Allowed

State Bank of India v. Sh. Jatinder Singh

DRT20 Mar 2026OA/883/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by State Bank of India to recover Rs. 27,04,431 from Jatinder Singh for a defaulted KCC loan. The court declared the debtor liable for the principal sum plus future simple interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Defendant declared liable to pay Rs. 27,04,431.00 with current and future simple interest @8.00%p.a.; Recovery Certificate to be issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.883/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:21.07.2023

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DATE OF DECISION: 20.03.2026

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955, and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at sector 17-A, Chandigarh and State Bank of India, Branch Office at Chamkaur Sahib, District Rupnagar, through its Chief Manager, Sh. Raj Kumar.

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……..Applicant Versus Sh. Jatinder Singh S/O Sh. Ajit Singh, R/O VPO Bassi Gujran, Tehsil Chamkaur Sahib, District Rupnagar (Ropar). ….……Defendant Advocates: Argued by Ms. Sakshi Chauhan, Advocate proxy for Sh. Gurinderjit Singh, Advocate for the applicant. Defendant already ex-parte vide order dated 21.11.2025

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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 & Bankruptcy Act 1993, against the defendant for recovery of Rs.27,04,431.00 (Rupees Twenty Seven Lacs Four Thousand Four Hundred and Thirty One Only). The Original Application has been filed through Sh. Raj Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 27.03.1987 issued by Executive Committee of the Central Board in exercise of the powers conferred on it under Regulation no. 76 and 77 of State Bank of India General Regulations, framed in exercise of 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.

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs. 20.00 Lacs vide Loan Application

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OA NO.883/2023 STATE BANK OF INDIA VS. JATINDER SINGH

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dated 13.03.2015, which is Annexure A1 to this OA. Thereafter, the defendant again approached the applicant for renewal of the Limit of Rs.20.00 Lacs vide Renewal Application dated 14.04.2018, which is Annexure A10 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Letter of Arrangement dated 24.03.2015, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. Land Measuring 24Kanal-00Marla situated at Village Kiri Afgana, Hadbast No.286, Tehsil Chamkaur Sahib, District Roopnagar, Punjab vide declaration u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A6 to this OA; Letter to Sub Registrar dated 17.03.2015 for creation of charge, with translation, which is Annexure A7 to this OA; Jamabandi for the year 2016-17, along with its translation, which is Annexure A8 to this OA; Affidavit dated 17.03.2015, which is Annexure A9 to this OA.

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Documents executed: Hypothecation Agreement dated 24.03.2015, which is Annexure A3 to this OA; Letter of Undertaking, Consent Letter, both dated 13.03.2015, which are Annexures A4 & A5 to this OA; Bank Notices dated 05.06.2018, 25.10.2019, 25.09.2020 with its translation, which are Annexures A11 to A13 to this OA; Revival Letters dated 14.02.2018 and 29.01.2021, which are Annexures A14 & A15 to this OA; Statement of Account with interest statement and certificate, which are Annexure A16 to A18 to this OA. 5. 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.27,04,431.00, 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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OA NO.883/2023 STATE BANK OF INDIA VS. JATINDER SINGH

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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 ex parte vide order dated 21.11.2025. 7. In support of the OA, affidavit of Sh. Raj Kumar, Chief Manager, State Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by proxy 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 A18 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 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 bank is entitled to recover a sum of Rs.27,04,431.00 (Rupees Twenty Seven Lacs Four Thousand Four Hundred and Thirty One Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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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 @11.75%p.a. along with 2% penal interest with half yearly rests from 06.05.2023 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.883/2023 STATE BANK OF INDIA VS. JATINDER 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.27,04,431.00 (Rupees Twenty Seven Lacs Four Thousand Four Hundred and Thirty One 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 Mortgaged Properties/hypothecated assets 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.

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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 13.04.2026.

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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: 20.03.2026

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

State Bank of India v. Sh. Jatinder Singh

Case brief

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State Bank of India v. Sh. Jatinder Singh

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