The Debt Recovery Tribunal allowed an ex-parte application filed by Bank of India against three defendants for recovery of a loan of Rs. 59,83,124.39. The court confirmed liability and fixed the interest rate at 8% p.a.
Recovery Certificate issued directing payment of Rs. 59,83,124.39 joint and several with simple interest @8% p.a. from filing date.
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.94/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.01.2025
DATE OF DECISION: 04.11.2025
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 Nawan Shahar (Punjab) through its duly constituted attorney, Sh. Ramkhilari Sukhram Meena, presently posted as Chief Manager, at Jalandhar-SMEUC at Jalandhar, District Jalandhar (Punjab).
……..Applicant
Versus
Advocates:
Argued by Sh. Narinder Kumar, Advocate for the applicant (through VC)
Defendants already ex parte
FINAL ORDER
2 OA/94/2025 BANK OF INDIA VS SH. JOGINDER SINGH AND OTHERS
Ramkhilari Sukhram Meena, Chief Manager, of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.11.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of KCC of Rs.45.00 Lacs vide Loan application dated 13.06.2013, which is Annexure A2 to this OA. Defendant nos. 2 and 3 stood as guarantor. 3. The applicant sanctioned the KCC of Rs.45.00 Lacs vide Sanction letter dated 08.07.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his immovable properties i.e. total land measuring 40K-00M situated at Village Ratnaja, Tehsil and District Nawanshahr, Punjab vide Registered Mortgaged Deed bearing vasika no. 1305 dated 13.06.2013, with its translations, which is Annexure A11, A11-T to this OA.
Documents executed: - Demand promissory note, Loan bearer letter, Hypothecation cum loan agreement, Multipurpose loan agreement, Loan, declaration from borrower, Letter of declaration, Undertaking and authority , Deed of Guarantee, all dated 08.07.2013, which are Annexures A4 to A10 to this OA; Letter of Acknowledgement of Debts/Securities, dated 07.03.2016, 06.12.2018, 07.09.2021 & 19.04.2024, which are Annexures A12 to A15 to this OA; Legal notice dated 08.11.2024 along with postal receipts, which are Annexures A16 to A19 to this OA; and statement of account, along with certificate under Banker’s Books Evidence Act & Uncharged interest chart, which are Annexures A20 to A22 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.59,83,124.39p, 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.
3 OA/94/2025 BANK OF INDIA VS SH. JOGINDER SINGH AND OTHERS
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/hypothecated assets, 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
4 OA/94/2025 BANK OF INDIA VS SH. JOGINDER SINGH AND OTHERS
@8.00%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.59,83,124.39p (Rupees Fifty Nine Lacs Eighty Three Thousand One Hundred Twenty Four & Thirty Nine Paise only) jointly and severally, with costs, current and future simple interest @8.00%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 mortgaged property/hypothecated assets 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. 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 17.11.2025. 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: 04.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the original application for recovery of the outstanding loan amount is maintainable and allowable given the failure of defendants to appear.
What rate of interest should be granted on the outstanding loan amount in view of prevalent market rates and mortgaged assets.
1 provisions across 1 enactments
Bank of India
Sh. Joginder Singh
Sh. Rajesh Kumar
Sh. Kashmir Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
