The Tribunal allowed the Bank of India's application for recovery of Rs. 77,09,563.00. After considering the quantum and market rates, interest was reduced to 8% p.a., directing recovery from hypothecated/mortgaged assets.
Recovery Certificate issued; Defendants liable to pay Rs. 77,09,563.00 plus 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.1069/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 20.07.2026
DATE OF DECISION: 08.09.2026
Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C 5, G Block, 2nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 and one of its Branches at Model Town, Ludhiana, Punjab through Sh. Ajay Singh presently posted as a Chief Manager, Asset Recovery Branch, Zonal Office, Rakh Bagh, Ludhiana, Punjab, its Principal Officer and Constituted Attorney
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Sh. R.V. Mehra, Advocate for applicant (through VC)
None for defendants (already ex-parte vide order dated 02.09.2026)
FINAL ORDER
2 OA/1069/2026 BANK OF INDIA VS. M/S S. SINGH & SONS AND OTHERS
against the defendants for recovery of Rs. 77,09,563.00 (Rupees Seventy Seven Lacs Nine Thousand Five Hundred Sixty Three Only). The Original Application has been filed through Sh. Ajay Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.01.2024, which is Annexure A1 to this OA.
Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and raw materials etc. vide Hypothecation cum Loan Agreements dated 28.01.2022 and 30.03.2023, which are Annexure A6 and A19 to this OA.
Documents executed: DP Note, Bearer Letter, Composite Document, Letter of Declaration and Assurance, Letter of Declaration/Undertaking and Authority, RBLR Agreement and Agreement of Guarantee, all
dated 28.01.2022, which are Annexure A4, A5 and A7 to A11 to
3 OA/1069/2026 BANK OF INDIA VS. M/S S. SINGH & SONS AND OTHERS
this OA; Oral Assent Register dated 05.02.2022, which is Annexure A14 to this OA; DP Note, Bearer Letter, Letter of Declaration/Undertaking and Authority, Affidavit cum Undertaking, Undertaking, Oral Assent Register and Agreement of Guarantee, all dated 30.03.2023, which are Annexure A17, A18 and A20 to A24 to this OA; Demand Notice dated 16.03.2026, which is Annexure A25 to this OA; Legal Notice dated 26.04.2026, which is Annexure A26 to this OA; e-mail dated 05.12.2026 along with rejoinder, which are Annexure A27 and A28 to this OA; Statement of Account with certificate, which is Annexure A29 to this OA; Insurance Policies along with assignment letters, which are Annexure A30 to A32 to this OA and Income Tax Return, which is Annexure A33 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. 77,09,563.00 which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
4 OA/1069/2026 BANK OF INDIA VS. M/S S. SINGH & SONS AND OTHERS
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. 77,09,563.00 (Rupees Seventy Seven Lacs Nine Thousand Five Hundred Sixty Three 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 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 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.
5
OA/1069/2026 BANK OF INDIA VS. M/S S. SINGH & SONS AND OTHERS
The applicant is at liberty to enforce the claim through due process of law.
Pronounced by me in the open Tribunal . Dated: 08.09.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the debtor is liable to repay the outstanding loan amount along with interest.
What rate of interest should be granted pendente lite and in the future.
1 provisions across 1 enactments
Bank of India
M/S S. Singh & Sons
Tejinder Singh
Gurinder Kaur
Inder Pal Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
