Allowed

State Bank of India v. Sh. Jasvinder Singh

DRT7 Mar 2026OA/814/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's original application for recovery of a term loan of Rs. 25 lakrs plus interest. The Tribunal, exercising discretion, fixed interest at 8% per annum and ordered the issuance of a Recovery Certificate, authorizing recovery from the sale of the hypothecated vehicle or attachment of personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 24,65,055.00 plus costs and 8% per annum simple interest. Applicant entitled to enforce via sale of hypothecated vehicle or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.814/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2025

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DATE OF DECISION: 07.03.2026

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having Corporate Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17-A, Chandigarh and amongst other branches at Arya Samaj Block, Dhuri, District Sangrur and now migrated to one of its specialized branch known as Stressed Assets Resolution Branch (SARB) Branch, SCO 15, 1^st Floor, Sector 7, Chandigarh through its Chief Manager Sh. Mousam Pal.

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……..Applicant

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Versus

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Sh. Jasvinder Singh S/o Sh. Gurdev Singh, R/o H. No 149/1, Back Side Markefed, W. No. 2-B, Janta Nagar, Dhuri Tehsil Dhuri, District Sangrur-148024.

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………Defendant

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant

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Defendant already ex-parte vide order dated 29.11.2025

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FINAL ORDER

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1.Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendant for recovery of Rs. 24,65,055.00 (Rupees Twenty Four Lacs Sixty Five Thousand Fifty Five Only). The Original Application has been filed through Sh. Mousam Pal, Chief Manager of the applicant, who is competent to institute the Original Application in terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 under Regulation No. 76 & 77 of State Bank of India Regulations framed in Exercise of the powers

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OA NO.814/2025 STATE BANK OF INDIA VS. JASVINDER SINGH

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conferred by Sub section 3 of Section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government. Gazette Notification dated 02.05.1987, is Annexure A1 o this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan of Rs.25.00 Lacs for purchase of Combine Harvester vide Application Form dated 27.09.2023, which is Annexure A2 to his OA.

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The applicant sanctioned the Term Loan of Rs.25.00 Lacs vide Letter of Arrangement dated 21.10.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated Combine Harvester Make : PRICE AGRO WORKS, Model : PRINCE 930, bearing Registration No. PB13BU7693, Engine No. H623020475, Chassis No. PAW930J2023103 vide Hypothecation Agreement dated 21.10.2023, which is Annexure A4 to this OA. Online Registration Certificate/Registration Details filed vide diary no. 2983 dated 12.02.2026 in compliance to order dated 12.01.2026.

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Documents executed: Legal Notice dated 14.10.2024, which is Annexure A5 to this OA; Statement of Account with Closure and Certificate, which are Annexures A7 & A8 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.24,65,055.00, 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. 6. 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 29.11.2025.

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OA NO.814/2025 STATE BANK OF INDIA VS. JASVINDER SINGH

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In support of the OA, affidavit of Sh. Mousam Pal, 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 counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A8 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. 24,65,055.00 (Rupees Twenty Four Lacs Sixty Five Thousand Fifty Five Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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. with 2% penal interest and monthly rests from 07.05.2025 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 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 @8.00%p.a. in the loan account from the date of filing of the OA till

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OA NO.814/2025 STATE BANK OF INDIA VS. JASVINDER 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. 24,65,055.00 (Rupees Twenty Four Lacs Sixty Five Thousand Fifty Five Only), with costs, current and future simple interest @8.00%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 vehicle of 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 25.03.2026.

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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 .

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Dated: 07.03.2026.

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

State Bank of India v. Sh. Jasvinder Singh

Case brief

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State Bank of India v. Sh. Jasvinder Singh

Case brief

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