Allowed

Bank of India v. Sh. Gaurav Kumar and Another

DRT27 Mar 2026OA/1521/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application, directing the defendants to jointly and severally pay the outstanding loan amount of Rs. 48,00,148.91 with uniform simple interest at 8% p.a. from the filing date, citing mortgage and enforcement provisions.

What did the court decide?

Recovery of Rs. 48,00,148.91 jointly and severally with simple interest at 08% p.a. from filing date; issuance of Recovery Certificate.

Bank of India versus Sh. Gaurav Kumar and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1521/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.10.2025

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DATE OF DECISION: 27.03.2026

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), having its Head Office at Star House, C- 5, Block G, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 and a Branch Office amongst other places, known as Ludhiana Main Branch, 1^st Floor, Guru Teg Bahadur Market, near Clock Tower, GT Road, Ludhiana Punjab141008 through, Sh. Vipul Goyal, its Authorized Officer.

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……..Applicant

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Versus

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Sh. Gaurav Kumar, S/O Sh. Chhaju Ram, R/o House no. B-346508/15A, near Bhullar Dairy, Jwala Singh Enclave, Jassian, Ludhiana, Punjab- 141008

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Smt. Savita, W/O Sh. Gaurav Kumar, R/o House no. B-346508/15A, near Bhullar Dairy, Jwala Singh Enclave, Jassian, Ludhiana, Punjab- 141008

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….……Defendants

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Advocates:

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Argued by Sh. G.S. Anand, Advocate for Applicant

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Defendants already ex-parte vide order dated 16.03.2026

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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.48,00,148.91 (Rupees Forty Eight Lacs One Hundred Forty Eight and Paise Ninety One Only). The Original Application has been filed through Sh. Vipul Goyal, Authorized officer, Bank of India, who is competent to institute the Original Application vide Authority Letter dated 31.07.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Home Loan of Rs 14,97,204/- and Top Up Loan of Rs 16,03,000/- vide Applications for Financial Assistance, both dated

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16.09.2022, which are Annexure A2 and A3 to this OA and Retail

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2 OA NO.1521/2025 BANK OF INDIA VS. GAURAV KUMAR AND ANOTHER

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Loan of Rs 15,00,000/- vide Application for Financial Assistance dated 16.02.2024, which is Annexure A4 to this OA.

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The applicant sanctioned the Home Loan of Rs 14,97,204/-, Top Up Loan of Rs 16,03,000/- and a Retail Loan of Rs 15,00,000/- vide Sanction Letters dated 29.10.2022, 14.11.2022 and 16.02.2024, which are Annexure A5, A6 & A7 to this OA.

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Defendant no. 2 mortgaged her immovable property i.e. Plot measuring 70 Sq. Yards situated at Village Jassian, Hadbast no. 101, Tehsil and District Ludhiana through Equitable Mortgage vide Sale Deed bearing vasika no. 2021-22/101/1/7441 dated 01.09.2021, which is Annexure A32 to this OA.

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Documents executed: DP Notes, Letter Repayment of Installments, Letters of Declaration, Undertaking and Authority, Agreement for Home Loan, Special Power of Attorney, Composite Letters, Agreements RBI Norms, Repo Based Lending Rate Agreements and Affidavit cum Undertakings, Bearer Letter, Term Loan Agreement all dated 14.11.2022, which are Annexure A8 to A24 to this OA; DP Note, Bearer Letter, Letter Repayment of Installments, Letter of Declaration, Undertaking and Authority, Loan Agreement, Agreement RBI Norms and Letter of Undertaking, all dated 17.02.2024, which are Annexure A25 to A31 to this OA; Oral Assent and Relevant portion of the Attendance Register, both dated 30.11.2022, which are Annexure A33 and A34 to this OA; Notices along with postal receipts dated 04.03.2025, which is Annexure A35 to this OA; Statement of Accounts duly certified, which are Annexure A36, A37 and A38 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.48,00,148.91, 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. 6. 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 16.03.2026.

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3 OA NO.1521/2025 BANK OF INDIA VS. GAURAV KUMAR AND ANOTHER

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In support of the OA, affidavit of Sh. Vipul Goyal, Chief Manager, Bank of India has been filed.

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Heard ex-parte arguments and perused records.

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It was argued by learned counsel 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 Annexure A1 to A38 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities 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, 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.48,00,148.91 (Rupees Forty Eight Lacs One Hundred Forty Eight and Paise Ninety One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest in Housing Loan @10%p.a., Top up Loan @10.50%p.a. and Retail Loan @ 12.75%p.a. with monthly rests from date of institution of this application 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 uniform simple interest @08.00%p.a. in all 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.48,00,148.91 (Rupees Forty Eight Lacs One Hundred Forty Eight

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4 OA NO.1521/2025 BANK OF INDIA VS. GAURAV KUMAR AND ANOTHER

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and Paise Ninety One Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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 from the sale of mortgaged property 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.04.2026.

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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 . Dated: 27.03.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Gaurav Kumar and Another

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Bank of India v. Sh. Gaurav Kumar and Another

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