Allowed

State Bank of India v. Smt. Ranjit Kaur And Another

DRT21 Jan 2026OA/710/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal disposed of an application by State Bank of India for recovery of Rs.23.14 lakhs from legal heirs of deceased co-borrowers. After ex-parte proceedings, the Tribunal allowed the application, declaring the defendants liable for the principal amount and directed recovery with uniform interest at 08% p.a.

What did the court decide?

Directing defendants to pay Rs.23.14 lakhs with 08% p.a. interest and issuing a Recovery Certificate.

State Bank of India versus Smt. Ranjit Kaur And Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.710/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.05.2023

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DATE OF DECISION: 21.01.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17A, Chandigarh having branches all over India and one of its branch situated at Lohat Baddi, Tehsil Raikot, District Ludhiana through its Branch Manager Sh. Narender Kumar Gena.

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……..Applicant Versus

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Smt. Ranjit Kaur Wo. Late Sh. Prithi Singh @ Pirthi Singh

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Co-borrower and Legal heir to the Estate of Late Sh. Prithi Singh (Borrower/ Mortgagor) and Late Sh. Gurpinder Singh (Coborrower)

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R/o H. No. 1180, Village Mohali Khurd, Tehsil Malerkotla, District Sangrur, Punjab.

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Smt. Harjeet Kaur W/o Late Sh. Gurpinder Singh, Legal heir to the Estate of Late Sh. Gurpinder Singh (Co-borrower) R/o H. No. 1180, Village Mohali Khurd, Tehsil Malerkotla, District Sangrur, Punjab.

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…….Defendants

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Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant

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Defendants already ex-parte vide order dated 04.12.2024

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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 defendants for recovery of Rs.23,14,181.00 (Rupees Twenty Three Lacs Fourteen Thousand One Hundred Eighty One Only).

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2 OA NO. 710/2023 STATE BANK OF INDIA VS SMT.RANJIT KAUR AND ANOTHER

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The Original Application has been filed through Sh. Narender Kumar Gena, Branch Manager of the applicant in terms of State Bank of India Regulations, which is Annexure A1 to this OA.

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The brief facts of the OA are that the deceased borrowers Sh. Prithi Singh and Sh. Gurpinder Singh, and the defendant no. 1 approached the applicant for grant of KCC Limit of Rs.3.00 Lacs & Term Loan of Rs. 7.50 Lacs under KGC vide Loan Applications dated 16.09.2009, along with their translations, which are Annexures A2, A2T, A3, A3 and A3T to this OA.

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The applicant sanctioned KCC Limit of Rs.3.00 Lacs & Term Loan of Rs. 7.50 Lacs under KGC vide Sanction letters dated 25.09.2009, which are Annexures A5 & A6 to this OA and terms and conditions were duly accepted by deceased borrowers Sh. Prithi Singh and Sh. Gurpinder Singh and the defendant no. 1.

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Sh. Prithi Singh (since deceased) mortgaged his immovable property i.e. land measuring 14 Bighe situated at Village Mohali Khurd, Tehsil Malerkotla, District Sangrur, Punjab vide mortgage deed bearing vasika no. 1096 dated 23.09.2009, along with its translation, which is Annexures A9 & A9-T to this OA.

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Documents executed : -State Bank of India Regulation, Which is Annexure A1 to this OA; ID Proof of defendant in file 3 , which is Annexure A4 to this OA; Hypothecation agreements, Consent letter, all dated 25.09.2009, which are Annexure A7,A8 & A10 to this OA; Balance Confirmation letters dated 01.02.2011 & 30.12.2013, which are Annexures A11 & A12 to this OA; Legal notice dated 16.01.2012, 12.03.2014, 28.07.2015, 05.10.2019, 28.04.2022 and 28.04.2023, which are Annexures A13 to A16 to this OA and Statements of Accounts, which is Annexure A17 & A18 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 loan accounts there was a debit of Rs.23,14,181.00, which is recoverable and the defendants were served recall notice but they did not repay the outstanding

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3 OA NO. 710/2023 STATE BANK OF INDIA VS SMT.RANJIT KAUR AND ANOTHER

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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 04.12.2024.

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In support of the OA, affidavit Sh. Narender Kumar Gena, Branch Manager, State Bank of India, has been filed. 8. 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 deceased borrowers Sh. Prithi Singh and Sh. Gurpinder Singh, and the defendant no. 1 approached applicant for availing of the loan facility which were granted to him 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 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.23,14,181.00 (Rupees Twenty Three Lacs Fourteen Thousand One Hundred Eighty One 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 in relief clause has claimed interest @11.00%p.a. with 2% penal interest and half yearly rests in KCC & interest @14.55%p.a. with 2% penal interest and half yearly rests in KGC from 19.04.2023 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

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instant case including nature of the mortgaged property/hypothecated

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4 OA NO. 710/2023 STATE BANK OF INDIA VS SMT.RANJIT KAUR AND ANOTHER

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assets, undertaking of the defendants, 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 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.23,14,181.00 (Rupees Twenty Three Lacs Fourteen Thousand One Hundred Eighty One 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 assets/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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 21.01.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Smt. Ranjit Kaur And Another

Case brief

What is this about?

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State Bank of India v. Smt. Ranjit Kaur And Another

Case brief

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