Allowed

State Bank of India v. Sh. Gurcharan Singh

DRT7 Feb 2026OA/832/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by State Bank of India against Gurcharan Singh for recovery of a loan classified as NPA. The court reduced the claimed interest rate to 8% per annum and ordered the recovery of the outstanding sum from mortgaged assets.

What did the court decide?

Defendant liable to pay Rs.21,14,867.00 with simple interest @08.00%p.a.; entitlement to recover from sale of hypothecated assets; Recovery Certificate issued.

State Bank of India versus Sh. Gurcharan Singh — Execution and Attachment | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.832/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 11.06.2023

¶5

DATE OF DECISION: 07.02.2026

¶6

State Bank of India, a body Corporate Constituted under the State Bank of India Act, 1955 having Central Office at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector 17, Chandigarh and one of its Branch Office at Bhawanigarh, Tehsil and District Sangrur, Punjab through its Chief Manager Sh. Binod Kumar.

¶7

……..Applicant Versus Sh. Gurcharan Singh Son of Sh. Hardial Singh, R/o Village and Post Office Akbarpur, Tehsil Bhawanigarh, District Sangrur, Punjab. ….……Defendant

¶8

Advocates:

¶9

Argued by Sh. Rajnish K Jindal, Advocate for applicant (through VC) Defendant already ex-parte vide order dated 02.04.2025

¶10

FINAL ORDER

¶11

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.21,14,867.00 (Rupees Twenty One Lacs Fourteen Thousand Eight Hundred Sixty Seven Only). The Original Application has been filed through Sh. Binod Kuma r, Chief Manager, o f the applicant who is competent to institute the Original Application in the Gazette Notification published in Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulations No.76 & 77 of State Bank of India Regulations framed in exercise of the powers conferred by Sub-Section 3 of section 50 of the State Bank of India Act, 1955, with the previous sanction of the Central Government.

¶12

2 OA/832/2023 STATE BANK OF INDIA VS. GURCHARAN SINGH

¶13

The brief facts of the OA that the defendant approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs vide Loan Application dated 08.06.2015 which is Annexure A1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.16.00 Lacs vide letter of arrangement dated 07.07.2015, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his movable property i.e. land measuring 25Bigha-00Biswa situated at Village Akbarpur, Hadbast no. 103, Tehsil & District Sangrur, Punjab vide Declaration dated 03.07.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA. Documents executed: Hypothecation agreement & letter of undertaking both dated 07.07.2015, which are Annexures A3 & A4 to this OA; Notice dated 15.03.2023, which is Annexure A6 to this OA and Statement of account, which is Annexure A7 to this OA. 5. 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.21,14,867.00, 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 02.04.2025. 7. In support of the OA, affidavit of Sh. Binod Kuma r, Chief Manager, State Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal

¶14

3 OA/832/2023 STATE BANK OF INDIA VS. GURCHARAN SINGH

¶15

of all the Annexures A1 to A7 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.21,14,867.00 (Rupees Twenty One Lacs Fourteen Thousand Eight Hundred Sixty Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶16

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest with half yearly rest form the 06.05.2023 till realization.

¶17

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 realization of the amount ordered vide this final order. It is ordered accordingly.

¶18

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,14,867.00 (Rupees Twenty One Lacs Fourteen Thousand Eight Hundred Sixty Seven Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA

¶19

¶20

OA/832/2023 STATE BANK OF INDIA VS. GURCHARAN SINGH

¶21

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.

¶22

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 19.02.2026. 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.

¶23

Pronounced by me in the open Tribunal . Dated: 07.02.2026.

¶24

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

State Bank of India v. Sh. Gurcharan Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Gurcharan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Messrs Winner Enterprises and Others

Kotak Mahindra Bank Limited versus Sh. Jarnel Singh and Others

State Bank of India versus Sh. Santokh Singh and Another

Kotak Mahindra Bank Limited versus Sh. Inderjit Singh and Others

Kotak Mahindra Bank Limited versus Sh. Manjinder Singh and Others

Bank of Baroda versus Sh. Swaran Singh Sangha through His Legal Heirs and Another