Allowed

Indian Bank v. Sh. Sukhwinder Singh

DRT21 Oct 2025OA/161/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 1.33 Crores under Section 19 RDB Act, declaring the defendant liable to pay the principal amount with costs and simple interest at 8% p.a., permitting recovery through hypothecated properties or personal assets under SARFAESI Act.

What did the court decide?

Recovery Certificate to be issued; Defendant liable to pay Rs. 1,33,24,722 with costs and simple interest at 8% p.a.; Recovery through sale of mortgaged or personal assets allowed.

Indian Bank versus Sh. Sukhwinder Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.161/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.02.2025

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DATE OF DECISION: 21.10.2025

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, having its Zonal Office at Jalandhar and amongst other places a branch at Sultanpur Lodhi District Kapurthala, Punjab through its Authorized Officer, Mrs. Ashu Bansal, Manager Indian Bank, Sultanpur Lodhi, Kapurthala, Punjab.

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……..Applicant Versus Sh. Sukhwinder Singh S/o Sh. Ajit Singh, R/o VPO Nawan Pind, Donewal, Tehsil Shahkot, District Jalandhar, Punjab. ……. Defendant Advocates: Argued by Ms. Manjari Joshi, Advocate for the applicant 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.1,33,24,722.00p (Rupees One Crore Thirty Three Lacs Twenty Four Thousand Seven Hundred and Twenty Two Only). The Original Application has been filed through Mrs. Ashu Bansal, Manager of the applicant, who is competent to institute the Original Application vide Letter of Authorization dated 04.12.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs. 90.00 Lacs vide Application for Loan dated 16.04.2012, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.90.00 Lacs vide Sanction Letter dated 11.05.2012, which is Annexure A3 to this OA

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2 OA/161/2025 INDIAN BANK VS SH.SUKHWINDER SINGH

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and the terms and conditions were duly accepted by the defendant vide Acknowledgment of sanction letter dated 11.05.2012, which is Annexure A4 to this OA. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 72K-9½M detailed as under: - (i) Land measuring 10K-12½M, situated at Village Makkhi, Tehsil Shahkot, District Jalandhar, Punjab. (ii) Land measuring 04K-08M, situated at Village Pandori Rajputa, Tehsil Shahkot, District Jalandhar, Punjab (iii) Land measuring 27K-12M, situated at Village Turna, Tehsil Shahkot, District Jalandhar, Punjab. (iv) Land measuring 29K-17M, situated at Village Nawan Pind Donewal, Tehsil Shahkot, District Jalandhar, Punjab. vide Mortgage Deed, bearing v asika No. 179 dated 1 1.05.2012, which is Annexures A8 to this OA and jamabandi for the year 2017-18, along with its translation, which is Annexures A9 to this OA. Documents executed: - D.P. Note, Hypothecation Agreement, Consent Clause, all dated 22.05.2012, which are Annexures A5 to A7 to this OA; Letter of acknowledgment of debt dated 10.04.2015, 03.04.2018, 18.05.2020 & 22.03.2023, which is Annexure A10 to this OA; Recall Notice dated 07.12.2024, which is Annexure A11 to this OA and Statement of Account which is Annexure A12 to this OA. 5. 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.1,33,24,722.00p, 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. 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 08.10.2025.

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3 OA/161/2025 INDIAN BANK VS SH.SUKHWINDER SINGH

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In support of the OA, affidavit of Mrs. Ashu Bansal, Manager, Indian Bank h as been filed.

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Heard ex-parte arguments and perused record.

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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 A12 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.1,33,24,722.00p (Rupees One Crore Thirty Three Lacs Twenty Four Thousand Seven Hundred and Twenty Two Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.00%p.a. including 2% penal interest with yearly rests from 23.01.2025 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 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.

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OA/161/2025 INDIAN BANK VS SH.SUKHWINDER SINGH

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.1,33,24,722.00p (Rupees One Crore Thirty Three Lacs Twenty Four Thousand Seven Hundred and Twenty Two 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.

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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 31.10.2025.

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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: 21.10.2025

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

Indian Bank v. Sh. Sukhwinder Singh

Case brief

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Indian Bank v. Sh. Sukhwinder Singh

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