Allowed

Indian Bank v. Sh. Resham Singh and Another

DRT25 Jul 2025OA/343/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application for recovery of Rs. 78,65,020/- from two defendants who failed to repay a KCC loan. The court exercised discretion and fixed interest at 8% p.a. instead of the claimed rate, authorizing recovery from mortgaged or personal assets.

What did the court decide?

Recovery of Rs.78,65,020/- with interest @08.00%p.a.; Recovery Certificate issued; Liberty to enforce via SARFAESI Act or sale of personal assets.

Indian Bank versus Sh. Resham Singh and Another — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.343/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.02.2022

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DATE OF DECISION: 25.07.2025

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Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its corporate office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a branch amongst at BRS Nagar, Ludhiana Punjab through is duly constituted Attorney Sh. Nepal Singh, Branch Manager.

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……..Applicant

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Versus

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Sh. Resham Singh S/o Sh. Kartar Singh R/o House No.28-D,

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7144/1, Sargodha Colony, Pakhowal Road, Ludhiana, Punjab.

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Sh. Gurjant Singh S/o Sh. Kartar Singh R/o House No.28-D,

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7144/1, Sargodha Colony, Pakhowal Road, Ludhiana, Punjab. Alternate address of both defendants:

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i. VPO Ghall Khurd, Tehsil and District Ferozepur.

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ii. Village Warha-Bhai Tehsil and District Ferozepur.

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.….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant

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Defendants already 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.78,65,020.00p (Rupees Seventy Eight Lacs Sixty Five Thousand Twenty only). The Original Application has been filed through Sh. Nepal Singh, Branch Manager, of the applicant, who is competent to institute the Original Application

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OA NO.343/2022 INDIAN BANK VS RESHAM SINGH AND ANOTHER

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vide Power of Attorney dated 29.01.2003, 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 grant of KCC Limit (Under Akshay Krishi) of Rs.40.00 Lacs (to be enhanced to Rs. 58,56,400.00 in the 5^th year) vide Loan Application dated 04.08.2014, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned KCC Limit (Under Akshay Krishi) of Rs.40.00 Lacs vide Sanction letter dated 29.08.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants vide acknowledgement letter dated 29.08.2014, which is Annexure A3A to this OA. 4. Defendant no.1 had mortgaged his immovable property i.e. total land measuring 21K-12M Situated at Village Warha Bhai, HB No. 189, Tehsil and District Ferozepur, Punjab vide Declaration u/s 4(1) dated 15.09.2014 & Letter to Sub Registrar for Creation of Charge, with its translations, which are Annexures A7, A7/T & A8, A8/T to this OA. Documents executed: Voter Id defendant no.1 in FILE 3, which is Annexure A4 to this OA; DP Note, Hypothecation agreement, Deed of Guarantee & Consent letters, all dated 22.09.2014, which are Annexures A4/A to A6 & A9 this OA; DP note dated 25.08.2017, which is Annexure A10 to this OA; Acknowledgement letter dated 26.11.2018, which is Annexures A11 to this OA Legal notice dated 31.01.2022, which is Annexure A12 to this OA; and Statement of account, which is Annexure A13 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.78,65,020.00p, 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.343/2022 INDIAN BANK VS RESHAM 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 23.07.2025.

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In support of the OA, affidavit of Sh. Nepal Singh, Branch Manager, Indian Bank, has been filed.

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Heard ex-parte 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 A13 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 bank. 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.78,65,020.00p (Rupees Seventy Eight Lacs Sixty Five Thousand Twenty only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.30%p.a. with yearly rests with 2%p.a. penal interest from 15.02.2022 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

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OA NO.343/2022 INDIAN BANK VS RESHAM SINGH AND ANOTHER

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just and appropriate to grant uniform simple interest @08.00%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. 11. In the result, the application is allowed declaring that the Rs.78,65,020.00p (Rupees Seventy Eight Lacs Sixty Five Thousand Twenty only) jointly and severally, with costs, current and future simple interest @08.00%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. 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 03.09.2025. 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: 25.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Resham Singh and Another

Case brief

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Indian Bank v. Sh. Resham Singh and Another

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