Allowed

Indian Bank v. Late Sh. Najar Singh through His Legal Heirs and Another

DRT31 Oct 2025OA/1023/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Indian Bank against legal heirs of deceased borrowers for recovery of a defaulted loan. The tribunal issued a recovery certificate and granted uniform simple interest.

What did the court decide?

Recovery Certificate issued; defendants liable to pay Rs. 26,13,110 plus simple interest at 8% per annum from date of filing.

Indian Bank versus Late Sh. Najar Singh through His Legal… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1023/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.07.2025

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DATE OF DECISION: 31.10.2025

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 254-260, Avvai Shanmugam, Salai, Royapettah, Chennai, having its Zonal Office at Ludhiana and amongst other places at a branch at Lehragaga, Sangrur, Punjab through its Authorized Officer Ms. Samriti, Manager, Indian Bank, Lehragaga, Sangrur, Punjab.

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……..Applicant

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Versus

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Sh. Najar Singh S/o Sh. Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301, Since deceased through legal heirs:

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i. Smt. Gurpreet Kaur W/o Late Sh. Najar Singh S/o Sh. Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301.

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ii. Sh. Mandeep Singh S/o Late Sh. Najar Singh S/o Sh. Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301 Since deceased through legal

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heirs:

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a. Smt. Manjinder Kaur W/o Late Sh. Mandeep Singh, R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301.

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b. Smt. Gurmeet Kaur W/o Late Sh. Najar Singh S/o Sh. Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301.

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c. Sh. Jashandeep Singh S/o Late Sh. Mandeep Singh, R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301 minor through his natural guardian and mother Smt. Manjinder Kaur.

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2 OA/1023/2025 INDIAN BANK VS LATE SH. NAJAR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Sh. Mandeep Singh S/o Sh. Najar Singh S/o Sh.Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301 Since deceased through legal heirs:

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a. Smt. Manjinder Kaur W/o Late Sh. Mandeep Singh, R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301.

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b. Smt. Gurpreet Kaur W/o Late Sh. Najar Singh S/o Sh. Chotu Singh R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301. c. Sh. Jashandeep Singh S/o Late Sh. Mandeep Singh, R/o House No.382, Village Sangatpura, Tehsil Lehra, District Sangrur, Punjab-148301 minor through his natural guardian and mother Smt. Manjinder Kaur.

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….……Defendants

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Advocates:

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Argued by Ms. Manjari Joshi, Advocate for the applicant

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Defendants already ex parte

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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 defendants for recovery of Rs.26,13,110.00p (Rupees Twenty Six Lacs Thirteen Thousand One Hundred Ten only). The Original Application has been filed through Ms. Samriti, Manager, of the applicant, who is competent to institute the Original Application vide Letter of Authorization dated 02.07.2025, which is Annexure A1 tothis OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) had approached the applicant for the grant of KCC Limit of Rs. 12.00 Lacs vide Loan application dated 01.07.2014, which is Annexure A2 to this OA. Defendant no. 2 (since deceased) stood as guarantor.

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3 OA/1023/2025 INDIAN BANK VS LATE SH. NAJAR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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The applicant sanctioned the KCC Limit of Rs. 8.00 Lacs to be enhanced to Rs. 11,71,280/- in the 5^th Year, vide Sanction letter dated 10.07.2014, 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 (since deceased). Letter acknowledging terms and conditions dated 12.07.2014, which is Annexure A4 to this OA.

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defendant no. 1 (since deceased) had mortgaged his immovable properties i.e. land measuring 22K-17M situated at Village Sangatpura, Hadbast no. 53, Tehsil Lehragaga, District Sangrur, Punjab vide mortgage Deed bearing vasika No.1235 dated 11.07.2014, along with its translation which are Annexures A9 and A9-T and jamabandi for the year 2011-2012, along with its translation which are Annexures A10 and A10-T to this OA.

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Documents executed: - DP Note, Hypothecation agreement, Letter regarding documents having being read over and Deed of guarantee, all dated 12.07.2014, which are Annexures A5 to A8 to this OA; Letter of acknowledgement of debt dated 20.12.2024, which is Annexure A11 to this OA; Notice dated 03.01.2018, along with its translation which is Annexure A12 to this OA and statement of account, which is Annexure A13 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.26,13,110.00p, which is recoverable and the defendants were 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 23.09.2025.

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In support of the OA, affidavit of Ms. Samriti, Manager , Indian Bank, h as been filed.

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Heard ex-parte arguments and perused record.

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4 OA/1023/2025 INDIAN BANK VS LATE SH. NAJAR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 A13 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 (since deceased) approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendant no. 1 (since deceased) and defendant no. 2 (since deceased) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no. 1 (since deceased) and defendant no. 2 (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,13,110.00p (Rupees Twenty Six Lacs Thirteen Thousand One Hundred Ten only) rest from the defendants, jointly and severally, 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 interest @11.85%p.a. including 2 % penal interest with yearly rests from 02.07.2025 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 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 realization of the amount ordered vide this final order. It is ordered accordingly.

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5 OA/1023/2025 INDIAN BANK VS LATE SH. NAJAR SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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.26,13,110.00p (Rupees Twenty Six Lacs Thirteen Thousand One Hundred Ten only) jointly and severally, 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 property/hypothecated assets 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 11.11.2025.

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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. Pronounced by me in the open Tribunal . Dated: 31.10.2025

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

Indian Bank v. Late Sh. Najar Singh through His Legal Heirs and Another

Case brief

What is this about?

What did the court decide?

Indian Bank v. Late Sh. Najar Singh through His Legal Heirs and Another

Case brief

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What did the court decide?

What the court decided

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