Allowed

Bank of India v. Sh. Iqbal Singh and Others

DRT6 Jun 2025OA/1155/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application for recovery of dues. The court rejected the applicant's request for penalty interest, exercising discretion to grant uniform simple interest at 8% per annum instead, and ordered recovery from mortgaged properties.

What did the court decide?

Ordered recovery of Rs.38,93,819.68 with simple interest at 8% p.a. from filing date until realization, enforceable against mortgaged properties.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1155/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.09.2024

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DATE OF DECISION: 06.06.2025

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Bank of India, a body corporate constituted under the Banking Companies ( Acquisition & Transfer of Undertakings) Act, 1970 with its Head office at Bank of India Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai and having branches all over India and one of its Branch office situated at DAD Branch, Near Bhai Wala Gurudwara, Opposite Grewal Petrol Pump, Pakhowal Road, V.P.O. DAD, Tehsil Ludhiana West, District Ludhiana, Punjab 142022 through its senior branch manager cum authority letter Holder Smt. Brahmleen Kaur Bedi.

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	Versus	……..Applicant
1.	Sh. Iqbal Singh S/o Sh. Tara Singh R/o Kalan, Pakhowal Road, Opposite Kohinoo West, District Ludhiana, Punjab 142022.	Village DAD, P.O. Lalton r Hotel, Tehsil Ludhiana
2^ndA	ddress:-Sh. Iqbal Singh S/o Sh. Tara	Singh R/o V.P.O. DAD,
Oppos Ludhi	ite BBC Tower, Pakhowal Road, Tehsil ana, Punjab 142022.	Ludhiana West, District
2.	Sh. Varinder Singh S/o Sh. Darshan Sugandh Vihar, Pakhowal Road, Villa Ludhiana West, District Ludhiana, Punjab	Singh R/o H.no 12, ge Phullanwal Tehsil- 141013.
3.	Sh. Amarjit Singh S/o Sh. Tarlok Singh LaltonKalan, Pakhowal Road, Opposite Ludhiana West, District Ludhiana, Punjab	R/o Village DAD, P.O. Kohinoor Hotel, Tehsil 142022. ….……Defendants
Advoc Argue Advoc Defen	ates: d by, Sh. Rahul Garg, Advocate proxy for ate for Applicant dants are ex parte	Sh. Akshaydeep Singh,

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.38,93,819.68p (Rupees Thirty Eight Lacs Ninety Three Thousand Eight hundred Nineteen & Sixty Eight Paise only). The Original Application has been filed through Smt. Brahmleen Kaur Bedi, Senior Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 21.06.2024 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.17.00 Lacs & AGOD Limit Rs.10.00 Lacs vide Loan application dated 23.12.2011, which are Annexures A2 & A9 to this OA.

¶11

The applicant sanctioned the KCC Limit of Rs.17.00 Lacs & AGOD Limit Rs.10.00 Lacs vide Sanction letters dated 11.02.2012, which are Annexures A3 & A10 to this OA and the terms and conditions were duly accepted by the defendants.

¶12

Defendant no.1 had mortgaged his immovable properties i.e. I. land measuring 28K-10M situated at R/o Village Bassian-I, Hadbast No.162, Tehsil Raikot, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing vasika no.5417 dated 08.02.2012 with its translations, which is Annexure A15 this OA.

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II. land measuring 23Kanal-04Marla situated at R/o Village Sattowal, Hadbast No.163, Tehsil Raikot, District Ludhiana Punjab vide Registered Mortgaged Deed bearing vasika no.5418 dated 08.02.2012 with its translations, which is Annexure A16 this OA Documents executed: DP Note, Hypothecation agreement, Agreement, Letter of declaration undertaking & authority, Deed of guarantee all dated 11.02.2012, which are Annexures A4 to A8, A11 to A14 to this OA; Revival Letter/acknowledgement of debt/balance confirmation

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letter dated 06.02.2015, 03.02.2018, 21.09.2020 and 10.08.2023, which is Annexure A17 to this OA; Recall notice dated 22.08.2024, which is Annexure A18 to this OA and Statement of account along with certificate under Banker Books evidence, which are Annexures A19 & A20 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.38,93,819.68p, 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 04.06.2025.

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In support of the OA, affidavit of Smt. Brahmleen kaur Bedi, Senior Branch Manager, Bank of India, h as been filed. 8. Heard arguments and perused record. 9. 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 A20 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.38,93,819.68p (Rupees Thirty Eight Lacs Ninety Three Thousand Eight hundred Nineteen & Sixty Eight Paise only) rest from the defendants, jointly

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and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @14.75%p.a. along with penal interest @2.00%p.a. with half yearly rests from 18.08.2024 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 @8.00%p.a. in both the loan accounts 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.38,93,819.68p (Rupees Thirty Eight Lacs Ninety Three Thousand Eight Hundred Nineteen & Sixty Eight Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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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Parties to appear before Learned Recovery Officer of this Tribunal on 30.06.2025. 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. Pronounced by me in the open Tribunal . Dated: 06.06.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Iqbal Singh and Others

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Bank of India v. Sh. Iqbal Singh and Others

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