Allowed

Bank of India v. Sh. Tehal Singh and Another

DRT27 May 2026OA/1530/2025

Case brief

AI extract

What is this about?

DRT allowed the applicant's original application for recovery of Rs. 51,49,387.00. The court ordered joint and several liability, fixed uniform interest at 8% per annum, and directed issuance of a Recovery Certificate for execution against mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 51,49,387.00 with 8% p.a. simple interest, costs, and liberty to enforce through sale of mortgaged/hypothecated assets or attachment of personal assets. Recovery Certificate issued.

Bank of India versus Sh. Tehal Singh and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1530/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.10.2025

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DATE OF DECISION: 27.05.2026

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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, Maharashtra- 400051 and one of its Branches situated at Payal Branch, Ludhiana, Punjab through Sh. Akash Kumar, Senior Manager, Bank of India, Payal Branch, District Ludhiana, Punjab, its Principal Officer and Authorized Officer

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… …..Applicant

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Versus

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Sh. Tehal Singh, S/o Sh. Jagir Singh, R/o Village and Post Office Dhamot, Tehsil Payal, District Ludhiana, Punjab

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Sh. Amarjeet Singh, S/o Sh. Jagir Singh, R/o Village and Post Office Dhamot, Tehsil Payal, 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 (already ex-parte vide order dated 25.05.2026)

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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. 51,49,387.00 (Rupees Fifty One Lacs Forty Nine Thousand Three Hundred Eighty Seven Only). The Original Application has been filed through Sh. Akash Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide Letter dated 10.06.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of KCC Limit of Rs. 13.00 Lacs and OD Limit of Rs. 7.00 Lacs vide Loan Applications, both dated 20.10.2015, which are Annexure A2 and A3 to this OA.

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2 OA/1530/2025 BANK OF INDIA VS. TEHAL SINGH AND ANOTHER

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The applicant sanctioned KCC Limit of Rs. 13.00 Lacs and OD Limit of Rs. 7.00 Lacs vide Letters of Sanction, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 17 Bighas 08 Biswas 10 Biswansis situated at Village Dhanot I-II, Tehsil Payal, District Ludhiana, Punjab vide Declaration u/s 4 (1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 23.10.2015, along with its translation, which are Annexure A12 and A13 to this OA.

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Defendant no. 1 hypothecated all types of Rabi and Kharif crops vide Hypothecation cum Loan Agreement dated 31.10.2015, which is Annexure A7 to this OA.

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Documents executed: DP Notes, Bearer Letters, Composite Documents, Letters of Declaration and Assurance, Letters of Authority, Agreements of Guarantee, Term Loan Agreement and Letter of Declaration, Undertaking and Authority, all dated 31.10.2015, which are Annexure A5, A6, A8 to A11 and A14 to A22 to this OA; Legal Notice dated 15.03.2024 along with postal receipts, which are Annexure A23 to A25 to this OA; Letters of Acknowledgement of Debts and Securities dated 17.08.2018 and 12.01.2021, which are Annexures A26 to A29 to this OA and Statement of Accounts, which are Annexure A30 and A31 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 the loan accounts there was a debit of Rs. 51,49,387.00, 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. 6. 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 25.05.2026. 7. In support of the OA, affidavit Sh. Akash Kumar, Senior Manager , Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1530/2025 BANK OF INDIA VS. TEHAL SINGH AND ANOTHER

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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 Annexure A1 to A31 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facilities, which were granted to him. Defendant no. 2 stood as guarantor. Defendants had executed all the relevant documents in favour 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. 51,49,387.00 (Rupees Fifty One Lacs Forty Nine Thousand Three Hundred Eighty Seven 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 @15.50%p.a. in KCC Limit Account and @12.30% p.a. in OD Limit Account with half yearly rests from the date of filing of the 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 hypothecated assets/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 @8.00% 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.

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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. 51,49,387.00 (Rupees Fifty One Lacs Forty Nine Thousand Three

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OA/1530/2025 BANK OF INDIA VS. TEHAL SINGH AND ANOTHER

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Hundred Eighty Seven Only) jointly and severally, with costs, current and future simple interest @8.00% 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 from the sale of mortgaged property/hypothecated assets 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.06.2026. 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: 27.05.2026

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

Bank of India v. Sh. Tehal Singh and Another

Case brief

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Bank of India v. Sh. Tehal Singh and Another

Case brief

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