Allowed

Indian Bank v. M/S Charanjit Poultry Farm and Others

DRT8 Sept 2026OA/1232/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the application filed by Indian Bank against borrowers and guarantors for recovery of outstanding loans totaling over 31 lakhs. The court decreed payment of principal amounts with simple interest at 8% p.a. instead of the claimed higher rates, and issued a recovery certificate.

What did the court decide?

Recovery Certificate issued directing recovery of Rs. 13,16,357 from defendants 3 and 4 and Rs. 18,25,906 from defendants 1 and 2 with simple interest at 8% p.a.

Indian Bank versus M/S Charanjit Poultry Farm and Others — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 1232/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 15.10.2024

¶5

DATE OF DECISION: 08.09.2026

¶6

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 Head Office at Avvai Shanmugham Salai, Royapettah, Chennai, Tamil Nadu- 600014 and having its Zonal Office at Jalandhar, Punjab and amongst other Branches, a Branch at Banga through Branch Manager, Sh. Sachin Parmar duly constituted and Authorized Signatory

¶7

……..Applicant

¶8

Versus

¶9

1. M/S Charanjit Poultry Farm through its Proprietor, Sh. Charanjit Singh, R/o Village Bharo Mazara, PO Dosanjh Khkurd, Tehsil Banga, District SBS Nagar, Punjab

¶10

Sh. Charanjit Singh, S/o Sh. Mohinder Pal Singh, R/o VPO Bharo Mazara, Tehsil Banga, District SBS Nagar, Punjab

¶11

Smt. Kamlesh Rani, W/o Sh. Mahinder Pal, R/o Bharo Mazara, Tehsil Banga, District SBS Nagar, Punjab

¶12

Sh. Mahinder Pal, S/o Sh. Chura Ram (since deceased) through his Legal Heirs:

¶13

i. Smt. Kamlesh Rani, W/o Sh. Mahinder Pal

¶14

ii. Sh. Parmod Kumar, S/o Sh. Mahinder Pal

¶15

iii. Sh. Balwinder Kumar, S/o Sh. Mahinder Pal iv. Sh. Charanjit Singh, S/o Sh. Mahinder Pal All residents of Bharo Mazara, Tehsil Banga, District SBS Nagar, Punjab

¶16

………Defendants

¶17

Advocates:

¶18

Argued by Sh. Anup Prajapati, Advocate proxy for Ms. Deepika Mittal, Advocate for applicant None for defendants (already ex-parte vide order dated 02.09.2026)

¶19

2 OA NO. 1232/2024 INDIAN BANK VS. M/S CHARANJIT POULTRY FARM AND OTHERS

¶20

FINAL ORDER

¶21

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. 31,42,263.00 (Rupees Thirty One Lacs Forty Two Thousand Two Hundred Sixty Three Only). The Original Application has been filed through Sh. Sachin Parmar, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 29.07.2024, which is

¶22

Annexure A1 to this OA.

¶23

The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan- I of Rs. 6.00 Lacs and CC Limit of Rs. 6.00 Lacs vide Loan Application dated 19.03.2014, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for restructuring of CC Limit to Term Loan- II of Rs. 7,29,700.00 vide Letter of Request dated 20.05.2017, which is Annexure A18 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan- III of Rs. 3.60 Lacs vide Request Letter dated 26.09.2018, which is Annexure A21 to this OA.

¶24

The applicant sanctioned Term Loan- I of Rs. 6.00 Lacs and CC Limit of Rs. 6.00 Lacs vide Sanction Letter dated 23.03.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned restructuring of CC Limit to Term Loan- II of Rs. 7,29,700.00 vide Sanction Letter dated 20.05.2017, which is Annexure A19 to this OA. Thereafter, the applicant sanctioned Term Loan- III of Rs. 3.60 Lacs vide Sanction Letter dated 26.09.2018, which is Annexure A22 to this OA. Defendant no. 3 and defendant no. 4 (since deceased) stood as guarantors in Term Loan- I and CC Limit Accounts.

