Allowed

Bank of India v. Sh. Gurdial singh and others

DRT28 Aug 2025OA/336/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank of India's application for recovery of Rs. 29,76,726.96 against three respondents. The Court affirmed liability, granted uniform interest at 8% p.a., and ordered the issuance of a Recovery Certificate under the SARFAESI Act.

What did the court decide?

Defendants ordered to pay Rs. 29,76,726.96 with costs and 8% p.a. interest. Recovery Certificate issued. Applicant entitled to sale of mortgaged properties.

Bank of India versus Sh. Gurdial singh and others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.336/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.03.2023

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DATE OF DECISION: 28.08.2025

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Bank of India, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and having its Zonal Office at Surya Kiran Complex, 1^st Floor, Phase II, the Mall, Near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its branch at Guru Nanak National College Complex, Old Grain Market, Doraha, Tehsil and District Ludhiana-141421, through its duly constituted attorney and Authorized Officer of the plaintiff bank Sh. Simar Preet Singh.

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……..Applicant Versus

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Sh. Gurdial Singh S/o Sh. Charan Singh R/o House no. 7, Village Krishanpur, Kum Khurd, Kum Kalan, Tehsil and District Ludhiana, Punjab.

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Sh. Harnek Singh S/o Sh. Gurdial Singh R/o House no. 7, Village Krishanpur, Kum Khurd, Kum Kalan, Tehsil and District Ludhiana, Punjab.

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Smt. Surjit Kaur W/o Sh. Piara Singh R/o Village Mehdoodan, Tehsil Samrala, District Ludhiana, Punjab.

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…….Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Mouhit K. Goel, 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.29,76,726.96 (Rupees Twenty Nine Lacs Seventy Six Thousand Seven Hundred Twenty Six and Ninety Six Paisa Only). The Original

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2 OA336/2023

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BANK OF INDIA VS SH. GURDIAL SINGH AND OTHERS

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Application has been filed through Sh. Simar Preet Singh, Chief Manager, o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.02.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs and Agriculture OD of Rs.5.00 Lacs dated 04.01.2008, which are Annexures A3 and A4 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs.10.00 Lacs and Agriculture OD Limit of Rs.5.00 Lacs dated 21.01.2008, which are Annexure A5 and A11 to this OA, and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 had mortgaged his immovable properties i.e. i) Land measuring 16K-0M situated at Village Krishanpura, Kum Khurd, Hadbast No. 199, Tehsil and District Ludhiana, Punjab vide Mortgage Deed bearing vasika no. 1289 dated 23.01.2008 along with its translations, which is Annexure A26 to this OA. ii) Land measuring 24K-0M situated at Village Krishanpura, Kum Khurd, Tehsil and District Ludhiana, Punjab vide Mortgage Deed bearing vasika no. 1290 dated 23.01.2008, along with its translations, which is Annexure A27 to this OA. Documents executed:- Legal opinion dated 17.01.2008, which is Annexure A1 to this OA; Demand Promissory note, Declaration by the Borrower, Hypothecation cum Loan Agreement, Deed of Guarantee all dated 29.01.2008, which are Annexures A6 to A10, A12 to A15 to this OA; Acknowledgement of debt/securities, dated 31.10.2009, 31.10.2010, 26.10.2012, 16.09.2013, 26.08.2016, 31.10.2018, 24.09.2021, which are Annexures A16 to A25 to this OA; Statement of Accounts, Memorandum of Interest with certified under Banker’s Book Evidence Act, dated 11.02.2025, which are Annexures A28 to A31 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit

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3 OA336/2023

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BANK OF INDIA VS SH. GURDIAL SINGH AND OTHERS

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of Rs.29,76,726.96, 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 05.08.2025.

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In support of the OA, affidavit of Sh. Simar Preet Singh, Chief Manager, Union Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A31 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 loans 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.29,76,726.96 (Rupees Twenty Nine Lacs Seventy Six Thousand Seven Hundred Twenty Six and Ninety Six Paisa Only) along with interest 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 of KCC Limit @14.60% p.a. and in Agri. Loan @14.10%p.a. from 06.03.2023 till the realization. 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

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4 OA336/2023

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BANK OF INDIA VS SH. GURDIAL SINGH AND OTHERS

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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 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.29,76,726.96 (Rupees Twenty Nine Lacs Seventy Six Thousand Seven Hundred Twenty Six and Ninety Six Paisa Only) jointly and severally, with costs, current and future simple interest @08.00%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 24.09.2025. 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: 28.08.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Gurdial singh and others

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Bank of India v. Sh. Gurdial singh and others

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