Allowed

Central Bank of India v. M/S Zora Singh Gill and Sons and Others

DRT13 Feb 2026OA/1228/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Central Bank of India for recovery of Rs.56.70 lakhs. The court decreed the claim in favor of the bank, ordered uniform simple interest at 8.00% p.a., and issued a recovery certificate directing sale of mortgaged/hypothecated assets.

What did the court decide?

Declaration of liability to pay Rs.56,70,872.49 with costs and simple interest at 8.00% p.a. Recovery certificate issued for execution through asset sale.

Central Bank of India versus M/S Zora Singh Gill and Sons… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1228/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.09.2025

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DATE OF DECISION: 13.02.2026

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Central Bank of India, a body corporate, constituted under the Banking Companies (Acquisition & transfer of Undertakings) Act of 1970 having its Head Office at Chander Mukhi, Nariman Point, Mumbai and its Branch Office at Central Bank of India, GK Plaza, GT Road, Near Akalsar Chowk, District Moga-142001 through its Authorized Representative Sh. Parikshit Bora, Senior Manager.

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……..Applicant

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Versus

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M/s Zora Singh Gill & Sons, Shop No.23, Near Grain Market, District Moga-142001

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Sh. Inderjit Singh Gill S/o Sh. Zora Singh, R/o 500, Village Dala, District Moga-142001

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Sh. Zora Singh S/o Sh. Nau Nihal Singh, R/o 500, Village Dala, District Moga-142001

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Also at Shop No.23, Near Grain Market, District Moga-142001

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….……Defendants

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for the applicant (through

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VC)

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Defendants are ex-parte vide dated 15.12.2025.

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.56,70,872.49 (Rupees Fifty Six Lacs Seventy Thousand Eight Hundred Seventy Two & Paise Forty Nine only). The Original Application has been filed through Sh. Parikshit Bora, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.02.2020, which is Annexure A1 to this OA.

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2 OA/1228/2025 CENTRAL BANK OF INDIA VS M/S ZORA SINGH GILL AND SONS AND OTHERS

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for the grant of Overdraft Limit of Rs.50.00 Lacs. Defendant no. 3 stood as guarantor. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 for grant of Working Capital Term Loan (WCTL) of Rs.5.05 Lacs under GECL.

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The applicant sanctioned the Overdraft Limit of Rs.50.00 Lacs vide Sanction letter dated 04.02.2013, which is Annexures A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Working Capital Term Loan (WCTL) of Rs.5.05 Lacs under GECL vide sanction letter dated 29.01.2022, which is Annexure A7 to this OA.

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Defendant no.3 had mortgage his immovable property i.e. Shop No. 23, measuring 20’x125’ situated at New Grain Market, Moga, Punjb through equitable mortgage of sale deed bearing vasika no.2725 dated 22.06.1992, along with its translation, which is Annexure A6 to this OA; Declaration and undertaking dated 05.02.2013 in matter of mortgage by deposit of title deeds, which is Annexure A5 to this OA. Documents executed : Overdraft agreement, form of guarantee, both dated 05.02.2013, which are Annexures A3 and A4 to this OA; working capital term loan agreement dated 04.02.2023, which is Annexure A8 to this OA; Letter of acknowledgment of debt dated 19.05.2023, which is Annexure A9 to this OA; Legal notice dated 25.08.2025, along with postal receipt, which is Annexure A10 to this OA and Statement of accounts, which are Annexure A11 to this OA. 5. 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.56,70,872.49, 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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3 OA/1228/2025 CENTRAL BANK OF INDIA VS M/S ZORA SINGH GILL AND SONS AND OTHERS

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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 dated 15.12.2025.

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7. In	support of the OA,	affidavit of Sh. Parikshit Bora, Senior
Manager,	Central Bank of India	,has been filed.

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8. Heard ex- parte arguments and perused record.

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It was argued by learned counsel through Video Conferencing 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 A11 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 applicant. 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 NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.56,70,872.49 (Rupees Fifty Six Lacs Seventy Thousand Eight Hundred Seventy Two & Paise Forty Nine only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50%p.a. with 2% penal interest and monthly rests from 21.08.2025 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 @8.00%p.a. in both the loan accounts from the date of filing of the OA

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4 OA/1228/2025 CENTRAL BANK OF INDIA VS M/S ZORA SINGH GILL AND SONS AND OTHERS

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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.56,70,872.49 (Rupees Fifty Six Lacs Seventy Thousand Eight Hundred Seventy Two & Paise Forty Nine only) jointly and severally, with costs, current and future simple interest @8.00%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 hypothecated assets/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 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 27.02.2026. 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. Pronounced by me in the open Tribunal . Dated: 13.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Central Bank of India v. M/S Zora Singh Gill and Sons and Others

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Central Bank of India v. M/S Zora Singh Gill and Sons and Others

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