Allowed

Capital Small Finance Bank Limited v. Sh. Ajit Singh

DRT27 Aug 2026OA/2050/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery under Section 19 RDB Act. It held the deceased borrower's heirs liable for the debt only up to the extent of the inherited estate, while guarantors faced joint and several liability.

What did the court decide?

Recovery of ₹28,17,558.96 along with interest at 12.35% per annum; issuance of Recovery Certificate.

Capital Small Finance Bank Limited versus Sh. Ajit Singh — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 2050/2024 Date of Institution: 29.12.2024 Date of Decision: 27.08.2026

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Capital Small Finance Bank Limited having its branches all over India and a branch at Kartarpur, Jalandhar, Punjab.

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……..Applicant

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Vs.

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Sh. Ajit Singh S/o Sh. Sardara Singh (Borrower & Mortgagor) since deceased Through his LRs’: -

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1(i) Sh. Bhupinder Singh S/o Late Sh. Ajit Singh R/o H.No.2384, Mohalla Bhai Bhara, Kartarpur, District Jalandhar (Pb)-144801. (LRs’: - son of Ajit Singh)

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1(ii) Sh. Sarwan Singh S/o Late Sh. Ajit Singh R/o H.No.2384, Mohalla Bhai Bhara, Kartarpur, District Jalandhar (Pb)-144801. (LRs’: - son of Ajit Singh)

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1(iii) Ms. Harwinder Kaur D/o Late Sh. Ajit Singh R/o H.No.2384, Mohalla Bhai Bhara, Kartarpur, District Jalandhar (Pb)-144801. (LRs’: - daughter of Ajit Singh)

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Sh. Bhupinder Singh s/o Sh. Ajit Singh, r/o H.No.2384, Mohalla Bhai Bhara, Kartarpur, District Jalandhar, Punjab.

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Sh. Jagir Singh s/o Sh. Tara Singh, r/o H.No.1565, Dayalpur Gate, Mohalla Kartarpur, District Jalandhar, Punjab.

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……….Defendants

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Advocates

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Sh. Vikas Sharma proxy counsel for Mr Varun Katyal, Counsel for the applicant bank.

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Defendants- ex parte vide order dated 15.12.2025 .

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OA for the Recovery of ₹28,17,558.96p with interest @12.35% per annum with half-yearly rests from 29.12.2024.

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ORDER

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Capital Small Finance Bank Limited has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993

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(RDB Act) for the recovery of ₹28,17,558.96p with interest against Sh. Ajit Singh and others (defendants).

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Bank’s case is that on 10.11.2022, it had granted a loan of ₹22.50Lacs to defendant No.1 (since deceased now survived by his legal heirs) and defendant No.2 in the form of K.C.C Limit for agricultural purpose. To secure the loan, Defendant No.1 (now deceased) had mortgaged his land (fully detailed in para No.3A of the application). Defendant No.3 stood as guarantor vide Guarantee Deed dated 14.01.2022. The loan was chargeable to interest @12.35% per annum with half-yearly rests. On 01.10.2024, a sum of ₹28,17,558.96p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 09.01.2025, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 15.12.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Munish Sharma, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-9. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹22.50 Lacs and on 01.10.2024, a sum of ₹28,17,558.96p was due. 6. Accordingly, the application of the bank for the recovery of ₹28,17,558.96p (Rupees Twenty Eight Lacs Seventeen Thousand Five Hundred Fifty Eight and Paise Ninety Six Only) with interest @12.35% per annum with half-yearly rests from 29.12.2024, till the date of payment is hereby allowed with costs. The liability of the legal heirs of

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defendant No.1 would be limited up to the extent of the property(ies) inherited by them from the estate of Sh. Ajit Singh (now deceased) whereas the liability of defendant nos.2 and 3 would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the personal/inherited movable and immovable property(ies) of the defendants accordingly.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 28.09.2026.

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 27.08.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Capital Small Finance Bank Limited v. Sh. Ajit Singh

Case brief

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Capital Small Finance Bank Limited v. Sh. Ajit Singh

Case brief

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