Allowed

Indian Bank v. Sh. Jarnail Singh

DRT2 Jul 2025OA/652/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Indian Bank for recovery of Rs. 39,91,748.30 from the individual borrower. The court reduced the claimed interest rate from 14% to 8% per annum and ordered the issuance of a Recovery Certificate. Alternative modes of recovery via attachment and sale of assets were retained.

What did the court decide?

Recovery of Rs. 39,91,748.00 with costs and simple interest @08.00%p.a. from date of filing OA, order to issue Recovery Certificate.

Indian Bank versus Sh. Jarnail Singh — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.652/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.05.2025

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DATE OF DECISION: 02.07.2025

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai, having its Zonal Office at Jalandhar and amongst other places a branch at Sultanpur Lodhi District Kapurthala, Punjab through its Authorized Officer, Mrs. Ashu Bansal, Manager, Indian Bank, Sultanpur Lodhi, Kapurthala, Punjab.

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……..Applicant Versus Sh. Jarnail Singh S/o Sh. Joginder Singh R/o VPO Nawan Pind, Donewal, Tehsil Shahkot, District Jalandhar, Punjab, 144701.

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……. Defendant

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Advocates:

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Argued by Ms. Manjari Joshi, Advocate for the applicant Defendant is ex-parte

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FINAL ORDER 1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.39,91,748.00 (Rupees Thirty Nine Lacs Ninety One Thousand Seven Hundred Fourty Eight Only). The Original Application has been filed through Mrs. Ashu Bansal, Manager of the applicant, who is competent to institute the Original Application vide Letter of Authorization dated 04.12.2023, 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 KCC Limit of Rs. 25.00 Lacs vide Application for Loan, dated 17.01.2014, which is Annexure A2 to this OA.

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2 OA NO.652-2025 INDIAN BANK VS JARNAIL SINGH

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs Sanction Letter dated 12.02.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 25K-10M detailed as: a. Land measuring 14K-1M situated Village Toorna, Hadbast No.188, Tehsil Shahkot, District Jalandhar, Punjab b. L and measuring 11K-9M situated Village Sidarh, Hadbast No.247, Tehsil Shahkot, District Jalandhar, Punjab vide Mortgage Deed bearing v asika No.1275 dated 12.02.2014 along with its translation, which is Annexure A8 to this OA. Documents executed:- Acknowledgment of sanction letter dated 12.02.2014, which is Annexure A4 to this OA; D.P. Note, Hypothecation Agreement and Consent Clause dated 06.03.2014, which are Annexures A5 to A7 to this OA; Jamabandi which is Annexure A9 to this OA; Letter of acknowledgment of debt dated 25.10.2018 and 07.02.2024, which is Annexure A10 to this OA; Legal Notice dated 03.08.2024, which is Annexure A11 to this OA and Statement of Account with certificate, which is Annexure A12 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.39,91,748.00 which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, 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 30.06.2025.

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3 OA NO.652-2025 INDIAN BANK VS JARNAIL SINGH

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In support of the OA, affidavit of Mrs. Ashu Bansal, Manager, Indian Bank h as been filed.

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Heard 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 A12 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.39,91,748.00 (Rupees Thirty Nine Lacs Ninety One Thousand Seven Hundred Fourty Eight Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.00%p.a. with yearly rests from 25.04.2025 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 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 Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in

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4 OA NO.652-2025

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INDIAN BANK VS JARNAIL SINGH

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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.39,91,748.00 (Rupees Thirty Nine Lacs Ninety One Thousand Seven Hundred Fourty Eight 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 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 02.07.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Indian Bank v. Sh. Jarnail Singh

Case brief

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Indian Bank v. Sh. Jarnail Singh

Case brief

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