Allowed

Utkarsh Small Finance Bank v. Sh. Bhupinder Singh and Another

DRT9 Jun 2025OA/181/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of outstanding housing loans of Rs. 50.32 lakhs. The tribunal directed the defendants to pay the principal amount jointly and severally with interest, and authorized recovery through execution proceedings under the SARFAESI Act without taking into account the quantum of mortgaged property or envisaging modus vivendi.

What did the court decide?

Recovery of Rs. 50,32,101.96 plus costs and simple interest at 8% p.a. from date of filing till realization via execution proceedings.

Utkarsh Small Finance Bank versus Sh. Bhupinder Singh and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.181/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.01.2025

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DATE OF DECISION: 09.06.2025

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Utkarsh Small Finance Bank Limited, a banking company incorporated and registered under the companies Act, 1956 and a banking company within the meaning of the banking regulations Act, 1949 having its registered office at Utkarsh Tower, NH-31, (Airport Road) Sehmalpur, Kazi Sarai, Harhau, Varanasi-221105 having all other branches and having branches all Over India and one of is branch at 9B, Pusa Road, Near Rajendra Place, Block-A, Rajendra Park, New Delhi Pincode110060 (hereinafter referred to as “the bank” of the “applicant Bank”) through its authorized Officer/Signatory Sh. Ravinder Kumar Rathour, designation Chief Manager Collection.

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……..Applicant

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Versus

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Mr. Bhupinder Singh S/o Sh. Baljeet Singh R/o 811C, Kharkhr(104), Rohtak, District Rohtak (Haryana)-124111.

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Also at: Women Police Station, Gohana, Near Jind Road, Gohana, District Sonipat (Haryana)-131301.

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Also at: Flat No.11A, Ground floor, Near Rishi Gym, Randhawa Road, Kharar, District SAS Nagar Mohali (Punjab)-140301.

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Also at: Flat No.10A, Ground floor, Near Rishi Gym, Randhawa Road, Kharar, District SAS Nagar Mohali (Punjab)-140301.

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Mrs. Neetu Devi W/o Sh. Bhupinder Singh R/o 811C, Kharkhra(104), Rohtak, District Rohtak(Haryana)-124111.

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Also at: Flat No.11A, Ground floor, Near Rishi Gym, Randhawa

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Road, Kharar, District SAS Nagar Mohali (Punjab)-140301.

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Also at: Flat No.10A, Ground floor, Near Rishi Gym, Randhawa Road, Kharar, District SAS Nagar Mohali (Punjab)-140301.

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….……Defendants

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Advocates:

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Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Nitin Grover, Advocate for the applicant Defendants are ex parte

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2 OA NO.181-2025 UTKARSH SMALL FINANCE BANK LIMITED VS BHUPINDER SINGH AND ANOTHER

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.50,32,101.96p (Rupees Fifty Lacs Thirty Two Thousand One Hundred One & Ninety Six Paise Only) The Original Application has been filed through Sh. Ravinder Kumar Rathour, authorized Officer/Signatory o f the applicant, who is competent to institute the Original Application vide Copy of authority letter dated 11.01.2022, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of Housing Loan-I of Rs.25.00 Lacs & further for Housing Loan II of Rs.23.00 Lacs. 3. The applicant sanctioned the Housing Loan-I of Rs.25.00 Lacs & and further sanctioned Housing Loan II of Rs.23.00 Lacs vide Sanction letters dated 18.07.2023 & 29.10.2023, which are Annexures A2 & A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged their immovable properties i.e. i. all part and parcel of flat no.11, (measuring 1/3^rd share of 88.88 Sq. yards i.e. 29.62 Sq. yards and covered area 480 SQ. Ft.) situated at Property Tax No. B015-02810-36, Ground Floor, Near Rishi Gym, Randhawa Road, Village Kharar, Hadbast No.184, Tehsil Kharar District SAS Nagar Mohali Punjab vide Title deed dated 15.09.2023, which is Annexure A4 to this OA.

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ii. all part and parcel of flat no.10, (measuring 1/3^rd share of 88.88 Sq. yards i.e. 29.62 Sq. yards and covered area 480 SQ. Ft) situated at Property Tax No. B015-02810-33, Ground Floor, Near Rishi Gym, Randhawa Road Village Kharar, hadbast No.184, Tehsil Kharar District SAS Nagar Mohali Punjab vide Title deed dated 08.11.2023, which is Annexure A9 to this OA.

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3 OA NO.181-2025 UTKARSH SMALL FINANCE BANK LIMITED VS BHUPINDER SINGH AND ANOTHER

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Documents executed: - Loan agreement dated 28.07.2023, which are Annexures A3 & A8 to this OA; Declaration, Memorandum dated 21.09.2023 & 22.11.2023, which are Annexures A5, A6, A10 and A11 to this OA; Demand Notice dated 27.09.2024, which is Annexure A12 to this OA and Statements of Account with certified under the Banker’s Books Evidence, which are Annexures A13 & A14 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 both the loan accounts there was a debit Rs.50,32,101.96p, 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.

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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 05.06.2025.

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In support of the OA, affidavit of Sh. Ravinder Kumar Rathour, authorized Officer/Signatory, Utkarsh Small Finance Bank Limited, has been filed. 8. Ld. proxy counsel for applicant present has not advanced any arguments. Perused record

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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 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 applicant. The defendants failed to pay back the loan 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

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4 OA NO.181-2025 UTKARSH SMALL FINANCE BANK LIMITED VS BHUPINDER SINGH AND ANOTHER

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Rs.50,32,101.96p (Rupees Fifty Lacs Thirty Two Thousand One Hundred One & Ninety Six Paise Only) rest 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 elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.04%p.a. along with 2% penal interest in Housing Limit-I & interest @12.04%p.a. along with 2% penal interest in Housing Limit-II with monthly year rest from 06.01.2025 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 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 @8.00%p.a. in both the loan accounts 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.50,32,101.96p (Rupees Fifty Lacs Thirty Two Thousand One Hundred One & Ninety Six Paise Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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

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5 OA NO.181-2025 UTKARSH SMALL FINANCE BANK LIMITED VS BHUPINDER SINGH AND ANOTHER

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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 02.07.2025.

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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: 09.06.2025.

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

Utkarsh Small Finance Bank v. Sh. Bhupinder Singh and Another

Case brief

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Utkarsh Small Finance Bank v. Sh. Bhupinder Singh and Another

Case brief

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