Allowed

Capital Small Finance Bank Limited v. Arunpreet Singh

DRT3 Feb 2026OA/385/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 52,69,840/- with interest from the borrower and guarantors based on admitted loan documents. The court ordered recovery via sale of mortgaged land and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 52,69,840/- with interest allowed; Recovery Certificate issued; sale proceeds to be distributed by Recovery Officer.

Capital Small Finance Bank Limited versus… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 385/2024 Date of Institution: 05.02.2024 Date of Decision: 03.02.2026

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Capital Small Finance Bank Limited having its branches all over India and a branch at Poonia, Tehsil Shahkot, District Jalandhar, Punjab.

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……..Applicant

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Vs.

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Arunpreet Singh s/o Sh. Sukhdev Singh, r/o Village Rupewali. Tehsil Shahkot, District Jalandhar, Punjab.

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Harinderjit Kaur w/o Sh. Sukhdev Singh r/o Village Rupewali. Tehsil Shahkot, District Jalandhar, Punjab.

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Kuldeep Kumar Khuttan s/o Sh. Swarna Ram Khuttan, r/o Village Billi Chaharmi, Tehsil Shahkot District Jalandhar. Punjab

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……….Defendants

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Advocates

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Sh. Rishu Mittu, Counsel for the applicant bank. Defendants - ex parte vide order dated 31.01.2025 .

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OA for the Recovery of Rs.52,69,840/- with interest @12.70% per annum with half-yearly rests from 05.02.2024.

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ORDER

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Capital Small Finance Bank Limited has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.52,69,840/- with interest against Sh. Arunpreet Singh and others (defendants).

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Bank’s case is that on 05.03.2021, it had granted K.C.C. Limit of Rs.25.00Lacs and a Term Loan of Rs.20.00Lacs to defendant No.1 for agricultural purpose. To secure the loan, Defendant No.1 had mortgaged his land (fully detailed in para No.3A of the application). Defendant No.2 stood as guarantor for K.C.C. Limit of Rs.25.00 Lacs vide guarantee deed dated 04.03.2021, whereas Defendant No.3 stood as

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guarantor for the Term Loan of Rs.20.00 Lacs vide guarantee agreement dated 04.03.2021. Both the loans were chargeable to interest @12.70% per annum with half-yearly rests. Defendants had duly acknowledged their liability towards the debt on 07.12.2022, 03.03.2023, 04.03.2023. On 30.09.2023, a sum of Rs.52,69,840/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 20.03.2024, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 31.01.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Munish Sharma, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-13.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.45.00 Lacs and on 30.09.2023, a sum of Rs.52,69,840/(Rs.30,23,939/- in K.C.C. Limit and Rs.22,45,901/- in Term Loan) was due.

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Accordingly, the application of the bank for the recovery of Rs.52,69,840/- (Rupees Fifty Two Lacs Sixty Nine Thousand Eight Hundred Forty Only) with interest @12.70% per annum with half-yearly rests from 05.02.2024, till the date of payment is hereby allowed with costs. The liability of defendant No.2 would be to the extent of amount due in K.C.C. Limit and liability of defendant No.3 would be to the extent of amount due in Term Loan whereas liability of defendant No.1 would be for the whole decretal. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as

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from the personal movable and immovable property(ies) of the defendants accordingly.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 11.03.2026, who is directed to distribute the sale proceeds of the mortgaged land and standing crops as per the provisions of Section 19(20-AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 03.02.2026 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

Capital Small Finance Bank Limited v. Arunpreet Singh

Case brief

What is this about?

What did the court decide?

Capital Small Finance Bank Limited v. Arunpreet Singh

Case brief

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What did the court decide?

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