Allowed

State Bank of India v. Sh. Bhupinder singh and another

DRT22 Jan 2026OA/71/2024

Case brief

AI extract

What is this about?

This judgment allows an Original Application filed by State Bank of India for recovery of a loan of Rs.33,74,304 from defendants. The Tribunal declared the defendants jointly and severally liable to repay the principal amount along with costs and reduced simple interest.

What did the court decide?

Recovery Certificate issued; Defendants declared liable to pay Rs.33,74,304 with costs and simple interest at 08% p.a.

State Bank of India versus Sh. Bhupinder singh and another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.71/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.11.2023

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DATE OF DECISION: 22.01.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 (23 of 1955) having its Corporate Centre at State Bank Bhawan, Madame Cama Road, Nariman Point, Mumbai and having one of its Local Head Office at Sector 17 Chandigarh, including one such Branch at Longowal, District Sangrur through its Branch Manager Sh. Vikas Jangra.

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……..Applicant

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Versus

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Sh. Bhupinder Singh S/o Sh. Bharpoor Singh, R/o Kamowal Road, Longowal, VPO Longowal, Tehsil and District Sangrur.

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Sh. Gurmel Singh S/o Sh. Gurdial Singh, R/o Patti Wadiani, Village

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Longowal, Tehsil and District Sangrur.

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….……Defendants

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Advocates:

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Argued by Sh. Rishab Gupta, Advocate proxy for Sh. Gaurav Singla, Advocate for the applicant

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Defendants already ex-parte vide order dated 16.09.2025

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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 and Bankruptcy Act,1993, against the defendants for recovery of Rs.33,74,304.00 (Rupees Thirty Three Lacs Seventy Four Thousand Three Hundred and Four Only). The Original Application has been filed through Sh. Vikas Jangra, Branch Manager, of the applicant w ho is competent to institute the Original Application vide Gazette of India Notification dated 26.09.1959, 26.08.1972 and 02.05.1987, under regulations no.76 read with 77 of State Bank of India General Regulations framed in exercise of the powers conferred by sub section (3) of Section 50 of the State Bank of India Act 1955, with the previous sanction of the Central Government.

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2 OA/71/2024 STATE BANK OF INDIA VS. BHUPINDER SINGH AND ANOTHER

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The brief facts of the OA that the defendant no. 1 approached the applicant for the grant of KCC Limit of Rs.14.00 Lacs and Agriculture Term Loan of Rs. 6.00 Lacs under KGC vide Loan Applications dated 15.01.2015 which are Annexures A2 & A3 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs.14.00 and Agriculture Term Loan of Rs. 6.00 Lacs under KGC vide letter of arrangements dated 23.01.2015, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged his immovable property i.e. Land Measuring 32Kanal (4 Acre) Situated at Village Longowal-D, Tehsil Longowal, District Sangrur, Punjab vide declaration u/s 4(1) dated 29.01.2015 and Mortgage Deed dated 29.01.2015, along with its translation, which is Annexure A10 to this OA; Mutation Sanction Letter dated 29.01.2015, along with its translation, which is Annexure A11 to this OA. Documents executed : Hypothecation Agreements Guarantee Deeds, all dated 02.02.2015 which are Annexures A6 to A9 to this OA; Revival Letters dated 10.01.2018 and 01.01.2021, which are Annexures A12 to A15 to this OA; Legal Notice dated 25.10.2023, which is Annexure A16 to this OA; Statement of accounts along with Account Closure Enquiry Report and Certificate, which are Annexures A17 & A18 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.33,74,304.00, which is recoverable and the defendants was served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 16.09.2025.

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3 OA/71/2024 STATE BANK OF INDIA VS. BHUPINDER SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Vikas Jangra, Branch Manager, State Bank of India, h as been filed.

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Heard ex-parte arguments and perused record.

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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 A18 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,74,304.00 (Rupees Thirty Three Lacs Seventy Four Thousand Three Hundred and Four 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @14.10%p.a. in KCC Limit and @14.60% p.a. in KGC with half yearly rests from 14.10.2023 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 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 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 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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4 OA/71/2024 STATE BANK OF INDIA VS. BHUPINDER SINGH AND ANOTHER

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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.33,74,304.00 (Rupees Thirty Three Lacs Seventy Four Thousand Three Hundred and Four Only), jointly and severally, with costs, current and future simple interest @08.00%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.

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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 04.02.2026. 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: 22.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Bhupinder singh and another

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State Bank of India v. Sh. Bhupinder singh and another

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