Allowed

Indian Bank v. Resham Singh and Another

DRT28 Jan 2026OA/1193/2025

Case brief

AI extract

What is this about?

Disposed of an ex-parte Original Application filed by Indian Bank against two borrowers for recovery of an NPA loan of Rs.74.31 Lacs. The Tribunal admitted the claim, granted interest @8% p.a. due to market rates, and ordered issuance of a Recovery Certificate.

What did the court decide?

Directing defendants to pay Rs.74,31,541.00 with 8% p.a. interest; ordering issuance of Recovery Certificate; liberty to recover from mortgaged or personal assets.

Indian Bank versus Resham Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1193/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.07.2025

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DATE OF DECISION: 28.01.2026

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Indian Bank (erstwhile Allahabad Bank), on the basis of Amalgamation dated 01.04.2020, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugham Salai, Royapettah Chennai, Tamil Nadu, 600014 and having its Zonal Office at Jalandhar and amongst other branches a branch at Nawanshahr through its Branch Manager Mrs. Dolly, duly constituted and authorized signatory.

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……..Applicant

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Versus

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Sh. Resham Singh s/o Malkiat Singh, R/o Village Dharamkot, PO Hansron, District Nawanshahr 144518

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Sh. Dilawar Singh s/o Sant Singh, R/o Malkiat Singh, R/o Village Dharamkot, PO Hansron, District Nawanshahr-144518

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for Applicant

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Defendants already ex parte vide order dated 05.01.2026

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.74,31,541.00 (Rupees Seventy Four Lacs Thirty One Thousand Five Hundred Forty One Only). The Original Application has been filed through Mrs. Dolly, Branch Manager of the applicant, who is competent to institute the Original Application vide authority letter dated 02.08.2023, which is Annexure A1 to this OA.

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OA NO.1193/2025 INDIAN BANK VS. RESHAM SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs. 15.00 Lacs vide loan application dated 14.03.2012, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Thereafter, the defendant no.1 again approached the applicant for enhancement of the KCC Limit to Rs.30.00 Lacs vide loan application dated 31.05.2013, which is Annexures A10 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 15.00 Lacs vide Interview cum appraisal form dated 14.03.2012, Memorandum for sanction & Sanction letter dated 14.03.2012, which are Annexures A3 to A5 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the KCC Limit was enhanced by the applicant to Rs.30.00 Lacs vide Interview cum appraisal form dated 01.06.2013, which is Annexure A11 to this OA and Memorandum for sanction & Sanction letter dated 03.06.2013, which are Annexures A12 & A13 to this OA.

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Defendant no.1 had mortgaged his immovable’s properties i.e. total land measuring 27K-14M situated at Village Dharamkot, Hadbast No. 168, District Nawanshahr, Punjab, vide mortgage deed bearing vasika no. 5607 dated 01.03.2012 & vasika no. 1118 dated 03.06.2013, along with their translation, which are Annexures A8 and A17 to this OA; Jamabandi for the year 2014-15, along with its translation, which is Annexure A9 to this OA.

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Documents executed: DP Note and Hypothecation agreement, both dated 14.03.2012, which are Annexures A6 & A7 to this OA; DP Note, Hypothecation agreement, Consent clause to be executed by borrower, report of means and standing, Consent clause to be executed by guarantor, Deed of guarantee all dated 15.06.2023, which are Annexures A14 to A16, A18 to A20 to this OA; Recall notice dated 05.07.2024, which is Annexure A21 to this OA;

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OA NO.1193/2025 INDIAN BANK VS. RESHAM SINGH AND ANOTHER

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Acknowledgement of debts dated 26.11.2018 & 16.06.2025, which are Annexures A22 & A23 to this OA; Legal notice dated 05.07.2025, which is Annexure A24 to this OA and Statement of account with certificate, which is Annexure A25 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.74,31,541.00, 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 vide order dated 05.01.2026.

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In support of the OA, affidavit of Mrs. Dolly, 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 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 A25 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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, 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.74,31,541.00 (Rupees Seventy Four Lacs Thirty One Thousand Five Hundred Forty One Only) along with interest from the defendants, jointly and severally, from the

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OA NO.1193/2025 INDIAN BANK VS. RESHAM SINGH AND ANOTHER

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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 @10.20%p.a. with 2% penal interest and monthly 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 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.

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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.74,31,541.00 (Rupees Seventy Four Lacs Thirty One Thousand Five Hundred Forty One 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 properties/hypothecated assets of 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 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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OA NO.1193/2025 INDIAN BANK VS. RESHAM SINGH AND ANOTHER

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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 10.02.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 28.01.2026.

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

Indian Bank v. Resham Singh and Another

Case brief

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Indian Bank v. Resham Singh and Another

Case brief

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