Allowed

State Bank of India v. Sh.Gurjant Singh

DRT10 Mar 2026OA/852/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by State Bank of India against Gurjant Singh for Rs. 23,97,778.00 outstanding on a term loan. The Tribunal reduced the claimed 11% interest rate to 8% simple per annum, granted the date of filing, and issued a recovery certificate under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 23,97,778.00 plus simple interest at 8% per annum from the date of filing; grant of Recovery Certificate; liberty to enforce via sale of hypothecated vehicle or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.852/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.06.2025

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DATE OF DECISION: 10.03.2026

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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-17A, Chandigarh one of its RACC Branch at Sherwala Gate, The Mall, Patiala District Patiala (Punjab)-147001 through its Chief Manager Smt. Madhavi Sharma.

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……..Applicant

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Versus

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Sh. Gurjant Singh S/o Sh. Ranjit Singh, R/o Village Mehtabgarh, Tehsil Patiala, District Patiala (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh. Rishab, Advocate proxy for Sh. Gaurav Singla, Advocate for the applicant

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Defendant already ex parte vide order dated 28.01.2026

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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.23,97,778.00 (Rupees Twenty Three Lacs Ninety Seven Thousand Seven Hundred Seventy Eight Only). The Original Application has been filed through Smt. Madhvi Sharma, Chief Manager, o f the applicant, who is competent to institute the Original Application in terms of gazette notification published in Gazette of India dated 26.09.1959, 26.08.1972 issued under Regulation no.76 & 77 of State Bank of India General Regulations, in exercise of the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955 with previous sanction of the Central Government.

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2 OA /852/2025 STATE BANK OF INDIA VS. GURJANT SINGH

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The brief facts of the OA that the defendant approached the applicant for grant Term Loan of Rs.22.50 Lacs for purchase of Combine Harvester vide Loan Application dated 27.06.2024, which is Annexure A1 to this OA.

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The applicant sanctioned the Term Loan of Rs.22.50 Lacs vide Letter of Arrangement dated 03.07.2024, which is Annexure A2 to this OA and the terms and conditions are accepted by defendant.

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Defendant hypothecated Combine Harvester Make : MANDEEP ENGINEERING WORKS, Model : L.S. 981, bearing Registration No. PB47G1396, Engine No. GCPZ118521E3, Chassis No.MEW981H240065 vide Hypothecation Agreement dated 03.07.2024, which is Annexure A3 to this OA; Registration Certificate of Combine Harvester, which is Annexure A4 to this OA.

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Documents executed : Legal Notice dated 06.06.2025, with postal receipts which is Annexure A5 to this OA; Statement of Account, 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 loan account there was a debit of Rs. 23,97,778.00 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 28.01.2026.

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In support of the OA, affidavit of Smt. Madhvi Sharma, Chief Manager, State Bank of India, h as been filed. 8. 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

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3 OA /852/2025 STATE BANK OF INDIA VS. GURJANT SINGH

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Annexures A1 to A6 t o 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.23,97,778.00 (Rupees Twenty Three Lacs Ninety Seven Thousand Seven Hundred Seventy Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. including 2% penal interest with monthly rests from 05.06.2025 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/hypothecation 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.

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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.23,97,778.00 (Rupees Twenty Three Lacs Ninety Seven Thousand Seven Hundred Seventy Eight Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing

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OA /852/2025 STATE BANK OF INDIA VS. GURJANT SINGH

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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 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 27.03.2026. 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: 10.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh.Gurjant Singh

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State Bank of India v. Sh.Gurjant Singh

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