Allowed

The Federal Bank Ltd. v. Sh. Vajir Singh Alias Sh. Wazir Singh

DRT17 Jun 2026OA/464/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by The Federal Bank Ltd. for recovery of a loan of Rs. 25,71,172.50 from borrowers. While acknowledging the bank's claim, the tribunal exercised discretion to award simple interest at 8% p.a. instead of the claimed rate.

What did the court decide?

Recovery of Rs. 25,71,172.50 jointly and severally with simple interest at 08% p.a. from the date of filing; relief under SARFAESI Act.

The Federal Bank Ltd. versus Sh. Vajir Singh Alias Sh… — Execution and Attachment | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.464/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 31.03.2023

¶5

DATE OF DECISION: 17.06.2026

¶6

The Federal Bank Ltd., a Banking Company registered under the Companies Act, 1956 and having its Registered Office at Alwaye, District Ernakulam and having Branches all over India and one of its Branch Office amongst other places at B/II-10-12, Mata Modi Road, Sunam, District Sangrur, Punjab through its Branch Manager and General Power Attorney Holder, Sh. Shilp

¶7

……..Applicant

¶8

Versus

¶9

Sh. Vajir Singh alias Sh. Wazir Singh, S/o Sh. Mahinder Singh

¶10

Smt. Lali Devi, W/o Sh. Vajir Singh alias Sh. Wazir Singh

¶11

Both residents of House no. 115, Village Banarsi, Tehsil Moonak, District Sangrur, Punjab- 148001

¶12

…Defendants

¶13

Advocates:

¶14

Argued by Sh. Anirudh Gupta, Advocate proxy for Sh. Nitin Grover, Advocate for applicant

¶15

Sh. Tejinder Singh, Advocate for defendants

¶16

FINAL ORDER

¶17

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. 25,71,172.50 (Rupees Twenty Five Lacs Seventy One Thousand One Hundred Seventy Two and Paise Fifty Only). The Original Application has been filed through Sh. Shilp, Branch Manager of the applicant, who is competent to institute the Original Application vide GPA dated 12.07.2022, which is Annexure A1 to this OA.

¶18

The brief facts of the OA are that defendants approached the applicant for grant of FKCC Limit of Rs. 14.75 Lacs. Thereafter, defendants approached the applicant for renewal of FKCC Limit of Rs.14.75 Lacs.

¶19

2 OA/464/2023 THE FEDERAL BANK LTD. VS. VAJIR SINGH ALIAS WAZIR SINGH AND ANOTHER

¶20

The applicant sanctioned FKCC Limit of Rs. 14.75 Lacs and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of FKCC Limit of Rs.14.75 Lacs vide Sanction Letter dated 16.03.2015, which is Annexure A8 to this OA.

¶21

Defendant no. 1 mortgaged his immovable property i.e. Land measuring 51K 12 ¼M situated at Village Banarsi, Tehsil Moonak, District Sangrur, Punjab vide Mortgage Deed bearing vasika no. 954 dated 14.01.2014, which is Annexure A2 to this OA.

¶22

Documents executed: Agreement for Agriculture Loan, Security Delivery Letter, Letter of Set-Off, Undertaking and DP Note, all dated 15.01.2014, which are Annexure A3 to A7 to this OA; Agreement for Agriculture Loan, Security Delivery Letter, Letter of Set-Off, Undertaking and DP Note, all dated 16.03.2015, which are Annexure A9 to A13 to this OA; Balance Confirmation Letters dated 12.03.2018 and 10.03.2021, which are Annexure A14 and A15 to this OA; Recall Notice dated 14.12.2022, which are Annexure A16 and A17 to this OA and Statement of Account, which is Annexure A18 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. 25,71,172.50, 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.

¶23

The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Tejinder Singh, Advocate appeared on behalf of defendants on 17.11.2023 and filed Memo of Appearance. WS on behalf of defendants was filed on 06.03.2024. Thereafter, the process of admission or denial of documents was completed on 08.04.2025.

¶24

In support of the OA, affidavit of Sh. Shilp, Branch Manage r, The Federal Bank Ltd. h as been filed. 8. Heard arguments and perused record.

¶25

It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record, the applicant had proved

¶26

3 OA/464/2023 THE FEDERAL BANK LTD. VS. VAJIR SINGH ALIAS WAZIR SINGH AND ANOTHER

¶27

its case. Learned counsel for defendants submitted that lenient view may be taken at the time of decree and prayed for granting of simple rate of interest. It was further argued that he is not pressing for any other grounds.

¶28

From the perusal of all the Annexure A1 to A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facility, which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 25,71,172.50 (Rupees Twenty Five Lacs Seventy One Thousand One Hundred Seventy Two and Paise Fifty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @16.73%p.a. with half yearly rests from 30.03.2023 till the realization.

¶29

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 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.25,71,172.50 (Rupees Twenty Five Lacs Seventy One Thousand One Hundred Seventy Two and Paise Fifty Only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in the

¶30

¶31

OA/464/2023 THE FEDERAL BANK LTD. VS. VAJIR SINGH ALIAS WAZIR SINGH AND ANOTHER

¶32

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 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.

¶33

12. Any other application pending stands disposed of.

¶34

Issue Recovery Certificate accordingly.

¶35

Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2026.

¶36

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.

¶37

Pronounced by me in the open Tribunal .

¶38

Dated: 17.06.2026

¶39

(MRIDULESH KUMAR SINGH)

¶40

Presiding Officer,

¶41

DRT-III, Chandigarh

The Federal Bank Ltd. v. Sh. Vajir Singh Alias Sh. Wazir Singh

Case brief

What is this about?

What did the court decide?

The Federal Bank Ltd. v. Sh. Vajir Singh Alias Sh. Wazir Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Limited versus Sh. Shamsher Singh and others

Idfc First Bank Limited versus M/S S Singh and Sons and Another

Punjab National Bank versus Smt. Jagir Kaur @Jagiro through Her Legal Heirs

Hdfc Bank Limited versus Sh. Lovepreet Singh and Another

Union Bank of India versus Sh. Satish Kumar Gupta

Icici Bank Limited versus Sh. Gurvel Singh and Another