Allowed

Idbi Bank Limited v. Sh. Gursewak Singh and Another

DRT9 Jun 2026OA/369/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed IDBI Bank Limited's application for recovery of Rs. 40.28 lakhs plus interest against borrowers and guarantors. The court ruled for the bank, permitting recovery via mortgaged property or asset attachment under SARFAESI.

What did the court decide?

Recovery of Rs.40,28,618.50 plus simple interest at 8% p.a.; Issuance of Recovery Certificate; Liberty to attach and sell assets.

Idbi Bank Limited versus Sh. Gursewak Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 369/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2023

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DATE OF DECISION: 09.06.2026

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IDBI Bank Limited i.e. a company within the meaning of the Companies Act, 2013 incorporated under the provisions of company Act, 1956 and Banking Company within the meaning of Section 5(c)of the Banking Regulation Act, 1949 and having its Head Office at IDBI Tower, WTC Complex Cuffe Parade, Mumbai-400005 and its Branches at various places, including Office at IDBI Bank Limited, Feroze Gandhi Market, Ludhiana, Punjab-141001 through its Branch Head and duly constituted attorney, Sh. Ankur Garg, working at Ludhiana Branch, Punjab.

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……..Applicant

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Versus

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Sh. Gursewak Singh, son of Sh. Sardool Singh, resident of VillageBajeke, Tehsil-Dharamkot, District Moga, Punjab-142042. (Being Borrower and legal heir of Late Smt. Gurcharan Kaur, resident of Village- Bajeke, Tehsil-Dharamkot, District Moga, Punjab142042).

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Sh. Gurbax Singh son of Sh. Sardool Singh, resident of VillageBajeke, Tehsil-Dharamkot, District Moga, Punjab-142042. (Being Guarantor and legal heir of Gurcharan Kaur, resident of VillageBajeke, Tehsil-Dharamkot, District Moga, Punjab-142042).

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.……Defendants

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Advocates:

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Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. T.S. Sudan, Advocate for applicant

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None for Defendants (already ex parte vide order dated 06.06.2026)

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2 OA/ 369/2023 IDBI BANK LIMITED VS SH. GURSEWAK SINGH AND ANOTHER

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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.40,28,618.50 (Rupees Forty Lacs Twenty Eight Thousand Six Hundred Eighteen and Paise Fifty Only). The Original Application has been filed through Sh. Ankur Gar g, Branch Head, of the applicant, who is competent to institute the Original Application vide Extract of Authority Letter of Sh. Ankur Garg, Branch Head, IDBI Bank, Khanna, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 & Smt. Gurcharan Kaur (since deceased) approached the applicant for KCC Limit of Rs. 15.00 lacs and Term Loan of Rs. 11.50 lacs. Defendant no.2 stood as guarantor. Thereafter, the defendant no. 1 & Smt. Gurcharan Kaur (since deceased) approached the applicant for enhancement of KCC Limit from Rs. 15.00 lacs to Rs. 30.50 lacs vide Application Form for Agriculture Loan dated 25.03.2019, which is Annexure A5 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 15.00 lacs and Term Loan of Rs. 11.50 lacs vide Letter of Intent dated 14.12.2016 which is Annexure A2 to this OA; Letter of Intent/Sanction Letter dated 14.12.2016, which is Annexure A3 to this OA; Sanction Letter dated 14.12.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of KCC Limit from Rs. 15.00 lacs to 30.50 lacs vide Letter of Intent/Sanction Letter dated 26.03.2019, which is Annexure A6 to this OA. 4. Defendant no. 1 & Smt. Gurcharan Kaur (since deceased) mortgaged their total land measuring 114Kanal-5Marla as under: i. Defendant no. 1 mortgaged his land measuring 40Kanal-17Marla situated at Village-Bajeke, Hadbast no. 244, Tehsil-Dharamkot, District-Moga, Punjab

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3 OA/ 369/2023

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IDBI BANK LIMITED VS SH. GURSEWAK SINGH AND ANOTHER

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ii. Smt. Gurcharan Kaur (since deceased) mortgaged her land measuring 73Kanal-8Marla situated at Village-Bajeke, Hadbast no. 244, Tehsil-Dharamkot, District-Moga, Punjab Vide Declaration for Mortgage under Section 4(1) dated 11.01.2017, which is Annexure A7 to this OA; Declaration for Mortgage for enhancement of KCC Limit, under Section 4(1) dated 26.03.2019, which is Annexure A13 to this OA. Documents executed: Letter to Sub-Registrar submitting Declaration for entering charge over the property dated 11.01.2017, which is Annexure A8 to this OA; Hypothecation-cum-Loan Agreement dated 21.12.2016, which is Annexure A9 to this OA; Hypothecation-cumLoan Agreement dated 21.12.2022, which is Annexure A10 to this OA; Demand Promissory Note dated 21.12.2016, which is Annexure A11 to this OA; Demand Promissory Note dated 21.12.2016, which is Annexure A12 to this OA; Letter to Sub-Registrar submitting Declaration for entering charge over the property dated 26.03.2019, which is Annexure A14 to this OA; Supplementary Hypothecation Agreement dated 26.03.2019, which is Annexure A15 to this OA; Demand Promissory Note dated 26.03.2019, which is Annexure A16 to this OA; Certificate of Execution of Documents dated 26.03.2019, which is Annexure A17 to this OA; Acknowledgement of Debt-cum-Revival Letter dated 24.02.2022, which is Annexure A18 to this OA; Common Guarantee Deeds dated 21.12.2016, which are Annexures A19 to A22 to this OA; Common Guarantee Deeds dated 26.03.2019, which are Annexures A23 & A24 to this OA; Death Certificate dated 02.09.2020, which is Annexure A25 to this OA; Loan Recall Notice dated 14.11.2022, which is Annexure A26 to this OA; Loan Recall Notice dated 27.12.2022, which is Annexure A27 to this OA; Statement of Accounts with certificate, which are Annexures A29 to A31 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.40,28,618.50 (Rupees Forty Lacs Twenty Eight Thousand Six Hundred Eighteen and Paise Fifty Only), which is recoverable and

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4 OA/ 369/2023 IDBI BANK LIMITED VS SH. GURSEWAK SINGH AND ANOTHER

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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 summons to appear before this
Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 06.06.2026.
7. In support of the OA, affidavit of Sh. Ankur Garg, Branch Head,
IDBI Bank Limited,has been filed.
8. Heard ex-parte arguments and perused record.
9. It was argued by learned proxy 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 A31 to this OA, it is proved that the defendant no. 1 & Smt. Gurcharan Kaur (since deceased) approached applicant for availing of the loan facilities, which were granted to them. Defendant no. 2 stood as guarantor. 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, both 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.40,28,618.50 (Rupees Forty Lacs Twenty Eight Thousand Six Hundred Eighteen and Paise Fifty 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @8.05%p.a. in KCC Limit and @8.95% p.a. in Term Loan with half yearly rests from 15.02.2023 till the realization. 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

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5 OA/ 369/2023 IDBI BANK LIMITED VS SH. GURSEWAK SINGH AND ANOTHER

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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 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.40,28,618.50 (Rupees Forty Lacs Twenty Eight Thousand Six Hundred Eighteen and Paise Fifty 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 mortgaged property 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.06.2026

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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. Pronounced by me in the open Tribunal . Dated: 09.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Idbi Bank Limited v. Sh. Gursewak Singh and Another

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. Sh. Gursewak Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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