The DRT allowed the application filed by Bank of India for recovery of Rs. 31,78,635. The court granted simple interest at 8% p.a. instead of the claimed rate and ordered the issuance of a Recovery Certificate.
Recovery of Rs. 31,78,635 plus simple interest at 8% p.a. from filing date; Recovery Certificate issued.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 37/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.01.2026
DATE OF DECISION: 28.07.2026
Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head Office at “Star House”, C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai–400051 and Branch Office amongst other places at Banga, District S.B.S. Nagar (Punjab), through its duly constituted attorney, Sh. Rakesh Kumar Dogra, Chief Manager.
Versus
Advocates:
Argued by Sh. Anil Malhotra, Advocate proxy for Ms. Meena Malhotra, Advocate for Applicant.
None for Defendant Nos. 1 & 2 (opportunity to file WS was closed and defense was struck of vide order dated 22.07.2026)
None for Defendant No. 3 (already ex-parte vide order dated 22.07.2026)
FINAL ORDER
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OA/37/2026 BANK OF INDIA VS. SH. GURCHARAN SINGH AND OTHERS
Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney in favour of Sh. Rakesh Kumar Dogra dated 20.01.2024, which is Annexure A1 to this OA.
Documents executed: Demand Promissory Note dated 19.07.2013, which is Annexure A4 to this OA; Bearer Letter dated 19.07.2013, which is Annexure A5 to this OA; Agreement of Loan-cumHypothecation dated 19.07.2013, which is Annexure A6 to this OA; Consolidated/Multipurpose Stamp Undertaking dated 19.07.2013, which is Annexure A7 to this OA; Undertakings/Declarations dated 19.07.2013, which is Annexure A8 to this OA; Deed of Guarantee dated 19.07.2013, which is Annexure A9 to this OA; Acknowledgements of Debt dated 05.04.2016, 20.01.2017, 03.04.2019, 06.02.2021 & 22.11.2023, which are Annexures A11 to A15 to this OA; Legal Notice along with Postal Receipts (Colly) dated 18.06.2025, which is Annexure A16 to this OA; Statement of Account along with Statement of Uncharged Interest, duly certified under the Bankers' Books Evidence Act, 1891, which is Annexure A17 to this OA.
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OA/37/2026 BANK OF INDIA VS. SH. GURCHARAN SINGH AND OTHERS
outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
None was present on behalf of defendants for arguments.
From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendant nos. 1 & 2, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. The defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan 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.31,78,635.00 (Rupees Thirty One Lac Seventy Eight Thousand Six Hundred Thirty Five 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 interest @11.60% p.a. plus 2.00% p.a. penal interest with half yearly rests from 30.10.2025 till the realization.
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OA/37/2026
BANK OF INDIA VS. SH. GURCHARAN SINGH AND OTHERS
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 just and appropriate to grant simple interest @08.00% 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.
12. Any other application pending stands disposed of.
Dated: 28.07.2026.
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the borrowers and guarantor.
Whether the Tribunal should modify the rate of interest claimed by the applicant.
Whether a Recovery Certificate should be issued against the defendants.
1 provisions across 1 enactments
Bank of India
Sh. Gurcharan Singh
Smt. Sarabjit Kaur
Sh. Harjeet Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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