Allowed

Bank of India v. Sh. Tirath Singh and Another

DRT1 Jun 2026OA/315/2022

Case brief

AI extract

What is this about?

The DRT allowed the Bank of India's application for recovery of a loan of Rs. 37,11,732.00 from two defaulting borrowers and a guarantor. The court fixed simple interest at 8% p.a., modified the claim. The tribunal issued a recovery certificate and directed the sale of mortgaged and personal assets if dues remain unsatisfied.

What did the court decide?

Recovery of Rs. 37,11,732.00 with simple interest at 8% p.a. jointly and severally from applicants, with liberty to recover via sale of mortgaged and personal assets.

Bank of India versus Sh. Tirath Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.315/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.10.2021

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DATE OF DECISION: 01.06.2026

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Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at “Star House”, C 5, G Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra- 400051 and one of its Branches situated at College Road, Village and Post Office Dakha, District Ludhiana, Punjab through Sh. Ved Prakash, its Constituted Attorney and Chief Manager, Bank of India, Raekot, District Ludhiana, Punjab

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… …..Applicant

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Versus

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Sh. Tirath Singh, S/o Sh. Sher Singh, R/o Village and Post Office Talwandi Khurd, Tehsil Jagraon, District Ludhiana, Punjab

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Sh. Rakesh Kumar, S/o Sh. Krishan Pal, R/o House no. 8/120, Old Mullanpur Mandi, Mullanpur, District Ludhiana, Punjab

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…Defendants

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Advocates:

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Argued by Sh. R.V. Mehra, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 29.05.2026)

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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. 37,11,732.00 (Rupees Thirty Seven Lacs Eleven Thousand Seven Hundred Thirty Two Only). The Original Application has been filed through Sh. Ved Prakash, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.12.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of KCC Limit of Rs. 10.00 Lacs and OD Limit of

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2 OA/315/2022 BANK OF INDIA VS. TIRATH SINGH AND ANOTHER

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Rs. 5.00 Lacs vide Loan Applications, both dated 07.02.2014, which are Annexure A2 and A3 to this OA.

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The applicant sanctioned KCC Limit of Rs. 10.00 Lacs and OD Limit of Rs. 5.00 Lacs vide Letters of Sanction, both dated 11.03.2014, which is Annexure A4 and A5 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 27K 10M situated at Village Talwandi Khurd, District Ludhiana, Punjab vide Mortgaged Deed bearing vasika no. 5065 dated 07.03.2014 along with its translation, which are Annexure A12 and A13 to this OA. Documents executed: DP Notes, Bearer Letters, Hypothecation cum Loan Agreement, Composite Documents, Letters of Declaration and Assurance, Letters of Declaration, Undertaking and Authority and Agreements of Guarantee, all dated 14.03.2014, which are Annexure A6 to A11 and A14 to A20 to this OA; Legal Notice dated 24.08.2021 along with postal receipts, which are Annexure A21 to A23 to this OA; Letters of Acknowledgement of Debts and Securities dated 14.02.2017 and 18.01.2020, which are Annexures A24 to A27 to this OA and Statement of Accounts, which are Annexure A28 and A29 to this OA. 5. 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. 37,11,732.00, which is recoverable and the defendants were served recall notice 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 29.05.2026. 7. In support of the OA, affidavit Sh. Ved Prakash, Chief Manager, Bank of India h as been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/315/2022 BANK OF INDIA VS. TIRATH SINGH AND ANOTHER

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It was argued by learned counsel (through VC) 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 Annexure A1 to A29 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, 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. 37,11,732.00 (Rupees Thirty Seven Lacs Eleven Thousand Seven Hundred Thirty 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 amount.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.80%p.a. with half yearly rests from the date of filing of the application 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/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 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.

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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.37,11,732.00 (Rupees Thirty Seven Lacs Eleven Thousand Seven Hundred Thirty Two Only) jointly and severally, with costs, current and

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OA/315/2022

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BANK OF INDIA VS. TIRATH SINGH AND ANOTHER

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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 22.06.2026.

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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: 01.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Tirath Singh and Another

Case brief

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Bank of India v. Sh. Tirath Singh and Another

Case brief

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