Allowed

Indian Bank v. Sh. Harbhajan Singh and Another

DRT25 Feb 2026OA/1118/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Indian Bank against two borrowers for the recovery of Rs.48,29,306.00 along with interest. The court adjusted the claimed rate to a uniform 8% simple interest and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declarations of liability; Recovery Certificate; Uniform simple interest @08.00%p.a.; Liberty to enforce through auction/sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1118/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.08.2025

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DATE OF DECISION: 25.02.2026

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Indian Bank, (erstwhile Allahabad Bank) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Awai Shanmugam Salai, Royapettah, Chennai-600014 and a branch amongst at New Grain Market, District Tarn Taran through Sh. Ram Babu Shah, Branch Manager, Authorized by Applicant

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……..Applicant

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Versus

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Sh. Harbhajan Singh S/o. Sh. Gurbax Singh @ Gurbaksh Singh, R/o Village Shukar Chak, Tehsil & District Tarn Taran-143401

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Sh. Lakhbir Singh S/o. Sh. Surta Singh R/o Village Sohal Tathi, Tehsil & District Tarn Taran-143401

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…….Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Shrama, Advocate for Applicant

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Defendants already ex parte vide order dated 09.01.2026.

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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.48,29,306.00 (Rupees Forty Eight Lacs Twenty Nine Thousand Three Hundred Six Only). The Original Application has been filed through Sh. Ram Babu Shah, Branch Manager of the applicant, who is competent to institute the Original Application vide Letter of authority dated 31.07.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 was availing KCC Limit of Rs. 3.00 Lacs and approached the applicant for enhancement of the KCC Limit to Rs.7.50 Lacs and for Fresh Agriculture Term Loan of Rs.13.50 Lacs vide loan application dated

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OA NO. 1118/2025 INDIAN BANK VS. HARBHAJAN SINGH AND ANOTHER

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12.08.2011, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Thereafter, defendant no.1 approached the applicant for another KCC Limit of Rs.17.50 Lacs vide loan application dated 15.07.2016, which is Annexure A6 to this OA.

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The applicant sanctioned the KCC Limit of Rs.7.50 Lacs and Agriculture Term Loan of Rs.13.50 Lacs vide sanction letter dated 17.08.2011 which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. Acknowledgment of sanction dated 17.08.2011, which is Annexure A3A to this OA. Thereafter, the applicant sanctioned another KCC Limit of Rs.17.50 Lacs vide Sanction letter dated 26.07.2016, which is Annexure A7 to this OA. Acknowledgment of sanction dated 26.07.2017, which is Annexure A7A to this OA.

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Defendant no.1 mortgaged his immoveable properties i.e. Land measuring 54K-12M detailed as under:

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(i) Land measuring 39K-01M situated at Village Shukar Chak, Hadbast no. 178, Tehsil & District Tarn Taran, Punjab

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(ii) Land measuring 15K-11M situated at Village Bir Raja Teja Singh, Tehsil & District Tarn Taran, Punjab

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vide mortgage deed bearing vasika no. 1206 dated 22.09.2011, along with its translation, which is Annexure A5 and A5T to this OA. Defendant no.1 also mortgaged his immoveable properties i.e. Land measuring 59K-03M detailed as under:

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(i) Land measuring 44K-07M situated at Village Shukar Chak, Hadbast no. 183, Tehsil & District Tarn Taran, Punjab

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(ii) Land measuring 14K-16M situated at Village Bir Raja Teja Singh, Hadbast no. 188, Tehsil & District Tarn Taran, Punjab

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vide Declaration dated 21.07.2016 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, along with letter to Sub Registrar for creation of charge, which are Annexures A10 & A11 to this OA.

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OA NO. 1118/2025 INDIAN BANK VS. HARBHAJAN SINGH AND ANOTHER

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Documents executed : Hypothecation agreement dated 05.10.2011, which is Annexure A4 to this OA; D.P. Notes dated 05.10.2011 and 13.02.2014, which are Annexures A4A to this OA; Hypothecation agreement dated 26.07.2016, which is Annexure A8 to this OA; Deed of guarantee dated 26.07.2016, which is Annexure A9 to this OA; Acknowledgement of debt dated 08.02.2017, along with D.P. Note dated 17.05.2018, which is Annexure A12 to this OA; Acknowledgement of debt dated 18.03.2020 and 26.02.2023, which is Annexure A13 to this OA; Legal notice dated 19.07.2021 & 22.07.2021, which is Annexure A14 to this OA; Legal Notice dated 28.07.2025, which is Annexure A15 to this OA and Statement of Accounts, which are Annexures A16 to A18 to this OA.

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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.48,29,306.00, 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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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 09.01.2026.

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In support of the OA, affidavit of Sh. Ram Babu Shah, Branch Manager, Indian Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 A18 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as

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OA NO. 1118/2025 INDIAN BANK VS. HARBHAJAN SINGH AND ANOTHER

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NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.48,29,306.00 (Rupees Forty Eight Lacs Twenty Nine Thousand Three Hundred Six 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 @11.70%.pa. in KCC Limit, interest @9.70%. p.a. in Term Loan, interest @14.70%. p.a. in KCC Limit-II with 2% penal interest and half yearly rests from 01.08.2025 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/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 Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in all 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.48,29,306.00 (Rupees Forty Eight Lacs Twenty Nine Thousand Three Hundred Six Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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/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

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OA NO. 1118/2025 INDIAN BANK VS. HARBHAJAN SINGH AND ANOTHER

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.03.2026.

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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 . Dated: 25.02.2026.

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

Indian Bank v. Sh. Harbhajan Singh and Another

Case brief

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Indian Bank v. Sh. Harbhajan Singh and Another

Case brief

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