Allowed

State Bank of India v. Sh. Gurpreet Singh

DRT15 Jul 2026OA/87/2026

Case brief

AI extract

What is this about?

In a debt recovery application, the Tribunal allowed the bank's claim for outstanding dues. The court declined the bank's requested interest rate and instead mandated simple interest at 8% per annum. An order for recovery via sale of assets and issue of a Recovery Certificate was passed.

What did the court decide?

Declaration of liability to pay Rs.25,47,252.00 with costs and simple interest @08.00% p.a.; direction to issue Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 87/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.01.2026

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DATE OF DECISION: 15.07.2026

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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 having branches all over India, one of its Branch situated at Samrala, Chandigarh Road, Tehsil Samrala, District Ludhiana, through its Chief Manager, Sh. Satanand Singh, who is the Authorized Officer.

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……..Applicant Versus Sh. Gurpreet Singh S/o Sh. Malkit Singh, R/o Village Ror Majari, Tehsil Samrala, District Ludhiana . .……Defendant

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Advocate:

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Argued by Ms. Puja Sharma, Advocate for the applicant None for Defendant (already ex parte vide order dated 29.04.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.25,47,252.00 (Rupees Twenty Five Lac Forty Seven Thousand Two Hundred Fifty Two only). The Original Application has been filed through Sh. Satanand Singh, Chief Manager, of the applicant bank, who is competent to institute the Original Application vide State Bank of India Regulations, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs.23.50 Lacs for purchase of Tractor, vide Loan Application dated 04.06.2024, which is Annexure A2 to this OA.

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OA/87/2026 STATE BANK OF INDIA VS SH. GURPREET SINGH

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The applicant sanctioned the Term Loan of Rs.23.50 Lacs vide Letter of Arrangement dated 04.07.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Tractor bearing MAHINDRA 575 XP PLUS, Engine No. RRC2GDA1903, Chassis No. MBNGAALFZRRC05260, vide Hypothecation Agreement dated 04.07.2024, which is Annexure A4 to this OA; Invoice dated 04.07.2024, which is Annexure A5 to this OA; As per affidavit of Ms. Puja Sharma, Advocate for the applicant, filed on 13.07.2026 vide Dairy no. 12632, defendant has not provided the Registration Certificate of the hypothecated vehicle despite repeated requests by the applicant. Documents executed : Legal Notice dated 08.07.2025, which is Annexure A6 to this OA; Demand Notice dated 22.08.2025, which is Annexure A7 to this OA; Statement of Account, which is Annexure A8 to this OA. 5. The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.25,47,252.00 (Rupees Twenty Five Lac Forty Seven Thousand Two Hundred Fifty Two only), 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 summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, he was proceeded ex-parte on 29.04.2026. 7. In support of the OA, affidavit of Sh. Satanand Singh, Chief Manager, State Bank of India, has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned 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 A8 to this OA, it is proved that the defendant approached applicant for availing of the Term

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OA/87/2026 STATE BANK OF INDIA VS SH. GURPREET SINGH

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Loan, 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.25,47,252.00 (Rupees Twenty Five Lac Forty Seven Thousand Two Hundred Fifty Two only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @9.00% p.a. with monthly rests from 30.11.2025 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 hypothecated agricultural machinery, 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.

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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.25,47,252.00 (Rupees Twenty Five Lac Forty Seven Thousand Two Hundred Fifty Two 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 agricultural machinery of the defendant in execution proceedings if not sold earlier under the

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OA/87/2026 STATE BANK OF INDIA VS SH. GURPREET SINGH

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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 30.07.2026 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: 15.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Gurpreet Singh

Case brief

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State Bank of India v. Sh. Gurpreet Singh

Case brief

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