Allowed

Capital Small Finance Bank Limited v. Sh. Gurmukh Singh

DRT24 Aug 2026OA/1346/2025

Case brief

AI extract

What is this about?

DRT-I, Chandigarh allowed Capital Small Finance Bank's application under the RDB Act. The court held the loan was advanced and dues were due. Judgment restored the bank's right to recover the outstanding amount with interest via sale of mortgaged property or personal assets.

What did the court decide?

Recovery of Rs. 55,85,414.96 plus interest at 13% p.a.; issuance of recovery certificate; imposition of costs.

Capital Small Finance Bank Limited versus Sh. Gurmukh Singh — Arbitration | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

OA No: 1346/2025 Date of Institution: 29.07.2025 Date of Decision: 24.08.2026

¶4

Capital Small Finance Bank Limited having its branches all over India and a branch at Chabbewal, District Hoshiarpur, Punjab.

¶5

……..Applicant

¶6

Vs.

¶7

Sh. Gurmukh Singh s/o Sh. Harpal Singh, r/o VPO Handowal Kalan, District Hoshiarpur, Punjab.

¶8

Sh. Dalvir Singh s/o Sh. Harbhajan Singh, r/o VPO Handowal Kalan, District Hoshiarpur, Punjab.

¶9

Smt. Jaswant Kaur w/o Sh. Harpal Singh, r/o H.No. 19A, Village Handowal Kalan, District Hoshiarpur, Punjab.

¶10

……….Defendants

¶11

Advocates

¶12

Sh. Vikas Sharma, Counsel for the applicant bank. None for the defendants.

¶13

OA for the Recovery of ₹55,85,414.96p with interest @13% per annum with half-yearly rests from 29.07.2025.

¶14

ORDER

¶15

Capital Small Finance Bank Limited has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹55,85,414.96p with interest against Sh. Gurmukh Singh and others (defendants).

¶16

Bank’s case is that on 29.01.2016, it had granted a loan of ₹17.50 Lacs to defendant No.1 in the form of K.C.C Limit for agricultural purpose. On 06.01.2017, at the request of the defendants, bank enhanced the existing limit from ₹17.50 Lacs to ₹30.00 Lacs. To secure the loans, defendant No.1 mortgaged his land (fully detailed in para No.5{vi} of the application). Defendant Nos.2 and 3 stood as guarantors for the vide

¶17

¶18

Guarantee Deed dated 29.01.2016 and 11.01.2017. The loan was chargeable to interest @13% per annum with half-yearly rests. The Account of the defendant was declared Non-Performing Assets (NPA) on 30.06.2022. As per the term of the loan agreement, Bank initiated proceedings under the Arbitration Act on 02.12.2024. However, the Sole Arbitrator recused himself from the Arbitration proceedings vide letter dated 07.02.2025. On 31.03.2025, a sum of ₹55,85,414.96p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

¶19

On 25.08.2025, summonses were sent to the defendants by registered post, which were duly served. On 30.10.2025, the defendants were directed to file the Written Statement along with affidavit of their assets within 30 days. However, they failed to file the written statement and the affidavit of assets within the stipulated time. On 22.07.2026, the defendants were summoned for the purpose of admission and denial of the documents However, defendants did not put in appearance and they failed the opportunity of admission and denial of the documents.

¶20

In order to prove its case, the Bank has placed on record the affidavit of Sh. Bharat Bhushan, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-15. 5. I have perused the evidence on the record. Mr. Varun Katyal, is present along with the original documents which have been perused by me. The same has been returned to him after perusal. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹30.00 Lacs (enhanced from ₹17.50 Lacs) and on 31.03.2025, a sum of ₹55,85,414.96p was due.

¶21

Accordingly, the application of the bank for the recovery of ₹55,85,414.96p (Rupees Fifty Five Lacs Eighty Five Thousand Four

¶22

¶23

Hundred Fourteen and Paise Ninety Six Only) with interest @13% per annum with half-yearly rests from 29.07.2025, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

¶24

Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 25.09.2026. 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 24.08.2026 Presiding Officer DRT-1, Chandigarh

¶25

MANOJ KALRA

Capital Small Finance Bank Limited v. Sh. Gurmukh Singh

Case brief

What is this about?

What did the court decide?

Capital Small Finance Bank Limited v. Sh. Gurmukh Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Pavithra E

Mohammad Azeem Shad and another versus Fullerton India housing finance company limited

Mohd Naseemuddin versus Icici Bank Limited

Hdfc Bank versus Karan Vohra

Uco Bank versus Shri Sher Singh

Hdfc Bank versus Gopal Enterprises