Allowed

Indian Overseas Bank v. Sh. Baldev Singh Arora (Now Deceased)

DRT26 Aug 2025OA/347/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of RA against the deceased defendant's legal heir. The court found the loan advanced and dues due, directing issuance of a recovery certificate and distribution of sale proceeds under Section 19(20-AB) of the Act.

What did the court decide?

Recovery of Rs. 23,37,451/- with interest @10.65% p.a. from legal heirs; Liability limited to inherited property.

Indian Overseas Bank versus Sh. Baldev Singh Arora (Now… — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 347/2022 Date of Institution: 10.12.2021 Date of Decision:26.08.2025

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Indian Overseas Bank at SCO 58/2, Kesho Ram Complex, Burail, Sector 45C, Chandigarh

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……..Applicant Vs.

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Sh. Baldev Singh Arora (Now Deceased), s/o Sh. Ranjit Singh Arora, Proprietor Harnam Singh Ji Textile, r/o House No. C-42, Near Mata Raj Kaur, Gurudwara, Village Kumbra, Sector 68, Mohali, Punjab, through his LR Smt. Navjot Kaur w/o Late Sh. Baldev Singh Arora

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Advocates

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Sh. R.K. Grewal, Counsel for the applicant bank. Defendant- ex parte .

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OA for the Recovery of Rs.23,37,451/- with interest @10.65% per annum with half yearly rests from 10.12.2021.

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ORDER

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Indian Overseas Bank (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.23,37,451/- with interest against Sh. Baldev Singh Arora through his LR.

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Bank’s case is that on 20.10.2018, it had granted a loan of Rs.15.00 Lacs in the form of CC-PUB and on 20.08.2018, it had granted Rs.5.00 Lacs in the form of Term Loan to the defendant for business purpose which were reviewed on 13.05.2020. The loan were chargeable to interest @10.35% per annum with half yearly rests and Term loan was chargeable to interest @10.25% per annum with half yearly rests. On 30.11.2021, a sum of Rs.23,37,451/- was due from the defendant.

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Despite repeated requests, defendant did not make the repayment. Hence, this application.
3. Sh. Baldev Singh Arora had died and his LR has been impleaded. On 16.09.2022, summons was sent to the defendant by registered post, which was duly served. However, defendant did not put in appearance. Vide order dated 07.05.2024, defendant was proceeded_ex parte_.
4. In order to prove its case, the Bank has placed on record the affidavit of Sh. B. Hima Bindu, Branch Manager along with the loan and security documents and marked them as, A-1 to A-16.
5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.20.00 Lacs and on 30.11.2021, a sum of Rs.23,37,451/- was due.
6. Accordingly, the application of the bank for the recovery of
Rs.23,37,451/- (Rupees Twenty Three Lakh Thirty Seven Thousand Four Hundred and Fifty One Only) with interest @10.65% per annum with half yearly rests from 10.12.2021, till the date of payment is hereby allowed with costs. The LR of deceased defendant Sh. Baldev Singh Arora would be liable to pay the dues to the extent of property inherited by them from deceased defendant Sh. Baldev Singh Arora.
7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on
03.10.2025, who is directed to distribute the sale as per the provisions of Section 19(20-AB) of the Act.
10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.
Pronounced in the open Court. (A S Narang) Dated:26.08.2025 Presiding Officer DRT-2, Chandigarh (Additional charge)

Indian Overseas Bank v. Sh. Baldev Singh Arora (Now Deceased)

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Sh. Baldev Singh Arora (Now Deceased)

Case brief

What is this about?

What did the court decide?

What the court decided

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