Allowed

Indian Bank v. Sh. Gurmel Singh

DRT22 Oct 2025OA/1222/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application under the RDB Act against a defaulter, directing payment of the principal amount with interest at 8% per annum and granting permission to recover dues via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 52,98,507 with 8% p.a. simple interest; recovery via sale of mortgaged properties or attachment of personal assets.

Indian Bank versus Sh. Gurmel Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1222/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.08.2025

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DATE OF DECISION: 22.10.2025

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Indian Bank (in which Allahabad Bank stands amalgamated and the name of Allahabad Bank has been changed to Indian Bank pursuant to Government of India Gazette Notification No. 133 GSR-156(E) Dated 12.04.2020 sanctioning the Scheme of Amalgamation effective from 1.4.2020, Applicant is a body Corporate duly constituted under the Banking Companies (Acquisition And Transfer Of Undertakings) Act 1970, having its Head Office at 254-260, Avvai Shammugam Salai, Royapettah Chennai -600014, having its branches all over India and amongst other places At V.P.О Mehna, Distt. Moga, Punjab Pincode142011 through its Manager and Constituted Attorney Sh. Dheeraj Kumar.

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……..Applicant Versus Sh. Gurmel Singh S/O Malkit Singh R/O Village Ferozwal Mangal Singh Tehsil Dharamkot, District Moga. ……. Defendant Advocates: Argued by Ms. Jasleen Kaur, Advocate for the applicant (through VC) Defendant is already ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 52,98,507.00p (Rupees Fifty Two Lacs Ninety Eight Thousand Five Hundred Seven Only). The Original Application has been filed through Sh. Dheeraj Kumar, Attorney holder of the applicant, who is competent to institute the

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2 OA/1222/2025 INDIAN BANK VS SH.GURMEL SINGH

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Original Application vide Authorization letter dated 02.08.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.21.90 Lacs vide Application dated 16.12.2012, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.21.90 Lacs vide Sanction Letter dated 29.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 22K-18Marla situated Village Ferozwal Mangal Singh, Tehsil Dharampur, District Moga, Punjab vide Mortgage Deed dated 31.12.2012, a long with its translation, which are Annexures A6 and A6T to this OA and Lien marked in revenue record along with its translation, which is Annexure A7 and A7T to this OA.

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Documents executed: - D.P. Note dated 07.01.2013, 15.12.2015 & 15.03.2018, which are Annexures A4, A8 & A11 to this OA; Hypothecation agreement dated 31.12.2012, which is Annexure A5 to this OA; Acknowledgement of debt dated 15.03.2018, 14.11.2019, which are Annexures A9 & A12 to this OA; Application for review/renewal dated 15.03.2018, which is Annexure A10 to this OA and Statement of Account along with certificate, which are Annexures A13 & A14 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. 52,98,507.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA/1222/2025 INDIAN BANK VS SH.GURMEL SINGH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 14.10.2025. 7. In support of the OA, affidavit of Sh. Dheeraj Kumar, Manager and Constituted Attorney Holder, Indian Bank h as 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 A14 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 52,98,507.00p (Rupees Fifty Two Lacs Ninety Eight Thousand Five Hundred Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.05%p.a. with yearly rests from 16.08.2025 till the realization. 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 defendant, 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

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4 OA/1222/2025 INDIAN BANK VS SH.GURMEL SINGH

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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 defendant is liable to pay to the applicant a total sum of Rs. 52,98,507.00p (Rupees Fifty Two Lacs Ninety Eight Thousand Five Hundred Seven Only) 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.11.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 22.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Gurmel Singh

Case brief

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Indian Bank v. Sh. Gurmel Singh

Case brief

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