Allowed

Central Bank of India v. Sh. Rakesh Kumar and Another

DRT24 Jul 2026OA/176/2026

Case brief

AI extract

What is this about?

In an original application under the RDB Act, 1993, the Central Bank of India sought recovery of a home loan of Rs. 48 Lacs. The Tribunal, after an ex-parte hearing where defendants failed to appear, allowed the application, holding the defendants jointly and severally liable to pay the outstanding principal, costs, and simple interest at 7.95% p.a., and ordered the issuance of a Recovery Certific

What did the court decide?

Debtors to pay Rs. 34,32,533.98 with costs and simple interest at 7.95% p.a.; Recovery Certificate issued; proceedings to attach/sell property if dues remain unsatisfied.

Central Bank of India versus Sh. Rakesh Kumar and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 176/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.01.2026

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DATE OF DECISION: 24.07.2026

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Central Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Chander Mukhi, Nariman Point, Mumbai400021 and amongst other places, a Branch Office at Millerganj, District Ludhiana, Punjab through Sh. Mithlesh Kumar, Chief Manager and duly Constituted Attorney, Central Bank of India, Regional Office, Ludhiana, Punjab

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……..Applicant

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Versus

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Sh. Rakesh Kumar, S/o Sh. Sham Sunder, R/o H. no. M.C. no. B-21-4350/1, Street no. 1, Abadi New Shimlapuri, Village Gill 2, District Ludhiana, Punjab

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Sh. Bharat Sharma, S/o Sh. Rakesh Sharma, R/o H. no. M.C. no. B-21-4350/1, Street no. 1, Abadi New Shimlapuri, Village Gill 2, District Ludhiana, Punjab

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2^nd Addresses:

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i. Street no. 11/6, Daba Road, Mandi Wali Gali, Millerganj, Ludhiana, Punjab

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ii. House no. 6926, Street no. 11/6, Kabir Nagar, Daba Road, Ludhiana, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Rajan Arora, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 22.07.2026)

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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. 34,32,533.98 (Rupees Thirty Four Lacs Thirty Two Thousand Five Hundred Thirty Three and Paise Ninety Eight Only). The Original Application has been filed

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2 OA/176/2026 CENTRAL BANK OF INDIA VS. RAKESH KUMAR AND ANOTHER

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through Sh. Mithlesh Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendants approached the applicant for grant of Home Loan of Rs. 48.00 Lacs vide Loan Application dated 10.02.2023, which is Annexure A3 to this OA.

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The applicant sanctioned Home Loan of Rs. 48.00 Lacs vide Sanction Letter dated 24.02.2023, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged his immovable property i.e. House measuring 300 Sq. Yards situated at Village Gill 2, Hadbast no. 263, Abadi New Shimlapuri, Chimini Road, Tehsil and District Ludhiana, Punjab vide Sale Deed dated 21.04.2023 along with its translation, which is Annexure A9 to this OA.

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Documents Executed: Valuation Report dated 06.06.2025, which is Annexure AA to this OA; Loan Agreement, Letter of Consent, Prudential Norms on IRACP, Letter of Interest Variation and Declaration and Undertaking, all dated 24.02.2023, which are Annexure A4 to A8 to this OA; Annexure 1 and Mortgage Register, both dated 22.06.2023, which are Annexure A10 and A11 to this OA; Notice u/s 13 (2), SARFAESI Act, 2002 dated 31.07.2025, which is Annexure A12 to this OA; Notice u/s 13 (4), SARFAESI Act, 2002 dated 15.10.2025, which is Annexure A13 to this OA; Recall Notice dated 12.01.2026 along with postal receipts, which are Annexure A14 to A20 to this OA and Statement of Account with certificate, which are Annexure A21 to A23 to this OA.

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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. 34,32,533.98, 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.

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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 22.07.2026.

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3 OA/176/2026 CENTRAL BANK OF INDIA VS. RAKESH KUMAR AND ANOTHER

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In support of the OA, affidavit of Sh. Mithlesh Kumar, Chief Manager, Central Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 AA and 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 documents in favour of the applicant. 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. 34,32,533.98 (Rupees Thirty Four Lacs Thirty Two Thousand Five Hundred Thirty Three and Paise Ninety Eight 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.95%p.a. plus @2% p.a. penal interest with monthly rests from 07.01.2026 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 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 simple interest @7.95% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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OA/176/2026 CENTRAL BANK OF INDIA VS. RAKESH KUMAR AND ANOTHER

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Rs.34,32,533.98 (Rupees Thirty Four Lacs Thirty Two Thousand Five Hundred Thirty Three and Paise Ninety Eight Only) jointly and severally, with costs, current and future simple interest @7.95% 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 mortgaged property of 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 10.08.2026. 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: 24.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Central Bank of India v. Sh. Rakesh Kumar and Another

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Central Bank of India v. Sh. Rakesh Kumar and Another

Case brief

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