Allowed

Bank of India v. Sh. Avtar Singh and Others

DRT12 Sept 2025OA/826/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Bank of India against borrowers and guarantors for recovery of a loan of Rs.33 Lakh. The Tribunal declared the defendants liable to pay the amount along with interest. A Recovery Certificate was issued, and execution against mortgaged and personal assets was directed under the SARFAESI Act.

What did the court decide?

Recovery of Rs.33,04,794.92p with interest @8% p.a.; Recovery Certificate issued; Execution proceedings allowed against mortgaged and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.826/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.06.2025

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DATE OF DECISION: 12.09.2025

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) 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 Payal, District Ludhiana through Sh. Akash Kumar, Senior Branch Manager Authorized by Applicant.

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………..Applicant

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Versus

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Sh. Avtar Singh S/o Sh. Kartar Singh R/o H. No. 34A, Village Nizampur, Tehsil Payal, District Ludhiana.

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Late Sh. Harpal Singh S/o Sh. Kartar Singh, R/o Village Nizampur, Tehsil Payal, District Ludhiana through defendant no. (i) known Legal heir to the estate of deceased:

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(i) Smt. Daljit Kaur W/o Late Sh. Harpal Singh, Legal heir to the Estate of Late Sh. Harpal Singh, Village Nizampur, Tehsil Payal, District Ludhiana.

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Sh. Hari Singh S/o Sh. Balwant Singh R/o H. No. 66, Village Ghudani Khurd, Tehsil Payal, District Ludhiana.

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........Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant

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Defendants already 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 and Bankruptcy Act, 1993, against

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the defendants for recovery of Rs.33,04,794.92p (Rupees Thirty Three

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OA NO.826/2025

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BANK OF INDIA VS SH. AVTAR SINGH AND OTHERS

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Lacs Four Thousand Seven Hundred Ninety Four and Paise Ninety Two Only). The Original Application has been filed through Sh. Akash Kumar , Senior Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 10.06.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 & 2 (since deceased) had approached the applicant for grant of KCC Limit of Rs.4.00 Lacs vide Loan Application dated 24.01.2005, which is Annexures A2 to this OA. Defendant no. 3 stood as guarantor. Thereafter, defendant nos. 1 & 2(since deceased) approached the applicant for enhancement of KCC Limit to Rs.10.00 Lacs vide Loan Application dated 21.03.2011, which is Annexure A8 to this OA. Again, defendant nos. 1 & 2 (since deceased) approached the applicant for grant of Additional KCC Limit of Rs.10.00 Lacs vide Loan Application, which is Annexure A16 to this OA.

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The applicant sanctioned the KCC Limit of Rs.4.00 Lacs vide Memorandum of Sanction and Sanction Letter dated 16.02.2005, which are Annexures A2A & A3 to this OA. Further, the applicant sanctioned the enhancement of the limit to Rs.10.00 Lacs vide Memorandum of Sanction dated 20.03.2011 and Sanction Letter dated 31.03.2011, which are Annexures A9 & A10 to this OA and further to Rs.20.00 Lacs vide Memorandum of Sanction and Sanction Letter dated 31.01.2014, which are Annexures A17 & A18 to this OA.

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Defendant nos. 1 & 2 (since deceased) had mortgaged their immovable properties detailed as under:

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(a) Land measuring 26K-12M situated at Village Nizampur, Hadbast No. 201, Tehsil Payal, District Ludhiana, Punjab vide Registered Mortgage Deed bearing Vasika No. 3612 dated 30.03.2011, along with its Translation, which are Annexure A15 & A15T to this OA and vide Registered Mortgage Deed bearing Vasika No. 2547 dated 28.01.2014, along with its Translation, which are Annexure A24 & A24T to this OA.

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OA NO.826/2025 BANK OF INDIA VS SH. AVTAR SINGH AND OTHERS

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Documents executed : - D.P Note, Letter of Declaration, Undertaking & Authority, Hypothecation Agreement, Deed of Guarantee, all dated 16.02.2005, which are Annexures A4 to A7 to this OA; D.P Note, Supplemental Hypothecation-cum-Loan Agreement, Agreement, all dated 31.03.2011, which are Annexure A11, A12 & A14 to this OA; Deed of Guarantee, dated 31.05.2011, which is Annexure A13 to this OA; D.P Note, Supplemental Hypothecation-cum-Loan Agreement, Deed of Guarantee, Letter of Declaration, Undertaking & Authority and Agreement, all dated 31.01.2014, which are Annexures A19 to A23 to this OA; Death Certificate of Defendant no.2, which is Annexure A25 to this OA; Acknowledgement of Debts dated 24.08.2009, 12.05.2010, 02.04.2011, 30.01.2014, 22.09.2017, 29.05.2020 and 25.05.2023, which are Annexure A26 to this OA; Legal Notice dated 25.10.2024, which is Annexure A27 to this OA and Statement of Account, which is Annexure A28 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.33,04,794.92p, 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 26.08.2025. 7. In support of the OA, affidavit of Sh. Akash Kumar , Senior Branch Manager o f the applicant bank has been filed. 8. Heard ex-arguments and perused records. 9. 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 A28 to this OA, it is proved that the defendants approached

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OA NO.826/2025 BANK OF INDIA VS SH. AVTAR SINGH AND OTHERS

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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 bank. The defendants failed to pay back the loans as 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.33,04,794.92p (Rupees Thirty Three Lacs Four Thousand Seven Hundred Ninety Four and Paise Ninety Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the 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 @13.50% p.a. with @2% p.a. penal interest with half yearly rests from 18.06.2025 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 @08.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,04,794.92p (Rupees Thirty Three Lacs Four Thousand Seven Hundred Ninety Four and Paise Ninety Two 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

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OA NO.826/2025

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BANK OF INDIA VS SH. AVTAR SINGH AND OTHERS

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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 04.10.2025.

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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 .

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Dated: 12.09.2025

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

Bank of India v. Sh. Avtar Singh and Others

Case brief

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Bank of India v. Sh. Avtar Singh and Others

Case brief

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