STATE BANK OF INDIA vs SH. AMARJIT SINGH on 1 June 2026

FINAL ORDER

1. Present Transfer 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.22,50,262.00 (Rupees Twenty Two Lacs Fifty Thousand Two Hundred and Sixty Two Only). The Transfer Application has been filed through Sh. Sushil Kumar Srivastava, Chief Manager of the applicant bank, who is competent to institute the Transfer Application in terms of the Gazette Notification dated 26.09.1959, 26.08.1972 and 02.05.1987 issued by the Executive Committee of the Central Board of Directors in exercise of powers conferred on it under Regulation No. 76 and 77 of State Bank of India Regulations 1955 made 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.

2. The brief facts of the TA are that the defendant approached the applicant for grant of Term Loan facility for purchase of Combine Harvester of Rs.22,90,000.00 vide Application Form for Agricultural Credit dated 15.09.2023, which is Annexure A1 to this TA.

3. The applicant sanctioned the Term Loan facility for purchase of Combine Harvester of Rs.22,90,000.00 vide Common Appraisal Memorandum for LOS dated 27.09.2023 and Letter of Arrangement dated 28.09.2023, which are Annexures A2 & A3 to this TA and terms and conditions were duly accepted by the defendant.

4. Defendant hypothecated his Moveable Asset i.e., Combine Harvester Green & White Model Name Gahir 930, bearing Registration No. PB32AC4036, Chassis no. GAI930I230002, Engine no. PFHM116388 vide Registration Certificate and Tax Invoice dated 30.09.2023, which are Annexures A5 & A6 to this TA. Documents executed: Hypothecation Agreement dated 28.09.2023, which is Annexure A4 to this TA; Statement of Account along with certificate, which is Annexure A7 to this TA; Legal Notice dated 08.08.2025 along with its postal receipt, which is Annexure A8 to this TA; Notice U/s 13(2) dated 08.09.2025, which is Annexure A9 to this TA.

5. 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.22,50,262.00, 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.

6. The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 29.05.2026.

7. In support of the TA, affidavit of Sh. Sushil Kumar Srivastava, Chief Manager, State bank of India has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned proxy counsel for applicant 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 A9 to this TA, 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,50,262.00 (Rupees Twenty Two Lacs Fifty Thousand Two Hundred and Sixty Two Only), along with interest from the defendant, from the date of filing of the present Transfer Application till realization of the amount.

10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rests in Term Loan Account from 11.03.2026 till the realization.

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 asset, 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 TA 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.22,50,262.00 (Rupees Twenty Two Lacs Fifty Thousand Two Hundred and Sixty Two Only), with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of TA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated Combine Harvester 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 22.06.2026.

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: 01.06.2026

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