Allowed

State Bank of India v. Late Sh. Jaggi Khan through His Legal Heirs and Others

DRT12 Jan 2026OA/92/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant's application under Section 19 RDB Act for recovery of Rs.29.84 lakhs. The court determined respondents were liable for the debt and granted uniform simple interest at 8% p.a. on all accounts from the filing date until realization.

What did the court decide?

Recovery Certificate issued; respondents ordered to pay Rs.29.84 lakhs plus costs and simple interest at 8% p.a. from filing date.

State Bank of India versus Late Sh. Jaggi Khan through His… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.92/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.01.2023

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DATE OF DECISION: 12.01.2026

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State Bank of India, a body corporate, constituted under the provisions of The State Bank of India Act, 1955 (23 of 1955) having its Corporate Office at Madame Cama Road, Nariman Point, Mumbai, (Maharashtra)400021, caring on its Business of Banking in India and Abroad having one of its specialized Branch known as Stressed Assets Recovery Branch is situated at IInd Floor, SCO 15, Sector 7-C, Madhya Marg, Chandigarh through its Authorized Officer Sh. Mahesh Kumar.

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……..Applicant

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Versus

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Sh. Jaggi Khan S/o Sh. Mehar Din (since deceased) through his legal heirs/representatives:

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a) Smt. Salma W/o Late Sh. Jaggi Khan

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b) Sh. Jassa Khan S/o Late Sh. Jaggi Khan

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c) Iqbal Khan S/o Late Sh. Jaggi Khan

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d) Ms. Pinki, D/o Late Sh. Jaggi Khan

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All Residents of Ward No. 10, Ravidass Nagar, Malerkotla

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Sh. Jassa Khan S/o Late Sh. Jaggi Khan, Resident of Ward No. 10, Ravidass Nagar, Malerkotla

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Sh. Iqbal Khan S/o Late Sh. Jaggi Khan Resident of Ward No. 10, Ravidass Nagar, Malerkotla

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……….Defendants

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Advocates:

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Argued by Sh. Ajay Singla, Advocate for the applicant

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Defendants already ex-parte vide order dated 25.11.2024

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.29,84,507.00 (Rupees Twenty Nine Lacs Eighty Four Thousand Five Hundred Seven Only). The Original Application has been filed Sh. Mahesh Kumar, Manager of

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OA NO.92/2023 STATE BANK OF INDIA VS. JAGGI KHAN THROUGH HIS LEGAL HEIRS AND OTHERS

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the applicant, who is competent to institute the Original Application terms of Gazette Notification published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 read with Regulation No. 76 & 77 of State Bank of India General Regulations framed in exercise of the 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. Notification dated 02.05.1987, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 (since deceased) and defendant no. 2 approached the applicant for grant of Housing Loan of Rs.10.00 Lacs vide Loan application dated 17.09.2013, which is Annexure A2 to this OA. Thereafter, the defendant nos. 1 (since deceased) and defendant no. 2 again approached the applicant for grant of additional Housing Loan of Rs.10.00 Lacs vide Loan application dated 11.12.2013, which is Annexure A8 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no. 1 (since deceased) and defendant nos. 2 and 3 approached the applicant for grant of another Housing loan of Rs.10.00 Lacs for renovation vide Loan application dated 30.10.2014, which is Annexure A16 to this OA.

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The applicant sanctioned Housing Loan of Rs.10.00 Lacs vide Letter of arrangement dated 25.09.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no. 2. Thereafter, the applicant sanctioned additional Housing Loan of Rs.10.00 Lacs vide Letter of arrangement dated 13.12.2013, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned another Housing Loan of Rs.10.00 Lacs for renovations vide Letter of arrangement dated 30.10.2014, which is Annexure A17 to this OA.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. house measuring 0K-6.1/3M (189.2/9 sq. yards) situated at Baharli Majri, Ravi Dass Nagar, Malerkotla, District Sangrur, Punjab

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OA NO.92/2023 STATE BANK OF INDIA VS. JAGGI KHAN THROUGH HIS LEGAL HEIRS AND OTHERS

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vide sale deed bearing vasika no. 2317 dated 06.12.2017, which is Annexure A7 to this OA; Memorandum of Deposit of Title Deed dated 25.09.2013, which is Annexure A6 to this OA; Memorandum dated 13.12.2013 regarding deposit of title deed, which is Annexure A14 to this OA; Letter of confirmation of deposit of title deed, which is Annexure A15 to this OA.

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Documents executed: Memorandum of Term Loan agreement for Housing Loan granted to public, Consent for disclosure of information, all dated 25.09.2013, which are Annexures A4 and A5 to this OA; Guarantee Agreement, Memorandum of Term Loan agreement for Housing Loan granted to public, Letter of Authority, Consent for disclosure of information, all dated 13.12.2013, which are Annexures A10 to A13 to this OA; Memorandum of Term Loan Agreement for Housing Loan under SBP Home Equity Scheme dated 30.10.2014, which is Annexure A18 to this OA; Revival Letters dated 22.06.2017 and 19.02.2020, which are Annexures A19 and A20 to this OA; Notice dated 16.09.2022, which is Annexure A21 to this OA; Statement of Accounts, which are Annexures A22 to A24 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.29,84,507.00, which is recoverable and the defendants was served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal. Ms. Poonam Verma, Advocate appeared on behalf of defendants on 17.07.2023 and filed his memo of appearance. Power of Attorney on behalf of defendants was filed by Ms. Poonam Verma, Advocate on 28.07.2023. WS was filed on behalf of defendants on 01.09.2023 and replication to the same was filed by applicant on 01.07.2024. Later, on 29.10.2024, the learned counsel for defendants submitted that she is not in touch with defendants and requested for

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OA NO.92/2023 STATE BANK OF INDIA VS. JAGGI KHAN THROUGH HIS LEGAL HEIRS AND OTHERS

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withdrawal of her Power of Attorney. Since, no appeared on behalf of defendants, they were proceeded ex-parte vide order dated 25.11.2024.

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In support of the OA, affidavit of Sh. Mahesh Kumar, Manager, State Bank of India has been filed.

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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 A24 to this OA, it is proved that the defendant no. 1 (since deceased), defendant nos. 2 and 3 approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,84,507.00 (Rupees Twenty Nine Lacs Eighty Four Thousand Five Hundred Seven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.95%p.a. in Housing Loan-I and Housing Loan-II and interest @10.90%p.a. in Housing Loan-III with 2% penal interest with monthly rests in from 03.12.2022 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 defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester

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OA NO.92/2023 STATE BANK OF INDIA VS. JAGGI KHAN THROUGH HIS LEGAL HEIRS AND OTHERS

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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 all the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs.29,84,507.00 (Rupees Twenty Nine Lacs Eighty Four Thousand Five Hundred Seven Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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 defendants 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 defendants. 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 28.01.2026.

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Copy of this order be given dasti to the applicant and be sent to defendants 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: 12.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

State Bank of India v. Late Sh. Jaggi Khan through His Legal Heirs and Others

Case brief

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State Bank of India v. Late Sh. Jaggi Khan through His Legal Heirs and Others

Case brief

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