Allowed

Indian Bank v. Sh. Deepak Sharma and Another

DRT6 Aug 2026OA/45/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application under Section 19 of the RDB Act, 1993 for recovery of a housing loan default. The court adjusted interest to 8% p.a. and directed issuance of a recovery certificate along with liberty to enforce the claim.

What did the court decide?

Recovery of Rs. 28,69,108.00 with 8% p.a. simple interest. Issuance of Recovery Certificate. Liberty to enforce sale of mortgaged or personal assets.

Indian Bank versus Sh. Deepak Sharma and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 45/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.12.2022

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DATE OF DECISION: 06.08.2026

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Indian Bank, a body corporate and nationalized Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and, amongst others, a Branch at NH-21, Sant Varyam Nagar, Desu Majra, Kharar, Mohali, Punjab, through its Principal Officer, Chief Manager and General Attorney Sh. Aman Passi, S/o Sh. Ashok Passi (Transferee Bank from erstwhile Allahabad Bank).

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……..Applicant

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Versus

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Sh. Deepak Sharma, S/o Sh. Surya Sharma, resident of:

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1st Address: House No. 8B, GH-38, MDC, Sector-5, Panchkula. 2nd Address: Flat No. 83-B, 2nd Floor, Maa Shimla Homes PartI, Desu Majra, Tehsil Kharar, District Mohali (Punjab).

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Sh. Kuldip Singh, S/o Sh. Satnam Singh, resident of:

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1st Address: H.No. 502, Sector-63, Phase 9, Mohali, Punjab.

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2nd Address: Flat No. 82, First Floor, Maa Shimla Homes Part-I (New), Desu Majra, Tehsil Kharar, District Mohali (Punjab).

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…….Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Sumit Batra, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 04.08.2026)

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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

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2 OA/45/2023 INDIAN BANK VS. SH. DEEPAK SHARMA AND ANOTHER

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the defendants for recovery of Rs.28,69,108.00 (Rupees Twenty Eight Lac Sixty Nine Thousand One Hundred Eight Only). The Original Application has been filed through Sh. Aman Pass i, Chief Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney dated 14.03.2015, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the Defendant no.1 approached the applicant for grant of Housing Loan of Rs.25.00 lacs vide Loan Application Form dated 01.01.2013, which is Annexure A3 to this OA. Defendant no.2 stood as guarantor. 3. The applicant sanctioned the Housing Loan of Rs.25.00 lacs vide Sanction Letter dated 07.01.2013, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his property ie. Residential Flat measuring 625 SqFt situated at Flat No. 83-B, 2nd Floor, Maa Shimla Homes Part-I, Desu Majra, Tehsil Kharar, District Mohali (Punjab) vide deposit of Registered Sale Deed No. 8760 along with True Translation dated 07.01.2013, which is Annexure A8 to this OA; Documents executed: Gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Letter of Acceptance dated 07.01.2013, which is Annexure A5 to this OA; D.P. Note dated 07.01.2013, which is Annexure A6 to this OA; Guarantee Agreement dated 07.01.2013, which is Annexure A7 to this OA; Letter of Deposit of Title Deeds dated 08.01.2013, which is Annexure A9 to this OA; Valuation Report dated 19.03.2014, which is Annexure A10 to this OA; Acknowledgement of Debt dated 25.04.2018, which is Annexure A11 to this OA; Demand Notice under Section 13(2) of the SARFAESI Act dated 03.06.2021, which is Annexure A12 to this OA; Statement of Account duly certified dated 08.12.2022, which is Annexure A13 to this OA; Interest Calculation dated 08.12.2022, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.28,69,108.00 (Rupees Twenty Eight Lac Sixty Nine Thousand One Hundred Eight Only), which is recoverable and the defendants were

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3 OA/45/2023 INDIAN BANK VS. SH. DEEPAK SHARMA AND ANOTHER

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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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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 04.08.2026.

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In support of the OA, affidavit of Sh. Aman Pass i, Chief Manager, Indian Bank, has been filed.

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Heard arguments and perused record.

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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.

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant no.1 approached the 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.28,69,108.00 (Rupees Twenty Eight Lac Sixty Nine Thousand One Hundred Eight 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.

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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 @10.50% p.a. plus 2.00% p.a. penal interest with monthly rests from 09.12.2022 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, undertaking of the defendants, quantum of loan and prevalent market rates of interest

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OA/45/2023 INDIAN BANK VS. SH. DEEPAK SHARMA AND ANOTHER

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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 defendants are liable to pay to the applicant a total sum of Rs.28,69,108.00 (Rupees Twenty Eight Lac Sixty Nine Thousand One Hundred Eight 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 the 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. 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 21.08.2026 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: 06.08.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Deepak Sharma and Another

Case brief

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Indian Bank v. Sh. Deepak Sharma and Another

Case brief

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