Allowed

The Federal Bank Ltd. v. Sh. Rohit Kumar

DRT20 Jun 2026OA/1545/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's original application for recovery of a gold loan debt of Rs. 34,64,303.44 against the defendant. The Tribunal proceeded ex-parte due to the defendant's non-appearance and awarded simple interest at 8% per annum.

What did the court decide?

Order to pay Rs. 34,64,303.44 with costs and simple interest at 08% p.a.; Recovery Certificate issued; Execution against personal assets.

The Federal Bank Ltd. versus Sh. Rohit Kumar — Specific Performance | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1545/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 04.11.2025

¶5

DATE OF DECISION: 20.06.2026

¶6

The Federal Bank Ltd., a Banking Company registered under the Companies Act, 1956 and having its Registered Office at Alwaye, District Ernakulam and having Branches all over India and one of its Branch Office amongst other places situated at Feroze Gandhi Market, Ludhiana, Punjab through its Loan Collection and Recovery Division, Chandigarh at SCO no. 867, 1^st Floor, NAC, Manimajra, Chandigarh160601 through its Associate Vice President, Principal Officer and General Power Attorney Holder, Sh. Santosh Kumar Gupta

¶7

……..Applicant

¶8

Versus

¶9

Sh. Rohit Kumar, S/o Sh. Ramesh, R/o House no. 133, Street no. 5, Near Kali Mata Mandir, Rishi Nagar, Ludhiana, Punjab- 141001

¶10

….……Defendant

¶11

Advocates:

¶12

Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Nitin Grover, Advocate for applicant

¶13

None for defendant (already ex-parte vide order dated 16.06.2026)

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 34,64,303.44 (Rupees Thirty Four Lacs Sixty Four Thousand Three Hundred Three and Paise Forty Four Only). The Original Application has been filed through Sh. Santosh Kumar Gupta , Associate Vice President of the applicant, who is competent to institute the Original Application vide GPA dated 16.12.2006, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for grant of Gold Loan of Rs. 8.30 Lacs vide Application, which is Annexure A4 to this OA. Thereafter, the defendant again

¶16

2 OA NO. 1545/2025 THE FEDERL BANK LTD. VS. ROHIT KUMAR

¶17

approached the applicant for grant of Gold Loan of Rs. 16.50 Lacs vide Application, which is Annexure A16 to this OA.

¶18

The applicant sanctioned Gold Loan of Rs. 8.30 Lacs and the terms and conditions were duly accepted by the defendant. Thereafter, the applicant again sanctioned Gold Loan of Rs. 16.50 Lacs.

¶19

The defendant pledged his gold ornaments for Gold Loan of Rs.8.30 Lacs and the approved valuer, M/S Bhola Jewelers through its Proprietor, Sh. Atamjeet Singh assessed the value of the gold ornaments as Rs. 9.63 Lacs vide Agreement dated 11.11.2022, which is Annexure A3 to this OA. Thereafter, the defendant pledged his another set of gold ornaments for Gold Loan of Rs. 16.50 Lacs and the approved valuer, M/S Bhola Jewelers through its Proprietor, Sh. Atamjeet Singh assessed the value of the gold ornaments as Rs.19,12,500.00 vide Report of Gold dated 24.11.2022, which is Annexure A15 to this OA.

¶20

However as per the OA, the applicant got the pledged gold ornaments re-verified from its other approved valuer, M/S V.S. Jewelers from whom it transpired that the pledged gold ornaments were fake gold vide Reports dated 16.06.2023, which are Annexure A26 and A27 to this OA. Thereafter, the applicant lodged a criminal complaint against the defendant as well as the approved valuer, M/S Bhola Jewelers with the Office of Commissioner of Police, Ludhiana vide Complaint, which is Annexure A28 to this OA but the police officials disposed off the complaint.

¶21

Documents executed: Agreement, Gold Loan Pledge Token, DPN, Take Delivery Letter, Annexure I and II, Letter of Authority of Private Sale, Delivery Letter and Nomination Form, all dated 11.11.2022, which are Annexure A2 and A5 to A12 to this OA; Statement of Account, which are Annexure A13 and A14 to this OA; Gold Loan Pledge Token, DPN, Take Delivery Letter, Annexure I and II, Letter of Authority of Private Sale, Delivery Letter and Nomination Form, all dated 24.11.2022, which are Annexure A17 to A24 to this OA; Statement of Account, which is Annexure A25 to this OA and Recall Notice dated 15.10.2025, which is Annexure A29 to this OA.

¶22

3 OA NO. 1545/2025 THE FEDERL BANK LTD. VS. ROHIT KUMAR

¶23

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. 34,64,303.44, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶24

The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte on 16.06.2026.

¶25

In support of the OA, affidavit of Sh. Santosh Kumar Gupta, Associate Vice President, The Federal Bank Ltd. h as been filed. 8. Heard ex-parte arguments and perused record.

¶26

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶27

From the perusal of all the Annexure A1 to A29 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,64,303.44 (Rupees Thirty Four Lacs Sixty Four Thousand Three Hundred Three and Paise Forty Four Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

¶28

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.5%p.a. plus @4% p.a. penal interest from 30.10.2025 till the realization.

¶29

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 undertaking of the defendant, quantum of loans

¶30

4 OA NO. 1545/2025 THE FEDERL BANK LTD. VS. ROHIT KUMAR

¶31

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 @08.00% 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.

¶32

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.34,64,303.44 (Rupees Thirty Four Lacs Sixty Four Thousand Three Hundred Three and Paise Forty Four Only) with costs, current and future simple interest @08.00% 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 attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

¶33

12. Any other application pending stands disposed of.

¶34

Issue Recovery Certificate accordingly.

¶35

Parties to appear before Learned Recovery Officer of this Tribunal on 06.07.2026.

¶36

Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶37

Pronounced by me in the open Tribunal . Dated: 20.06.2026

¶38

(MRIDULESH KUMAR SINGH)

¶39

Presiding Officer, DRT-III, Chandigarh

The Federal Bank Ltd. v. Sh. Rohit Kumar

Case brief

What is this about?

What did the court decide?

The Federal Bank Ltd. v. Sh. Rohit Kumar

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

Union Bank of India versus M/S P.M. Enterprises and Others

The Federal Bank Ltd. versus Sh. Vajir Singh Alias Sh. Wazir Singh

Kotak Mahindra Bank Limited versus Sh. Sandip Kumar

Union Bank of India versus M/S D R Selections and Another

State Bank of India versus Sh. Amandeep Singh

State Bank of India versus Sh. Boota Singh