Debts Recovery Tribunal allowed an original application by Union Bank of India against Kamaal Singh for recovery of a term loan. The court issued a Recovery Certificate and fixed uniform simple interest at 8% p.a.
Recovery Certificate issued; Defendant liable to pay Rs.22,24,464.90 with simple interest at 8% p.a.; recovery via sale of hypothecated assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1256/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 01.09.2025
DATE OF DECISION: 10.02.2026
Union Bank of India, a body Corporate constituted under the Banking Companies (Acquisition and Transfers of Undertakings) Act No. V of 1970 and having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai and one of the Branch amongst other places at Bhadson, Tehsil Nabha, District Patiala through its General Power of Attorney Cum Branch Manager Sh. Manpreet Singh.
……..Applicant Versus
Sh. Kamaal Singh S/o Sh. Bheem Singh R/o Village Sadhnouli, Tehsil Nabha, District Patiala-147202.
….……Defendant
Advocates:
Argued by Sh. Abhineet Taneja, Advocate for Applicant (Through VC) Defendant already ex-parte vide order dated 15.12.2025
FINAL ORDER
2 OA/1256/2025 UNION BANK OF INDIA VS. KAMAAL SINGH
3 OA/1256/2025 UNION BANK OF INDIA VS. KAMAAL SINGH
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.22,24,464.90 (Rupees Twenty Two Lacs Twenty Four Thousand Four Hundred Sixty Four and Paise Ninety Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.
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 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.
4
OA/1256/2025 UNION BANK OF INDIA VS. KAMAAL SINGH
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 24.02.2026. 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: 10.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant was entitled to recovery of the outstanding loan amount.
What rate of interest should be granted for pendente lite and future recovery.
2 provisions across 2 enactments
Union Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
