Allowed

Bank of India v. Malkit Singh and Others

DRT9 Jul 2025OA/660/2025

Case brief

AI extract

What is this about?

The Resolution Officer allowed the Original Application filed by Bank of India against three defendants for recovery of Rs. 30.13 lakhs. The court distinguished the claimed interest rates and ordered a uniform simple interest rate of 8% p.a. from the date of filing till realization.

What did the court decide?

Recovery Certificate issued for Rs. 30,13,469.03 with simple interest at 8% p.a. from filing date till realization.

Bank of India versus Malkit Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.660/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.05.2025

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DATE OF DECISION: 09.07.2025

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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, Block G, Bandra Kurla Complex, Bandra (East) Mumbai -400051 and Branch Office amongst other places at New Patiala Area, District Patiala through Sh. Ashutosh Ahirwar, Branch Manager Authorized by Applicant.

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……..Applicant

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Versus

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1. Sh. Malkit Singh S/o Sh. Ajmer Singh R/o Village Rohit Mouran, Tehsil Nabha, District Patiala, Punjab.

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2. Sh. Nardeep Singh S/o Sh. Ajmer Singh R/o Village Rohit Mouran, Tehsil Nabha, District Patiala, Punjab.

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3. Sh. Swaran Singh S/o Sh. Jora Singh R/o Village Taroura Kalan, P.O. Gajjumajra, Tehsil & District Patiala, Punjab

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Shrama, Advocate for the applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,13,469.03p (Rupees Thirty Lacs Thirteen Thousand Four Hundred Sixty Nine & Three Paise only). The Original Application has been filed through Sh. Ashutosh Ahirwar, 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.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.8.00 Lacs & OD Limit of Rs.8.00Lacs (Total Rs.16.00Lacs) vide Loan applications

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2 OA NO.660-2025 BANK OF INDIA VS MALKIT SINGH AND OTHERS

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dated 27.06.2016 & 16.06.2016, which are Annexures A2 & A8 to this OA.

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The applicant sanctioned the KCC Limit of Rs.8.00 Lacs & OD Limit of Rs.8.00Lacs (Total Rs.16.00Lacs) vide Sanction letter dated 28.06.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 20Bigha-0Biswa situated at Rohti Mouran, Hadbast No.176, Tehsil Nabha District Patiala Punjab vide Declaration u/s 4(1) dated 27.06.2016, along with translations and Letter to Sub Registrar for Creation of charge, which are Annexures A11, A12 and A12T to this OA.

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Documents executed: DP Notes, Letters of Declaration, Agreements, Deeds of Guarantee all dated 08.07.2016, which are Annexures A4 to A7, A9 and A10 to this OA; Acknowledgement of debt dated 14.05.2018, 03.12.2020 & 01.12.2023, which is Annexure A13 to this OA; Recall notice dated 19.05.2023, which is Annexure A14 to this OA; Legal notice dated 11.09.2024 & 03.05.2025, which are Annexures A15 & A15/A to this OA and Statements of accounts with certificate, which are Annexures A16 & A17 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.30,13,469.03p, 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. 6. 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 07.07.2025. 7. In support of the OA, affidavit of Naresh Kumar, Branch Manager, Bank of India, h as been filed. 8. Heard arguments and perused record.

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3 OA NO.660-2025 BANK OF INDIA VS MALKIT SINGH AND OTHERS

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It was argued by learned proxy 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 defendants approached applicant for availing of the loan facilities which were 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 per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,13,469.03p (Rupees Thirty Lacs Thirteen Thousand Four Hundred Sixty Nine & Three Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @13.00%p.a. in KCC Limit and interest @12.70%p.a. with half yearly rests along with penal interest @2.00%p.a. from 26.04.2025 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 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 both 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

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4 OA NO.660-2025 BANK OF INDIA VS MALKIT SINGH AND OTHERS

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Rs.30,13,469.03p (Rupees Thirty Lacs Thirteen Thousand Four Hundred Sixty Nine & Three Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 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.

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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 29.07.2025. 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: 09.07.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Malkit Singh and Others

Case brief

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Bank of India v. Malkit Singh and Others

Case brief

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