Allowed

Bank of India v. Sh. Surinder Singh and Another

DRT13 Apr 2026OA/227/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's original application filed under Section 19 of the RDDB Act, 1993, against the respondents for recovery of dues. The Tribunal granted a recovery certificate and decreed payment of the principal amount along with reduced simple interest at 8% p.a., enforceable against mortgaged assets under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 23,73,000 with simple interest @ 8% p.a. from filing date; Applicant entitled to recover via sale of mortgaged or personal assets.

Bank of India versus Sh. Surinder Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.227/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.02.2025

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DATE OF DECISION: 13.04.2026

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at Star House, Plot No. C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and one of its Branch at Samana, Tehsil Samana and Distirct Patiala through its Principal Officer and Constituted Attorney, Sh. Sunehra Singh, Chief Manager posted at Bank of India, Zonal Office, Ludhiana.

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……..Applicant

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Versus

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Sh. Surinder Singh S/o Sh. Sadhu Singh, R/o House No. 25, Village Sadhugarh, PO Dhanetha, Tehsil Samana, District Patiala.

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Sh. Sita Singh S/o Sh. Sahdu Singh, now deceased through his legal heirs:

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a) Smt. Narinder Kaur W/o Late Sh. Sita Singh, b) Sh. Gurnam Singh S/o Late Sh. Sita Singh, c) Sh. Sarabjit Singh S/o Late Sh. Sita Singh,

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All residents of House No. 93, Village Fatehgarh alias Rattegarh, Tehsil Samana, District Patiala.

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… ….. Defendants

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Advocates:

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Argued by Sh. Gurinder Singh, Advocate proxy for Sh. Vinish Singla, Advocate for Applicant

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None for defendants (Already ex-parte vide order dated 16.02.2026)

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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.23,73,000.00 (Rupees Twenty Three Lacs and Seventy Three Thousand Only). The Original Application has been filed through Sh. Sunehra Singh, Chief Manager,

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2 OA/227/2025 BANK OF INDIA VS SH. SURINDER SINGH AND OTHERS

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Principal Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 06.12.2021. 2. The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of Kisan Cash Credit Limit of Rs.5.00 Lacs and Agriculture Overdraft Limit of Rs.5.00 Lacs. 3. The applicant sanctioned the Kisan Cash Credit Limit of Rs.5.00 Lacs and Agriculture Overdraft Limit of Rs.5.00 Lacs and terms and conditions were duly accepted by the defendants vide Sanction Letter which is Annexure A1 to this OA. Sh. Sita Singh (now deceased and husband of defendant no. 2(a) and father of defendant nos. 2(b) & 2(c)) stood as guarantor. 4. Defendant no.1 mortgaged his immovable property i.e., total Land Measuring 30K-00M situated Village Retgarh @ Fatehgarh, Tehsil Samana, District Patiala, Punjab vide declaration dated 25.03.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 and Request letter for creation of charge in revenue record on property dated 25.03.2015, which are Annexure A15(Colly) to this OA. Documents executed: Demand Promissory Notes, Letter of Authority, Letters of Declaration Undertaking and Authority, Declaration to be obtained from the Borrower, L-516, Hypothecation cum Loan Agreement, Deed of Guarantees, all dated 06.04.2015, which are Annexures A2 to A14 to this OA; Statement of accounts along with certificate, which are Annexures A16 and A17 to this OA; Legal Notice dated 06.09.2024, which is Annexure A18 to this OA; Acknowledgment of Debt/Security letters dated 17.11.2017, 21.10.2020 and 31.07.2023, which are Annexures A19 to A24 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.23,73,000.00, 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/227/2025 BANK OF INDIA VS SH. SURINDER SINGH AND OTHERS

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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 16.02.2026. 7. In support of the OA, affidavit of Sh. Sunehra Singh, Chief Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for applicant 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 Annexures A1 to A24 to this OA, it is proved that the defendant no.1 and Sh. Sita Singh (now deceased and husband of defendant no. 2(a) and father of defendant nos. 2(b) & 2(c)) stood as guarantor approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,73,000.00 (Rupees Twenty Three Lacs and Seventy Three Thousand Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with half yearly rests in KCC account and Agriculture Overdraft account with penal interest @2%p.a. half yearly in both the loan accounts from 27.01.2025 till 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/mortgaged properties, undertaking of the defendants, quantum of loans 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

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4 OA/227/2025 BANK OF INDIA VS SH. SURINDER SINGH AND OTHERS

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@08.00%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 defendants are liable to pay to the applicant a total sum of Rs.23,73,000.00 (Rupees Twenty Three Lacs and Seventy Three Thousand Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 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 defendant no.1 and Sh. Sita Singh (now deceased and husband of defendant no. 2(a) and father of defendant nos. 2(b) & 2(c)). 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.05.2026. 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: 13.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Surinder Singh and Another

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Bank of India v. Sh. Surinder Singh and Another

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