Allowed

Union Bank of India v. Sh. chamkaur singh

DRT29 Apr 2026OA/425/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of Rs.24.81 lakhs against a defaulting borrower. The tribunal ruled the bank entitled to the principal with simple interest at 8% p.a. and authorized recovery via asset sale.

What did the court decide?

Ordered the defendant to pay Rs.24,81,909.64 with costs and simple interest at 8% p.a.; Recovery Certificate issued; Recovery from sale of hypothecated or personal assets authorized.

Union Bank of India versus Sh. chamkaur singh — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.425/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.03.2026

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DATE OF DECISION: 29.04.2026

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UNION BANK OF INDIA (A body corporate, constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act No.5 of 1970, having its Head Office at 239, Vidhan Sabha Marg, Nariman Point, Mumbai and its Branch Office at Union Bank of India, Grain Market, Bhadson, Tehsil Nabha, District Patiala, Punjab–147202, through its Authorized Representative, Mr. Manpreet Singh, Senior Manager, Union Bank of India, Grain Market, Bhadson, Tehsil Nabha, District Patiala, Punjab–147202.

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……..Applicant

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Versus

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Sh. Chamkaur Singh S/o Sh. Avtar Singh R/o VPO Mangewal, Tehsil Nabha, District Patiala-147202.

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.……Defendant

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Advocate:

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Argued by Rehan Chaudhary, Advocate for the applicant (through VC) None for Defendant (already ex parte vide order dated 23.04.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.24,81,909.64 (Rupees Twenty Four Lacs Eighty One Thousand Nine Hundred Nine and Paise Sixty Four only). The Original Application has been filed through Mr. Manpreet Singh Senior Manager , of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 24.01.2025, which is Annexure A1 to this OA.

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OA NO.425/2026 UNION BANK OF INDIA VS SH. CHAMKAUR SINGH 2. The brief facts of the OA are that the defendant approached the applicant for the grant of Term Loan of Rs.24.90 Lacs, vide Loan Application dated 15.08.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan of Rs.24.90 Lacs vide sanction letter dated 16.09.2024, which is Annexure A3 to this OA. 4. Defendant hypothecated his Harvester Combine bearing Registration No. PB34D3484, Make: Inderpreet Agro Industries, Model No. INDER-930, Engine No. RMHM107470, Chassis No. IA19301240045, vide Term Loan Agreement (Hypothecation of Movables) dated 16.09.2024, which is Annexure A4 to this OA; Registration Certificate of Harvester (Combine), which is Annexure A5 to this OA. Documents executed : Hypothecation Agreement for Agriculture Advances dated 16.09.2024, which is Annexure A6 to this OA; Simple Loan Agreement dated 16.09.2024, which is Annexure A7 to this OA; Legal Notice dated 23.02.2026 with postal receipts, which is Annexure A8 to this OA; Statement of Account with certificate, which is Annexure A9 to this OA. 5. The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.24,81,909.64 (Rupees Twenty Four Lacs Eighty One Thousand Nine Hundred Nine and Paise Sixty Four only), which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte on 23.04.2026. 7. In support of the OA, affidavit of Mr. Manpreet Singh, Senior Manager, Union Bank of India, has been filed. 8. Heard ex parte arguments and perused record.

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OA NO.425/2026

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UNION BANK OF INDIA VS SH. CHAMKAUR SINGH 9. It was argued by learned counsel, through Video Conferencing, 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 A9 to this OA, it is proved that the defendant approached applicant for availing of the Term Loan, which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,81,909.64 (Rupees Twenty Four Lacs Eighty One Thousand Nine Hundred Nine and Paise Sixty Four only), along with interest from the defendant, 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 relief clause has claimed interest @9.00% p.a. plus penal interest @2.00% p.a. with half yearly rests from 01.03.2026 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 hypothecated asset, undertaking of the defendant, 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,81,909.64 (Rupees Twenty Four Lacs Eighty One Thousand Nine Hundred Nine and Paise Sixty Four only) with costs, current and future simple interest

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OA NO.425/2026 UNION BANK OF INDIA VS SH. CHAMKAUR SINGH @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 hypothecated assets of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 20.05.2026 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 29.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. chamkaur singh

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Union Bank of India v. Sh. chamkaur singh

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