The Debts Recovery Tribunal allowed the applicant Bank of India's Original Application for recovery of a defaulted loan of Rs. 29.63 lakhs upheld as a judgment debt without appearing respondents and fixed the interest rate at 8% per annum.
Recovery of Rs. 29,63,781.18p jointly and severally with costs and simple interest at 8% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.662/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.05.2025
DATE OF DECISION:09.07.2025
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.
……..Applicant
1. Late Smt. Shakuntla Devi W/o Sh. Hari Mohan R/o House No.227-C, Ranjit Nagar, Bhadson Road, District Patiala Punjab through defendant no. (i) known legal heir to the estate of deceased.
2. Sh. Rakesh Kumar S/o Sh. Sh. Hari Mohan R/o House No.227-C, Ranjit Nagar, Bhadson Road, District Patiala Punjab.
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Shrama, Advocate for the applicant Defendants are ex parte
FINAL ORDER
2 OA NO.662-2025
BANK OF INDIA VS LATE SMT. SAKUNTLA DEVI AND ANOTHER
manager, o f the applicant, who is competent to institute the Original Application vide Authority letter dated 21.06.2024, which is Annexure A1 to this OA.
ii. land measuring 2K-10M situated at Chlaila, District Patiala Punjab, District Patiala Punjab vide Declaration u/s 4(1) dated 26.03.2015, along with translations, and Letter to Sub Registrar for Creation of Charge, which are Annexures A16 & A17 to this OA. Documents executed: DP Note, Letter of Declaration, Deed of guarantee Agreement all dated 11.01.2008, which are Annexures A4 to A7 to this OA; DP Note, Letter of declaration undertaking, & authority, Hypothecation cum loan agreement, Deed of guarantee ,agreement all dated 27.03.2015, which are Annexures A11 to A15 to this OA; Death certificate, which is Annexure A18 to this OA; Acknowledgement of debt dated 11.11.2010, 16.08.2013, 15.09.2016, 03.02.2018, 14.02.2019 & 03.01.2022, which are Annexures A19 &
3 OA NO.662-2025 BANK OF INDIA VS LATE SMT. SAKUNTLA DEVI AND ANOTHER
A20 to this OA; Legal notice dated 22.04.2018 & 03.05.2025, which
are Annexures A21 & A22 to this OA and Statements of accounts
with certificate, which are Annexures A23 & A24 to this OA.
4 OA NO.662-2025
BANK OF INDIA VS LATE SMT. SAKUNTLA DEVI AND ANOTHER
severally, from the date of filing of the present Original Application till realization of the accounts.
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 legal heir of deceased defendant no.1 and defendant no.2 were are liable to pay to the applicant a total sum of Rs.29,63,781.18p (Rupees Twenty Nine Lacs Sixty Three Thousand Seven Hundred Eighty One & Eighteen 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 legal heir of deceased defendant no.1 and defendant no.2 were 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
5 OA NO.662-2025
BANK OF INDIA VS LATE SMT. SAKUNTLA DEVI AND ANOTHER
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount of Rs. 29,63,781.18p from the guarantors and legal heirs of the deceased borrower.
What uniform simple interest rate should be granted on the loan accounts from the date of filing the Original Application.
2 provisions across 2 enactments
Bank of India
Sh. Rakesh Kumar
Legal Heir of Late Smt. Shakuntla Devi
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
