Debts Recovery Tribunal allowed the applicant's application for recovery of Rs. 62.87 lakh. The court upheld the bank's liability to recover dues and mortgage interests but reduced the penal interest rate from 10.40% to 8% per annum.
Recovery of Rs. 62.87 lakh with simple interest at 8% p.a.; Power to execute against hypothecated/sold assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1651/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 11.08.2022
DATE OF DECISION: 23.03.2026
Union Bank of India, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a Branch Office inter-alia at SDPH School, Hazuri Road, Chauri Sadak, Ludhiana through duly authorized person and Attorney Holder, Sh. Balbir Singh Ralhan, Chief Manager.
……..Applicant
Versus
……Defendants
2 OA 1651/2022 UNION BANK OF INDIA Vs M/S K.B. PROCESSORS AND OTHERS
Advocates:
Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan.
None for defendants nos. 1, 2 and 5
Defendants nos. 3 and 4 already ex-parte vide order dated 24.09.2025.
FINAL ORDER
3 OA 1651/2022 UNION BANK OF INDIA Vs M/S K.B. PROCESSORS AND OTHERS
Defendant no 3 mortgaged his immovable property measuring 100 Sq. Yards situated in Plot No. 139, Revenue estate of Village Taraf Sekhewal, Hadbast no. 78, Abadi Preet Nagar, New Shivpuri Tehsil, District Ludhiana, vide vasika no. 8069 dated 12.10.2001 vide title deed along with English translation, which is Annexure A15 to this OA; Memorandum of Deposit of Title Deed dated 16.12.2018, which is Annexure A14 to this OA; Declaration of Extension of Equitable Mortgage dated 12.10.2018, which is Annexure A16 to this OA; Supplementary Memorandum dated 22.10.2018, which is Annexure A17 to this OA; Declaration of Extension of Equitable Mortgage dated 24.05.2019, which is Annexure A30 to this OA; Supplementary Memorandum dated 27.05.2019, which is Annexure A32 to this OA. Documents executed: DP Note, Letter of Continuity, Letter of Undertaking with consent clause, Interest Agreement, AD-02A, Undertaking by Borrower, Letter of Guarantee with consent clause, all dated 11.10.2018, which are Annexures A3,A4, A6 to A9 and A11 to A13 ; Request Letter dated 10.05.2019 which is Annexure A18 to this OA; DP Note, Letter of Continuity, Letter of Undertaking, AD-02A, Interest Agreement with consent clause, Undertaking by Borrower, Letter of Guarantee with consent clause, all dated 27.05.2019, which are Annexures A20 to A21, A23 to A29 to this OA; Jamabandi of the year 2011-12 dated 30.04.2019, which is Annexure A31 to this OA; Valuation Report dated 14.05.2019, which is Annexure A33 to this OA; Letter of Confirmation, which is Annexure A34 to this OA; Letters dated 10.12.2019, 04.02.2020 and 16.09.2020 which are Annexures A35 to A37 to this OA; Legal Notice dated 12.02.2021, which is Annexure A38 (Colly) to this OA; Letter by Borrowers dated 11.03.2020, which is
4 OA 1651/2022 UNION BANK OF INDIA Vs M/S K.B. PROCESSORS AND OTHERS
Annexure A39 to this OA; Statement of Account with certificate, which are Annexures A40 to A41 to this OA.
5 OA 1651/2022 UNION BANK OF INDIA Vs M/S K.B. PROCESSORS AND OTHERS
relevant documents 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. 62,87,748.87 (Rupees Sixty Two Lacs Eighty Seven Thousand Seven Hundred Forty Eight and Paise Eighty Seven Only) along with interest from the defendants, from the date of filing of the present Original Application till realization of the account.
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 @08.00%p.a. in 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.
6 OA 1651/2022
UNION BANK OF INDIA Vs M/S K.B. PROCESSORS AND OTHERS
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 15.04.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 23.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the application filed for recovery of dues under Section 19 RDB Act be allowed.
Whether the Tribunal can modify the penal interest rate claimed by the applicant.
1 provisions across 1 enactments
Union Bank of India
M/S K.B. Processors
Kuldeep Singh
Sunita Sharma
Raj Kumar Sharma
Rupinder Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
