Allowed

Union Bank of India v. Sh. Beant Singh and Another

DRT20 May 2026OA/530/2026

Case brief

AI extract

What is this about?

In an ex-parte application under the RDB Act, the Tribunal held that Union Bank of India proved its case regarding the default on a loan facility. The court allowed the application, granting recovery of dues with simple interest at 8% p.a. and directed the issue of a Recovery Certificate.

What did the court decide?

Recovery of Rs.20,70,730.00 plus costs and simple interest @08.00%p.a.; Recovery Certificate issued.

Union Bank of India versus Sh. Beant Singh and Another — Execution and Attachment | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 530/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 04.04.2026

¶5

DATE OF DECISION: 20.05.2026

¶6

Union Bank of India, a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400021, and one of its branches at Doraha, Tehsil Payal, District Ludhiana through Sh. Beer Bahadur Singh, Branch Manager, its Principal Officer and Constituted Attorney.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Beant Singh S/o Sh. Naranjan Singh,

¶10

Sh. Jasvir Singh S/o Sh. Joginder Singh, since deceased through

¶11

his legal representatives:

¶12

a. Smt. Sukhwinder Kaur WD/o Late Sh. Jasvir Singh,

¶13

b. Sh. Daljeet Singh S/o Late Sh. Jasvir Singh,

¶14

All residents of Village Boothgarh Jattan, P.O. Rattangarh,

¶15

District Ludhiana.

¶16

…….. Defendants

¶17

Advocates:

¶18

Argued by Sh. R.V. Mehra, Advocate for Applicant (through VC) None for Defendants (Already ex-parte vide order dated 18.05.2026)

¶19

FINAL ORDER

¶20

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.20,70,730.00 (Rupees Twenty Lacs Seventy Thousand Seven Hundred and Thirty Only). The Original Application has been filed through Sh. Beer Bahadur Singh, Branch Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 02.08.2014, which is Annexure A1 to this OA.

¶21

2 OA NO. 530/2026 UNION BANK OF INDIA VS SH. BEANT SINGH AND ANOTHER

¶22

The brief facts of the OA are that the defendant no.1 approached the applicant for grant of Union Green Card Limit of Rs.15,00,000.00 vide Application Form for Agricultural Credit dated 24.06.2019, which is Annexure A2 to this OA. 3. The applicant sanctioned the Union Green Card Limit of Rs.15,00,000.00 vide Letter of Sanction dated 04.07.2019, which is Annexure A3 to this OA and terms and conditions were duly accepted by defendant no.1. Sh. Jasvir Singh (now deceased and husband of defendant no. 2(a) & father of defendant no. 2(b)) stood as guarantor. 4. Defendant no.1 mortgaged his immovable property i.e., Total Land Measuring 32 Kanals 10 Marlas as per Jamabandi for the year 2017-18 situated at Village Boothgarh, Hadbast No.13, Sub-Tehsil Koom Kalan, Tehsil & District Ludhiana vide Registered Mortgaged Deed bearing Vasika No. 59 along with its Translation dated 26.06.2019, which is Annexure A15 to this OA. Documents executed : Demand Promissory Notes (MCLR INKED), Hypothecation Agreement, Simple Loan Agreement(SD-13), Simple Agreement (AD-02A), Interest Agreement (For MCLR Loans) (SD-24), Declaration / Undertaking (AD-01), Letter of Continuity (AD-09), Letter of Undertaking from the Borrower, Letter of Undertaking from the Guarantor, Letter of Confirmation (For MCLR Loans), Deed of Guarantee (For Agriculture Advances), all dated 04.07.2019, which are Annexures A4 to A14 & A16 to this OA; Legal Notice dated 13.11.2025, along with postal receipts, which are Annexures A17 to A19 to this OA; Statement of Account along with certificate, which is Annexure A20 to this OA; Simple Debit Balance Confirmation Letters dated 02.11.2022, 07.11.2025, which are Annexures A21 & A22 to this OA. 5. 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.20,70,730.00, 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.

¶23

3 OA NO. 530/2026 UNION BANK OF INDIA VS SH. BEANT SINGH AND ANOTHER

¶24

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 18.05.2026 7. In support of the OA, affidavit of Sh. Beer Bahadur Singh, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing 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 A22 to this OA, it is proved that the defendant no.1 approached applicant for availing of the loan facility, which was granted to him, Sh. Jasvir Singh (now deceased and husband of defendant no. 2(a) & father of defendant no. 2(b)) stood as guarantor 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,70,730.00 (Rupees Twenty Lacs Seventy Thousand Seven Hundred and Thirty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.25% p.a. with half yearly rests from 17.03.2026 till the 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 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

¶25

4 OA NO. 530/2026 UNION BANK OF INDIA VS SH. BEANT SINGH AND ANOTHER

¶26

realization of the amount ordered vide this final order. It is ordered accordingly.

¶27

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,70,730.00 (Rupees Twenty Lacs Seventy Thousand Seven Hundred and Thirty 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.

¶28

12. Any other application pending stands disposed of.

¶29

Issue Recovery Certificate accordingly.

¶30

Parties to appear before Learned Recovery Officer of this Tribunal on 11.06.2026.

¶31

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.

¶32

Pronounced by me in the open Tribunal .

¶33

Dated: 20.05.2026

¶34

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Beant Singh and Another

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Beant Singh and Another

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. Pargat Singh

Bank of Baroda versus M/s Max Solutions

Idbi Bank Ltd. versus Sh. Gursharan Singh

Punjab Gramin Bank versus Kuldeep Singh and Another

Punjab and Sind Bank versus Ms Neeraj Goyal and Company and Others

State Bank of India versus M/S Design Point and Another