Allowed

Indusind Bank Limited v. Sh. Jagpal Singh and Another

DRT22 Oct 2025OA/8/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh, allowed an ex-parte application filed by Indusind Bank Ltd. for recovery of outstanding dues of approximately Rs. 49.60 Lakhs principal along with interest from two respondents who had failed to repay an agricultural loan and it's associated mortgage.

What did the court decide?

Declaration of liability to pay Rs.49,60,957.75 with interest at 8% p.a. and costs; Recovery Certificate issued; Liberate to enforce claim via property sale under SARFAESI Act.

Indusind Bank Limited versus Sh. Jagpal Singh and… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.8/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.12.2024

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DATE OF DECISION: 22.10.2025

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Indusind Bank Ltd., a body corporate and a scheduled Bank constituted under the provisions of the Companies Act, 1956 with its Registered Office at 2401, Gen. Thimmayya Road, Cantonment, Pune – 411001 and amongst others its Branch at Indusind Bank, Branch Jagraon, Distt. Ludhiana, Punjab through its Legal Manager & Attorney Holder Sh. Lokesh Singla S/o Sh. Parveen Singla, presently posted at Indusind Bank Ltd., SCO 396, Sector 20, Panchkula.

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……..Applicant

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Versus

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Sh. Jagpal Singh S/o Sh. Pirthi Singh R/o Post Office Karahe Wala, Bal, Kot Ise Khan, Firozpur, Punjab-142043.

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Smt. Jaspreet Kaur W/o Sh. Jagpal Singh R/o Post Office Karahe Wala, Bal, Kot Ise Khan, Firozpur, Punjab-142043.

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…..….Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.49,60,957.75p (Rupees Forty Nine Lacs Sixty Thousand Nine Hundred Fifty Seven And Paise Seventy Five Only). The Original Application has been filed through Sh. Lokesh Singla, Legal Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.08.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of Agri. CC Limit of Rs. 30.00 Lacs and Agri Term Loan of Rs. 3.00 Lacs vide Loan Application Form

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OA NO. 8/2025 INDUSIND BANK LTD. VS SH. JAGPAL SINGH AND ANOTHER

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dated 15.06.2016, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the Agri. CC Limit of Rs. 30.00 Lacs and Agri Term Loan of Rs. 3.00 Lacs vide Sanction Letter dated 29.07.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. Land measuring 85K-07M detailed as under: - (i) Land measuring 46K-15M situated at Village Bal, Habast no. 109 Sub Tehsil Makhu, Tehsil Zira, District Ferozepur, Punjab (ii) Land measuring 13K-06M situated at Village Jhanda Bagha Nawan, Hadbast no. 108, Sub Tehsil Makhu, Tehsil Zira District Ferozepur, Punjab.

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(iii) Land measuring 25K-06M at Village Bal, Habast no. 109 Sub Tehsil Makhu, Tehsil Zira, District Ferozepur, Punjab vide Declaration U/s 4(1) dated 08.08.2016 and 03.10.2016, which are Annexures A8 and A9 to this OA. Documents executed:- D.P. Note, D.P. Note cum Waiver Letter, Loan cum hypothecation Agreement and Deed of Guarantee, all dated 29.07.2016, which are Annexures A4 to A7 to this OA; Acknowledgment of Debt dated 06.08.2020, which is Annexure A10 to this OA; Recall Notices dated 05.01.2023 and 27.12.2022, which are Annexures A11 & A12 to this OA; Statement of Accounts which are Annexures A13 & A14 to this OA; Closure balance of CC Term Loan which are Annexures A15 & A16 to this OA and Certificate dated 23.12.2024, which is Annexure A17 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.49,60,957.75p 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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OA NO. 8/2025 INDUSIND BANK LTD. VS SH. JAGPAL SINGH AND ANOTHER

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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 14.10.2025. 7. In support of the OA, affidavit of Sh. Lokesh Singla, Legal Manager, Indusind Bank Limited h as 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 A17 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 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 Rs.49,60,957.75p (Rupees Forty Nine Lacs Sixty Thousand Nine Hundred Fifty Seven And Paise Seventy Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all 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 @14.15%p.a. plus 18%p.a. penal interest with half yearly rests in both loan accounts from 04.05.2024 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, undertaking of the defendants, quantum of loans 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

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OA NO. 8/2025 INDUSIND BANK LTD. VS SH. JAGPAL SINGH AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.49,60,957.75p (Rupees Forty Nine Lacs Sixty Thousand Nine Hundred Fifty Seven And Paise Seventy Five 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 attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process 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 Tribunal on 01.11.2025. 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: 22.10.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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OA NO. 8/2025 INDUSIND BANK LTD. VS SH. JAGPAL SINGH AND ANOTHER

Indusind Bank Limited v. Sh. Jagpal Singh and Another

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Indusind Bank Limited v. Sh. Jagpal Singh and Another

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