Allowed

Indian Bank v. Sh. Amanpreet Singh and Another

DRT6 Jul 2026OA/264/2025

Case brief

AI extract

What is this about?

In an Original Application for debt recovery, the Tribunal held the defendants liable to pay the outstanding sum of Rs.45.87 lakhs with interest. It allowed the claim and directed issuance of a Recovery Certificate after hearing that the defendants' defense was struck off due to non-filing of written statement.

What did the court decide?

Directing defendants to pay Rs.45,87,308.00 with simple interest @08% p.a. and issuance of Recovery Certificate.

Indian Bank versus Sh. Amanpreet Singh and Another — Consumer Protection | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 264/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.03.2025

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DATE OF DECISION: 06.07.2026

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Indian Bank, (erstwhile Allahabad Bank), on the basis of Amalgamation dated 01.04.2020, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Corporate Office at 254-260, Avvai Shanmugham Salai, Royapettah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Ludhiana and amongst other branches a Branch at Morinda, through its Branch Manager, Smt. Poonam, duly constituted and authorized signatory.

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……..Applicant

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Versus

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Sh. Amanpreet Singh S/o Sh. Surinder Singh, R/o Village Lutheri, Morinda, District Ropar.

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Sh. Sudagar Singh S/o Sh. Ajmer Singh, R/o Village Majri, P.O. Lutheri, District Roopnagar.

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…….Defendants

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Advocates:

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Argued by Sh. Deepika Mittal, Advocate for Applicant. None for Defendants

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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.45,87,308.00 (Rupees Forty Five lac Eighty Seven Thousand Three Hundred Eight Only). The Original Application has been filed through Smt. Poonam , Branch Manager, of the Applicant, who is competent to institute the Original Application vide Authority Letter dated 01.02.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 approached the applicant for sanction of KCC Limit of Rs.22.00 lacs vide Loan

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OA/264/2025 INDIAN BANK VS SH. AMANPREET SINGH AND ANOTHER

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Application dated 03.12.2013, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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Thereafter, Defendant no.1 approached the applicant for renewal of KCC Limit of Rs.22.00 lacs vide Renewal Application dated 17.02.2016, which is Annexure A16 to this OA; Renewal Application dated 10.01.2019, which is Annexure A20 to this OA.

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The applicant sanctioned the KCC Limit of Rs.22.00 lacs, vide Sanction Letter dated 15.01.2014, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 hypothecated his crops, livestock, farm machinery and implements vide Hypothecation Agreement dated 30.01.2014, which is Annexure A7 to this OA;

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Defendant no. 1 mortgaged his property ie. agricultural land measuring 16Kanal-15Marla situated at Village Lutheri, Hadbast no. 291, Tehsil Chamkaur Sahib, District Roopnagar, Punjab, vide Mortgage Deed bearing Vasika No. 1816 dated 15.01.2014, which is Annexure A11 to this OA; Jamabandi, which is Annexure A12 to this OA; Lien Report dated 10.04.2014, which is Annexure A13 to this OA. Documents executed: Interview-cum-Appraisal Form dated 20.12.2013, which is Annexure A3 to this OA; Memorandum for Sanction of Loan dated 20.12.2013, which is Annexure A4 to this OA; D.P. Note dated 30.01.2014, which is Annexure A6 to this OA; Revival Letter dated 30.01.2014, which is Annexure A8 to this OA; Consent Clause to be Executed by Borrower dated 30.01.2014, which is Annexure A9 to this OA; Affidavit dated 14.01.2014, which is Annexure A10 to this OA; Consent Clause to be Executed by Guarantor dated 30.01.2014, which is Annexure A14 to this OA; Deed of Guarantee dated 30.01.2024, which is Annexure A15 to this OA; D.P. Note dated 17.02.2016, which is Annexure A17 to this OA; Acknowledgement of Loan dated 17.02.2016, which is Annexure A18 to this OA; Acknowledgement of Loan dated 31.03.2018, which is Annexure A19 to this OA; D.P. Note dated 10.01.2019, which is

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OA/264/2025 INDIAN BANK VS SH. AMANPREET SINGH AND ANOTHER

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Annexure A21 to this OA; Acknowledgement of Debt dated 10.01.2019, which is Annexure A22 to this OA; Legal Notice dated 30.04.2021, which is Annexure A23 to this OA; Acknowledgement of Debt dated 22.03.2021, which is Annexure A24 to this OA; Acknowledgement of Debt dated 20.03.2024, which is Annexure A25 to this OA; Account Statement up to 06.02.2025, which is Annexure

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A26 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 the loan account, there was a debit of Rs.45,87,308.00 (Rupees Forty Five lac Eighty Seven Thousand Three Hundred Eight Only), 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 the service of summons, Sh. Jashandeep Singh, Advocate, appeared on behalf of defendants and filed his Power of Attorney on 19.06.2025. Set of Paper Book was supplied to the counsel for the defendants on 09.04.2026. But, no WS was filed on behalf of defendants within or even after the stipulated period. Therefore, opportunity to file WS by defendants was closed and defense was struck of vide order dated 03.07.2026.

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In support of the OA, affidavit of Smt. Poona m, Branch Manager, Indian Bank, has been filed. 8. Heard 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.

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None was present on behalf of defendants for arguments. From the perusal of all the Annexures A1 to A26 to this OA, it is proved that the defendant no.1 approached the applicant for availing

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of the loan facility, which was granted to him. Defendant no.2 stood as

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OA/264/2025 INDIAN BANK VS SH. AMANPREET SINGH AND ANOTHER

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guarantor. Defendants had executed all the relevant documents in favour of the bank. 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.45,87,308.00 (Rupees Forty Five lac Eighty Seven Thousand Three Hundred 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 @10.20% p.a. plus 2.00% p.a. penal interest with monthly rests from 19.02.2025 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 and 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 @08.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,87,308.00 (Rupees Forty Five lac Eighty Seven Thousand Three Hundred Eight Only), jointly and severally, with costs, current and future simple interest @08.00%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 hypothecated assets and mortgaged property 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,

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OA/264/2025 INDIAN BANK VS SH. AMANPREET SINGH AND ANOTHER

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.07.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 06.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Indian Bank v. Sh. Amanpreet Singh and Another

Case brief

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Indian Bank v. Sh. Amanpreet Singh and Another

Case brief

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