¶25

As per the OA, CC Limit of Rs. 6.00 Lacs was closed by the defendants in the year 2017.

¶26

Defendant no. 3 mortgaged her immovable property i.e. Land measuring 05K 00M situated at Village Punnian, District SBS Nagar, Punjab vide Mortgage Deeds bearing vasika no. 2560 dated

¶27

3 OA NO. 1232/2024 INDIAN BANK VS. M/S CHARANJIT POULTRY FARM AND OTHERS

¶28

25.03.2014 and 31.03.2014, which are Annexure A10 and A16 to this OA.

¶29

Documents executed: Interview cum Appraisal Form dated 29.03.2014, which is Annexure A3 to this OA; DP Note, General Letter of Hypothecation, Consent Clause, Form Adv 30 and Declarations, all dated 02.04.2014, which are Annexure A5 to A9 and A11 to this OA; Recital Proprietorship, Recital Applicable, Consent Clause, Adv 42 and Deed of Guarantee, all dated 31.03.2014, which are Annexure A12 to A15 and A17 to this OA; DP Notes dated 25.05.2017 and 26.09.2018, which are Annexure A20 and A23 to this OA; Legal Notice dated 17.10.2019, which is Annexure A24 to this OA; Recall Notice dated 30.06.2021, which is Annexure A25 to this OA; Acknowledgments of Debt dated 03.01.2020 and 01.01.2023, which are Annexure A26 and A27 to this OA and Account Statement, which is Annexure A28 to this OA.

¶30

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. 31,42,263.00 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 but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 02.09.2026. 7. In support of the OA, affidavit of Sh. Sachin Parmar, Branch Manager, Indian Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

¶31

From the perusal of all the Annexure A1 to A28 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 and defendant no. 4 (since deceased) stood as guarantors in Term Loan- I and CC Limit Accounts.

¶32

4 OA NO. 1232/2024 INDIAN BANK VS. M/S CHARANJIT POULTRY FARM AND OTHERS

¶33

Defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. Defendant nos. 4 (i) and 3 are the same person and defendant nos. 4 (iv) and 2 are the same person. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 13,16,357.00 (Rupees Thirteen Lacs Sixteen Thousand Three Hundred Fifty Seven Only) from defendants and Rs. 18,25,906.00 (Rupees Eighteen Lacs Twenty Five Thousand Nine Hundred Six Only) from defendant nos. 1 and 2, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

¶34

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.70%p.a. in Term Loan- I Account, @10.90% p.a. in Term LoanII Account and @10.80% p.a. in Term Loan- III Account plus @2%p.a. penal interest with monthly rests from 27.06.2024 till the realization.

¶35

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.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.13,16,357.00 (Rupees Thirteen Lacs Sixteen Thousand Three Hundred Fifty Seven Only) and defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs. 18,25,906.00 (Rupees Eighteen Lacs Twenty Five Thousand Nine Hundred Six Only), jointly and severally, with costs, current and future simple interest @8.00% p.a.

¶37

5 OA NO. 1232/2024

¶38

INDIAN BANK VS. M/S CHARANJIT POULTRY FARM AND OTHERS

¶39

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 mortgaged property of defendant no. 3 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 to 3 and also of defendant nos. 4 (ii) and 4 (iii) to the extent they inherited the property of deceased defendant no. 4. The applicant is at liberty to enforce the claim through due process of law.

¶40

12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

¶41

Parties to appear before Learned Recovery Officer of this Tribunal on 19.09.2026. 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: 08.09.2026

¶42

(MRIDULESH KUMAR SINGH)

¶43

Presiding Officer, DRT-III, Chandigarh

Indian Bank v. M/S Charanjit Poultry Farm and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Charanjit Poultry Farm and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Ltd. versus Sh. Lovepreet Singh and Another

Central Bank of India versus M/S Jsm Traders and Another

Central Bank of India versus M/S Malhotra Traders and Others

State Bank of India versus Sh. Karanjit Singh and Others

Punjab National Bank versus Sh. JasBir Singh

Indian Bank versus Smt. Amneet Kaur and Another