The Tribunal allowed an Original Application filed by a bank to recover a loan defaulting amount of Rs. 26,28,669 from the defendant. The defendant appeared ex-parte. The Tribunal granted uniform simple interest at 8% p.a. instead of the claimed rate.
Recovery of Rs.26,28,669 with simple interest @8% p.a. from the date of filing; 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 CAMP COURT AT LUDHIANA
ORIGINAL APPLICATION NO.1074/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 24.07.2025
DATE OF DECISION: 03.01.2026
Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, '1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai - 600014 and a branch amongst at SSI Branch 1601, Kalsi Nagar, Main GT Road, Ludhiana through Smt. Preeti Mudgal, Chief Manager Authorized by Applicant.
……..Applicant
Versus
M/s. V.S. lndustries situated at 1947, Janta Nagar, Street no.6, Bhagwan Chowk, Ludhiana through its proprietor Sh. Arvind Singh S/o Sh. Davinder Singh.
Residential Address of Sh. Arvind Singh (Prop.): H. No. 10438, Street No.5, Bhagwan Chowk, Janta Nagar, Miller Ganj, Ludhiana.
….……Defendant
Advocates:
Argued by Ms. Puja Sharma, Advocate for applicant (through VC) Defendant already ex-parte vide order dated 18.12.2025
FINAL ORDER
2 OA/1074/2025 INDIAN BANK VS. M/S V.S. INDUSTRIES
Documents executed: Recall notice dated 18.09.2024, 18.02.2025 & 20.02.2025, which are Annexure A5 to this OA and Statement of account, which is Annexure A6 to this OA.
3 OA/1074/2025 INDIAN BANK VS. M/S V.S. INDUSTRIES
defendant approached applicant for availing of the loan facility which was granted to it and for that the defendant 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.26,28,669.00 (Rupees Twenty Six Lacs Twenty Eight Thousand Six Hundred Sixty Nine Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.
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 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 @8.00%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.
4
OA/1074/2025 INDIAN BANK VS. M/S V.S. INDUSTRIES
entitled to recover aforesaid amount from the sale of hypothecated assets of the defendant 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 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 14.01.2026. 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 at Camp Court, Ludhiana. Dated: 03.01.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the application under Section 19 RDB Act ought to be allowed for recovery of the outstanding loan amount.
Whether the rate of interest claimed by the applicant is sustainable given prevalent market rates.
1 provisions across 1 enactments
Indian Bank (erstwhile Allahabad Bank)
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
