Allowed

Union Bank of India v. Sh. Harjeet Singh

DRT25 Feb 2026OA/431/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application instituted under the RDBA, 1993. It held the defendant liable to pay the outstanding sum with simple interest at 8% p.a. and authorized recovery from hypothecated assets.

What did the court decide?

Recovery of Rs.23,84,014.80 with simple interest @08.00%p.a. declared; Recovery Certificate issued; Sale of hypothecated vehicle and attachment of personal assets authorized.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.431/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2025

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DATE OF DECISION 25.02.2026

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Union Bank of India a body Corporate constituted under the Banking Companies (Acquisition and Transfers of Undertaking) Act, 1970 having its Head Office at Union Bank at 239 Vidhan Bhawan Marg, Nariman Point, Mumbai, having its Regional Office at UT Chandigarh and its Branch at Nabha Main Branch, Balraj Complex, Near Bouran Gate, Patiala Road, Nabha, District Patiala (Punjab) through its Chief Manager Sh. Saurabh Kumar Kannaujia, who is constituted Power of Attorney and Principal Officer.

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……..Applicant

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Versus

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Sh. Harjeet Singh S/o Sh. Amar Singh, R/o Village Gobindgarh Channa, Post Office Agol, Tehsil Nabha, District Patiala (Punjab). ….……Defendant

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for applicant

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Defendant already ex-parte vide order dated 09.01.2026

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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 defendant for recovery of Rs.23,84,014.80 (Rupees Twenty Three Lacs Eighty Four Thousand Fourteen & Paise Eighty Only). The Original Application has been filed through Sh. Saurabh Kumar Kannaujia, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 25.10.2024, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of Term loan of Rs.22.00 Lacs for purchase of

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2 OA/431/2025 UNION BANK OF INDIA VS. HARJEET SINGH

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Combine Harvester vide Loan Application dated 30.12.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Term loan of Rs.22.00 Lacs vide Letter of sanction dated 30.12.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged hypothecated Combine Harvester Make: Sansar Combine, Model SAMRAT_510, bearing Registration no. PB11DF8779, Engine No. GXPZ132730E3, Chassis No. SC510A2409, vide hypothecation agreement (for agricultural advances), hypothecation (vehicles) agreement, both dated 30.12.2023, which are Annexures A4 and A5 to this OA; Quotation dated 23.11.2023, Invoice dated 24.1.2024, Form-21(Sale Certificate) dated 24.01.2024, Form-22 (Road Worthiness Certificate) dated 24.01.2024, Temporary Registration certificate and Registration Certificate of Combine Harvester, which are Annexure A16(Colly) to this OA.

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Documents executed: Letter of General Lien and Set Off, Letter of Undertaking from the Borrower, Interest Agreement, Declaration/Undertaking (for Agricultural Advances), Letter of Continuity, Simple Loan Agreement (for Agricultural Advances),Term Loan Agreement (Hypothecation of Movables), Demand Promissory Note, Format of Letter obtained from Borrower, all dated 30.12.2023, which are Annexures A6 to A14 to this OA; Recall Notice/Letter dated 31.08.2024, which is Annexure A17 to this OA; Legal Notice dated 23.10.2024 & 04.02.2025, along with postal receipts and translation, which are Annexure A18 to this OA; Notice dated 17.02.2025 under Section 13(2) of SARFAESI Act, which is Annexure A19 to this OA and Statement of Account with certificate, which is Annexure A20 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.23,84,014.80, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount,

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3 OA/431/2025 UNION BANK OF INDIA VS. HARJEET SINGH

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.01.2026.

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In support of the OA, affidavit of Sh. Saurabh Kumar Kannaujia, Chief Manager, Union Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record

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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 A20 to this OA, it is proved that the defendant approached applicant for availing of the loan facility 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.23,84,014.80 (Rupees Twenty Three Lacs Eighty Four Thousand Fourteen & Paise Eighty Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. from 11.03.2025 till 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 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

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4 OA/431/2025 UNION BANK OF INDIA VS. HARJEET SINGH

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Tribunal deems it just and appropriate to grant uniform 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.23,84,014.80 (Rupees Twenty Three Lacs Eighty Four Thousand Fourteen & Paise Eighty Only) 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 hypothecated vehicle 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 12.03.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 25.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Harjeet Singh

Case brief

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Union Bank of India v. Sh. Harjeet Singh

Case brief

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