Allowed

Indian Bank v. Sh. Abhishek and Another

DRT15 May 2026OA/1096/2025

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of an outstanding home loan principal of Rs.34.09 lakhs. The tribunal granted uniform future interest at 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

The application was allowed, declaring liability to pay Rs.34,09,974 with costs and future simple interest @08.00%p.a.; Recovery Certificate to be issued.

Indian Bank versus Sh. Abhishek and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1096/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2025

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DATE OF DECISION: 15.05.2026

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Indian Bank, (erstwhile Allahabad Bank) a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugham Salai, Royapettah, Chennai-600014 and a Branch amongst Bhoura, Near GMT School, Jalandhar, Bye-Pass Chowk, Bhoura, District Ludhiana through Smt. Sunaina Sharma, Branch Manager/Authorized by Applicant.

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…….A pplicant Versus

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Sh. Abhishek S/o Sh. Maqbool Masih, R/o H. No. 43A, Street No.

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2, Baba Deep Singh Nagar, Bhamian Road, Ludhiana.

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Alternative Address: H. No. 42, Street No. 2, Baba Deep Singh Nagar, Bhamian Road, Ludhiana.

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Sh. Maqbool Masih S/o Sh. Mohan Masih, R/o H. No. 43A, Street No. 2, Baba Deep Singh Nagar, Bhamian Road, Ludhiana. Alternative Address: H. No. 42, Street No. 2, Baba Deep Singh Nagar, Bhamian Road, Ludhiana.

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…….Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 12.11.2025).

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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.34,09,974.00 (Rupees Thirty Four Lacs Nine Thousand Nine Hundred and Seventy Four Only). The Original Application has been filed through Ms. Sunaina Sharma, Branch Manager, who is competent to institute the Original Application vide Letter of Authority dated 25.07.2025, which is Annexure A1 to this OA.

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OA NO.1096/2025 INDIAN BANK VS SH. ABHISHEK AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Home Loan of Rs.32,00,000.00 vide Loan application dated 19.02.2020, which is Annexure A2 to this OA. 3. The applicant sanctioned the Home Loan I of Rs.20,75,000.00 vide Sanction Letter dated 31.08.2020, which is Annexure A3 to this OA and Home Loan II of Rs.10,00,000.00 vide Sanction Letter dated 31.08.2020, which is Annexure A6 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no.1 mortgaged his immovable property i.e. Residential property measuring 139 Sq. Yards situated at Village Bhamian Khurd, Hadbast no. 180 (Abadi Bhamian Khurd), Tehsil and District Ludhiana, Punjab vide Equitable Mortgage of Sale deed bearing Vasika no. 19544 dated 11.01.2018, along with its translation, which are Annexures A9 and A9T to this OA; Letter from party to Bank confirming the creation of Equitable Mortgage dated 23.09.2020, which is Annexure A10 to this OA.

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Documents executed : Demand Promissory Note, Term Loan Agreement, both dated 04.09.2020, which are Annexures A4 and A5 to this OA; Demand Promissory Note, Term Loan Agreement, both dated 04.09.2020, which are Annexures A7 and A8 to this OA; Cash Voucher Receipt dated 09.03.2022, which is Annexure A11 to this OA; Recall Notices dated 26.02.2024, 01.03.2024, along with postal receipts which are Annexures A12 and A13 to this OA; Demand Notice dated 03.04.2024 u/s 13(2) of SARFAESI Act along with postal receipts, which is Annexure A14 to this OA; Statement of accounts along with certificate, which are Annexures A15 and A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.34,09,974.00, which is recoverable and the defendants despite approaching did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal and after service of summons, none appeared on behalf of defendants. Therefore they were proceeded ex-parte vide order dated 12.11.2025. Sh. Shubhan Pabhi, Advocate appeared on behalf of defendants on 13.11.2025 and filed his Memo of Appearance on behalf

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OA NO.1096/2025 INDIAN BANK VS SH. ABHISHEK AND ANOTHER

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of defendants. Thereafter, Power of Attorney on behalf of defendants was filed on 21.04.2026. Sh. Shubham Pabhi, Advocate, sought time of three days to file application for setting aside ex-parte order, but no such application was filed and none appeared on behalf of defendants thereafter.

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In support of the OA, affidavit Ms. Sunaina Sharma, Branch Manager, Indian Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,09,974.00 (Rupees Thirty Four Lacs Nine Thousand Nine Hundred and Seventy 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.65%p.a. monthly rests in Home Loan I and interest @10.65%p.a. monthly rests in Home Loan II with penal interest @2% in both the accounts, from 17.07.2025 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 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 Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in

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OA NO.1096/2025 INDIAN BANK VS SH. ABHISHEK AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.34,09,974.00 (Rupees Thirty Four Lacs Nine Thousand Nine Hundred and Seventy Four 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 mortgaged property of the defendant no.1 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.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 06.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 15.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Indian Bank v. Sh. Abhishek and Another

Case brief

What is this about?

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Indian Bank v. Sh. Abhishek and Another

Case brief

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