Allowed

Bank of Maharashtra v. Sh. Lakhvir Singh and Another

DRT3 Nov 2025OA/1467/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of Rs. 25,28,474.00 p against the defendants. The creditors, who were ex parte, proved the loan defaults and were granted an order for recovery via sale of mortgaged assets with future interest at 8% per annum.

What did the court decide?

Recovery Certificate to be issued; defendants liable to pay Rs. 25,28,474.00 p with simple interest at 8% p.a. until realization.

Bank of Maharashtra versus Sh. Lakhvir Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1467/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.12.2024

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DATE OF DECISION: 03.11.2025

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Bank of Maharashtra having its Head Office at Lokmangal 1501, Shivaji Nagar, Pune- 411005, Maharashtra having its Branch Office at 154 Focal Point Road, Sherpur, Ludhiana, Punjab-141010, through its Attorney Holder Sh. Puneet Chandyok, Authorized Officer of the applicant and posted as Branch Manager, Bank of Maharashtra, 154 Focal Point Road, Sherpur, Ludhiana, Punjab-141010.

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……..Applicant

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Versus

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Sh. Lakhvir Singh Son of Sh. Gurtej Singh, Resident of House No. 2947, Street No. 9, Chet Singh Nagar, Gill Road, Ludhiana, Punjab-141003.

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M/s Lakhvir Transport Company, through its Proprietor, Sh. Lakhvir Singh Son of Sh. Gurtej Singh, situated at Street No. 9,

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Chet Singh Nagar, Gill Road, Ludhiana, Punjab-141003 .

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…….Defendants

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Advocates:

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Argued by Sh. Ravinder Kumar, Advocate for Applicant Defendants are 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.25,28,474.00p (Rupees Twenty Five Lacs Twenty Eight Thousand Four hundred Seventy Four Only). The Original Application has been filed through Sh. Puneet Chandyok, Branch Manager, of applicant vide Board Resolution dated 22.03.2022, which is Annexure A1(Colly), to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant Term Loan of Rs.15.00 Lacs against

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2 OA NO.1467/2025 BANK OF MAHARASHTRA VS SH.LAKHVIR SINGH AND ANOTHER

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mortgage of property. The defendant no. 2 through its proprietor defendant no. 1 also approached the applicant for grant of CC Limit of Rs. 9.50 Lacs.

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The applicant sanctioned Term Loan of Rs.15.00 Lacs against mortgage of property vide sanction dated 18.10.2021, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant no. 1 vide request for making credit facility available dated 18.10.2021, which is Annexure A3 to this OA. The applicant also sanctioned CC Limit of Rs. 9.50 Lacs and the terms and conditions were duly accepted by the defendant no. 2 through its proprietor defendant no.1, vide request for making credit facility available dated 16.11.2021, which is Annexure A8 to this OA 4. Defendant no.2 through its proprietor defendant no. 1 hypothecated stock and book debts vide deed of hypothecation dated 16.11.2021, which is Annexure A10 to this OA. Defendant no. 2 mortgaged his immovable properties detailed as under: i. Commercial property measuring 0K-5/9M, measuring total area 16.66 sq. yd., situated at Village Agwar Gujjran-I, H.B. no. 126, Kacha Malak Road (Inside street), Tehsil Jagraon, District Ludhiana, Punjab142026, vide equitable mortgage of sale deed bearing vasika no. 1334 dated 02.08.2017, along with its translation, which is Annexure A13 to this OA. ii. Commercial Property measuring 0K-2-2/9M, measuring total area 66.66 sq. yd., situated at Village Agwar Gujjran-I, H.B. no. 126, Kacha Malak Road (Inside street), Tehsil Jagraon, District Ludhiana, Punjab142026, vide equitable mortgage of sale deed bearing vasika no.2337 dated 20.11.2017, along with its translation, which is Annexure A14 to this OA. Title search reports dated 18.10.2021 by panel Advocate, which are Annexure A15 and A16 to this OA; Valuation report dated 18.10.2021, by panel valuer, which is Annexure A17 to this OA;

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3 OA NO.1467/2025

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BANK OF MAHARASHTRA VS SH.LAKHVIR SINGH AND ANOTHER

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Mortgagor’s declaration dated 18.10.2021, which is Annexure A18 to this OA; Mortgagor’s letter of confirmation of equitable mortgage dated 18.11.2021, which is Annexure A19 to this OA; Extension of equitable mortgage dated 16.11.2021, which is Annexure A20 to this OA.

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Documents executed: - Receipt for amount of loan, DP Note, letter of Authority for adjustment of deposit, agreement of term loan, all dated 18.10.2021, which are Annexure A4 to A7 to this OA; Letter of proprietorship, DP Note, Letter of authority for adjustment of deposit, all dated 16.11.2021, which is Annexures A10 to A12 to this OA; Notice dated 26.02.2024 u/s 13(2) of SARFAESI Act, along with postal receipts which is Annexure A21(Colly) to this OA; Statement of accounts along with pre closure statement with memoranda supported by certificate under Banker’s Book Evidence Act, which is Annexure A22 (Colly) 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 loan accounts there was a debit of Rs.25,28,474.00p, 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 03.09.2025. 7. In support of the OA, affidavit of Sh. Puneet Chandyok, Branch Manager, Bank of Maharashtra, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A22 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were

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4 OA NO.1467/2025 BANK OF MAHARASHTRA VS SH.LAKHVIR SINGH AND ANOTHER

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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 loans 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.25,28,474.00p (Rupees Twenty Five Lacs Twenty Eight Thousand Four hundred Seventy Four Only) along with interest from the defendants, jointly 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 lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.95%p.a. with monthly rests plus 2% penal interest in TL & interest @9.30%p.a. with monthly rests plus 2% penal interest in CC Limit from 16.10.2024 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/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 both 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,28,474.00p (Rupees Twenty Five Lacs Twenty Eight Thousand Four hundred Seventy Four Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan account from the date of filing of OA till the date of realization of the

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OA NO.1467/2025 BANK OF MAHARASHTRA VS SH.LAKHVIR SINGH AND ANOTHER

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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

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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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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 15.11.2025.

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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: 03.11.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of Maharashtra v. Sh. Lakhvir Singh and Another

Case brief

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Bank of Maharashtra v. Sh. Lakhvir Singh and Another

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