Allowed

Bank of India v. Sh. Dayal Singh Alias Dial Singh and Others

DRT7 Jan 2026OA/421/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Bank of India for recovery of Rs.61,35,695.62 from three Defendants who failed to repay sanctioned agricultural and KCC loans. The tribunal granted 8% simple interest and the recovery certificate.

What did the court decide?

Recovery of Rs.61,35,695.62 with 8% simple interest; issuance of Recovery Certificate; liberty to enforce through sale of mortgaged or personal assets.

Bank of India versus Sh. Dayal Singh Alias Dial Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.421/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.03.2024

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DATE OF DECISION: 07.01.2026

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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 Village Kila Raipur, Distt Ludhiana through its duly constituted attorney Shri Suresh Kumar posted as Chief Manager at Khanna Branch.

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……..Applicant

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Versus

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Shri Dayal Singh @ Dial Singh S/o Late Shri Nagahia Singh, R/o H.No.154, Village Nangal Kalan, P.O. Pakhowal, Tehsil Raikot, District Ludhiana

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Shri Hardev Singh S/o Shri Dayal Singh @ Dial Singh, R/o H.No.154, Village Nangal Kalan, P.O. Pakhowal, Tehsil Raikot, District Ludhiana

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Shri Bhagwant Singh S/o Shri Ajaib Singh, R/o H.No.134, Village Bool Post Office Ghawaddi, District Ludhiana

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……….Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Pooja Sharma, Advocate for Applicant

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Defendants already ex parte vide order dated 09.10.2025

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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.61,35,695.62 (Rupees Sixty One Lacs Thirty Five Thousand Six Hundred Ninety Five & Paise Sixty Two Only). The Original Application has been filed through Sh. Suresh Kumar, Chief

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OA NO.421/2024 BANK OF INDIA VS. DAYAL SINGH ALIAS DIAL SINGH AND OTHERS

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Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for grant of KCC Limit of Rs.10.00 Lacs and for grant of Agriculture Mortgage Overdraft Limit of Rs. 5.00 Lacs vide loan applications dated 22.04.2011, which are Annexure A2 and A11 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant nos. 1 and 2 approached the applicant for enhancement of KCC Limit to Rs. 20.00 Lacs vide loan application, which is Annexure A18 to this OA.

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The applicant sanctioned KCC Limit of Rs.10.00 Lakhs vide sanction letter dated 06.05.2011, which is Annexure A4 to this OA and sanctioned Agriculture Mortgage Overdraft Limit of Rs. 5.00 Lacs vide Sanction letter dated 06.05.2011, which is Annexure A12 to this OA and the terms and conditions of which were duly accepted by the defendants. Thereafter, the applicant enhanced the KCC Limit to Rs. 20.00 Lacs vide memorandum of sanction dated 13.01.2014 and sanction letter dated 13.01.2014, which are Annexures A19 and A19A to this OA.

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The defendant no. 1 mortgaged his immovable properties detailed as under:

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(i). Land measuring 28K-18M situated at Nangal Kalan, Hadbast No. 350, Tehsil Raikot, District Ludhiana, Punjab vide mortgage deed bearing vasika no. 611 dated 11.05.2011, along with its translation which are Annexure A10 and A10T to this OA and mortgaged deed bearing vasika no. 3713 dated 13.01.2014, which are Annexures A25 and A25T to this OA.

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(ii). Land measuring 16K-00M situated at Nangal Kalan, Hadbast No.

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350, Tehsil Raikot, District Ludhiana, Punjab vide mortgage deed

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OA NO.421/2024 BANK OF INDIA VS. DAYAL SINGH ALIAS DIAL SINGH AND OTHERS

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bearing vasika no. 610 dated 11.05.2011, along with its translation which are Annexure A17 and A17T to this OA.

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Documents executed : - ID proof of Defendants in file 3, which is Annexure A3 to this OA; D.P. Note, Hypothecation cum Loan Agreement, Deed of Guarantee, Letter of Declaration, Undertaking and Authority, Agreement, all dated 14.05.2011 which are Annexures A5 to A9 to this OA; D.P. Note, Deed of Guarantee, Letter of Declaration, Undertaking and Authority, Agreement, all dated 17.05.2011 which are Annexures A13 to A16 to this OA; D.P. Note, Supplemental Hypothecation cum Loan Agreement, Deed of Guarantee, Letter of Declaration, Undertaking and Authority, Agreement, all dated 17.01.2014 which are Annexures A20 to A24 to this OA; Acknowledgement of Debt dated 18.01.2014, 19.02.2014, 28.09.2016, 27.06.2019 and 16.05.2022, which are Annexures A26 to A29 to this OA, Legal Notice dated 03.06.2021 and 28.07.2023, which is Annexure A30 to this OA and Statement of Accounts, which are Annexures A31 and A32 to this OA.

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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.61,35,695.62 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. 6. 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 09.10.2025. 7. In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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OA NO.421/2024 BANK OF INDIA VS. DAYAL SINGH ALIAS DIAL SINGH AND OTHERS

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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. From the perusal of all the Annexures A1 to A32 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 bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, account sof 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.61,35,695.62 (Rupees Sixty One Lacs Thirty Five Thousand Six Hundred Ninety Five & Paise Sixty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.50% p.a. plus 2% penal interest with half yearly rests from 08.01.2024 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/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 uniform simple interest @08.00%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.61,35,695.62 (Rupees Sixty One Lakh Thirty Five Thousand Six

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OA NO.421/2024 BANK OF INDIA VS. DAYAL SINGH ALIAS DIAL SINGH AND OTHERS

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Hundred Ninety Five & Paise Sixty Two Only) jointly and severally, with costs, current and future simple interest @08.00%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 hypothecated/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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Parties to appear before Learned Recovery Officer of this Tribunal on 20.01.2026.

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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: 07.01.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Dayal Singh Alias Dial Singh and Others

Case brief

What is this about?

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Bank of India v. Sh. Dayal Singh Alias Dial Singh and Others

Case brief

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