Allowed

Capital Small Finance Bank Limited v. Sh. Manjinder SIngh and Others

DRT15 May 2026OA/1263/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed under the RDB Act for recovery of an agricultural loan. The court directed the defendants to pay the principal amount with simple interest at 8% p.a. and authorized execution through sale of mortgaged or personal assets.

What did the court decide?

Rs.39,48,950.60 jointly and severally with simple interest @08% p.a. from filing till realization. Recovery via sale of hypothecated or personal assets.

Capital Small Finance Bank Limited versus Sh… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1263/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.09.2025

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DATE OF DECISION: 15.05.2026

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Capital Small Finance Bank Limited, a body corporate established under the Companies Act, 1956 and is having its Registered Office at MIDAS, Corporate Park, 3^rd Floor, G.T. Road, Jalandhar, Punjab and branch office amongst other places at Jandiala Guru Amritsar, District Amritsar, Punjab through its General Power of Attorney Sh.Munish Sharma posted at Registered and Head Office at Jalandhar.

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……..Applicant

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Versus

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Sh. Manjinder Singh S/o Sh. Inderjit Singh, R/o Village Khakh, Tehsil Khaddor Sahib, District Tarn Taran, Punjab-143115.

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Smt. Manrajpreet Kaur W/o Sh. Manjinder Singh, R/o Village Khakh, Tehsil Khaddor Sahib, District Tarn Taran, Punjab143115.

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Sh. Lakhwinder Singh S/o Sh. Gurnam Singh, R/o H. No. 231, Village Khakh, District Tarn Taran, Punjab-143115.

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……..Defendants

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Advocates:

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Argued by Sh. Vikas Sharma, Advocate for Applicant

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None for defendants (Already ex-parte vide order dated 07.05.2026)

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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 defendants for recovery of Rs.39,48,950.60 (Rupees Thirty Nine Lacs Forty Eight Thousand Nine Hundred Fifty and Paise Sixty Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative, who is competent to institute the Original Application vide Power of Attorney dated 20.04.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for the grant of Kisan Credit Card Limit of

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2 OA/1263/2025 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANJINDER SINGH AND OTHERS

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Rs.20,45,000.00 vide Application for Agricultural Credit short term(KCC)/Term Loan dated 28.08.2019, which isAnnexure A2to
this OA.
3. The applicant sanctioned the Kisan Credit Card Limit of
Rs.20,45,000.00 and terms and conditions were duly accepted by the
defendant nos. 1 & 2 vide Agreement of Hypothecation of standing
crops and other moveable assets dated 13.09.2019 which is
Annexure A3to this OA. Defendant no. 3 stood as guarantor.
4. Defendant no. 1 mortgaged his immovable properties i.e.,Total
Land Measuring 52 Kanals 13 Marla as detailed under:
a) Land ad-measuring 34 Kanals 5 Marlas situated at Village Khakh, Tehsil Khadoor Sahib, District Tarn Taran, Punjab as per Hadbast no. 117. b) Land ad-measuring 18 Kanals 8 Marlas situated at Village Hardo Sarli, Tehsil Khadoor Sahib, District Tarn Taran, Punjab as per Hadbast no. 118.
vide declaration dated 05.09.2019 u/s 4(1) of Punjab Agricultural
Credit Operations and Miscellaneous Provisions (Banks) Act, 1978
along with Request letter for creation of charge in revenue record on property dated 05.09.2019, which isAnnexure A6to this OA.
Documents executed: Demand Promissory Note, Guarantee Deed,
both dated 13.09.2019, which areAnnexures A4 & A5to this OA;
Balance and Security Confirmation Letter dated 01.09.2021,
01.09.2022 which areAnnexure A7(Colly)to this OA; Recall Notice
dated 02.08.2025 along with postal receipts which isAnnexure A8to
this OA; Claim petition dated 29.09.2023, which isAnnexure A9to
this OA; copy of Order dated 28.02.2025, which isAnnexure A10to
this OA; Statement of account along with certificate, which is
Annexure A11to this OA.
5. The loan account became irregular and was classified as NPA
and after adjusting debit and credit entries in the loan account there
was a debit of Rs.39,48,950.60, which is recoverable and the
defendants were served recall notice 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/1263/2025 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANJINDER SINGH AND OTHERS

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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 07.05.2026.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, Capital Small Finance Bank Limited has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 Annexures A1 to A11 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facility which was granted to them, defendant no. 3 stood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan 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.39,48,950.60 (Rupees Thirty Nine Lacs Forty Eight Thousand Nine Hundred Fifty and Paise Sixty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.05%p.a. with half yearly rests with penal interest @2.00%p.a. from 02.07.2025 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/mortgaged properties, undertaking of the defendants, 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

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4 OA/1263/2025 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANJINDER SINGH AND OTHERS

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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.39,48,950.60 (Rupees Thirty Nine Lacs Forty Eight Thousand Nine Hundred Fifty and Paise Sixty Only), jointly and severally, 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/mortgaged properties of defendant no. 1 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 15.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Capital Small Finance Bank Limited v. Sh. Manjinder SIngh and Others

Case brief

What is this about?

What did the court decide?

Capital Small Finance Bank Limited v. Sh. Manjinder SIngh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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