Allowed

Bank of India v. Kamaljeet Singh and Others

DRT21 May 2026OA/1308/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Bank of India for recovery of Rs. 36,29,138.00 accruing from two housing loans. The Tribunal adjusted the claimed interest rate to 7.35% p.a. and issued instructions for enforcement via SARFAESI Act or attachment.

What did the court decide?

Recovery of Rs. 36,29,138.00 with costs and simple interest at 7.35% p.a. from filing date till realization.

Bank of India versus Kamaljeet Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1308/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.10.2023

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DATE OF DECISION: 21.05.2026

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C 5, G Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 and one of its Branches at Machhiwara Branch, District Ludhiana through Sh. Suresh Kumar, presently posted as Chief Manager, Bank of India, Khanna, District Ludhiana, Punjab, its Principal Officer and Constituted Attorney

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……..Applicant

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Versus

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Sh. Kamaljeet Singh, S/o Sh. Bahadur Singh, R/o Village Ranwan, Post Office Takhran, Tehsil Samrala, District Ludhiana, Punjab

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Smt. Sandeep Kaur, W/o Sh. Kamaljeet Singh, R/o Village Ranwan, Post Office Takhran, Tehsil Samrala, District Ludhiana, Punjab

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Sh. Bahadur Singh, S/o Sh. Atma Singh, R/o Village Ranwan, Post Office Takhran, Tehsil Samrala, District Ludhiana, Punjab

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…Defendants

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Advocates:

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Argued by Sh. R V Mehra, Advocate for applicant (through VC) None for defendants

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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. 36,29,138.00 (Rupees Thirty Six Lacs Twenty Nine Thousand One Hundred Thirty Eight Only). The Original Application has been filed through Sh. Suresh Kumar, Chief

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2 OA/1308/2023 BANK OF INDIA VS. KAMALJEET SINGH AND OTHERS

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Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant nos. 1 and 2 approached the applicant for grant of Star Housing Loan of Rs. 22.00 Lacs. Thereafter, defendant nos. 1 and 2 approached the applicant for grant of Housing Loan of Rs. 5.00 Lacs vide Loan Application dated 29.05.2018, which is Annexure A15 to this OA. Thereafter, defendant nos. 1 and 2 approached the applicant for re-scheduling of both the Housing Loans of Rs. 22.00 Lacs and Rs. 5.00 Lacs under Covid-19 Regulatory Package vide Request Letters, both dated 22.09.2020, which are Annexures A27 and A28 to this OA.

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The applicant sanctioned the Star Housing Loan of Rs. 22.00 Lacs vide Sanction Letter dated 14.03.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Housing Loan of Rs.5.00 Lacs vide Sanction Letter dated 29.05.2018, which is Annexure A16 to this OA. Thereafter, the applicant sanctioned the rescheduling of both the Housing Loans of Rs. 22.00 Lacs and Rs. 5.00 Lacs under Covid-19 Regulatory Package. Defendant no. 3 stood as guarantor.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 02K 05M situated at Village Ranwan, Hadbast no. 81, Tehsil Samrala, District Ludhiana, Punjab through Registered Transfer Deed bearing vasika no. 2164 dated 26.02.2018 along with its translation and Oral Assent Registers dated 14.03.2018 and 29.05.2018, which are Annexure A11 to A13 and A25 to this OA.

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Documents executed: DP Note, Bearer Letter, Agreement for Home Loan, Composite Document, Letter of Declaration and Assurance, Letter of Declaration, Undertaking and Authority, MCLR Agreement, Letter of Installment and Agreement of Guarantee, all dated 15.03.2018, which are Annexures A3 to A10 and A14 to this OA;

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3 OA/1308/2023 BANK OF INDIA VS. KAMALJEET SINGH AND OTHERS

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DP Note, Bearer Letter, Agreement for Home Loan, Composite Document, Letter of Declaration and Assurance, Letter of Declaration, Undertaking and Authority, MCLR Agreement, Letter of Installment, and Agreement of Guarantee, all dated 29.05.2018, which are Annexure A17 to A24 and A26 to this OA; DP Notes, Bearer Letters, Deeds of Term Loan, all dated 22.09.2020, which are Annexures A29 to A34 to this OA; Notice u/s 13(2) of SARFAESI Act dated 14.06.2021 along with postal receipts, which are Annexures A35 to A38 to this OA; Letters of Acknowledgment of Debts and Securities dated 02.02.2021, which are Annexures A39 and A40 to this OA and Statement of Account with certificate, which are Annexures A41 and A42 to this OA.

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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. 36,29,138.00, 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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The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Ankit Rana, Advocate appeared on behalf of defendants on 18.11.2024 and filed Power of Attorney . Paper book was supplied to him. N o WS was filed by defendants. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 19.05.2026.

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In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manage r, Bank of India, h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel (through VC) 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 A42 to this OA, it

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is proved that the defendant nos. 1 and 2 approached applicant for

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4 OA/1308/2023 BANK OF INDIA VS. KAMALJEET SINGH AND OTHERS

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availing of the loan facilities, which were granted to them. Defendant no. 3 stood as guarantor. Defendants had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 36,29,138.00 (Rupees Thirty Six Lacs Twenty Nine Thousand One Hundred Thirty Eight Only), along with interest from the defendants, jointly and severally, 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 @9.35%p.a. including 2% penal interest with monthly rests from 26.09.2023 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, 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 simple interest @7.35% p.a. in both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,29,138.00 (Rupees Thirty Six Lacs Twenty Nine Thousand One Hundred Thirty Eight Only), jointly and severally, with costs, current and future simple interest @7.35% p.a. in both 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

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5 OA/1308/2023 BANK OF INDIA VS. KAMALJEET SINGH AND OTHERS

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from the sale of mortgaged property of the 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 12.06.2026.

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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: 21.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Kamaljeet Singh and Others

Case brief

What is this about?

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Bank of India v. Kamaljeet Singh and Others

Case brief

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