Allowed

Bank of India v. Sh. Shamsher Singh and Another

DRT8 Jul 2026OA/277/2026

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the Tribunal admitted evidence showing defendants are liable for Rs. 30.77 lacs. While acknowledging evidence as proved, the court reduced the claimed interest from 11+% to a uniform 8% p.a. and decreed the principal along with modified interest and costs.

What did the court decide?

Recovery of Rs. 30,77,469.10 with costs and simple interest at 8% p.a. from filing date till realization.

Bank of India versus Sh. Shamsher Singh and Another — Insurance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 277/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.02.2026

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DATE OF DECISION: 08.07.2026

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) 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 Village Bhullar, District Muktsar, through its duly constituted attorney Sh. Inder Jeet, Chief Manager, presently posted at Asset recovery Branch, Zonal Office, District Ludhiana.

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……..Applicant

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Versus

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Sh. Shamsher Singh S/o Sh. Boor Singh @ Sh. Bhur Singh R/o. H. no.151, Opposite Govt. School, Village Bhullar, Distt. Muktsar152031.

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Sh. Major Singh @ Mejar Singh S/o Sh. Kapoor Singh R/o. H.no.97, Village Bhullar, Distt. Muktsar-152031.

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.……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant

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None for Defendants (already ex parte vide order dated 06.07.2026)

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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.30,77,469.10 (Rupees Thirty Lac Seventy Seven Thousand Four Hundred Sixty Nine and Paise Ten Only). The Original Application has been filed through Sh. Inder Jeet, Chief Manager , of the applicant , who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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2 OA/ 277/2026 BANK OF INDIA VS SH. SHAMSHER SINGH AND ANOTHER

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2. The brief facts of the OA are that the defendant no.1 approached the applicant for grant of KCC Limit of Rs.15.00 lacs. Thereafter, Defendant no.1 approached the applicant for grant of
AGOD Limit of Rs.10.00 lacs. Defendant no.2 stood as guarantor in both the loans.
3. The applicant sanctioned KCC Limit of Rs.15.00 lacs vide Sanction
Letter dated 20.02.2015, which isAnnexure A2to this OA and the terms and conditions were duly accepted by the defendants. Thereafter,the applicant sanctioned AGOD Limit of Rs.10.00 lacs
vide Sanction Letter dated 22.02.2015, which isAnnexure A8to this
OA.
3. Defendant no.1 mortgaged his agricultural land as under: i. Land measuring 40Kanal-0Marla situated at Village Bhullar, Hadbast no. 74, Tehsil & District Sri Muktsar Sahib, Punjab, vide Declaration under Section 4(1) of the Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act, 1978 dated 24.02.2015 vide Serial No. 1065, which isAnnexure A7to this OA;
ii. Land measuring 24Kanal-0Marla situated at Village Bhullar, Hadbast no. 74, Tehsil & District Sri Muktsar Sahib, Punjab, vide Declaration under Section 4(1) of the Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act, 1978 dated 24.02.2015 vide Serial No. 1064, which isAnnexure A14to this OA;
Documents executed: D.P. Note dated 28.02.2015, which is
Annexure A3to this OA; Hypothecation-cum-Loan Agreement dated 28.02.2015, which isAnnexure A4to this OA; Deed of Guarantee dated
28.02.2015, which isAnnexure A5to this OA; Letter to the Sub
Registrar, which isAnnexure A6to this OA; D.P. Note dated
28.02.2015, which isAnnexure A9to this OA; Letter of Declaration, Undertaking & Authority dated 28.02.2015, which isAnnexure A10to this OA; Agreement dated 28.02.2015, which isAnnexure A11to this
OA; Deed of Guarantee dated 28.02.2015, which isAnnexure A12to
this OA; Letter to the Sub Registrar, which isAnnexure A13to this OA;
Acknowledgement of Debt dated 18.02.2017, 27.05.2019, 04.10.2021
and 03.01.2024, which isAnnexure A15to this OA; Legal Notice dated

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3 OA/ 277/2026 BANK OF INDIA VS SH. SHAMSHER SINGH AND ANOTHER

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06.10.2025, which is Annexure A16 to this OA; Statement of Account, which are Annexure A17 and 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.30,77,469.10 (Rupees Thirty Lac Seventy Seven Thousand Four Hundred Sixty Nine and Paise Ten 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. 6. 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 06.07.2026.

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In support of the OA, affidavit of Sh. Inder Jeet, Chief Manager, Bank of India, h as been filed.

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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 A18 to this OA, it is proved that the defendant no.1 approached applicant for availing of the loan facilities, which were granted to him. Defendant no.2 stood as guarantor. Defendants had executed all the relevant 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, both the 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.30,77,469.10 (Rupees Thirty Lac Seventy Seven Thousand Four Hundred Sixty Nine and Paise Ten 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @11.45%p.a. in KCC Limit and @11.75% in AGOD Limit, plus 2% penal interest, with half yearly rests from 23.12.2025 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

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4 OA/ 277/2026 BANK OF INDIA VS SH. SHAMSHER SINGH AND ANOTHER

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,77,469.10 (Rupees Thirty Lac Seventy Seven Thousand Four Hundred Sixty Nine and Paise Ten Only), jointly and severally, with costs, current and future simple interest @8.00% 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 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, 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 23.07.2026

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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: 08.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Bank of India v. Sh. Shamsher Singh and Another

Case brief

What is this about?

What did the court decide?

Bank of India v. Sh. Shamsher Singh and Another

Case brief

What is this about?

What did the court decide?

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