The DRT allowed an application filed by Indian Overseas Bank against two borrowers. The court decreed recovery of the principal amount of Rs.25,74,084.76 with simple interest at 8% per annum. A Recovery Certificate was issued.
Decree for recovery of Rs.25,74,084.76 with simple interest at 8% p.a. Issued Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.263/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 03.10.2023
DATE OF DECISION: 06.06.2025
Indian Overseas Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central Office at 762, Anna Salai, CHENNAI-600002 & amongst other places a branch office at Raikot, Tehsil & Dist. Ludhiana, through its duly constituted Attorney Sh. Gaurav Biwal, Branch Manager, Indian Overseas bank, Raikot Branch, Distt. Ludhiana.
……..Applicant
Versus
1. Sh. Gurmail Singh S/o Sh. Surjit Singh R/o Village Chhiniwal Kalan, Tehsil & Distt. Barnala.
2. Sh. Bant Singh S/o Sh. Bachan Singh R/o Village Chhiniwal Kalan, Tehsil & Distt. Barnala.
….……Defendants
Advocates:
Argued by, Sh. Rajan Arora, Advocate for Applicant (through VC) Defendants are ex parte
FINAL ORDER
2 OA NO.263-2024
INDIAN OVERSEAS BANK VS GURMAIL SINGH AND ANOTHER
Documents executed: -Guarantee statement, Guarantee for cash credit, Letter of hypothecation, Demand Promissory note, Demand promissory note delivery letter all dated 15.03.2013, which are Annexures A3 & A4, A7 to A9 to this OA; Legal notice sent by bank dated 27.04.2023, which are Annexures A11 to A13 to this OA; Certified copy of statement of account along with certificate under 65B of Indian Evidence act, which are Annexures A14 & A15 to this OA and Revival Letter dated 10.03.2016, which is Annexure A16 to this OA.
3 OA NO.263-2024
INDIAN OVERSEAS BANK VS GURMAIL SINGH AND ANOTHER
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 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.
4
OA NO.263-2024
INDIAN OVERSEAS BANK VS GURMAIL SINGH AND ANOTHER
Rs.25,74,084.76p(Rupees Twenty Five Lacs Seventy Four Thousand Eighty Four & Seventy Six Paise 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.
Pronounced by me in the open Tribunal .
Dated: 06.06.2025.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the bank was entitled to declare the loan account as NPA and initiate recovery proceedings under Section 19 of the RDBFI Act.
Whether the defendants were liable to pay the outstanding principal amount of Rs.25,74,084.76 with interest.
3 provisions across 3 enactments
Indian Overseas Bank
Sh. Gurmail Singh
Sh. Bant Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
