Allowed

Indian Bank v. Sh. Gurcharan Singh and Others

DRT26 Jun 2025OA/235/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's recovery application ex parte. The Tribunal declared respondents liable to pay the outstanding principal, adjusted costs, and simple interest at 8% per annum, permitting recovery via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued directing payment of Rs. 31,60,276 plus costs and interest at 8% p.a., with liberty to recover via sale of mortgaged properties or attachment of personal assets.

Indian Bank versus Sh. Gurcharan Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.235/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2025

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DATE OF DECISION: 26.06.2025.

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Indian Bank, a body corporate constituted under the banking companies (Acquisition & Transfer of Undertakings) 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

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Versus

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1. Sh. Gurcharan Singh S/o Sh. Ujjagar Singh R/o Village and Post office Nawan Pind Donewal, Tehsil Shahkot, District Jalandhar.

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Sh. Jagtar Singh S/o Sh. Ujjagar Singh R/o Village and Post office Nawan Pind Donewal, Tehsil Shahkot, District Jalandhar.

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Sh. Baldev Singh S/o Sh. Ujjagar Singh R/o Village and Post office Nawan Pind Donewal, Tehsil Shahkot, District Jalandhar.

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….……Defendants

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Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Ms. Manjari Joshi, 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.31,60,276.00p (Rupees Thirty One Lacs Sixty Thousand Two Hundred Seventy Six 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.

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2 OA NO.235-2025 INDIAN BANK VS GURCHARAN SINGH AND OTHERS

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Application for loan dated 23.04.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 24.05.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. total land measuring 28k-04M detailed as: a. land measuring 4k-18M situated at Village Toorna, Hadbast No.188, Tehsil Shahkot, District Kapurthala, Punjab b. land measuring 10k-10M situated at Village Nawan Pind Donewal, Hadbast No.189, Tehsil Shahkot, District Kapurthala, Punjab c. l and measuring 12k-16M situated at Village Pandori Rajputana, Hadbast No.102, Tehsil Shahkot, District Kapurthala, Punjab vide Registered Mortgaged Deed bearing vasika no.210 dated 29.05.2014 and Jamabandi for the year 2015-2016 with their translations, which are Annexures A7 & A8 to this OA. Documents executed: Acknowledgement of sanction dated 25.05.2014, which is Annexure A4 to this OA; D.P. Note, which is Annexure A5 to this OA; Hypothecation agreement dated 30.05.2014, which is Annexure A6 to this OA; Letter of acknowledgement of debts dated 26.11.2018, which is Annexure A9 to this OA; Revival letter dated 27.03.2019, which is Annexure A10 to this OA; Recall notice dated 30.05.2024, which is Annexure A11 and Statement of account with certificate, 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.31,60,276.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA NO.235-2025 INDIAN BANK VS GURCHARAN SINGH AND OTHERS

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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 24.06.2025.

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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 arguments and perused record.

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It was argued by learned proxy 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 defendants approached applicant for availing of the loan facility which was 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, 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.31,60,276.00p (Rupees Thirty One Lacs Sixty Thousand Two Hundred Seventy Six only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @11.95%p.a. along with penal interest @2.00%p.a. with half yearly rests from 05.02.2025 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

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4 OA NO.235-2025 INDIAN BANK VS GURCHARAN SINGH AND OTHERS

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%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.31,60,276.00p (Rupees Thirty One Lacs Sixty Thousand Two Hundred Seventy Six only) jointly and severally, with costs, current and future simple interest @8.00%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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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 16.07.2025.

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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: 26.06.2025.

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

Indian Bank v. Sh. Gurcharan Singh and Others

Case brief

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Indian Bank v. Sh. Gurcharan Singh and Others

Case brief

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