Allowed

Bank of Baroda v. Sh. Harmander Singh and Another

DRT27 Aug 2026OA/301/2026

Case brief

AI extract

What is this about?

The DRT allowed the application by Bank of Baroda to recover Rs. 32.45 lakhs from two defendants. The borrower failed to repaid a sanctioned Kisan Credit Card limit and a Tatkal loan. The court awarded 8% uniform future interest.

What did the court decide?

Recovery of Rs.32,45,219.49 with future simple interest @8.00%p.a. claimed from sale of mortgaged property or attachment of other assets.

Bank of Baroda versus Sh. Harmander Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.301/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2026

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DATE OF DECISION: 27.08.2026

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Bank of Baroda, a body corporate and a Nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 with its Head Office at Baroda Bhavan, RC Dutt Road, Alkapuri, Baroda - 390007, Gujarat and amongst others a branch at K K Road, Sri Muktsar Sahib, District Sri Muktsar Sahib, Punjab through Sh. Puran Chand Tungaria, Branch Manager, Principal Officer and Authority Letter of Applicant Bank.

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……..Applicant

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Versus

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Sh. Harmander Singh S/o Sh. Gurbinder Singh, R/o Village Jaseana, Tehsil and District Sri Muktsar Sahib, Punjab - 152026.

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Sh. Hardeep Singh S/o Sh. Gumail Singh, R/o Village Rupana, Tehsil and District Sri Muktsar Sahib, Punjab - 152026.

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…….. Defendants

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Advocates:

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Argued by Sh. Pankaj Beri, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 18.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.32,45,219.49 (Rupees Thirty Two Lacs Forty Five Thousand Two Hundred Nineteen and Paise Forty Nine Only). The Original Application has been filed through Sh. Puran Chand Tungaria, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter, dated 20.01.2026, 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 of Baroda Kisan Credit Card Limit of Rs.33,51,000.00.

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2 OA NO.301/2026 BANK OF BARODA VS SH. HARMANDER SINGH AND ANOTHER

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Thereafter, the defendant no.1 a pproached the applicant for grant of Baroda Kisan Tatkal Loan Facility of Rs.3,00,000.00 vide Application for Baroda Kisan Tatkal Loan, dated 19.12.2022, which is Annexure A9 to this OA.

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The applicant sanctioned the Baroda Kisan Credit Card Limit of Rs.33,51,000.00 vide Sanction Letter, dated 17.12.2022, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Thereafter, t he applicant sanctioned the Baroda Kisan Tatkal Loan Facility of Rs.3,00,000.00 vide Sanction Letter, dated 19.12.2022, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his Immovable Property i.e., Total Land measuring 82 Kanal 00 Marlas as per Jamabandi for the year 2020-2021, situated in the revenue estate of Village Jasseana, Hadbast no. 133, Tehsil & District Sri Muktsar Sahib, vide Declaration u/s 4(1) along with Request Letter for charge creation of revenue records in favour of bank, dated 15.12.2022, which is Annexure A16 to this OA.

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Documents executed: Demand Promissory Notes, Letter of Continuing Security, Declarations cum Undertakings cum Authority, Composite Hypothecation Agreements for Agriculture Finance, Undertaking (BKCC – Line of Credit), General Forms of Guarantee, Letter of Installment with acceleration clause, all dated 19.12.2022, which are Annexures A3 to A8, A11 to A15 to this OA; Letter of Acknowledgement of Debt, dated 15.11.2025, which is Annexure A17 to this OA; Legal Notice, dated 22.01.2026, along with postal receipts, which is Annexure A18 to this OA; Statement of Accounts, along with certificates, which are Annexures A19 & A20 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 the loan accounts there was a debit of Rs.32,45,219.49, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.301/2026 BANK OF BARODA VS SH. HARMANDER SINGH AND ANOTHER

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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, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 18.08.2026.

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In support of the OA, affidavit of Sh. Puran Chand Tungaria, Branch Manager, Bank of Baroda has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A20 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facilities which were granted to him, defendant no. 2 stood as guarantor 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.32,45,219.49 (Rupees Thirty Two Lacs Forty Five Thousand Two Hundred Nineteen and Paise Forty Nine 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 @12.55%p.a. with half yearly rests in Baroda Kisan Credit Card Limit and interest @11.05%p.a. with half yearly rests in Baroda Kisan Tatkal Loan, with penal interest @2%p.a. in both the loan accounts from 30.01.2026 till the realization. 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 mortgaged property, undertaking

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4 OA NO.301/2026 BANK OF BARODA VS SH. HARMANDER SINGH AND ANOTHER

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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 sum of Rs.32,45,219.49 (Rupees Thirty Two Lacs Forty Five Thousand Two Hundred Nineteen and Paise Forty Nine 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 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.09.2026. 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: 27.08.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Sh. Harmander Singh and Another

Case brief

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Bank of Baroda v. Sh. Harmander Singh and Another

Case brief

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