and Tax Invoices dated 29.11.2024, 06.09.2024 which are Annexures A9 to A11 to this OA. (iii) New Holand Combine Harvester bearing Chassis no. PNEY53TCLS2AC0186, Engine no. RBHM124140, Registration No. PB32AD5954 vide Registration Certificate and Tax Invoice dated 01.03.2025, which are Annexures A15 & A16 to this OA. Documents executed : Hypothecation Agreements dated 12.06.2024, 13.08.2024, 16.01.2025, which are Annexures A4, A8 & A14 to this OA; Insurance Policy dated 22.07.2024, which is Annexure A5 to this

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3 OA NO.688/2026 STATE BANK OF INDIA VS SH. NARINDER PAL SINGH

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OA; Legal Notice dated 20.01.2026, along with postal receipt, which is Annexure A17 to this OA; Statement of accounts along with certificate, which are Annexures A18 to A20 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts, there was a debit of Rs.54,23,288.00, 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.

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The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 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 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 A20 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.54,23,288.00 (Rupees Fifty Four Lacs Twenty Three Thousand Two Hundred and Eighty Eight 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 @9.00%p.a. with monthly rests with penal interest @2%p.a. till 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

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4 OA NO.688/2026 STATE BANK OF INDIA VS SH. NARINDER PAL SINGH

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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 loans 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 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 defendant is liable to pay to the applicant a total sum of Rs.54,23,288.00 (Rupees Fifty Four Lacs Twenty Three Thousand Two Hundred and Eighty Eight Only), with costs, current and future simple interest @08.00%p.a. in 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 assets 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 08.07.2026.

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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: 23.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Narinder Pal Singh

Case brief

What is this about?

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State Bank of India v. Sh. Narinder Pal Singh

Case brief

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