Allowed

Union Bank of India v. Sh. Gurpreet Singh

DRT20 Dec 2025OA/1396/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Union Bank of India for recovery of Rs. 21,15,386.55 owing by the defendant. Despite ex-parte proceedings, the Court found the bank's case proved and granted uniform interest at 8% p.a., directing issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 21,15,386.55 with costs and simple interest at 8% p.a. from the date of OA until realization; issuance of Recovery Certificate.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1396/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 12.09.2025

¶5

DATE OF DECISION: 20.12.2025

¶6

Union Bank of India, a body corporate constituted under the Banking Companies (Acquisition and transfer of undertakings) Act no. V of 1970 and having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai and one of the Branch amongst other places at Bhadson, Tehsil Nabha, Distt. Patiala through its General Power of Attorney cum Branch Manager Sh. Manpreet Singh.

¶7

……..Applicant Versus

¶8

Sh. Gurpreet Singh s/o Sh. Gurwinder Singh R/o Village Mangewal, Tehsil Nabha, District Patiala - 147202.

¶9

….……Defendant

¶10

Advocates:

¶11

Argued by Sh. Abhineet Taneja, Advocate for applicant (through VC) Defendant already ex parte

¶12

FINAL ORDER

¶13

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.21,15,386.55 (Rupees Twenty One Lacs Fifteen Thousand Three Hundred Eighty Six & Paise Fifty Five Only). The Original Application has been filed through Sh. Manpreet Singh, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 09.01.2025, which is Annexure A1 to this OA.

¶14

The brief facts of the OA that the defendant had approached the applicant for the grant of Term loan of Rs.19.00 Lacs for purchase of Combine Harvester vide loan application dated 01.06.2023, which is Annexure A2 to this OA.

¶15

2 OA/1396/2025 UNION BANK OF INDIA VS. GURPREET SINGH

¶16

The applicant sanctioned the Term loan of Rs.19.00 Lacs vide Sanction letter dated 01.06.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

¶17

Defendant had hypothecated Combine Harvester Make: Ramji Agro Industries, Model: RAMJI 5100, bearing Registration no. PB11DF7882, Engine No.LDAM265308, Chassis No.RAI5100L022217, vide Hypothecation Agreement (for agricultural advances) and hypothecation of vehicles agreement, both dated 01.06.2023, which are Annexures A4 and A5 to this OA. Registration certificate of vehicle dated 28.02.2024, which is Annexure A8 to this OA.

¶18

Documents executed: - General Term loan agreement, DP Note along with letter of Continuity, all dated 01.06.2023, which are Annexures A6 and A7 to this OA; Legal Notice dated 01.02.2025, which is Annexure A9 to this OA and Statement of account, which is Annexure A10 to this OA.

¶19

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.21,15,386.55, 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 11.11.2025. 7. In support of the OA, affidavit of Sh. Manpreet Singh, Branch Manager, Union 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 A10 to this OA, it is proved that the

¶20

3 OA/1396/2025 UNION BANK OF INDIA VS. GURPREET SINGH

¶21

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.21,15,386.55 (Rupees Twenty One Lacs Fifteen Thousand Three Hundred Eighty Six & Paise Fifty Five Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶22

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9%p.a. with half yearly rest from the 01.08.2025.

¶23

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 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 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.

¶24

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,15,386.55 (Rupees Twenty One Lacs Fifteen Thousand Three Hundred Eighty Six & Paise Fifty Five 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,

¶25

4 OA/1396/2025 UNION BANK OF INDIA VS. GURPREET SINGH

¶26

the a	pplicant shall be entitled to recover aforesaid amount from the
sale	of hypothecated vehicle of the defendant in execution proceedings
if not	sold earlier under the provisions of the SARFAESI Act, 2002. If
the d	ues of the applicant still remain unsatisfied, it shall be entitled to
recov	er the same by attachment and sale of personal assets of the
defen proce	dant. The applicant is at liberty to enforce the claim through due ss 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
Tribu	nal on 08.01.2026.
15.	Copy of this order be given Dasti to the applicant and be sent to
defen	dant through registered/speed post and this order be also
uploa consi	ded on the official website of this Tribunal and record be gned.
Pron	ounced by me in the open Tribunal.
Date	d: 20.12.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Gurpreet Singh

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Gurpreet Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Kotak Mahindra Bank Limited versus Sh. Netarpal Singh and Another

State Bank of India versus Sh. Navdeep Singh Sohal

State Bank of India versus Sh. Jatinder Singh

Union Bank of India versus M/S Madhav Oil Traders and Others

State Bank of India versus Sh. Manish Kumar

Punjab Gramin Bank versus Sh. Dalbir Singh