Allowed

State Bank of India v. Sh. Karanjit Singh

DRT27 Jan 2026OA/725/2024

Case brief

AI extract

What is this about?

The DRT allowed the State Bank of India's application for recovery of Rs.30,52,877.00 from Karanjit Singh. The court affirmed the debt, adjusted interest to 08% p.a., and directed issuance of a Recovery Certificate executable under SARFAESI provisions. References to IPC/CrPC/NDPS are not applicable here based on the judgment text.

What did the court decide?

Recovery Certificate issued; defendant liable to pay Rs.30,52,877.00 plus simple interest at 08% p.a. until realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.725/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.06.2024

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DATE OF DECISION: 27.01.2026

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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 17-A, Chandigarh having branches all over India and one of its branch situated at Stressed Assets Recovery Branch at Ambedkar Chowk, District Jalandhar through its Chief Manager Sh. Manjit Mahey, who is Authorized Officer.

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……..Applicant Versus

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Sh. Karanjit Singh S/o. Sh. Makhan Singh R/o. Village Pharala, Tehsil Nawanshahar, District SBS Nagar, Punjab.

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….……Defendant

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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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Defendant already ex-parte vide order dated 27.05.2025

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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 defendant for recovery of Rs.30,52,877.00 (Rupees Thirty Lacs Fifty Two Thousand Eight Hundred Seventy Seven Only). The Original Application has been filed through Sh. Manjit Mahey, Authorized Officer, of the applicant, who is competent to institute the Original Application in terms of Gazette Notification dated 26.09.1959, 26.08.1972, 27.03.1987 and 17.05.2001 issued by the Executive Committee of the Central Board in exercise of powers conferred on it under Regulations No.76 & 77 of State Bank of India General Regulations in exercise of the powers conferred by the Sub-Section 3

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2 OA/725/2024 STATE BANK OF INDIA VS. KARANJIT SINGH

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of section 50 of the State Bank of India Act, 1955. State Bank of India

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regulation dated 27.03.1987, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide loan application dated 21.10.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Letter of arrangement dated 16.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. land measuring 09K-12M-3½Sarsai (1.2 Acres) situated at Village Pharala, Tehsil Banga, District SBS Nagar, Punjab vide Declaration dated 08.12.2014 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act 1978 & Letter to Joint Sub registrar for Creation of charge, which are Annexures A5 & A6 to this OA.

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Documents executed: Hypothecation agreement dated 16.12.2014, which is Annexure A4 to this OA; Revival letters dated 25.09.2017, 09.06.2020 & 16.03.2023, which is Annexure A7 to this OA; CERSAI, which is Annexure A7-A to this OA; Legal notice dated 10.05.2024, which is Annexure A8 to this OA and Statement of account which is Annexure A9 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 loan account there was a debit of Rs.30,52,877.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 27.05.2025.

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3 OA/725/2024 STATE BANK OF INDIA VS. KARANJIT SINGH

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In support of the OA, affidavit of Sh. Manjit Mahey, Chief Manager , State Bank of India, has 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 A9 to this OA, it is proved that the defendant 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.30,52,877.00 (Rupees Thirty Lacs Fifty Two Thousand Eight Hundred Seventy Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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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 @11.80.%p.a. with 2% penal interest with half yearly rest form the 05.06.2024 till 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 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

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OA/725/2024 STATE BANK OF INDIA VS. KARANJIT SINGH

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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.30,52,877.00 (Rupees Thirty Lacs Fifty Two Thousand Eight Hundred Seventy Seven 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 assets/mortgaged properties 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.02.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 27.01.2026.

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

State Bank of India v. Sh. Karanjit Singh

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State Bank of India v. Sh. Karanjit Singh

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