Allowed

Union Bank of India v. Smt Ranjit Kaur and Another

DRT27 Jan 2026OA/1581/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan claim of Rs. 22,16,120.67 against the respondents. While the bank claimed penal interest, the Tribunal reduced the rate to 8% per annum, ordering the respondents to pay the principal plus simple interest from the date of filing.

What did the court decide?

The defendants are ordered to pay Rs. 22,16,120.67 jointly and severally with cost and simple interest @8% p.a. The bank is entitled to recover the amount from hypothecated/sold properties and unsecur

Union Bank of India versus Smt Ranjit Kaur and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1581/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2022

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DATE OF DECISION: 27.01.2026

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Union Bank of India, a body corporate and Nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai 400021 and amongst other a Branch Office at Patti, Tehsil Tarn Taran, Punjab-143416 through its Branch Manager/Authorized Officer

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……..Applicant

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Versus

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Smt. Ranjit Kaur W/o Sh. Rashpal Singh, R/o Village Kot Budha, Tehsil Patti, District Tarn Taran, Punjab-143416

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Sh. Joginder Singh s/o Sh. Sardara Singh, R/o V.P.O Sabhra, Tehsil and District Tarn Taran, Punjab-143416

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…….Defendants

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Advocates:

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Argued by Sh. Shrey Vasudev, Advocate for the applicant

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Defendants already ex-parte vide order dated 31.10.2025

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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.22,16,120.67 (Rupees Twenty Two Lacs Sixteen Thousand One Hundred Twenty and Paise Sixty Seven Only). The Original Application has been filed through Sh. Harpreet Singh, Branch Manager of the applicant, who is competent to institute the present Original Application vide Authority Letter dated 28.09.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of KCC Limit of Rs. 15.70 Lacs vide loan application dated 16.03.2019, which is Annexures A2 to

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2 OA/1581/2022 UNION BANK OF INDIA VS. RANJIT KAUR AND ANOTHER

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this OA. Defendant No.2 stood as a guranator. Thereafter, the defendant no. 1 approached the applicant for renewal of the limit vide application cum undertaking, which is Annexure A13 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 15.70 Lacs vide Sanction letter dated 30.03.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Annexure to Agriculture Crop Loan Proposal dated 30.03.2019, which is Annexure A5 to this OA. 4. Defendant No.1 mortgaged her immovable property i.e. Land measuring 43K-05M situated at Village Kot Bhudha, Tehsil Patti, District Tarn Taran, Punjab vide declaration u/s 4(1) dated 07.03.2019, which is Annexure A15 to this OA; Jamabandi for the year 2015-16, along with its translation, which are Annexures A16 and A17 to this OA.

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Documents executed: Hypothecation Agreement, Deed of Guarantee, Letter of Confirmation, Interest Agreement, Letter of Continuity, Demand Promissory Note, Simple Loan Agreement, Declaration/Undertaking, all dated 30.03.2019 which is Annexure A4, A6 to A12 to this OA; Affidavit dated 06.03.2019, along with its translation, which is Annexures A14 to this OA; Acknowledgment of Debt, Adjustment of NPA Letter, both dated 07.07.2021, which are Annexures A18 and A19 to this OA; Recall Notice all dated 07.01.2021 which is Annexure A20 to this OA; Legal Notice dated 14.07.2022, along with postal receipts, which are Annexures A21 and A22 to this OA; Account Statement which is Annexure A23 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.22,16,120.67 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.

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3 OA/1581/2022 UNION BANK OF INDIA VS. RANJIT KAUR AND ANOTHER

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The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 31.10.2025.

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In support of the OA, affidavit of Sh. Harpreet Singh, Branch Manager, Union Bank of India, has been filed.

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Heard ex-parte arguments and perused record.

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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 Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant document in favour of the bank. The defendants failed to pay back the loan 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.22,16,120.67 (Rupees Twenty Two Lacs Sixteen Thousand One Hundred Twenty and Paise Sixty 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 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 @10.10% plus 2% penal interest from 01.09.2020 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/hypothecated assets, 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

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OA/1581/2022

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UNION BANK OF INDIA VS. RANJIT KAUR AND ANOTHER

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@8.00%p.a. the loan account 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.22,16,120.67 (Rupees Twenty Two Lacs Sixteen Thousand One Hundred Twenty and Paise Sixty Seven Only), jointly and severally, with costs, current and future simple interest @8.00%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 06.02.2026. 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: 27.01.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Smt Ranjit Kaur and Another

Case brief

What is this about?

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Union Bank of India v. Smt Ranjit Kaur and Another

Case brief

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