Allowed

Bank of India v. Late Sh. Gurdev Singh and Others

DRT22 Jul 2025OA/504/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues. The court decreed a total sum payable with costs and capped interest at 8% per annum, ordering recovery from mortgaged or personal assets.

What did the court decide?

Decree for total sum of Rs.26,28,242.05 with costs and 8% p.a. interest; order for recovery via mortgage sale or attachment of personal assets.

Bank of India versus Late Sh. Gurdev Singh and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.504/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 13.04.2025

¶5

DATE OF DECISION: 22.07.2025

¶6

Bank of India, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act no. V of 1970 having its Head office at Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai and branch offices amongst other places at Village Kila Raipur, District Ludhiana through Sh. Bal Krishan, Branch Manager, Authorized by applicant.

¶7

……..Applicant

¶8

Late Sh. Gurdev Singh S/o Sh. Dhanna Singh R/o Village Jassar, District Ludhiana, through defendant no.1(i), known legal heir to the estate of deceased

¶9

i. Late Sh. Manjit Singh S/o Sh. Gurdev Singh Legal heir to the estate of Late Sh. Gurdev Singh, R/o House No.3, Village Jassar, District Ludhiana.

¶10

Late Sh. Manjit Singh S/o Sh. Gurdev Singh, Legal heir to the estate of Late Sh. Gurdev Singh, R/o House No.3, Village Jassar, District Ludhiana through defendant no. (i & ii) known legal heir to the estate of deceased

¶11

i. Smt. Sukhjit Kaur W/o Late Sh. Manjit Singh, Legal heir to estate of Late Sh. Manjit Singh, R/o Village Jassar, District Ludhiana.

¶12

ii. Sh. Puneet Singh S/o Late Sh. Manjit Singh, Legal heir to estate Of Late Sh. Manjit Singh, R/o Village Jassar, District Ludhiana.

¶13

Sh. Baldev Singh S/o Sh. Kapoor Singh R/o Village Jassar, District Ludhiana.

¶14

….……Defendants

¶15

2 OA/504/2025 BANK OF INDIA V/S LATE SH. GURDEV SINGH AND OTHERS

¶16

Advocates:

¶17

Argued by, Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant (through VC) Defendants already ex parte

¶18

FINAL ORDER

¶19

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.26,28,242.05p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Forty Two & Five Paise only). The Original Application has been filed through Sh. Bal Krishan, Branch Manager, of the applicant, who is competent to institute the Original Application vide Authority letter dated 21.06.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the deceased defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.4.00 Lacs & AGOD Limit under Mortgage Loan Scheme of Rs.5.00 Lacs (Total facilities of Rs.9.00Lacs) vide Loan applications dated 16.01.2008, which are Annexures A2 & A10 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.4.00 Lacs & AGOD Limit of Rs.5.00 Lacs (Total facilities of Rs.9.00 Lacs) vide Sanction letters dated 07.02.2008, which are Annexures A3 & A11 to this OA and the terms and conditions were duly accepted by the defendants. 4. Deceased Defendant no.1 had mortgaged his immovable properties i.e. (i) Land measuring 16K-16M situated at Village Jassar, Hadbast No.255, Tehsil and District Ludhiana Punjab vide registered mortgaged deed bearing vasika no.1796 dated 01.02.2008, along with its translation, which is Annexure A9 & A9/T to this OA. ii. Land measuring 16K-08M situated at Village Jassar, Hadbast No.255, Tehsil and District Ludhiana Punjab vide registered mortgaged

¶20

3 OA/504/2025 BANK OF INDIA V/S LATE SH. GURDEV SINGH AND OTHERS

¶21

deed bearing vasika no.1797 dated 01.02.2008, along with its translation which is Annexure A16& A16-T to this OA.

¶22

Documents executed: -DP Note, Hypothecation cum Loan Agreement, Deed of Guarantee, Letter of declaration Undertaking & Authority letters, Agreement all dated 07.02.2008, which are Annexures A4 to A8 & A12 to A15 to this OA; Death certificate dated 15.03.2019 of Defendant no. 1, which is Annexure A17 to this OA; Acknowledgement of debts dated 04.01.2011, 15.12.2013, 02.01.2014, 09.12.2016, 28.08.2019 & 12.08.2022, which are Annexures A18 to A23 to this OA; Legal notice dated 28.07.2023, which is Annexure A24 to this OA and Statement of accounts, which are Annexure A25 & A26 to this OA.

¶23

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.26,28,242.05p, 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.

¶24

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 18.07.2025.

¶25

In support of the OA, affidavit of Sh. Bal Krishan, Branch Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

¶26

It was argued by learned Proxy 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 A26 to this OA, it is proved that the deceased defendant nos. 1 & 2 and defendant no. 3 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 applicant. The defendants failed to pay back the loan as

¶27

4 OA/504/2025 BANK OF INDIA V/S LATE SH. GURDEV SINGH AND OTHERS

¶28

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.26,28,242.05p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Forty Two & Five Paise only) along with interest from the defendants, from the date of filing other 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 @12.01%p.a. in KCC & interest @13.05%p.a. in OD Facility along with 2% p.a. penal interest with half yearly rests from 01.04.2025 till the realization.

¶29

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 just and appropriate to grant uniform simple interest @8.00%p.a. in 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.26,28,242.05p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Forty Two & Five Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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

¶30

¶31

OA/504/2025 BANK OF INDIA V/S LATE SH. GURDEV SINGH AND OTHERS

¶32

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 27.08.2025. 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: 22.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Late Sh. Gurdev Singh and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. Late Sh. Gurdev Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab Gramin Bank versus Sh. Vir Singh Since Deceased through Lrs

Icici Bank Limited versus Sh. Anil Kumar Khatana and Another

Indian Overseas Bank versus Sh. Gurbachan Singh and Another

Canara Bank versus Sh. Deepak Kumar and Another

Jagdeep Singh and Another versus Tata Capital Finance Ltd.

Anita Marwaha and Another versus Tata Capital Housing Finance Limited