Allowed

Indian Overseas Bank v. Sh. Gurbachan Singh and Another

DRT19 Jul 2025OA/977/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the restoring original application filed by Indian Overseas Bank for recovery of Rs. 28,74,875.46 from the defendants. The tribunal reduced the claimed interest rate to 8% p.a. and issued a recovery certificate for execution against mortgaged properties.

What did the court decide?

Recovery certificate issued for recovery of Rs. 28,74,875.46 with interest at 8% p.a. from sale of mortgaged assets.

Indian Overseas Bank versus Sh. Gurbachan Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.977/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.12.2021

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DATE OF DECISION: 19.07.2025

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Indian Overseas Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Central Office at 762, Anna Salai, Chennai-600002 and amongst others places a branch office at VPO Baddowal, District Ludhiana, through its duly constituted attorney Sh. Abhilash Kumar, Manager, Indian Overseas Bank, Mullanpur Branch, Ludhiana.

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……..Applicant

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Versus

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Sh. Gurbachan Singh S/o Sh. Bagga Singh R/o Village Pamal, Tehsil and District Ludhiana.

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Sh. Rajinder Singh S/o Sh. Gurcharan Singh, R/o Village Pamal, Tehsil and District Ludhiana.

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………. Defendants

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Advocates:

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Argued by Sh. Sumit Chawla, (through VC) Advocate for the applicant Defendants are 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 defendants for recovery of Rs.28,74,875.46p (Rupees Twenty Eight Lacs Seventy Four Thousand Eight Hundred Seventy Five and Paise Forty Six Only). The Original Application has been filed through Sh. Abhilash Kumar, Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.02.2014, 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 Agriculture Cash Credit Limit of Rs.15.00 Lacs vide Loan Application dated 23.07.2012, which is

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2 OA/977/2022 INDIAN OVERSEAS BANK VS SH. GURBACHAN SINGH AND ANOTHER

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Annexure A2 to this OA. Defendant no. stood as guarantor vide guarantor’s statement dated 14.09.2012, which is Annexure A3 to this OA.

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The applicant sanctioned Agriculture Cash Credit Limit of Rs.15.00 Lacs vide Credit Sanction Advice dated 14.09.2012, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 had mortgaged his immovable properties i.e. Agricultural Land measuring 08K-11M, situated at Village Pamal, Tehsil and District Ludhiana vide Mortgage Deed bearing vasika no. 1381 dated 27.08.2012, along with its translation which is Annexure A5 to this OA and Jamabandi for the year 2006-2007, along with its translation, which is Annexure A6 to this OA.

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Documents executed:- Guarantee For Cash Credits dated 14.09.2012, which are Annexures A4 to this OA; Letter of Hypothecation, D.P Note and D.P. Note Delivery Letter, all dated 14.09.2012, which are Annexures A7 to A9 to this OA; Legal Notices dated 23.06.2021, along with postal receipts, which are Annexure A11 to A13 to this OA ; Certified Copy of Statement of Accounts, Certificate U/S 65-B of Indian Evidence Act dated 15.07.2021, which are Annexures A14 to A15 to this OA; Revival Letters dated 02.12.2014 and 02.12.2016, 02.12.2019 which are Annexures A16 to A18 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.28,74,875.46p, 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 23.10.2024. However, the OA was dismissed on 24.10.2024

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3 OA/977/2022 INDIAN OVERSEAS BANK VS SH. GURBACHAN SINGH AND ANOTHER

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for default of applicant. Later, the applicant filed MA 172/2024 for restoration of this OA and vide order dated 11.06.2025 passed in MA 172/2024, this OA was restored on its Original Number. The defendants were served notices regarding restoration of this OA but no one appeared on behalf of defendants.

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In support of the OA, affidavit of Sh. Abhilash Kumar, Manager, Indian Overseas Bank h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loans 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.28,74,875.46p (Rupees Twenty Eight Lacs Seventy Four Thousand Eight Hundred Seventy Five and Paise Forty Six 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.45%p.a. along with penal interest @2%p.a. with half yearly rests from 22.06.2021 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

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4 OA/977/2022 INDIAN OVERSEAS BANK VS SH. GURBACHAN SINGH AND ANOTHER

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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.28,74,875.46p (Rupees Twenty Eight Lacs Seventy Four Thousand Eight Hundred Seventy Five and Paise Forty Six 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.08.2025.

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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: 19.07.2025

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

Indian Overseas Bank v. Sh. Gurbachan Singh and Another

Case brief

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Indian Overseas Bank v. Sh. Gurbachan Singh and Another

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