Allowed

Bank of Baroda v. Sh. Swaran Singh Sangha through His Legal Heirs and Another

DRT7 Feb 2026OA/1043/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed under Section 19 of the RDBA, 1993 for recovery of dues against a defaulting borrower and guarantor. Exerciseing discretionary power, the Tribunal awarded simple interest at 8% p.a. and directed the issuance of a Recovery Certificate enforceable under SARFAESI Act provisions.

What did the court decide?

Directing respondents to pay Rs. 27,95,076.16 with simple interest at 8% p.a., issuing a Recovery Certificate, and permitting recovery from mortgaged or personal assets.

Bank of Baroda versus Sh. Swaran Singh Sangha through His… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1043/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.08.2024

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DATE OF DECISION: 07.02.2026

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Bank of Baroda, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970, having its Registered Head Office at Baroda Bhawan, R.C Dutt Road, Alkapuri Baroda 390007, Gujarat and its Branch Offices throughout India including a branch office at Partap Road Moga Punjab-142001 through its constituted attorney namely Sh. Sumeet Kumar, Senior Manager.

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……..Applicant

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Versus

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Sh. Swaran Singh Sangha S/o Sh. Lal Singh

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since deceased through his legal heirs

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i) Smt. Mahinder Kaur (wife) ii) Sh. Baltej Singh (Son) iii) Sh. Dhanwinder Singh (son)

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All resident of Village Jogewała, Moga District Moga-142048

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Sh. Satnam Singh S/o Sh. Mukhtiar Singh, Village Kahan Singh Wala, P.O. Jogewała, Moga-142048.

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………. Defendants

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Advocates:

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Argued by Sh. Kanchan Sehgal, Advocate for Applicant (through VC) Defendants already ex-parte vide order dated 20.11.2025.

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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. 27,95,076.16 (Rupees Twenty Seven Lacs Ninety Five Thousand Seventy Six & Paise Sixteen Only). The Original Application has been filed through Sh. Sumeet Kumar, Senior Manager, of the applicant, who is competent to institute the Original Application vide Board Resolution/Power of attorney dated 16.03.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) approached the applicant for grant of KCC Limit of Rs.16.32

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OA NO.1043/2024 BANK OF BARODA VS. SWARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Lacs & Agriculture Term Loan of Rs.3.00 Lacs vide loan application dated 03.08.2017, which is Annexure A2 to this OA. Defendant no.2 stood as a guarantor.

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The applicant sanctioned the KCC Limit of Rs.16.32 Lacs & Agriculture Term Loan of Rs.3.00 Lacs vide Sanction letter dated 25.09.2017, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendant no. 1(since deceased) and defendant no. 2.

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Defendant no.1 (since deceased) mortgaged his immovable properties i.e. land measuring 30K-07M detailed as under: (i) Land measuring 03K-04M situated at Village Dagru, Tehsil and District Moga, Punjab (ii) Land measuring 27K-03M situated at Village Jogewala, Tehsil and District Moga, Punjab vide declaration dated 20.09.2017 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A7 to this OA. Documents executed : DP Notes, Composite hypothecation agreement, Declaration cum undertaking cum authority, Undertaking (BKCC-line of credit), Letter of installment with acceleration clause, general form of guarantee, creation of charge, all dated 27.09.2017, which are Annexures A4 to A10, to this OA; Letter of acknowledgement of debt dated 29.05.2020, which is Annexure A12 to this OA; Legal notice 06.10.2022 & 23.05.2022, along with postal receipts, which are Annexures A13 & A14 to this OA and Statement of Accounts, which are Annexures A15 & A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 27,95,076.16, 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.

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OA NO.1043/2024 BANK OF BARODA VS. SWARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 20.11.2025.

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In support of the OA, affidavit of Sh. Sumeet Kumar, Senior Manager, Bank of Baroda, has 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 A16 to this OA, it is proved that the defendant no. 1 (since deceased) approached applicant for availing of the loan facilities which was granted to him and for that he had executed all the relevant documents in favour of the bank. Defendant no. 2 stood as guarantor. They failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.27,95,076.16 (Rupees Twenty Seven Lacs Ninety Five Thousand Seventy Six & Paise Sixteen Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @10.25% p.a. with 2% penal interest and monthly rests in KCC & interest @10.20% p.a. with 2% penal interest and monthly rests in Term Loan from 22.07.2024 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/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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OA NO.1043/2024 BANK OF BARODA VS. SWARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in both the loan accounts 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.27,95,076.16 (Rupees Twenty Seven Lacs Ninety Five Thousand Seventy Six & Paise Sixteen Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 assets/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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.02.2026. 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: 07.02.2026.

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

Bank of Baroda v. Sh. Swaran Singh Sangha through His Legal Heirs and Another

Case brief

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Bank of Baroda v. Sh. Swaran Singh Sangha through His Legal Heirs and Another

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