Allowed

Capital Small Finance Bank Limited v. Sh. Baljeet Singh and Others

DRT29 Oct 2025OA/147/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's recovery of Rs. 23.25 lacs against five respondents, declaring them jointly and severally liable. Interest was fixed at 8% p.a., and a recovery certificate was issued for execution.

What did the court decide?

Recovery Certificate issued. Respondents liable to pay Rs. 23,25,472 with 8% simple interest; entitled to recover from sale of mortgaged or personal assets.

Capital Small Finance Bank Limited versus Sh… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.147/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.12.2024

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DATE OF DECISION: 29.10.2025

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Capital Small Finance Bank Limited, (Earlier Known as Capital Local Area Bank Limited) having its Registered Office at 37, Midas Corporation Park, 3^rd Floor, G.T. Road, Jalandhar-144001 & having one of its Branch Office at Moga, through its Authorized Representative Mr. Munish Sharma.

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……..Applicant

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Versus

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Sh. Baljeet Singh S/o Sh. Paramjit Singh, R/o Village Alabad Basti, Fatehgarh Panjtur, Kot Ise Khan, District Moga, Punjab142043.

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Sh. Sukhjit Singh S/o Sh. Paramjit Singh, R/o Village Alabad Basti, Fatehgarh Panjtur, Kot Ise Khan, District Moga, Punjab142043.

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Sh. Paramjit Singh, S/o Sh. Inder Singh, R/o Village Alabad Basti, Fatehgarh Panjtur, Kot Ise Khan, District Moga, Punjab-142043.

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Sh. Baldev Singh S/o Sh. Surjeet Singh, R/o Village Alabad Basti, Fatehgarh Panjtur, Kot Ise Khan, District Moga, Punjab-142043.

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Sh. Jatinder Singh, S/o Sh. Daljeet Singh, R/o Village Alabad Basti, Fatehgarh Panjtur, Kot Ise Khan, District Moga, Punjab142043.

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….……Defendants

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Advocates:

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Argued by Sh. Rishi Mittu, 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

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Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs. 23,25,472.00p (Rupees Twenty Three Lacs Twenty Five Thousand

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2 OA/147/2025 CAPITAL SMALL FINANCE BANK LIMITED VS SH. BALJEET SINGH AND OTHERS

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Four Hundred Seventy Two Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.04.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos. 1 to 3 had approached the applicant for the grant of KCC Limit of Rs.19.00 Lacs vide Loan Application dated 09.11.2019, which is Annexure A2 to this OA. Defendant nos. 4 and 5 stood as guarantors.

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The applicant sanctioned KCC Limit of Rs.19.00 Lacs vide Sanction dated 06.01.2020, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos. 1 to 3 had mortgaged their immovable property i.e. Property measuring 45 Kanal 01 Marla (16Kanal-05Marla in the name of defendant no. 1, 16Kanal-05Marla in the name of defendant no. 2 12Kanal-11Marla in the name of defendant no. 3) situated at Village Fateh Ullah Shah, Hadbast No. 99/105, Tehsil Dharamkot, District Moga, vide declaration u/s 4(1) dated 09.01.2020 and letter to sub Registrar for creation of charge which is Annexure A4 to this OA. Documents executed:- Agreement of hypothecation, Guarantee Deed Letter of undertaking, D.P. Note, Deed of Guarantee, Letter of Undertaking, Demand Promissory Note, all dated 09.01.2020, which are Annexures A4 to A7 to this OA; Recall Notices, dated 22.11.2024, which is Annexure A9 to this OA; Postal Receipts, dated 26.11.2024, which is Annexure A10 to this OA; Statement of Account, with Certificate dated 12.12.2024, which is Annexures A11 to A12 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. 23,25,472.00p which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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3 OA/147/2025 CAPITAL SMALL FINANCE BANK LIMITED VS SH. BALJEET SINGH AND OTHERS

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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 24.10.2025.

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In support of the OA, affidavit of Mr. Munish Sharma, Authorized Representative , Capital Small Finance Bank Limited 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 A12 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 bank. The defendants failed to pay back the loans 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. 23,25,472.00p (Rupees Twenty Three Lacs Twenty Five Thousand Four Hundred Seventy Two 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ 12.35%p.a. plus penal interest @2%p.a. from 01.10.2024 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 defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising

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4 OA/147/2025 CAPITAL SMALL FINANCE BANK LIMITED VS SH. BALJEET SINGH AND OTHERS

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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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. 23,25,472.00p (Rupees Twenty Three Lacs Twenty Five Thousand Four Hundred Seventy Two 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.11.2025 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: 29.10.2025

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

Capital Small Finance Bank Limited v. Sh. Baljeet Singh and Others

Case brief

What is this about?

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Capital Small Finance Bank Limited v. Sh. Baljeet Singh and Others

Case brief

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