The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 28,70,850 following an ex-parte proceeding, ordering interest at 8% p.a. and authorizing execution against the hypothecated asset or personal assets.
Recovery certificate issued for Rs. 28,70,850 with interest @ 8% p.a.; applicant directed to recover from hypothecated Combine Harvester.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.759/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 20.05.2026
DATE OF DECISION: 25.08.2026
State Bank of India, a body corporate, constituted under State Bank of India Act 1955 and having its Corporate Centre at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office, Sector 17-A Chandigarh, one of its Agri & MSME Credit Centre branch at Patiala Gate, Sangrur, District Sangrur, Punjab - 148001 through its Chief Manager & Principal Officer Sh. Vivek Gupta.
……..Applicant
Versus
Sh. Sanjeev Kumar S/o Sh. Megh Raj, R/o Gali No.5, Shivalik Colony, Sangrur, District Sangrur, Punjab - 148001.
2nd Address:- Village Budhel, Tehsil Raikot, District Ludhiana Punjab - 141104.
3rd Address:- Village Phumanwal, Tehsil Bhawanigarh, District Sangrur, Punjab - 148026.
…….. Defendant
Advocates:
Argued by Sh. Kanwar Harbir Singh Bath, Advocate for the applicant None for Defendant (Already ex-parte vide order dated 18.08.2026)
FINAL ORDER
2 OA NO.759/2026 STATE BANK OF INDIA VS SH. SANJEEV KUMAR
powers conferred on it under Regulation No. 76 and 77 of State Bank of India Regulations, vide Sub Section (3) of Section 50 of State Bank of India Act, 1955, with the previous sanction of the Central Government.
Documents executed : Hypothecation Agreement, dated 19.07.2024, which is Annexure A3 to this OA; Legal Notice dated 11.07.2025, along with its translation, which is Annexure A5 to this OA; Statement of account along with certificate, which is Annexure A6 to this OA.
3 OA NO.759/2026 STATE BANK OF INDIA VS SH. SANJEEV KUMAR
From the perusal of all the Annexures A1 to A6 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,70,850.00 (Rupees Twenty Eight Lacs Seventy Thousand Eight Hundred and Fifty Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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.
4 OA NO.759/2026 STATE BANK OF INDIA VS SH. SANJEEV KUMAR
Hundred and Fifty 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 Combine Harvester 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. 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 09.09.2026. 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: 25.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount and interest from the defendant.
Whether the Tribunal should exercise discretion to grant simple interest at a reduced rate.
3 provisions across 3 enactments
State Bank of India
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
