Allowed

State Bank of India v. Sh. gurwinder singh

DRT1 Sept 2026OA/718/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's original application filed under Section 19 of the RDB Act. Declaring the defendant liable to pay Rs.23.81 lakhs along with costs and future simple interest at 8% p.a., the order authorized recovery through sale of hypothecated or personal assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.23,81,053.00 with costs and simple interest @8% p.a.; granted authority to realize amount via sale of hypothecated or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 718/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.05.2026

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DATE OF DECISION: 01.09.2026

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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 Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and one of its Branch at Stressed Assets Resolution Branch (SARB), 3rd Floor, Fountain Chowk, Civil Lines, Ludhiana-141001 through its Chief Manager, Sh. Jaibir Singh.

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……..Applicant Versus

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Sh. Gurwinder Singh, son of Sh. Darshan Singh, resident of Street No. 1, Mallan Colony, Ward No. 1, Gidderbaha, Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab-151210.

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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 Applicant

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None for Defendant (already ex-parte vide order dated 11.08.2026)

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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.23,81,053.00 (Rupees Twenty Three Lac Eighty One Thousand Fifty Three Only). The Original Application has been filed through Sh. Jaibir Singh, Chief Manager of the Applicant, who is competent to institute the Original Application.

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The brief facts of the OA are that the Defendant approached the applicant for grant of Term Loan of Rs.22.95 lacs for purchase of Combine Harvester vide Loan Application Form dated 04.07.2024, which is Annexure A1 to this OA.

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2 OA/718/2026 STATE BANK OF INDIA VS. SH. GURWINDER SINGH

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The applicant sanctioned the Term Loan of Rs.22.95 lacs vide Letter of Arrangement dated 10.07.2024, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant hypothecated his Combine Harvester that’s Make DHIMAN AGRO TECH, Model No. DHIMAN-916, Engine No. CMH203618, Chassis No. NDAT916G024019, vide Hypothecation Agreement dated 10.07.2024, which is Annexure A3 to this OA;

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As per Affidavit of Sh. Sunny, Manager of the applicant, filed on 24.08.2026 vide Dairy No. 16112, it is submitted that the said hypothecated vehicle has not been registered with the concerned authority by the defendant.

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Documents executed: L egal Notice dated 30.07.2025, which is Annexure A4 to this OA; Notice u/s 13(2) dated 29.09.2025, which is Annexure A5 to this OA; Statement of Account duly certified (TL Agri Infra) dated 05.05.2026, which is Annexure A6 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.23,81,053.00 (Rupees Twenty Three Lac Eighty One Thousand Fifty Three Only), 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 defendant and he was proceeded ex-parte vide order dated 11.08.2026.

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In support of the OA, affidavit of Sh. Jaibir Singh, Chief Manager, State Bank of India, has been filed.

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Heard 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.

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From the perusal of all the Annexures A1 to A6 to this OA, it is proved that the defendant approached the applicant for availing of the

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OA/718/2026 STATE BANK OF INDIA VS. SH. GURWINDER SINGH

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loan facility, which was granted to him. The defendant 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.23,81,053.00 (Rupees Twenty Three Lac Eighty One Thousand Fifty Three 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. plus 2.00% p.a. penal interest, with monthly rests from 06.05.2026 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 hypothecated asset, 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 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.

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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.23,81,053.00 (Rupees Twenty Three Lac Eighty One Thousand Fifty Three Only), with costs, current and future simple interest @08.00%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 asset 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

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OA/718/2026 STATE BANK OF INDIA VS. SH. GURWINDER SINGH

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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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.09.2026 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: 01.09.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. gurwinder singh

Case brief

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State Bank of India v. Sh. gurwinder singh

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