Allowed

Bank of India v. Sh. Gurjit Singh and Another

DRT21 Oct 2025OA/828/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Bank of India against a borrower and guarantor for recovery of Rs.23,22,050.53 with interest. The loan was granted under KCC limits, became NPA, and remained unpaid despite notices. The court granted uniform simple interest at 8% p.a. instead of the claimed 15%.

What did the court decide?

Recovery of Rs.23,22,050.53 with costs and future simple interest @08.00%p.a.; issuance of Recovery Certificate; liberty to enforce via sale of mortgaged assets or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.828/2025

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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: 21.10.2025

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and 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, Distt. 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. Gurjit Singh S/o Sh. Sukhdev Singh R/o. Village Majri, Tehsit Payal, District Ludhiana.

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Sh. Paramjit Singh S/o. Sh. Balwinder Singh R/o. Village Majri,

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Tehsit 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. Pooja Sharma, Advocate for the 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,22,050.53p (Rupees Twenty Three Lacs Twenty Two Thousand Fifty & Fifty Three Paise 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 no.1 had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs vide

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2 OA NO.828/2025 BANK OF INDIA VS SH.GURJIT SINGH AND ANOTHER

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Loan Application dated 22.06.2015, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs vide Memorandum of sanction & Sanction letter dated 22.06.2015, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged her immovable properties i.e. total land measuring 17K-01M situated at Village Ashgaripur, Tehsil Khanna, Distt. Ludhiana, Punjab vide declaration u/s 4(1) dated 29.06.2015, along with its translation and letter to Sub-Registrar for creation of charge dated 29.06.2015, which are Annexure A10, A10T, and A11, A11-T to this OA.

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Documents executed :-DP note, hypothecation cum loan agreement, Deed of guarantee, letter of declaration, undertaking and authority, agreement, all dated 30.06.2015, which are Annexures A5 to A9 to this OA; Acknowledgement of debt dated 02.05.2018 & 08.04.2021, which is Annexure A12 to this OA; Legal Notice dated 05.08.2024, which is Annexure A13 to this OA and Statement of account along with Certificate, which is Annexure A14 to this OA.

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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.23,22,050.53p, which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte on 13.10.2025.

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

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3 OA NO.828/2025 BANK OF INDIA VS SH.GURJIT SINGH AND ANOTHER

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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 A14 to this OA, it is proved that the defendants approached the 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 loan 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.23,22,050.53p (Rupees Twenty Three Lacs Twenty Two Thousand Fifty & Fifty 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 account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with 2% 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,22,050.53p (Rupees Twenty Three Lacs Twenty Two Thousand Fifty & Fifty Three Paise Only) jointly and severally, with costs, current

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OA NO.828/2025 BANK OF INDIA VS SH.GURJIT SINGH AND ANOTHER

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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 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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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 31.10.2025. 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: 21.10.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Gurjit Singh and Another

Case brief

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Bank of India v. Sh. Gurjit Singh and Another

Case brief

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