Allowed

Bank of India v. Sh. Santosh Kashmir Singh Alias Santosh Kashmir Singh Bhullar and Another

DRT8 Jan 2026OA/317/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery against borrowers and guarantor. It declared the debt due and fixed a uniform simple interest rate of 8% p.a. from the date of filing, permitting execution against mortgaged or personal assets.

What did the court decide?

Defendants ordered to pay Rs. 34,48,777.70 plus costs and simple interest @ 8% p.a. from date of filing; Recovery Certificate issued.

Bank of India versus Sh. Santosh Kashmir Singh Alias Santosh… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.317/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.03.2024

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DATE OF DECISION: 08.01.2026

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Bank of India, a body corporate and a nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970 with its H.O. at Bank of India, Star House, C- 5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and amongst others a branch at Malout, Tehsil Malout and District Muktsar through Sh. Ajit Singh Dadwal, Constituted Attorney of Applicant.

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……. Applicant

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Versus

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Sh. Santosh Kashmir Singh @ Santosh Kashmir Singh Bhullar S/o Sh. Gurbachan Singh, R/o House No. 281/1, Village Rasulpur Khera, Tehsil Malout, District Sri Muktsar Sahib, Punjab

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Sh. Darbara Singh S/o Sh. Gurdeep Singh, R/o House No. 193

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Village Fardikhera, Tehsil Malout, District Sri Muktsar Sahib, Punjab

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….……Defendants

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Advocates:

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Ms. Seerat Sharma, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant

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Defendants already ex parte vide order dated 13.10.2025

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FINAL ORDER

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Present Original Application was instituted by the applicant under

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Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.34,48,777.70 (Rupees Thirty Four Lacs Forty Eight Thousand Seven Hundred Seventy Seven and Paise Seventy Only). The Original Application has been filed through Sh. Ajit Singh Dadwal, Constituted Attorney of Applicant, who is competent to institute the Original Application vide Power of Attorney dated

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20.02.2023 which is Annexure A1 to this OA.

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OA NO.317/2024 BANK OF INDIA VS. SANTOSH KASHMIR SINGH ALIAS SANTOSH KASHMIR SINGH BHULLAR A ND ANOTHER

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The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of KCC Limit of Rs.4.65 Lacs and Agriculture Overdraft Limit of Rs.10.00 Lacs vide loan applications dated 06.06.2016, which are Annexures A2 and A10 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.4.65 Lacs and Agriculture Overdraft Limit of Rs.10.00 Lacs vide Sanction Letters dated 16.06.2016, which are Annexures A3 and A11 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged his immovable property i.e. total land measuring 56K-00M i.e. 7 Acre, situated at Village Farid Kera, Tehsil Malout, Punjab vide Declaration u/s 4 (1) bearing vasika no. 432 dated 01.07.2016, which is Annexure A18 to this OA. Documents executed: Demand Promissory Notes, Hypothecation cum Loan Agreement, Letters of Declaration, Undertaking and Authority, Declaration obtained from Borrower, MCLR Agreement-New Loans, Guarantee Agreement executed by defendant no.2, Agreement, all dated 08.07.2016, which are Annexures A4 to A9 and A12 to A17 to this OA; Letter of Acknowledgement of Debt and Securities dated 16.03.2019 and 30.11.2021, which are Annexures A19 to A22 to this OA; Legal Notice dated 31.03.2023 which is Annexure A23 to this OA; Statement of Account which are Annexures A24 to A25 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.34,48,777.70, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 13.10.2025.

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OA NO.317/2024 BANK OF INDIA VS. SANTOSH KASHMIR SINGH ALIAS SANTOSH KASHMIR SINGH BHULLAR A ND ANOTHER

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In support of the OA, affidavit of Sh. Ajit Singh Dadwal,

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Constituted Attorney of applicant has been filed.

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Heard ex-arguments and perused record.

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It was argued by learned proxy 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 Annexures A1 to A25 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,48,777.70 (Rupees Thirty Four Lacs Forty Eight Thousand Seven Hundred Seventy Seven 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 accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.15%p.a. with half yearly rests with @2% penal interest from 22.01.2024 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 mortgaged property/hypothecated assets, 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

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OA NO.317/2024 BANK OF INDIA VS. SANTOSH KASHMIR SINGH ALIAS SANTOSH KASHMIR SINGH BHULLAR A ND ANOTHER

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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.34,48,777.70 (Rupees Thirty Four Lacs Forty Eight Thousand Seven Hundred Seventy Seven and Paise Seventy 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 hypothecated/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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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 22.01.2026. 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: 08.01.2026.

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

Bank of India v. Sh. Santosh Kashmir Singh Alias Santosh Kashmir Singh Bhullar and Another

Case brief

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Bank of India v. Sh. Santosh Kashmir Singh Alias Santosh Kashmir Singh Bhullar and Another

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