Allowed

Bank of India v. Sh. Makhan Singh and Another

DRT1 Jun 2026OA/396/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of India's application for recovery of loan dues. The court reduced the claimed interest rate to 8% per annum due to market conditions and ordered recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 26,68,608.09 with simple interest at 8% p.a. granted; recovery certificate issued; enforcement via sale of mortgaged property or personal assets.

Bank of India versus Sh. Makhan Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.396/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.03.2026

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DATE OF DECISION: 01.06.2026

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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 Chaheru Maheru Road, Tehsil Phagwara, District Kapurthala, Punjab through its duly Constituted Attorney, Sh. Ramkhilari Sukhram Meena, presently posted as Chief Manager at SMEUC, District Jalandhar, Punjab

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……..Applicant

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Versus

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Sh. Makhan Singh, S/o Sh. Pal Singh, R/o Village Chachowal,

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Daduwal, Jalandhar, Punjab- 144032

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Sh. Soni Ram, S/o Sh. Arjan Ram, R/o Village Chachowal, Daduwal, Jalandhar, Punjab- 144032

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…….Defendants

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Advocates:

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Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Narinder Kumar, Advocate for applicant

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None for defendants (already ex-parte vide order dated 29.05.2026)

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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. 26,68,608.09 (Rupees Twenty Six Lacs Sixty Eight Thousand Six Hundred Eight and Paise Nine Only). The Original Application has been filed through Sh. Ramkhilari Sukhram Meena, Chief Manager o f the applicant who is competent to institute the Original Application vide Power of Attorney dated 24.11.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 approached

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the applicant for grant of KCC Limit of Rs. 10.00 Lacs vide Loan

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2 OA NO. 396/2026 BANK OF INDIA VS. MAKHAN SINGH AND ANOTHER

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Application dated 08.02.2013, which is Annexure A2 to this OA. Thereafter, defendant no. 1 approached the applicant for enhancement of KCC Limit to Rs. 15.00 Lacs vide Loan Application dated 14.12.2015, which is Annexure A12 to this OA.

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The applicant sanctioned KCC Limit of Rs. 10.00 Lacs vide Sanction Letter dated 28.02.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. Thereafter, the applicant sanctioned the enhancement of KCC Limit to Rs. 15.00 Lacs vide Sanction Letter dated 28.01.2016, which is Annexure A13 to this OA. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 15K 14M situated at Village Chachowali, Tehsil and District Jalandhar, Punjab vide Mortgage Deed bearing vasika no. 1561 dated 26.02.2013 and 22.01.2016, which are Annexure A11, A11/T and A22 to this OA.

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Documents executed: DP Note, Letter of Acknowledgement, Letter of Authority, Letter of Declaration, Hypothecation Agreement, Multipurpose Document and Deed of Guarantee, all dated 28.02.2013, which are Annexure A4 to A10 to this OA; DP Note, Bearer Letter, Letter of Declaration, Letter of Acknowledgement, Hypothecation Agreement, Multipurpose Document, Letter of Declaration of Undertaking and Authority, Deed of Guarantee and Acknowledgement of Debt, all dated 28.01.2016, which are Annexure A14 to A21 and A24 to this OA; Acknowledgements of Debt dated 26.10.2015, 04.05.2018, 07.11.2020 and 06.11.2023, which are Annexure A23 and A25 to A27 to this OA; Legal Notices dated 05.11.2014 along with postal receipts, which are Annexure A28 to A31 to this OA; Account Statement with certificate and uncharged interest, which are Annexure A32 to A34 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 26,68,608.09, 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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3 OA NO. 396/2026 BANK OF INDIA VS. MAKHAN SINGH AND ANOTHER

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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 vide order dated 29.05.2026. 7. In support of the OA, affidavit of Sh. Ramkhilari Sukhram Meena, Chief Manager, Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel 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 Annexure A1 to A34 to this OA, it is proved that defendant no. 1 approached applicant for availing of the loan facility which was granted to him. Defendant no. 2 stood as guarantor. 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. 26,68,608.09 (Rupees Twenty Six Lacs Sixty Eight Thousand Six Hundred Eight and Paise Nine 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 in clause V para 19. has claimed interest @11.75% p.a. plus @2% p.a. penal interest with half yearly rests from the date of filing of the application 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 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

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OA NO. 396/2026 BANK OF INDIA VS. MAKHAN SINGH AND ANOTHER

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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.26,68,608.09 (Rupees Twenty Six Lacs Sixty Eight Thousand Six Hundred Eight and Paise Nine Only), jointly and severally, with costs, current and future simple interest @08.00% 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 defendant no. 1 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.06.2026. 15. 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: 01.06.2026

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

Bank of India v. Sh. Makhan Singh and Another

Case brief

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Bank of India v. Sh. Makhan Singh and Another

Case brief

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