Allowed

Indian Bank v. Sh. Jaswinder Singh and Another

DRT21 Nov 2025OA/1110/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a bank's application for recovery of dues under the RDB Act. The court modified the claimed interest rate to 8% p.a. and ordered the recovery of the principal sum with costs and interest from hypothecated or personal assets via execution proceedings.

What did the court decide?

Recovery of Rs.54,56,224.00 plus costs, current and future simple interest @8% p.a. from date of OA till realization; issuance of Recovery Certificate.

Indian Bank versus Sh. Jaswinder Singh and Another — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1110/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.07.2025

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DATE OF DECISION: 21.11.2025

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Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai - 600014 and a branch amongst at Mehna, District Moga through Sh. Dheeraj Kumar, Branch Manager, Authorized by Applicant.

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……..Applicant

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Versus

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Sh. Jaswinder Singh S/o. Sh. Gurdev Singh R/o. H. No. 211, Viltage Kaunke Kalan, Tehsil Jagraon, District Ludhiana.

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Sh. Darshan Singh S/o. Sh. Bhajan Singh R/o. H. No.169, Village Kaunke Kalan, Tehsil Jagraon, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.54,56,224.00p (Rupees Fifty Four Lacs Fifty Six Thousand Two Hundred Twenty Four Only). The Original Application has been filed through Sh. Dheeraj Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Letter of Authority dated 28.07.2025, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of

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2 OA NO. 1110/2025 INDIAN BANK VS SH. JASWINDER SINGH AND ANOTHER

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Rs.24,88,970.00 vide Loan application dated 14.02.2015, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.17,00,000.00 for 1^st year with enhancement in each year up to 5^th year with limit of Rs. 24,88,970.00 in the 5^th year vide Sanction letter dated 27.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide acknowledgement dated 27.02.2015, which is Annexure A3A to this OA.

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Defendant no.1 had mortgaged his immovable property i.e. Land measuring 15K-16½Marla situated at Village Patti Sham Singh, Kaunka-4, Tehsil Jagraon, District Ludhiana, Punjab vide Declaration u/s 4(1) dated 28.02.2015 along with letter to Sub Registrar for creation of charge, which are Annexures A7 to A8-T to this OA.

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Documents executed :- D.P. Note, Hypothecation Agreement, Deed of Guarantee, all dated 11.03.2015, which are Annexures A4 to A6 to this OA; Acknowledgement of Debt dated 29.03.2017, 20.09.2019 & 19.09.022 , which are Annexures A9 to this OA; Recall notice dated 14.05.2018 & 29.07.2024, which is Annexure A10 t o this OA; Legal notice dated 24.07.2025, which is Annexure A11 to this OA and Statement of account along with Certificate, which is Annexure A12 to this OA. 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.54,56,224.00p, 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. 6. 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 19.11.2025. 7. In support of the OA, affidavit of Sh. Dheeraj Kumar, Branch Manager, Indian Bank, has been filed.

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3 OA NO. 1110/2025 INDIAN BANK VS SH. JASWINDER SINGH AND ANOTHER

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A12 to this OA, it is proved that the defendants 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 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.54,56,224.00p (Rupees Fifty Four Lacs Fifty Six Thousand Two Hundred Twenty Four Only) with interest 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.10%p.a. with 2% penal interest with half yearly rests from 17.07.2025 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 @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 NO. 1110/2025 INDIAN BANK VS SH. JASWINDER SINGH 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.54,56,224.00p (Rupees Fifty Four Lacs Fifty Six Thousand Two Hundred Twenty Four 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 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.

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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 03.12.2025. 15. 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 . Dated: 21.11.2025

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

Indian Bank v. Sh. Jaswinder Singh and Another

Case brief

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Indian Bank v. Sh. Jaswinder Singh and Another

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