Allowed

Karur Vysya Bank Ltd. v. Sh. Kamaljeet Singh alias Kamaljit Singh and Another

DRT20 Dec 2025OA/1120/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Karur Vysya Bank for recovery of loan dues of approx. Rs. 26 Lacs against its borrowers and guarantor. The order directed the payment of principal with costs and simple interest at 8% p.a. and authorized recovery through hypothecated properties under SARFAESI Act.

What did the court decide?

Decree for recovery of Rs. 26,39,437.43 jointly and severally with costs and simple interest at 8% p.a.; Recovery Certificate issued; execution proceedings allowed.

Karur Vysya Bank Ltd. versus Sh. Kamaljeet Singh alias… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1120/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2024

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DATE OF DECISION: 20.12.2025

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The Karur Vysya Bank Limited, a banking company duly incorporated under the provisions of Indian Companies Act, 1913 having its Registered Office at Karur, Karur District, Tamil Nadu-639002 and having branches all over India and one of its Branch Office amongst other places is situated at SCO no. 52-53, Kribhco Bhawan, Sector34B, Chandigarh through its Authorized Signatory/Power of Attorney Holder Sh. Gurpreet Singh.

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……..Applicant

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Versus

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Sh. Kamaljeet Singh alias Kamaljit Singh S/o Sh. Kirpal Singh, R/o Village Sekhan Majra, Manauli, Tehsil and District SAS Nagar, Punjab.

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Sh. Amanpreet Singh S/o Sh. Kamaljeet Singh, R/o Village Sekhan Majra, Manauli, Tehsil and District SAS Nagar, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Nitin Grover, Advocate for the applicant (through VC) 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.26,39,437.43 (Rupees Twenty Six Lacs Thirty Nine Thousand Four Hundred Thirty Seven & Paise Forty Three Only). The Original Application has been filed through Sh. Gurpreet Singh , Manager/Authorized Signatory , who is competent to institute the Original Application vide General Power of Attorney dated 23.09.2013, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant no. 1 approached the applicant for the grant of Agriculture Cash Credit limit of Rs.20.00 Lacs. Defendant no. 2 stood as guarantor.

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2 OA/1120/2025 THE KARUR VYSYA BANK LTD VS. KAMALJEET SINGH ALIAS KAMALJIT SINGH AND ANOTHER

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The applicant sanctioned the Agriculture Cash Credit limit of Rs.20.00 Lacs vide sanction letter dated 10.04.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the Limit was renewed by the applicant vide sanction letter dated 13.05.2019, which is Annexure A8 to this OA and vide sanction letter dated 23.09.2020, which is Annexure A12 to this OA and vide sanction letter dated 06.12.2021, which is Annexure A15 to this OA.

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Defendant no. 1 had mortgaged his immovable property i.e. land measuring 16 Kanal situated at Village Sekhan Majra, Hadbast no. 275, Tehsil and District SAS Nagar (Mohali), Punjab vide Declaration u/s 4(1) dated 28.03.2018, which is Annexure A3 to this OA.

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Documents executed: Notification/order dated 11.01.2022, which is

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Annexure A/I to this OA; D.P. Note, Hypothecation Agreement, Take delivery letter to DPN, Agreement of guarantee, all dated 10.04.2018, which are Annexures A4 to A8 to this OA; Revival letters dated 07.06.2019, 24.09.2020 and 06.12.2021, which are Annexures A9, A13 and A16 to this OA; Acknowledgment of debt from borrower dated 07.06.2019, 24.09.2020 and 06.12.2021, which are Annexures A10, A14 and A17 to this OA; Acknowledgment of debt from guarantor dated 07.06.2019 and 24.09.2020, which are Annexures A11 and A14 to this OA; Recall notice dated 25.05.2023 and 10.05.2024, which are Annexures A18 to A20 to this OA; Statement of account, which is Annexure A21 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.26,39,437.43, 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 28.11.2025.

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3 OA/1120/2025 THE KARUR VYSYA BANK LTD VS. KAMALJEET SINGH ALIAS KAMALJIT SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Gurpreet Singh, Manager/Authorized Signatory, Karur Vysya Bank Limited, h as been filed.

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Heard ex-parte arguments and perused record.

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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 A21 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 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.26,39,437.43 (Rupees Twenty Six Lacs Thirty Nine Thousand Four Hundred Thirty Seven & Paise Forty Three Only) along 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 [email protected]%p.a. including 3% penal interest with half yearly rests in term loan from 07.07.2025 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 loans 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/1120/2025 THE KARUR VYSYA BANK LTD VS. KAMALJEET SINGH ALIAS KAMALJIT 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.26,39,437.43 (Rupees Twenty Six Lacs Thirty Nine Thousand Four Hundred Thirty Seven & Paise Forty Three 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.

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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 08.01.2026.

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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: 20.12.2025.

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

Karur Vysya Bank Ltd. v. Sh. Kamaljeet Singh alias Kamaljit Singh and Another

Case brief

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Karur Vysya Bank Ltd. v. Sh. Kamaljeet Singh alias Kamaljit Singh and Another

Case brief

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