Allowed

Indian Bank v. Sh. Baldev Singh and Another

DRT23 Mar 2026OA/279/2025

Case brief

AI extract

What is this about?

The DRT allowed the Bank's application for recovery of a loan of Rs. 43,82,592 against respondents who failed to repay KCC and Term loans mortgaged with property. The court granted uniform interest at 8% p.a. and ordered recovery via sanctioned assets.

What did the court decide?

Declaration of liability for Rs. 43,82,592 with 8% p.a. simple interest. Order to recover from sale of hypothecation assets or attachment/sale of personal assets. Issued Recovery Certificate.

Indian Bank versus Sh. Baldev Singh and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.279/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2025

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DATE OF DECISION: 23.03.2026

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Indian Bank, (erstwhile Allahabad Bank), 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, Royapeetah, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Ludhiana and amongst other branches, a branch at Morinda, through its Branch Manager Mrs. Poonam, duly constituted and authorized signatory.

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……..Applicant

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Versus

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Sh. Baldev Singh s/o Nirmal Singh, r/o House no. 725, Ward

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no. 4, Morinda, District Ropar

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Sh. Balbir Singh s/o Rulde Singh, r/o Village Bangir, Tehsil

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Chamkaur Sahib, District Roopnagar.

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate for the applicant

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Defendants already ex-parte vide order dated 07.03.2026

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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.43,82,592 (Rupees Forty Three Lacs Eighty Two Thousand Five Hundred Ninety Two only). The Original Application has been filed through Mrs. Poonam, Authorized Representative of the applicant, 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 grant KCC Limit of Rs. 14.00 Lacs vide Application Letter dated 26.05.2012, which is Annexure A2 to this

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OA NO.279/2025 INDIAN BANK VS BALDEV SINGH & ANOTHER

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OA. Defendant No. 2 stood as guarantor in the KCC limit. Thereafter, Defendant no.1 approached the applicant for the renewal of loan under KCC Scheme and loan was renewed on 28.06.2016 which is Annexure A15 to this OA. Thereafter, the defendant approached the applicant for restructure of KCC and to grant a Term Loan of Rs. 9,16,000 to restructure the overdue amount in KCC, vide application dated 21.08.2018, which is Annexure A17 to this OA.

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The applicant sanctioned the KCC Limit of Rs.14.00 Lacs vide Sanction Letter dated 29.05.2012, which is Annexure A5 to this OA and the terms and conditions are accepted by the defendants. Thereafter, the applicant renewed the KCC of 14.0lacs on 28.06.2016. Thereafter, The applicant sanctioned the term loan of Rs. 9,16,000 to restructure the overdue amount in KCC, vide sanction letter dated 21.08.2018, which is Annexure A18 to this OA.

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Defendants mortgaged their immovable property i.e. Land Measuring 09 Bigha 12 Biswa, HB no. 254, situated at Morinda, Tehsil Chamkaur Sahib, District Roopnagar, vide registered mortgage deed in favour of the applicant, along with English Translation dated 29.05.2012 and Lien marked in revenue record vide Rapt no. 851 dated 29.05.2012, which are Annexure A10, A11 & A12 to this OA. Defendant has fraudulently removed the charge of the bank from the revenue record. However, applicant has again created the charge over the land, as per copy of Jamabandi, which is Annexure A25 to this OA.

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Documents executed: Interview Cum Appraisal Form and Memorandum of Sanction of Loan, both dated 26.05.2012, which are Annexure A3 & A4 ; Demand Promissory Note, Hypothecation Agreement, Consent Clause, all dated 29.06.2012, which are Annexure A6 to A8 to this OA; Affidavit dated 28.05.2012 which is Annexure A9 ; Consent Clause to be executed by Guarantor, Deed of Guarantee, both dated 29.06.2012, which are Annexure A13 & A14 ;

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OA NO.279/2025 INDIAN BANK VS BALDEV SINGH & ANOTHER

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DP Note dated 21.08.2018, which is Annexure A16 ; DP Note in Term Loan dated 21.08.2018, which is Annexure A19 ; Recall Notice dated 08.02.2021, which is Annexure A21; Legal Notice dated 17.01.2025, which is Annexure A24 to this OA; Letters of Acknowledgement of Debt, dated 21.08.2018, 09.08.2021, 05.080.2024, which are Annexure A20, A22 & A23 to this OA; Account Statement with certificate, which is Annexure A26 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 both the loan accounts, there was a debit of Rs.43,82,592.00 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 07.03.2026.

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In support of the OA, affidavit of Mrs. Poonam, Manager, Indian Bank, h as been filed.

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Heard ex-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. From the perusal of all the Annexure A1 to A26 to this OA, it is proved that the defendants 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 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

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classified as NPA. From the documentary evidence brought on record,

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it is proved that applicant is entitled to recover a sum of Rs.43,82,592.00 (Rupees Forty Three Lacs Eighty Two Thousand Five

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OA NO.279/2025 INDIAN BANK VS BALDEV SINGH & ANOTHER

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Hundred Ninety Two 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.

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In so far as pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13%p.a. in KCC and @10.75%p.a. in Term Loan with @2% penal interest with monthly rests from 15.02.2025 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 hypothecation assets/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 the both 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. 43,82,592.00 (Rupees Forty Three Lacs Eighty Two Thousand Five Hundred Ninety Two only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the both 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 hypothecation assets/mortgaged properties of the defendants 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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OA NO.279/2025 INDIAN BANK VS BALDEV SINGH & ANOTHER

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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

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Tribunal on 15.04.2026.

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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: 23.03.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Indian Bank v. Sh. Baldev Singh and Another

Case brief

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Indian Bank v. Sh. Baldev Singh and Another

Case brief

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