Allowed

Bank of India v. Sh. Jagtar Singh and Others

DRT9 Jul 2026OA/115/2026

Case brief

AI extract

What is this about?

In an original application under Section 19 RDB Act, the Debts Recovery Tribunal allowed the Bank of India's claim for recovery of Rs. 20.93 lakhs plus interest. The court fixed a future interest rate at 8% p.a., ordered a Recovery Certificate, and directed sale of mortgaged property for repayment.

What did the court decide?

Recovery of Rs. 20,93,603.00 with costs and future simple interest at 8% p.a. Issuance of Recovery Certificate and leave to enforce claim through due process of law.

Bank of India versus Sh. Jagtar Singh and Others — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 115/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.01.2026

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DATE OF DECISION: 09.07.2026

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act no. V of 1970 having its Head Office at “Star House”, C 5, Block G, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 and Branch Office amongst other places at Bela Road, Ropar, District Roopnagar, Punjab through its Principal cum Authorized Officer, Sh. Rohtash, Senior Branch Manager

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……..Applicant

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Versus

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Sh. Jagtar Singh, S/o Sh. Kishan Singh, R/o Village Shampura, District Roopnagar, Punjab- 140073

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Sh. Kishan Singh, S/o Sh. Mangal Singh, since expired through his Legal Heirs i.e. defendant no. 1 and the following:

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A. Sh. Sohan Singh, S/o Sh. Kishan Singh, R/o Village Shampura, District Roopnagar, Punjab- 140073

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B. Sh. Harnek Singh, S/o Sh. Kishan Singh, R/o Village Shampura, District Roopnagar, Punjab- 140073

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C. Sh. Nirmal Singh, S/o Sh. Kishan Singh, R/o Village Shampura, District Roopnagar, Punjab- 140073

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Sh. Jasbir Singh, S/o Sh. Karam Singh, R/o House no. 31, Street no. 10A, Hargobindgarh, Roopnagar, Punjab- 140001

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…Defendants

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Advocates:

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Argued by Ms. Meena Malhotra, Advocate for applicant

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None for defendants

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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. 20,93,603.00 (Rupees Twenty Lacs Ninety Three Thousand Six Hundred Three Only). The Original

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2 OA/115/2026 BANK OF INDIA VS. JAGTAR SINGH AND OTHERS

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Application has been filed through Sh. Rohtash, Senior Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 10.06.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 and defendant no. 2 (since deceased) approached the applicant for grant of OD Limit of Rs. 9.50 Lacs vide Loan Application dated 03.10.2009, which is Annexure A2 to this OA. 3. The applicant sanctioned the OD Limit of Rs. 9.50 Lacs vide Sanction Letter dated 27.10.2009, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant no. 1 and defendant no. 2 (since deceased). Defendant no. 3 stood as guarantor. 4. Defendant no. 2 (since deceased) mortgaged his immovable property i.e. Land measuring 09K 09M situated at Village Roopnagar44, Tehsil and District Roopnagar, Punjab vide Mortgage Deed bearing vasika no. 1956 dated 26.10.2009 along with its translation, which is Annexure A3 to this OA.

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Documents executed: DP Note, Multipurpose Stamp Undertaking, Misc. Undertakings/Declarations and Deed of Guarantee, all dated 27.10.2009, which are Annexures A5 to A8 to this OA; Acknowledgments of Debt dated 15.10.2012, 06.10.2015, 16.07.2018, 16.08.2018, 04.08.2021 and 09.05.2024, which are Annexure A9 to A13 to this OA; Recall Notice dated 09.05.2024 along with postal receipts, which is Annexure A14 (Colly) to this OA and Statement of Account, which is Annexure A15 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. 20,93,603.00, 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. 6. The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Jagtar Singh, defendant no. 1, Sh. Sohan Singh, defendant no. 2A. and Sh. Nirmal

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3 OA/115/2026 BANK OF INDIA VS. JAGTAR SINGH AND OTHERS

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Singh, defendant no. 2C. appeared in person on 05.03.2026. Thereafter, Sh. Rajinder Paul appeared on behalf of defendants and filed Power of Attorney on 02.05.2026. Paper book was supplied to him but no WS was filed. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 07.07.2026.

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In support of the OA, affidavit of Sh. Rohtash, Senior Branch Manager , Bank of India, has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel 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 A15 to this OA, it is proved that defendant no. 1 and defendant no. 2 (since deceased) approached applicant for availing of the loan facility, which was granted to them. Defendant no. 3 stood as guarantor. Defendants had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the account of the 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. 20,93,603.00 (Rupees Twenty Lacs Ninety Three Thousand Six Hundred 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @11.00% p.a. with monthly rests from the date of filing of the application 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 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

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4 OA/115/2026 BANK OF INDIA VS. JAGTAR SINGH AND OTHERS

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just and appropriate to grant 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,93,603.00 (Rupees Twenty Lacs Ninety Three Thousand Six Hundred Three Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in the loan account 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 defendant no. 2 (since deceased) 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 defendant nos. 1 and 3 and also of defendant nos. 2A. to 2C. to the extent they inherited the property of deceased defendant no. 2. 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 24.07.2026. 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: 09.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Jagtar Singh and Others

Case brief

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Bank of India v. Sh. Jagtar Singh and Others

Case brief

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