Allowed

Union Bank of India v. Sh. GURDHian Singh

DRT3 Jun 2026OA/1245/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act for recovery of Rs. 32.70 lakhs. The court reduced the claimed interest rate to 8% per annum, awarded a recovery certificate, and directed enforcement against hypothecated and personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 32,70,365.69 with 8% p.a. interest; directed sale of hypothecated and personal assets for realization.

Union Bank of India versus Sh. GURDHian Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1245/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.09.2025

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DATE OF DECISION: 03.06.2026

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Union Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act no. V of 1970, carrying on Banking Business and having its Head Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai, Maharashtra- 400021 and its Branch Office inter alia at Union Bank of India, Tehsil Road, Teshil Samana, District Patiala, Punjab through its Branch Manager cum duly Constituted Attorney, Sh. Rakesh Kumar

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……..Applicant

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Versus

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Sh. Gurdhian Singh, S/o Sh. Dharma Singh, R/o Village Hari Nagar @Kherki, Tehsil and District Patiala, Punjab

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….……Defendant

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Advocates:

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Argued by Sh. Rahul Garg, Advocate proxy for Sh. Harinder Kumar, Advocate for applicant

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None for defendant (already ex-parte vide order dated 06.12.2025)

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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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 32,70,365.69 (Rupees Thirty Two Lacs Seventy Thousand Three Hundred Sixty Five and Paise Sixty Nine Only). The Original Application has been filed through Sh. Rakesh Kumar, Branch Manager o f the applicant who is competent to institute the Original Application vide Power of Attorney dated 08.11.2024, which is Annexure A1 to this OA.

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2 OA/1245/2025 UNION BANK OF INDIA VS. GURDHIAN SINGH

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The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs. 32.17 Lacs for purchase of Combine Harvester and Maize Cutter vide Loan Application dated 22.12.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Term Loan of Rs. 32.17 Lacs for purchase of Combine Harvester and Maize Cutter vide Sanction Letter dated 25.01.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant hypothecated his movable assets namely A R Agro Tech Combine Harvester bearing Registration no. PB47F9969, Chassis no. ART987A240026 and Engine no. PEHM119224 vide RC filed on 02.06.2026 and equipments vide Hypothecation Agreement dated 29.01.2024, which is Annexure A4 to this OA. Documents executed: Interest Agreement, Hypothecation of Vehicle Agreement, Term Loan Agreement, Letter of Undertaking, Consent Letter, Letter of Continuity, General Term Loan Agreement and DP Note, all dated 29.01.2024, which are Annexure A5 to A12 to this OA; Recall Notice dated 08.02.2025, which is Annexure A13 to this OA and Statement of Account, which is Annexure A14 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. 32,70,365.69, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 06.12.2025. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1245/2025 UNION BANK OF INDIA VS. GURDHIAN SINGH

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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.

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From the perusal of all the Annexure A1 to A14 to this OA, it is proved that the defendant 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. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 32,70,365.69 (Rupees Thirty Two Lacs Seventy Thousand Three Hundred Sixty Five and Paise Sixty Nine Only) along with interest from the defendant, 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 in relief clause has claimed interest @9.00%p.a. with monthly rests from 01.08.2025 till 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 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 Tribunal deems it just and appropriate to grant 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 of Rs.32,70,365.69 (Rupees Thirty Two Lacs Seventy Thousand Three

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4 OA/1245/2025 UNION BANK OF INDIA VS. GURDHIAN SINGH

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Hundred Sixty Five and Paise Sixty Nine 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 assets 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. 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 24.06.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 03.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. GURDHian Singh

Case brief

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Union Bank of India v. Sh. GURDHian Singh

Case brief

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