Allowed

State Bank of India v. Sh. Ajit Singh

DRT6 Jan 2026OA/911/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed SBI's application for recovery of Rs. 30.80 lakhs from Ajit Singh. The Tribunal fixed uniform simple interest at 8% p.a. from the date of filing. A Recovery Certificate was issued.

What did the court decide?

Debt of Rs. 30,80,192.00 with interest @8% p.a. declared recoverable. Recovery Certificate issued. Execution against mortgaged assets or personal assets permitted.

State Bank of India versus Sh. Ajit Singh — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.911/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.07.2023

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DATE OF DECISION: 06.01.2026

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State Bank of India, a body corporate, constituted under State Bank of India Act, 1955 and having its Corporate Office at Madam Cama Road, Nariman Point Mumbai and one of its Local Head Offices at Sector-17, Chandigarh and having its branches all over India and one of its Branch known as Stressed Asset Recovery Branch (SARB), 2^nd Floor, Sector 7-C, Madhya Marg, Chandigarh through its Chief Manager Sh. Sanjeev P Verma.

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……..Applicant Versus Sh. Ajit Singh S/o Sh. Narain Singh R/o H.No.143, V.P.O. Bandhaure, Tehsil Malerkotla, District Sangrur (Punjab)-148022. …….Defendant Advocates:

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Argued by Sh. P.K. Arora, Advocate for the applicant

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Defendant already ex-parte vide order dated 05.03.2025

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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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.30,80,192.00 (Rupees Thirty Lacs Eighty Thousand One Hundred Ninety Two Only). The Original Application has been filed through Sh. Sanjeev P Verma, Chief Manager of the applicant, who is competent to institute the Original Application vide in terms of Gazette Notification dated 26.09.1959, 26.08.1972, 02.05.1987 and 29.10.2005 read with Regulation No. 76 and 77 of State Bank of India General Regulations, 1955 framed in exercise of powers conferred by Section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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2 OA/911/2023 STATE BANK OF INDIA VS. AJIT SINGH

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Gazette notification dated 02.05.1987, which is Annexure A1 (colly) to this OA.

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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 Application for Loan application dated 15.01.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 21.01.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. land measuring 15Bighas-01Biswa-08Biswasi, situated at Village Bandhaure, Tehsil and District Malerkotla, Punjab vide Mortgage Deed, bearing v asika No. 1350 dated 2 1.01.2014, which is AnnexuresA5 to this OA.

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Documents executed: Hypothecation agreement dated 21.01.2014, which is Annexure A4 to this OA; Revivals letters dated 11.01.2017, 10.01.2020 & 09.01.2023, which are Annexures A7 to A9 to this OA; Legal notice dated 03.02.2023, which is Annexure A10 to this OA and Statement of Account which is Annexure A11 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.30,80,192.00, 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 on vide order dated 05.03.2025. 7. In support of the OA, affidavit of Sh. Sanjeev P Verma, Chief Manager , State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/911/2023 STATE BANK OF INDIA VS. AJIT SINGH

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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 A11 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.30,80,192.00 (Rupees Thirty Lacs Eighty Thousand One Hundred Ninety Two 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. with 2% penal interest and half yearly rests from 20.06.2023 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 @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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4 OA/911/2023 STATE BANK OF INDIA VS. AJIT SINGH

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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.30,80,192.00 (Rupees Thirty Lacs Eighty Thousand One Hundred Ninety 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/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.

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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 19.01.2026. 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: 06.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Sh. Ajit Singh

Case brief

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State Bank of India v. Sh. Ajit Singh

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