Allowed

Indian Bank v. Sh. Satwinder Singh

DRT25 Sept 2025OA/992/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an ex-parte application filed by Indian Bank against Satwinder Singh for recovery of Rs 35.42 lakhs under S. 19 RDB Act. The debtor had mortgaged property and failed to repay the sanctioned KCC loan. The Tribunal granted uniform simple interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Allowed recovery of Rs.35,42,325 along with costs and 8% per annum simple interest from filing date; directed issuance of Recovery Certificate.

Indian Bank versus Sh. Satwinder Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.992/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.07.2025

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DATE OF DECISION: 25.09.2025

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings), Act 1970, having its Head Office at 254-260, Avvai Shanmugam, Salai, Royapettah, Chennai having its zonal office at Ludhiana and amongst others places a branch at Lehragaga, Sangrur, Punjab through its authorized Officer Ms. Samriti, Manager, Indian Bank, Lehragaga, Sangrur, Punjab.

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……..Applicant Versus Sh. Satwinder Singh, S/o Sh. Darshan Singh, R/o Village Khandebad, Tehsil Lehra, District Sangrur, Punjab.

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….……Defendant

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Advocates:

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Argued by Ms. Manjari Joshi, Advocate for the applicant

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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.35,42,325.00p (Rupees Thirty Five Lacs Forty Two Thousand Three Hundred Twenty Five Only). The Original Application has been filed through Ms. Samriti, Manager, o f applicant, who is competent to institute the Original Application vide Letter of Authorization dated 02.07.2025, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide loan application dated 24.06.2013, which is Annexure A2 to this OA.

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2 OA/992/2025 INDIAN BANK Vs SH.SATWINDER SINGH

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs (for 1^st year) to be increased to Rs. 29,28,200/- in the 5^th year, vide Sanction letter dated 27.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant vide letter acknowledging terms and conditions, dated 27.06.2013, which is Annexure A4 to this OA.

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Defendant had mortgaged his immovable properties i.e. total land measuring 56Kanal-00Marla situated at Village Khandebad, Hadbast No.62, Tehsil Lehragaga, District Sangrur, Punjab vide Registered Mortgaged Deed bearing vasika no.1037 dated 27.06.2013, along with its traslation which is Annexure A8 and jamabandi for the year 2000-2021, which is Annexure A9 to this OA.

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Documents executed: DP Note dated 28.06.2013, which is Annexure A5 to this OA; Hypothecation agreement, Consent clause, both dated 27.06.2013, which are Annexures A6 & A7 to this OA; Letter of acknowledgement of debt dated 24.01.2023, which is Annexure A10 to this OA; Notice dated 18.05.2022, which is Annexure A11 to this OA and Statement of account, which is Annexure A12 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.35,42,325.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 19.09.2025.

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In support of the OA, affidavit of Ms. Samriti, Manager, Indian Bank, h as been filed.

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Heard ex-parte arguments and perused record.

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3 OA/992/2025 INDIAN BANK Vs SH.SATWINDER SINGH

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It was argued by learned 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 A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was 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.35,42,325.00p (Rupees Thirty Five Lacs Forty Two Thousand Three Hundred Twenty 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 [email protected]%p.a. including @2% penal interest with yearly rests from 02.07.2025 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.35,42,325.00p (Rupees Thirty Five Lacs Forty Two Thousand Three

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OA/992/2025 INDIAN BANK Vs SH.SATWINDER SINGH

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Hundred Twenty 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/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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. 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 17.10.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 25.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Satwinder Singh

Case brief

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Indian Bank v. Sh. Satwinder Singh

Case brief

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