The DRT allowed an original application by Indian Overseas Bank against borrowers for recovery of Rs. 20,07,894.00. The court reduced the claimed interest rate to 8% p.a. while granting a recovery certificate.
Recovery of Rs. 20,07,894.00 with interest @8% p.a.; issuance of Recovery Certificate.
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.1020/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 09.07.2026
DATE OF DECISION: 29.08.2026
Indian Overseas Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) having its Central Office at 763, Anna Salai, Chennai600022 and a Branch Office amongst other places known as Chandigarh-Ambala National Highway, Near Sukhmani Institute of Engineering and Technology, Saraswati Vihar, Dera Bassi, Punjab through its Branch Manager, Smt. Shilpa Anand
……..Applicant
Versus
……….Defendants
Advocates:
Argued by Sh. Prerit Thakur, Advocate proxy for Sh. Sukhvinder Singh Chaudhary, Advocate for applicant
None for defendants (already ex-parte vide order dated 25.08.2026)
FINAL ORDER
2 OA NO. 1020/2026 INDIAN OVERSEAS BANK VS. BHAGAT SINGH AND ANOTHER
Defendant no. 1 hypothecated his present standing and future crops vide Letter of Hypothecation dated 06.02.2014, which is Annexure A4 to this OA.
Documents executed: DP Note and Guarantee Agreement, both dated 06.02.2014, which are Annexure A5 and A6 to this OA; Revival Letters dated 03.11.2018, 25.10.2021 and 10.04.2024, which is Annexure A9 to this OA; Legal Notice dated 02.06.2026, which is Annexure A11 to this OA and Statement of Account, which is Annexure A12 to this OA.
3 OA NO. 1020/2026
INDIAN OVERSEAS BANK VS. BHAGAT SINGH AND ANOTHER
From the perusal of all the Annexure A1 to A12 to this OA, it is proved that defendant no. 1 approached applicant for availing of the loan facility which was granted to him. Defendant no. 2 stood as guarantor. Defendants 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. 20,07,894.00 (Rupees Twenty Lacs Seven Thousand Eight Hundred Ninety Four Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.
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 hypothecated assets/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,
4 OA NO. 1020/2026
INDIAN OVERSEAS BANK VS. BHAGAT SINGH AND ANOTHER
this Tribunal deems it just and appropriate to grant 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.
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 14.09.2026. 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: 29.08.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding dues of Rs.20,07,894.00 from the defendants.
Whether the rate of interest on the outstanding dues should be fixed at 13.25% plus 2% or a simple rate of 8%.
2 provisions across 2 enactments
Indian Overseas Bank
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
