Allowed

Indian Bank v. Sh. Jaspal Singh and Another

DRT19 Mar 2026OA/1785/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Indian Bank for recovery of dues. Following an ex-parte hearing due to the non-appearance of defendants, the appellant succeeded in recovering loan amounts along with a uniformly reduced simple interest rate of 8% per annum.

What did the court decide?

Recovery certificate issued for Rs. 32,97,079 plus interest at 8% p.a.; recovery from hypothecated assets and personal assets authorized.

Indian Bank versus Sh. Jaspal Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1785/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.12.2025

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DATE OF DECISION: 19.03.2026

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Indian Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Offices, 254- 260, Avvai Shanmugam Salai, Royapeetah, Chennai-600014 and Branch Offices , amongst others at Branch Office SCF No. 46, Stadium Road, Phase -IX, SAS Nagar (Mohali), Punjab through its Branch Manager Ms. Ruchi Chaudhary of the Applicant.

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……..Applicant

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Versus

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Sh. Jaspal Singh S/o Sh. Mohinder Singh, Resident of H. No. 1, Near Anaj Mandi, Mangatker, Shri Muktsar Sahib, Punjab152026.

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Smt. Veerpal Kaur W/o Sh. Jaspal Singh, Resident of H. No. 1, Near Anaj Mandi, Mangatker, Shri Muktsar Sahib, Punjab152026.

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2^nd Address: H.No.2460, DPS Society, Sector-67, SAS Nagar (Mohali), Punjab -160062.

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3^rd Address: H.No.310, Phase -IX, SAS Nagar (Mohali), Punjab-160062.

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….……Defendants

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Advocates:

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Argued by Ms. Savita Trighatia Nar, Advocate for the Applicant.

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Defendants already ex-parte vide order dated 11.02.2026

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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.32,97,079.00 (Rupees Thirty Two Lacs Ninety Seven Thousand Seventy Nine Only). The Original Application has been filed through Ms. Ruchi Chaudhary, Branch

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OA NO.1785/2025 INDIAN BANK VS SH JASPAL SINGH AND ANOTHER

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Manager of the Applicant, who is competent to institute the Original Application vide Authorization Letter dated 11.12.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Vehicle Loan of Rs. 15.62 Lacs vide Loan Application dated 10.07.2018. Thereafter, the defendant no.1 again approached the applicant for grant of Term Loan of Rs. 45.00 Lacs for the purchase of Commercial Vehicle under CGTMSE vide Loan Application for MSME Loan dated 20.01.2023, which is Annexure A3 to this OA.

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The applicant sanctioned the Vehicle Loan of Rs. 15.62 Lacs vide Sanction Letter dated 12.07.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the Term Loan of Rs.45.00 Lacs vide Sanction Letter dated 22.02.2023, which is Annexure A4 to this OA. Acknowledgment of Sanction Letter dated 24.03.2023, which is Annexure A9 to this OA.

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Defendant no. 1 hypothecated of his Movable Assets i.e. 1. Vehicle Make Toyota Innova Cysta, bearing Registration No PAL0007, Engine No 1GDA226161, Chasis No. MBJJA8EM0005159080818. 2. Commercial Vehicle Make: ASHOK LEYLAND LTD, Model GP4825/66 HCO bearing Registration No. PB-07BJ-1818, Engine No. PLPZ112541, Chassis No. MB1NECHD3PPLW0700 vide Agreement of Hypothecation of Movables dated 24.03.2023, which is Annexure A5 to this OA. Letter from bank to dealer dated 06.04.2023, temporary registration certificate, sale certificate, Tax Invoice dated 06.04.2023, Form-22 and 22-A, registration certificate, Insurance Policy, which are Annexure A15(Colly) to this OA.

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Documents executed: Term Loan Agreement dated 24.03.2023, which is Annexure A6 to this OA; Annexure to Loan Document dated 24.03.2023, which is Annexure A7 to this OA; Single/Joint Demand

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OA NO.1785/2025 INDIAN BANK VS SH JASPAL SINGH AND ANOTHER

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Promissory Note dated 24.03.2023, which is Annexure A8 to this OA; Declaration by the Borrower on details of Relatives dated 24.03.2023, which is Annexure A10 to this OA; Letter from the Borrowers for Disclosure of information dated 24.03.2023, which is Annexure A11 to this OA; Letter of Authority form the Borrower dated 24.03.2023, which is Annexure A12 to this OA; Letter of Undertaking dated 24.03.2023, which is Annexure A13 to this OA; Undertaking dated 24.03.2023, which are Annexure A14 to this OA; Legal Notice dated 07.07.2025, along with Registered Postal Receipts, which is Annexure A16 to this OA; Demand Notice dated 15.07.2025 Under Section 13 (2) of SARFAESI Act, along with Registered Postal Receipts, which are Annexure A17(Colly) to this OA; Statement of Accounts with Certificate, which is Annexure A18 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 loan accounts there was a debit of Rs.32,97,079.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 11.02.2026.

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In support of the OA, affidavit of Ms. Ruchi Chaudhary, Branch Manage r, Indian Bank h as been filed.

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Heard ex-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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant

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OA NO.1785/2025 INDIAN BANK VS SH JASPAL SINGH AND ANOTHER

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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, 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.42,384.00 (Rupees Forty Two Thousand Three Hundred Eighty Four Only) from defendant nos. 1 and 2 and a sum of Rs.32,54,695.00 (Rupees Thirty Two Lacs Fifty Four Thousand Six Hundred Ninety Five Only) from defendant no. 1 along with interest from the defendants, from the date of filing of the present Original Application till realization of the accounts.

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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 @9.40%p.a. in Car Loan and @9.45%p.a. in Commercial Vehicle Loan with monthly rests, from 13.12.2025 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, 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 @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 defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs.42,384.00 (Rupees Forty Two Thousand Three Hundred Eighty Four Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the Car Loan account and defendant nos. 1 is liable to pay to the applicant a total sum of Rs.32,54,695.00 (Rupees

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OA NO.1785/2025 INDIAN BANK VS SH JASPAL SINGH AND ANOTHER

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Thirty Two Lacs Fifty Four Thousand Six Hundred Ninety Five Only), with costs, current and future simple interest @8.00%p.a. in the Commercial Vehicle 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 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2026. 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: 19.03.2026.

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

Indian Bank v. Sh. Jaspal Singh and Another

Case brief

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Indian Bank v. Sh. Jaspal Singh and Another

Case brief

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