Allowed

State Bank of India v. Sh. Daya Singh

DRT17 Mar 2026OA/900/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant's original application filed under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, declaring the defendant liable to pay Rs. 24,70,359.00 along with interest at 08.00% p.a. The tribunal also issued a recovery certificate and directed enforcement against mortgaged or personal assets.

What did the court decide?

Declaration that defendant pays Rs. 24,70,359.00 with costs and interest at 08.00% p.a.; Recovery Certificate issued; liberty to enforce via SARFAESI Act or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.900/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2022

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DATE OF DECISION: 17.03.2026

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State Bank of India, a body corporate constituted under the State Bank of India Act, 1955 having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17A, Chandigarh and one of its branches at Main Branch, Near Basant Plaza, Phuara Chowk, Kapurthala through Sh. Satinder Jit Singh, Chief Manager.

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……..Applicant Versus

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Sh. Daya Singh S/o Sh. Arjit Singh R/o H. No68, Village Barindpur, P.O. Sheikhupura, Tehsil and District Kapurthala- 144620.

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….……Defendant

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Advocates:

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Argued by Ms. Anupama Takhi, Advocate for the applicant Defendant already ex-parte vide order dated 09.07.2024

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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.24,70,359.00 (Rupees Twenty Four Lacs Seventy Thousand Three Hundred Fifty Nine Only). The Original Application has been filed through Sh. Satinder Jit Singh, Chief Manager, o f the applicant who is competent to institute the Original Application in terms of Gazette Notifications dated 26.09.1959, 27.03.1987 and 17.05.2001 under Regulation no.76 & 77 framed in exercise of the powers conferred by Sub Section 3 of Section 50 of the State Bank of India Act, 1955. Gazette Notification dated 27.03.1987, 17.05.2001, are Annexure A1(Colly) to this OA.

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2 OA 900/2022 STATE BANK OF INDIA V/S SH. DAYA SINGH

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The brief facts of the OA that the defendant approached the applicant for the grant of KCC Limit of Rs. 24.50 Lacs vide loan application dated 04.08.2012, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 24.50 Lacs vide Memorandum of Sanction dated 25.09.2012, which is Annexure A7 to this OA; Letter of arrangement dated 25.09.2012, along with its translation, which is Annexure A8 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant mortgaged his immovable property i.e. Land Measuring 12Kanal-17Marla situated at Village Sheikhupura, Tehsil and District Kapurthala, Punjab vide mortgage deed bearing vasika no. 2806 dated 14.09.2012, along with its translation, which is Annexure A4 to this OA; Mortgage Certificate dated 14.09.2012, along with its translation, which is Annexure A5 to this OA; Jamabandi for the year 2019-20, along with its translation, which is Annexure A6 to this OA. Documents executed: Agreement dated 25.09.2012, along with translation, which is Annexure A9 to this OA; Legal Notice dated 21.02.2015, with Postal Receipt dated 24.02.2015, which is Annexure A10 to this OA; Revival Letter dated 14.08.2015, which is Annexure A11 to this OA; Revival Letter dated 18.07.2018, which is Annexure A12 to this OA; Revival Letter dated 07.05.2021, which is Annexure A13 to this OA; Notice dated 08.10.2021, along with its translation, which is Annexure A14 to this OA; Letter dated 09.12.2021, which is Annexure A15 to this OA; Legal Notice dated 14.03.2022,along with Postal Receipt, which is Annexure A16 to this OA; Statement of Account along with Interest Calculation Sheet and certificate, which are Annexures A17 and A18 to this OA; Valuation report, which is Annexure A19 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.24,70,359.00 which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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3 OA 900/2022 STATE BANK OF INDIA V/S SH. DAYA SINGH

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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 09.07.2024.

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In support of the OA, affidavit of Sh. Satinder Jit Singh, 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 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 A19 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. 24,70,359.00 (Rupees Twenty Four Lacs Seventy Thousand Three Hundred Fifty Nine 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with half yearly rests from 15.05.2022 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

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4 OA 900/2022 STATE BANK OF INDIA V/S SH. DAYA SINGH

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,70,359.00 (Rupees Twenty Four Lacs Seventy Thousand Three Hundred Fifty Nine 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 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. 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 07.04.2026. 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: 17.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Daya Singh

Case brief

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State Bank of India v. Sh. Daya Singh

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