Allowed

Union Bank of India v. Sh. Sukhwinder Singh through His Legal Heir

DRT16 Mar 2026OA/1244/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs.23,11,515.13 due from the legal heir of a deceased borrower. The court fixed future interest at 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.23,11,515.13 plus simple interest at 8% p.a.; Issuance of Recovery Certificate.

Union Bank of India versus Sh. Sukhwinder Singh through His… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1244/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.08.2025

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DATE OF DECISION: 16.03.2026

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Union Bank of India, a Government of India Undertaking incorporated under the Banking Companies (Acquisition and Transfers of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai carrying on the business of banking at Patiala Gate, Sangrur, through its Branch Manager Sh. Vipin Chandel, Principal Officer/ General Attorney, Union Bank of India, Patiala Gate, Sangrur.

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……..Applicant Versus

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Sh. Sukhwinder Singh S/o Sh. Baldev Singh R/o Village Dhandholi Kalan, Tehsil Dirbha, District Sangrur

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Since Deceased through his Legal Heir/Wife

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Smt. Gurjit Kaur W/o Sh. Late Sh. Sukhwinder Singh S/o Sh. Baldev Singh, R/o Village Dhandholi Kalan, Tehsil Dirba, District Sangrur.

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….……Defendant

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Advocates:

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Argued by Sh. Gaurav Chadha, Advocate proxy for Sh. Amit Kumar Bhalla, Advocate for the applicant

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Defendant already ex-parte vide order dated 13.01.2026

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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 defendant for recovery of Rs.23,11,515.13 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred Fifteen and Paise Thirteen Only). The Original Application has been filed through Sh. Vipin Chandel, Branch Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 19.03.2015, which is Annexure A1 to this OA.

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OA/1244/2025 UNION BANK OF INDIA VS SUKHWINDER SINGH THROUGH HIS LEGAL HEIR

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The brief facts of the OA that the defendant i.e. Sh. Sukhwinder Singh (since deceased) approached the applicant for grant Term Loan of Rs. 20.00 Lacs for purchase of Combine Harvester vide Loan Application dated 14.06.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan of Rs. 20.00 Lacs vide Sanction Advice dated 19.06.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant i.e. Sh. Sukhwinder Singh (since deceased).

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Defendant i.e. Sh. Sukhwinder Singh (since deceased) hypothecated Combine Harvester Make: SHAKTIMAN AGRO INDUSTRIES, Model: AS930, bearing Registration No. PB13BT0581, Engine No. PHHM417543, Chassis No. SAI930LO02286 vide Hypothecation Agreement (for Agricultural advances) and Hypothecation (Vehicles) Agreement, both dated 19.06.2023, which are Annexures A8 and A11 to this OA; Registration Certificate, which is Annexure A14 to this OA.

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Documents executed: Declaration/Undertaking, Undertaking, AD02A, Letter of Continuity, Simple Loan Agreement, Demand Promissory Note, Interest Agreement, General Term Loan Agreement, Term Loan Agreement, all dated 19.06.2023, which are Annexures A4 to A7, A9, A10, A12 and A13 to this OA; Demand Notice dated

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24.02.2025 u/s 13(2) of SARFAESI Act, which is Annexure A15 to this OA; Legal Notice dated 26.12.2024 and 10.02.2025, along with postal receipt, which are Annexures A16 to A18 to this OA; Demand Notice dated 08.01.2024, along with postal receipt, which are

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Annexures A19 and A20 to this OA; Statement of Account with certificates, which are Annexure A21 to A23 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 loan account there was a debit of Rs.23,11,515.13 which is recoverable and the legal heir of the defendant Sh. Sukhwinder Singh (since deceased) was served recall notices but she did not repay the outstanding amount, therefore, the

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OA/1244/2025 UNION BANK OF INDIA VS SUKHWINDER SINGH THROUGH HIS LEGAL HEIR

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applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte parte vide order dated 13.01.2026.

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In support of the OA, affidavit Sh. Vipin Chandel, Branch Manage r, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record

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It was argued by 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 A23 to this OA, it is proved that the defendant Sh. Sukhwinder Singh (since deceased) approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. He failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,11,515.13 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred Fifteen and Paise Thirteen Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.45%p.a. with monthly rests from 30.06.2025 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 defendant, 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

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OA/1244/2025 UNION BANK OF INDIA VS SUKHWINDER SINGH THROUGH HIS LEGAL HEIR

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Tribunal deems it just and appropriate to grant uniform simple interest @08.00%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 defendant is liable to pay to the applicant a total sum Rs.23,11,515.13 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred Fifteen and Paise Thirteen Only), with costs, current and future simple interest @08.00%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 hypothecated vehicle of the defendant 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 defendant. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.04.2026.

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Copy of this order be given Dasti to the applicant and be sent to defendant 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: 16.03.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Sukhwinder Singh through His Legal Heir

Case brief

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Union Bank of India v. Sh. Sukhwinder Singh through His Legal Heir

Case brief

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