Allowed

Union Bank of India v. Sh. Baldev Singh and Another

DRT19 Feb 2026OA/334/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte application filed by Union Bank of India for recovery of dues against two borrowers. The court upheld the loan agreements and mortgage details, directing recovery of the principal amount along with a uniform simple interest rate of 7% per annum. A Recovery Certificate was issued.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.42,04,856.00 with 7% per annum simple interest from the date of filing.

Union Bank of India versus Sh. Baldev Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.334/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.01.2024

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DATE OF DECISION: 19.02.2026

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Union Bank of India a body constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its Branch Offices at Asset Recovery Branch, Karlas Building, First Floor, B-XV-295/C. Nr. Oswal Street, Miller Ganj, G.T. Road, Ludhiana Punjab through its Chief Manager Sh. Prabhat Ranjan Singh.

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……..Applicant

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Versus

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Sh. Baldev Singh S/o Sh. Gurcharan Singh, R/o H. No. 5739/2, ST No. 17, New Shimalpuri, Milleganj, Harkrishan PUB Schi, Ludhiana, Punjab.

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Smt. Davinder Pal Kaur W/o Sh. Baldev Singh, R/o H. No. 5739/2, ST No. 17, New Shimalpuri, Milleganj, Harkrishan PUB Schi, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by, Sh. Karan Singla, Advocate for Applican t (through VC)

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Defendants already ex parte vide order dated 27.11.2025

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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.42,04,856.00 (Rupees Forty Two Lacs Four Thousand Eight Hundred Fifty Six Only). The Original Application has been filed through Sh. Prabhat Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 25.03.2019, which is Annexure A1 to this OA.

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2 OA/334/2024 UNION BANK OF INDIA VS. BALDEV SINGH AND ANOTHER

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The brief facts of the OA are that defendants approached the applicant for grant of Property Term Loan of Rs.15.00 Lacs, vide Loan Application dated 10.02.2020, which is Annexure A1 to this OA. Thereafter, the defendants approached the applicant for grant Housing Loan of Rs.29.50 Lacs, vide Laon Application dated 30.07.2021, which is Annexure A4 to this OA.

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The applicant sanctioned the Property Term Laon of Rs.15.00 Lacs vide Sanction Letter dated 03.03.2020, which is Annexure A2 to this OA and the terms and conditions are accepted by defendants. Thereafter, the applicant sanctioned the Housing Laon of Rs.29.50 Lacs vide sanction letter dated 13.08.2021, which is Annexure A5 to this OA and terms and conditions were duly accepted by defendants.

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Defendants mortgaged their property detailed as under:

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(i) Defendant no. 1 mortgaged his immovable property i.e. House No. B-XXIX-512-13X, measuring 111-1/9 Sq. Yards, situated at Giaspura, Hadbast no. 261, Abadi known as Shanti Nagar, Industrial Area C, Sua Road, Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 1809 dated 19.05.2010, along with its translation, which is Annexure A13 , to this OA; Jamabandi for the year 2008-09, along with its translation, which is Annexure A15 to this OA.

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(ii) Defendant no. 2 mortgaged her immovable property i.e. Kothi No.1749, measuring 112.50 Sq. Yards, situated at Village Alamgir, Hadbast no. 273, Abadi Solitaire Cottage-1, Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing no. 2021-22/103/1/5902 dated 08.09.2021, along with its translation, which is Annexure A14 to this OA; Jamabandi for the year 2021-22, along with its translation, which is Annexure A16 to this OA. Documents executed: Composite Agreement dated 04.03.2020, which is Annexure A6 to this OA; Housing Loan Agreement, Demand Promissory Note, Letter of Undertaking from the Borrower, Interest Agreement, Simple Agreement, all dated 20.08.2021, which are

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Annexures A7 to A11 to this OA; Property Statement, which is

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3 OA/334/2024 UNION BANK OF INDIA VS. BALDEV SINGH AND ANOTHER

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Annexure A12 to this OA; Account Statements, which are Annexures A17 and A18 to this OA.

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The loans accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loans account there was a debit of Rs.42,04,856.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amounts, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 27.11.2025.

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In support of the OA, affidavit of Sh. Prabhat Singh, Chief Manager, Union Bank of India h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, 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 Rs.42,04,856.00 (Rupees Forty Two Lacs Four Thousand Eight Hundred Fifty Six 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.

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4 OA/334/2024 UNION BANK OF INDIA VS. BALDEV SINGH AND ANOTHER

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In so far as pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest in Property Term Loan and @6.80% p.a. with 2% penal interest in Home Loan, with quarterly rests from 01.01.2024 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 @7.00%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.42,04,856.00 (Rupees Forty Two Lacs Four Thousand Eight Hundred Fifty Six Only) jointly and severally, with costs, current and future simple interest @7.00%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 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.

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Issue Recovery Certificate accordingly.

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OA/334/2024

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UNION BANK OF INDIA VS. BALDEV SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 07.03.2026.

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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: 19.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Union Bank of India v. Sh. Baldev Singh and Another

Case brief

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Union Bank of India v. Sh. Baldev Singh and Another

Case brief

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