Allowed

Union Bank of India v. Sh. Bhim Singh

DRT31 Oct 2025OA/366/2025

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application by Union Bank of India to recover an agricultural term loan of Rs. 20,23,676.10 from a defaulting borrower. The Tribunal granted a recovery certificate and modified the future interest rate to 8%. It directed attachment and sale of hypothecated assets if dues remain unsatisfied.

What did the court decide?

Recovery certificate issued for Rs. 20,23,676.10 with interest at 8% p.a.; attachment and sale of hypocated or personal assets directed for recovery.

Union Bank of India versus Sh. Bhim Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.366/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.03.2025

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DATE OF DECISION: 31.10.2025

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Union Bank of India a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office Union Bank at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai having its Regional Office at UT Chandigarh and its Branch at Nabha Main Branch, Balraj Complex, Near Bora Gate, Patiala Road, Nabha, District Patiala, Punjab through its Chief Manager Sh. Saurabh Kumar Kannaujia, who is constituted Power of Attorney and Principal Officer.

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……..Applicant Versus

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Sh. Bhim Singh S/o Sh. Kulwant Singh R/o Village Delewal Channo, Tehsil Bhawanigarh, District Sangrur, Punjab-148026.

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…….Defendant

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for the applicant Defendant is 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 defendant for recovery of Rs.20,23,676.10p (Rupees Twenty Lacs Twenty Three Thousand Six Hundred Seventy Six and Paise Ten Only). The Original Application has been filed through Sh. Saurabh Kumar Kannaujia, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 25.10.2014, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for grant of Term Loan of Rs.20.25 Lacs for purchase of Combine Harvester vide Application Form for Agricultural Credit dated 19.06.2023, which is Annexure A2 to this OA.

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OA NO. 366/2025 UNION BANK OF INDIA VS SH. BHIM SINGH

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The applicant sanctioned Term Loan of Rs.20.25 Lacs for purchase of Combine Harvester vide Letter of Sanction-cum-Process note dated 22.06.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had hypothecated his movable asset i.e.Cobine Harvester Make: Shaktiman Agro Industries, Model AS930 bearing temporary registration no. PB11TC0561 and Registration No. PB13BR2604, Engine No. LPCN02395 and Chasis No. SAI930L002289 vide Hypothecation agreement (for agricultural advances) and hypothecation (vehicles) agreements dated 23.06.2023 , which are Annexures A4 & A5 to this OA; Quotation dated 08.05.2023, Tax Invoice dated 29.06.2023, Delivery Challan dated 29.06.2023, E-way bill dated 29.06.2023, Temporary registration certificate dated 29.06.2023, Sale Certificate (Form-21) dated 29.06.2023 and Form-22 (Road worthiness certificate) dated 29.06.2023, which are Annexure A14(Colly) to this OA. Documents executed:- Letter of General Lien and set off (AD-02A), Letter of undertaking form the borrower, Declaration/undertaking (AD01) for Agricultural advances, Letter of continuity (AD-09), Simple Loan Agreement (for Agricultural Adv.)(SD-13), Term Loan Agreement(Hypothecation of Moveable) (SD-19), D.P. Note (MCLR Linked) and Annexure-I Format of Letter Obtained from Borrower, all dated 23.06.2023, which are Annexures A6 to A13 to this OA; Recall Notice/Letter dated 31.08.2024, Legal notices dated 23.10.2024 and 04.02.2025, along with Postal Receipts, which are Annexure A15(Colly) to this OA; Notice dated 17.02.2025 under section 13(2) of SARFAESI Act, which is Annexure A16 to this OA and Statement of Account with certificate under Banker Books Evidence Act, 1891 which is Annexure A17(Colly) to this OA.

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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.20,23,676.10p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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OA NO. 366/2025 UNION BANK OF INDIA VS SH. BHIM SINGH

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.09.2025.

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In support of the OA, affidavit of Sh. Saurabh Kumar Kannaujia, Chief Manager, Union Bank of India h as been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned 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 A17 to this OA, it is proved that the defendant had approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,23,676.10p (Rupees Twenty Lacs Twenty Three Thousand Six Hundred Seventy Six and Paise Ten Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @09.00%p.a. with monthly rests from 04.03.2025 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/hypothecated assets, undertaking of the defendant, 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

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OA NO. 366/2025 UNION BANK OF INDIA VS SH. BHIM SINGH

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Tribunal deems it 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.20,23,676.10p (Rupees Twenty Lacs Twenty Three Thousand Six Hundred Seventy Six and Paise Ten Only) 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 vehicle of the defendant 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 defendant. 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 11.11.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 31.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Bhim Singh

Case brief

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Union Bank of India v. Sh. Bhim Singh

Case brief

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