Allowed

Union Bank of India v. Sh. Najar Singh

DRT25 Sept 2025OA/922/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Union Bank of India for recovery of dues. The defendant was proceeded ex-parte for defaulting on a term loan. The Tribunal authorized recovery through sale of hypothecated property and fixation of simple interest.

What did the court decide?

Recovery Certificate issued; Dues ordered to be recovered via sale of hypothecated vehicle or attachment of personal assets with simple interest at 8% p.a.

Union Bank of India versus Sh. Najar Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.922/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.05.2025

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DATE OF DECISION: 25.09.2025

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Union Bank of India, (Erstwhile Corporation Bank) a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai – 400021 and inter alia a Branch Offices at Rasullra, Malerkotla Road, Village Rasullra, Tehsil Khanna District Ludhiana, Punjab through its Branch Manager, Sh. Gurpreet Singh.

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……..Applicant Versus

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Sh. Najar Singh S/o Sh. Inder Singh R/o Village Ghurala Chakohi Tehsil Khanna District Ludhiana, Punjab.

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…….Defendant

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Advocates:

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Argued by Sh. Ravi Mishra, Advocate proxy for Sh. Karan Singla, Advocate for Applicant (through VC)

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Defendant 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 the defendant for recovery of Rs.23,32,235.00p (Rupees Twenty Three Lacs Thirty Two Thousand Two Hundred Thirty Five Only). The Original Application has been filed through Sh. Gurpreet Singh, Branch Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 02.05.2025, which

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is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for Term Loan of Rs. 20.00 Lacs for purchase of combine

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2 OA NO. 922/2025 UNION BANK OF INDIA VS SH. NAJAR SINGH

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harvester vide Loan Application dated 08.08.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Term Loan of Rs.20.00 Lacs vide Sanction Letter dated 23.08.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had hypothecated his movable property i.e. Combine Harvester Model : Gautam-949, bearing Registration No. PB10JK0588, Engine No. RBH704056 & Chassis No. GAI94900041 vide Hypothecation Agreement (Vehicles) dated 31.08.2023, which is Annexure A5 to this OA; Quotation dated 11.08.2023, which is Annexure A13 to this OA; Registration Certificate, which is Annexure A14 to this OA.

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Documents executed :- Term Loan Agreement (Hypothecation of Movables), Demand Promissory Note, Interest Agreement, Letter of continuity, Simple agreement, Letter of confirmation, Declaration/ undertaking( for agriculture advance), Letter of undertaking from the borrower, all dated 31.08.2023, which are Annexures A4, A6 to A12 to this OA; Notice dated 07.02.2025, which is Annexure A15 to this OA and Statement of Account, which is Annexure A16 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.23,32,235.00p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 17.09.2025.

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In support of the OA, affidavit of Sh. Gurpreet Singh, Branch Manager , Union Bank of India has been filed.

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Heard ex-parte arguments and perused record.

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3 OA NO. 922/2025 UNION BANK OF INDIA VS SH. NAJAR SINGH

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It was argued by learned proxy counsel through Video Conferencing 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 A16 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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.23,32,235.00p (Rupees Twenty Three Lacs Thirty Two Thousand Two Hundred Thirty Five Only) along with interest from the defendant, 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 @09.00% p.a. with penal interest @2% p.a. with quarterly rests from 27.05.2025 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 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 defendant is liable to pay to the applicant a total sum of Rs.23,32,235.00p (Rupees Twenty Three Lacs Thirty Two Thousand

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4 OA NO. 922/2025 UNION BANK OF INDIA VS SH. NAJAR SINGH

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Two Hundred Thirty Five Only), 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 vehicle 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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12. 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 17.10.2025.

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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 . Dated: 25.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Najar Singh

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Najar Singh

Case brief

What is this about?

What did the court decide?

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