Allowed

Uco Bank v. Sh. Navjeet Singh and Others

DRT15 May 2026OA/33/2026

Case brief

AI extract

What is this about?

In this ex-parte final order, the Debt Recovery Tribunal allowed the UCO Bank's application for recovery of dues against five respondents. The Tribunal fixed simple interest at 8% per annum instead of the claimed 10% and directed issuance of a recovery certificate and liability of the mortgaged property.

What did the court decide?

Recovery of Rs.21,35,516.34 with costs and simple interest @8.00% p.a. from date of filing till realization directed. Recovery certificate issued.

Uco Bank versus Sh. Navjeet Singh and Others — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.33/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.01.2026

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DATE OF DECISION: 15.05.2026

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UCO BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970 having its Head Office at 10-B.T.M., Sarani, Kolkatta (A Government of India Undertaking) and having one of its Branch situated at Sunam, District Sangrur, through Ms. Maninder Kaur, who is presently working as Branch Manager, Branch Constituted Power of Attorney Holder/Memorandum of the bank and Principal Officer.

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……..Applicant

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Versus

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Sh. Navjeet Singh S/o Sh. Rachpal Singh, R/o Village Bhaini, Gandhwan, District Sangrur, Punjab-148028.

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Sh. Manjeet Singh S/o Sh. Rachpal Singh, R/o Village Bhaini, Gandhwan, District Sangrur Punjab-148028.

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Sh. Zorawar Singh S/o Sh. Navjeet Singh, R/o Village Bhaini, Gandhwan, District Sangrur Punjab-148028.

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Smt. Kamaljeet Kaur W/o Sh. Manjeet Singh, R/o Village Bhaini, Gandhwan, District Sangrur Punjab-148028.

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Smt. Charanjeet Kaur W/o Navjeet Singh, R/o Village Bhaini, Gandhwan, District Sangrur Punjab-148028.

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……..Defendants

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Advocates:

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Argued by Sh. Munish Mittal, Advocate for Applicant

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None for defendants (Already ex-parte vide order dated 11.05.2026)

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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.21,35,516.34 (Rupees Twenty One Lacs Thirty Five Thousand Five Hundred Sixteen and Paise Thirty Four Only). The Original Application has been filed through Smt. Maninder Kaur, Branch Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney/ Memorandum dated 20.07.2012, which is Annexure A1 to this OA.

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2 OA/33/2026 UCO BANK VS SH. NAVJEET SINGH AND OTHERS

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for grant of Housing Loan of Rs.20,00,000.00 vide Application for Term Loan under UCO Home Loan Scheme dated 17.10.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned the Housing Loan of Rs.20,00,000.00 vide Sanctioned Letter dated 14.12.2022, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants. Defendant nos. 3 to 5 stood as guarantors. 4. Defendant nos. 1 & 2 mortgaged their immovable property i.e., Residential Building, total Land Measuring 01 Kanal 12.87 Marla situated at Village Maidewas, Tehsil Sunam, District Sangrur as per Jamabandi for the year 2018-2019 vide Draft of entry to be made in Equitable Mortgage Register in respect of property standing in the name of one or more individuals dated 14.12.2022, which is Annexure A8 to this OA and Sale Deed dated 19.05.2021 along with its translation, which are Annexures A9 & A-9A to this OA; Lien Mark in favour of bank dated 16.12.2022, which is Annexure A10 to this OA; Jamabandi for the year 2018-19 along with translation which are Annexure A11 & A-11/A to this OA; Documents executed: - Statement of Means dated 21.10.2022, which is Annexure A3 to this OA; Pre Sanction Visit Reports dated 25.10.2022, which is Annexure A4 to this OA; Pre Sanction Inspection Report on Collateral Security Offered dated 08.12.2022, which is Annexure A5 to this OA; Search cum Title Report dated 03.12.2022, which is Annexure A6 to this OA; Non- Encumbrance Certificate dated 30.11.2022 along with its Translation, which are Annexures A7 & A-7/A to this OA; Demand Promissory Note, Loan Agreement, Letter of Guarantee all dated 14.12.2022, which are Annexures A12, A13 & A15 to this OA; Guarantor’s Statement of Form dated 11.10.2022 which is Annexure A14 to this OA; Demand Notice dated 05.03.2024, 15.09.2024, 27.11.2024, 01.04.2025, 11.04.2025, 24.04.2025, which are Annexures A17 to A22 to this OA; Recall Notice dated 02.05.2025, which is Annexure A23 to this OA; Account Statement along with Certificate, which is Annexure A24 to this OA; 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a

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3 OA/33/2026 UCO BANK VS SH. NAVJEET SINGH AND OTHERS

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debit of Rs.21,35,516.34 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 11.05.2026.

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In support of the OA, affidavit of Ms. Maninder Kaur, Branch Manager, Union Bank of India h as been filed. 8. 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 A24 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facility which was granted to them, defendant nos. 3 to 5 stood as guarantors and for that they had executed all the relevant documents in favour of the applicant. 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.21,35,516.34 (Rupees Twenty One Lacs Thirty Five Thousand Five Hundred Sixteen and Paise Thirty Four 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]% along with peal interest with monthly rests from 01.11.2025 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 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

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OA/33/2026 UCO BANK VS SH. NAVJEET SINGH AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,35,516.34 (Rupees Twenty One Lacs Thirty Five Thousand Five Hundred Sixteen and Paise Thirty Four 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 the defendant nos. 1 & 2 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.06.2026.

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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 . Dated: 15.05.2026

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

Uco Bank v. Sh. Navjeet Singh and Others

Case brief

What is this about?

What did the court decide?

Uco Bank v. Sh. Navjeet Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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