The Debt Recovery Tribunal allowed the banker applicant's original application against two respondents, directing recovery of the outstanding loan sum with simple interest at 8% p.a. and granting a recovery certificate.
To pay Rs. 47,39,349.70 with costs and simple interest at 8% p.a., and to issue a recovery certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.307/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 20.02.2026
DATE OF DECISION: 16.07.2026
Indian Overseas Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Central Office at 763, Anna Salai, Chennai - 600002 and amongst other places a Branch Office at Dugri, Tehsil and District Ludhiana, through Sh. Ravinderjith Singh, duly constituted attorney and Senior Manager, Indian Overseas Bank, Regional Office, Ludhiana.
……..Applicant
……. .Defendants
Advocates:
Argued by Sh. Rajan Arora, Advocate for the applicant (through VC) None for defendants (Already ex-parte vide order dated 14.07.2026).
FINAL ORDER
2 OA NO.307/2026 INDIAN OVERSEAS BANK VS SH. JASWINDER SINGH AND ANOTHER
Rs.15,00,000.00 vide Application for Agricultural Credit Short Term / Term Loan dated 06.02.2014, which is Annexure A2 to this OA.
Documents executed: Guarantee for Cash Credit, Guarantor’s Statement, Letter of Hypothecation, Demand Promissory Note, Demand Promissory Note Delivery Letter, all dated 20.02.2014, which are Annexures A3, A4, A6 to A8 to this OA; Legal Notice dated 11.02.2026, along with postal receipts, which are Annexures A10 to A12 to this OA; Statement of Account along with certificate, which are Annexures A13 & A14 to this OA.
3 OA NO.307/2026 INDIAN OVERSEAS BANK VS SH. JASWINDER SINGH AND ANOTHER
From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.47,39,349.70 (Rupees Forty Seven Lacs Thirty Nine Thousand Three Hundred Forty Nine and Paise Seventy 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.
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 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.
4 OA NO.307/2026 INDIAN OVERSEAS BANK VS SH. JASWINDER SINGH AND ANOTHER
(Rupees Forty Seven Lacs Thirty Nine Thousand Three Hundred Forty Nine and Paise Seventy 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 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.
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 31.07.2026. 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: 16.07.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the bank is entitled to recovery of the outstanding loan amount along with interest from the mortgagors and guarantor.
Whether the Tribunal can modify the claimed rate of interest in the interest clause.
2 provisions across 1 enactments
Indian Overseas Bank
Sh. Jaswinder Singh @ Jasvinder Singh
Sh. Ranjit Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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