The DRT allowed the bank's application for recovery of Rs. 25.39 lakhs from a defaulting borrower who had taken a term loan for a combine harvester. The court reduced the future interest rate to a uniform 8% p.a.
Defendant directed to pay Rs. 25,39,108.50 with costs and simple interest at 8% p.a.; Recovery Certificate issued.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.379/2025
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 20.03.2025
DATE OF DECISION: 25.09.2025
Union Bank of India a body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at 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.
……..Applicant
Versus
Sh. Kaur Singh S/O Sh. Subha Singh, R/o Village Samundgarh, Tehsil Dhuri, District Sangrur (Punjab)- 148018.
….……Defendant
Advocates:
Argued by Sh. Banni Thomas, counsel for the applicant Defendant already ex-parte
FINAL ORDER
2 OA/379/2025 UNION BANK OF INDIA V/S SH. KAUR SINGH
new combine harvester machine vide Loan application dated
02.12.2023, which is Annexure A2 to this OA.
Documents executed:- Letter of General Lien and Set Off, Letter of Undertaking, Interest Agreement (MCLR), Declaration/ Undertaking, Letter of Continuity, Simple Loan Agreement, Term Loan Agreement (Hypothecation of Movables), Demand Promissory Note, all dated 02.12.2023, which are Annexure A6 to A13 to this OA; Annexure-I format of Letter to be obtained from borrower, which is Annexure A14 to this OA; Recall Notice/Letter dated 31.08.2024, which is Annexure A17 to this OA; Legal Notices dated 23.10.2024 and 04.02.2025, along with Registered Postal Receipts, which are Annexure A18 (Colly) to this OA; Notice dated 17.02.2025 under Section 13(2) of SARFAESI Act, which is Annexure A19 to this OA; Statement of Account with Certificate under Banker’s Book Evidence Act, which is Annexure A20 to this OA.
3 OA/379/2025 UNION BANK OF INDIA V/S SH. KAUR SINGH
therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 28.07.2025. 7. 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. 9. It was argued by learned counsel through video conferencing 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 A20 to this OA, it is proved that the defendant 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.25,39,108.50p (Rupees Twenty Five Lakh Thirty Nine Thousand One Hundred Eight & Fifty Paisa Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. with monthly rest along with penal interest from 11.03.2025 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
4 OA/379/2025 UNION BANK OF INDIA V/S SH. KAUR SINGH
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.
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 17.10.2025. 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: 25.09.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendant is liable to recover the outstanding loan amount including interest as claimed by the bank.
What rate of future interest should be granted by the Tribunal in the interest of justice.
2 provisions across 2 enactments
Union Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
2 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
