Allowed

Bank of India v. Sh. Jaswant Singh and Others

DRT22 Oct 2025OA/1105/2025

Case brief

AI extract

What is this about?

In an original application under the RDB Act, the Tribunal allowed the bank's claim for recovery of a loan debt of Rs.34,51,771.71 from the borrowers and legal heirs jointly and severally, granting simple interest at 8% p.a. instead of the claimed 13.5% p.a. and ordering the issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.34,51,771.71 plus current and future simple interest @8% p.a.

Bank of India versus Sh. Jaswant Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1105/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2025

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DATE OF DECISION: 22.10.2025

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head office at "Star House" C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch office amongst other places, at Patiala, SCO-6, Chhoti Barandari, The Mall,Patiala, District Patiala, (Punjab) through its duly constituted attorney, Sh. Ajay Singh, presently posted as Chief Manager, at Zonal Office, in District Ludhiana (Punjab).

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……..Applicant

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Versus

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Sh. Jaswant Singh son of Late Sh. Gurdev Singh, resident of Village Balberha, Tehsil Patiala and District Patiala (Punjab) 147101. (Co-Borrower and Legal Heir & Representative of late BorrowerMortgagor Sh. Gurdev Singh son of Sh. Gurnam Singh)

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Sh. Jaswinder Singh son of Late Sh. Gurdev Singh resident of H.No.6, Village Jawalapur, Tehsil Patiala and District Patiala (Punjab) 147111. (Legal Heir & Representative of late Borrower-Mortgagor Sh. Gurdev Singh son of Sh. Gurnam Singh)

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Sh. Jasvir Singh son of Late Sh. Gurdev Singh resident of H.No.6, Village Jawalapur, Tehsil Patiala and District Patiala (Punjab) 147111. (Legal Heir & Representative of late Borrower-Mortgagor- Sh. Gurdev Singh son of Sh. Gurnam Singh)

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Sh. Sarbjot Singh son of Sh. Gurdyal Singh, resident of H.No.3, Village Balberha, Tehsil Patiala and District Patiala (Punjab) 147101.

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………. Defendants

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OA NO.1105/2025 BANK OF INDIA VS SH. JASWANT SINGH AND OTHERS

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Advocates:

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Argued by Sh. Narinder Kumar, Advocate for the applicant (through

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VC)

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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.34,51,771.71p (Rupees Thirty Four Lakhs Fifty One Thousand Seven Hundred Seventy One and paise Seventy One only). The Original Application has been filed through Sh. Ajay Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that Sh. Gurdev Singh (since deceased) and the defendant no. 1 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 25.06.2012, along with its translation, which are Annexure A2 and A2-T to this OA. Defendant no. 4 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction letter dated 09.07.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Sh. Gurdev Singh (since deceased) had mortgaged his immovable properties i.e. land measuring 53kanal-17Marla situated at Village Jawalapur alias Ulatpur, Tehsil & District Patiala, Punjab vide Mortgage Deed bearing vasika no. 6188 dated 03.07.2012, which are Annexures A11, A11-T to this OA. Documents executed:- Demand promissory note, Loan bearer letter, Declaration from borrower, Hypothecation cum loan agreement, Multipurpose loan agreement, Letter of authority, Deed of Guarantee, all dated 09.07.2012 which are Annexures A4 to A10 to this OA; Letter of Acknowledgement of Debts/Securities dated 02.05.2014, 24.04.2017 & 31.08.2019, which are Annexures A12 to A14 to this OA; Acknowledgement of Debt/Securities by Heirs/Legal

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OA NO.1105/2025 BANK OF INDIA VS SH. JASWANT SINGH AND OTHERS

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Representatives of deceased borrower dated 10.08.2022, which is Annexure A15 to this OA; Legal notice dated 29.04.2022 and 24.03.2025 along with postal receipts, which are Annexures A16 to A19 to this OA; Certificate under Bankers Book Evidence Act, which is Annexure A20 to this OA and Statement of Account along with uncharged interest, which are Annexures A21 & A22 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.34,51,771.71p 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 16.10.2025. 7. In support of the OA, affidavit of Sh. Ajay Singh, Chief manager, Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing 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 A22 to this OA, it is proved that the Sh. Gurdev Singh (since deceased), defendant no.1 and defendant no. 4 approached the 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,51,771.71p (Rupees Thirty Four Lakhs Fifty One Thousand Seven Hundred Seventy One and paise Seventy One only) along with interest from the

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OA NO.1105/2025 BANK OF INDIA VS SH. JASWANT SINGH AND OTHERS

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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 @13.50%p.a. including 2% penal interest with half yearly rests from 02.08.2025 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, 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 @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 defendants are liable to pay to the applicant a total sum of Rs.34,51,771.71p (Rupees Thirty Four Lakhs Fifty One Thousand Seven Hundred Seventy One and paise Seventy One only) jointly and severally, 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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OA NO.1105/2025 BANK OF INDIA VS SH. JASWANT SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.11.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 22.10.2025.

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

Bank of India v. Sh. Jaswant Singh and Others

Case brief

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Bank of India v. Sh. Jaswant Singh and Others

Case brief

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