Allowed

Indian Overseas Bank v. Sh. Balwinder Singh and Another

DRT23 Feb 2026OA/1464/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's application for recovery of a non-performing asset loan of Rs. 24.99 Lakhs. Adjusting for economic conditions, the Tribunal set a uniform simple interest rate of 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Direction to defendants to pay Rs. 24,99,977.50 with interest at 8% p.a.; issuance of Recovery Certificate; liberty to proceed via SARFAESI Act.

Indian Overseas Bank versus Sh. Balwinder Singh… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1464/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2024

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DATE OF DECISION: 23.02.2026

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Indian Overseas Bank, A Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Central Office at 762, Anna Salai, Chennai- 600002 & amongst other places a branch office at Rajkot, District Ludhiana, through its duly constituted Attorney Sh. Vishram Meena, Branch Manager, Indian Overseas Bank, Raikot Branch, District Ludhiana.

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……..Applicant

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Versus

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Sh. Balwinder Singh S/o of Sh. Mukand Singh, R/o VPO Mehal Kalan, Tehsil and District Barnala.

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Sh. Nirmala Singh S/o of Sh. Sikander Singh, R/o Village Chappa, Tehsil Mehal Kalan, District Barnala.

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……….Defendants

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Advocates:

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Argued by Sh. Rajan Arora, Advocate for the applicant (through VC) Defendants already ex-parte vide order dated 07.01.2026

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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 Due and Bankruptcy Act, 1993, against the defendants for recovery of Rs.24,99,977.50 (Rupees Twenty Four Lacs Ninety Nine Thousand Nine Hundred Seventy Seven and Paise Fifty Only). The Original Application has been filed through

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Sh. Vishram Meena, Branch Manager of the a pplicant, who is competent to institute the Original Application vide Power of Attorney dated 04.09.2015, which is Annexure A1 to this OA.

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OA NO. 1464/2024 INDIAN OVESEAS BANK VS. BALWINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant KCC Limit of Rs.7.00 Lacs vide Loan Application dated 18.03.2013, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Guarantors statement dated 18.03.2013, which is Annexure A3 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 7.00 Lacs vide Credit sanction advise dated 29.03.2013, which is Annexure A10 to this OA and the terms and conditions are accepted by defendants. 4. Defendant No. 1 mortgaged his immovable property i.e. Land Measuring 09Kanal-06Marla-01Sarsai situated at Village Mehal KalanA, Tehsil and District Barnala, Punjab vide Mortgage Deed bearing vasika no. 1986 dated 26.03.2013, along with its translation, which is Annexure A5 to this OA; Jamabandi for the year 2009-10, along with its translation, which is Annexure A6 to this OA. Valuation dated 03.04.2013, which is Annexure AA to this OA.

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Documents executed: Guarantee Agreement, Hypothecation agreement, D.P. Notes, all dated 29.03.2013, which are Annexures A4, A7, A8 and A9 this OA; Legal Notice dated 30.11.2024 along with postal receipts, which are Annexures A11 to A13 to this OA; Statement of Account with certificate, which are Annexures A14 & A15 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit Rs. 24,99,977.50 which is recoverable and the defendants were served recall notices 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.01.2026.

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OA NO. 1464/2024 INDIAN OVESEAS BANK VS. BALWINDER SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Vishram Meena, Branch Manager, Indian Overseas Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,99,977.50 (Rupees Twenty Four Lacs Ninety Nine Thousand Nine Hundred Seventy Seven and Paise Fifty 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.

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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 @13%p.a. with 2% penal interest and half yearly rests from 01.09.2024 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 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 uniform simple interest @08.00%p.a. in the loan account from the date of filing of the

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OA NO. 1464/2024 INDIAN OVESEAS BANK VS. BALWINDER SINGH AND ANOTHER

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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 defendants are liable to pay to the applicant a total sum of Rs.24,99,977.50 (Rupees Twenty Four Lacs Ninety Nine Thousand Nine Hundred Seventy Seven and Paise Fifty 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 the defendants 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. 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 09.03.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 23.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Overseas Bank v. Sh. Balwinder Singh and Another

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Indian Overseas Bank v. Sh. Balwinder Singh and Another

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