Allowed

Bank of India v. Lakhwinder Singh through His Legal Heirs and Others

DRT20 May 2026OA/246/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Bank of India against borrowers and guarantors. The court decreed recovery of the principal amount with reduced interest at 8% p.a., permitting enforcement via asset sale.

What did the court decide?

Recovery of Rs. 24,72,485.00 with costs and simple interest @8.00% p.a. permitted via sale of mortgaged property or attachment of personal assets.

Bank of India versus Lakhwinder Singh through His… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 246/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.01.2024

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DATE OF DECISION: 20.05.2026

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act no. V of 1970 having its Head Office at “Star House”, C 5, Block G, Bandra Kurla Complex, Bandra (East), Mumbai- 400051 and Branch Office amongst other places at Kapurthala, Punjab through its duly Constituted Attorney, Sh. R.K. Meena presently posted as Chief Manager at RBC, Garha, Jalandhar, Punjab

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……..Applicant

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Versus

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Sh. Lakhwinder Singh, S/o Sh. Gian Singh, R/o Village Kokalpur, PO Kanjli, Tehsil and District Kapurthala, Punjab- 144601 (since expired through his following legal heirs):

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A. Smt. Balvir Kaur, W/o Late Sh. Lakhwinder Singh, R/o Village Kokalpur, PO Kanjli, Tehsil and District Kapurthala, Punjab144601

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B. Sh. Karamjit Singh, S/o Late Sh. Lakhwinder Singh, R/o Village Kokalpur, PO Kanjli, Tehsil and District Kapurthala, Punjab144601

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Sh. Sarinder Singh alias Sh. Surinder Singh, S/o Sh. Gian Singh, R/o Village Kokalpur, PO Kanjli, Tehsil and District Kapurthala, Punjab- 144601

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Sh. Amarjit Singh, S/o Sh. Arjan Singh, R/o Village Kokalpur, PO Kanjli, Tehsil and District Kapurthala, Punjab- 144601

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…Defendants

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Advocates:

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Argued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, Advocate for applicant

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None for defendants

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2 OA/246/2024 BANK OF INDIA VS. LAKHWINDER SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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. 24,72,485.00 (Rupees Twenty Four Lacs Seventy Two Thousand Four Hundred Eighty Five Only). The Original Application has been filed through Sh. R.K. Meena, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 24.11.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 (since deceased) and defendant no. 2 approached the applicant for grant of KCC Limit of Rs. 15.00 Lacs vide Application dated 16.02.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 15.00 Lacs vide Sanction Letter dated 13.04.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no. 2. Defendant no. 3 stood as guarantor.

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Defendant no. 1 (since deceased) and defendant no. 2 mortgaged their immovable properties i.e. Land measuring 26K 04M situated at Village Kokalpur, Tehsil Kapurthala, Punjab vide Mortgage Deed bearing vasika no. 5526 dated 26.03.2012 along with its translation, which is Annexure A3 to this OA.

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Documents executed: DP Note, Bearer Letter, Agreement of Hypothecation, Multipurpose Stamp Undertaking, Misc. Undertakings/Declarations and Deed of Guarantee, all dated 13.04.2012, which are Annexures A5 to A12 to this OA; Acknowledgments dated 19.03.2015, 16.02.2018 and 05.01.2021, which are Annexure A13, A14 and A16 to this OA; MCLR Agreement cum Acknowledgment dated 13.10.2019, which is Annexure A15 to this OA and Statement of Account, which is Annexure A17 to this OA.

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3 OA/246/2024 BANK OF INDIA VS. LAKHWINDER SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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. 24,72,485.00, 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 summons to appear before this Tribunal and after service upon defendants, Sh. Sanjay Sagar, Advocate proxy for Ms. Yashasavi Kapila, Advocate appeared on behalf of defendants on 15.06.2024 and filed Memo of Appearance. Power of Attorney of Sh. Yashasavi Kapila, Advocate was filed on behalf of defendants on 25.09.2024. Paper book was supplied to him. No WS was filed. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 15.05.2026.

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In support of the OA, affidavit of Sh. R.K. Meena, Chief Manager , Bank of India, has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel 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 A17 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 approached applicant for availing of the loan facility, which was granted to them. Defendant no. 3 stood as guarantor. Defendants had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 24,72,485.00 (Rupees Twenty Four Lacs Seventy Two Thousand Four Hundred Eighty Five Only), along with interest from the

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4 OA/246/2024 BANK OF INDIA VS. LAKHWINDER SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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 pendent elite and future rate of interest is concerned, the applicant in clause V. para 17 has claimed interest @13.50% p.a. with half yearly rests from the date of institution of the application 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/mortgaged properties, 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 @8.00% 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.

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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.24,72,485.00 (Rupees Twenty Four Lacs Seventy Two Thousand Four Hundred Eighty Five Only), jointly and severally, with costs, current and future simple interest @8.00% 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 the defendant nos. 1A., 1B. and 2 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 nos. 2 and 3 and also of defendant nos. 1A. and 1B. to the extent they inherited the property of deceased

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5 OA/246/2024 BANK OF INDIA VS. LAKHWINDER SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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defendant no. 1. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 20.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Lakhwinder Singh through His Legal Heirs and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. Lakhwinder Singh through His Legal Heirs and Others

Case brief

What is this about?

What did the court decide?

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