Allowed

Bank of India v. Sh. Mahinder Singh and others

DRT10 Mar 2026OA/430/2023

Case brief

AI extract

What is this about?

DRT allowed an application by Bank of India for recovery of Rs.47,74,865.00 from three respondents who defaulted on bank loans. The court granted uniform simple interest at 8% p.a. and ordered issuance of a recovery certificate. The bank may enforce the claim through sale of mortgaged or personal assets under SARFAESI Act provisions.

What did the court decide?

Decree for payment of Rs.47,74,865.00 with costs and simple interest at 8% p.a. Order to issue Recovery Certificate and liberty to enforce via sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.430/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.03.2023

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DATE OF DECISION: 10.03.2026

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at ”Star House’’, C-5, G Block, 2^nd Floor , Bandra Kurla Complex, Bandra (East) Mumbai-400051 and one of its Branches at Hambran, District Ludhiana through Ms. Amandeep Kaur, Chief Manager, Bank of India, Bharat Nagar Chowk, Ludhiana, its Principal Officer and Constituted Attorney.

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……..Applicant

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Versus

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Sh. Mahinder Singh S/o Sh. Gurmukh Singh H. No. 8, Village Ranke, Tehsil Jagraon, District Ludhiana.

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Sh. Amandeep Singh S/o Sh. Mahinder Singh, H. No. 8, Village Ranke, Tehsil Jagaon, District Ludhiana.

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Sh. Pritam Singh S/o Sh. Jai Ram Singh, Village Ranke, Tehsil Jagraon, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. R.V. Mehra Advocate for the applicant

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Defendants already ex parte vide order dated 14.01.2026

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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.47,74,865.00 (Rupees Forty Seven Lacs Seventy Four Thousand Eight Hundred Sixty Five Only). The Original Application has been filed through Ms. Amandeep Kaur, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 19.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 approached the applicant for grant KCC Limit of Rs.15.00 Lacs and

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OA NO.430/2023 BANK OF INDIA VS. MAHINDER SINGH AND OTHERS

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Agriculture Over Draft (AGOD) Limit of Rs.10.00 Lacs vide Loan Applications dated 28.07.2011, which are Annexures A2 & A3 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.15.00 Lacs and Agriculture Over Draft (AGOD) Limit of Rs.10.00 Lacs vide Sanction Letters dated 19.08.2011, which are Annexures A4 & A5 to this OA and the terms and conditions are accepted by defendants.

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Defendant no.1 mortgaged his immovable property i.e., Land Measuring 16Kanal-00Marla Situated at Village Ranke, Tehsil Jagraon, District Ludhiana, Punjab vide Mortgage Deeds bearing Vasika No.989 and 990 dated 11.08.2011, along with their translation, which are Annexures A12, A13, A19 & A20 to this OA.

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Documents executed: Demand Promissory Note, Hypothecation Cum Loan Agreement, Composite Document L-516, Letter of Declaration and Assurance (L-515), Letter of Declaration, Undertaking and Authority, Letter of Authority (For Agriculture Loans), Deed of Guarantee, Demand Promissory Note, Composite Document L-516, Letter of Declaration & Assurance L-515, Letter of Declaration, Undertaking and Authority, Agreement of Guarantee all dated 19.08.2011, which are Annexures A6 to A11, A14 to A17 & A21 to this OA; Legal Notice dated 26.12.2022 with postal receipts, which are Annexure A22 to A25 to this OA; Letter of Acknowledgement of Debts and Securities dated 15.05.2014, 16.05.2014, 12.05.2017, 11.05.2020, which are Annexures A26 to A31 to this OA; Statement of Accounts, which are Annexures A32 & A33 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.47,74,865.00 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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OA NO.430/2023 BANK OF INDIA VS. MAHINDER SINGH AND OTHERS

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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 14.01.2026. 7. In support of the OA, affidavit of Ms. Amandeep Kaur, Chief Manager Indian Bank, has been filed. 8. Heard ex-arguments and perused record. 9. It was argued by learned 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 A33 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 applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of 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.47,74,865.00 (Rupees Forty Seven Lacs Seventy Four Thousand Eight Hundred Sixty 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 accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.30%p.a. including 2% penal interest in KCC and @14.80%p.a. including 2% penal interest in Over Draft Limit with half yearly rests from 01.03.2023 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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OA NO.430/2023 BANK OF INDIA VS. MAHINDER SINGH AND OTHERS

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Tribunal deems it just and appropriate to grant uniform simple interest @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,74,865.00 (Rupees Forty Seven Lacs Seventy Four Thousand Eight Hundred Sixty Five Only) jointly and severally, with costs, current and future simple interest @8.00%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 assets /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. 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 27.03.2026. 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. Pronounced by me in the open Tribunal . Dated: 10.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Mahinder Singh and others

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Bank of India v. Sh. Mahinder Singh and others

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