Allowed

Union Bank of India v. Sh. Honey Singh

DRT22 May 2026OA/550/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Union Bank of India against Honey Singh Sandhu for recovery of Rs. 62,62,765.10. The Tribunal imposed a uniform interest rate of 8% p.a. and directed enforcement via SARFAESI proceedings or attachment of assets.

What did the court decide?

Recovery of Rs. 62,62,765.10 with costs and simple interest @ 8% p.a. declared; recovery via sale of assets under SARFAESI Act.

Union Bank of India versus Sh. Honey Singh — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.550/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 07.04.2026

¶5

DATE OF DECISION: 22.05.2026

¶6

Union Bank of India, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra and having a Branch Office inter alia at Village Phullanwal, Pakhowal Road, Ludhiana, Punjab through its duly Authorized Person and Power of Attorney Holder, Sh. Jagmohan Singh, Branch Head

¶7

……..Applicant Versus

¶8

Sh. Honey Singh Sandhu, S/o Sh. Amarjit Singh Sandhu, R/o House no. 298, Block B, Satjot Nagar, Dhandra Road, near Jain Public School, Ludhiana, Punjab- 141116

¶9

2^nd Address: Plot no. 9, Abadi Lucky Enclave, near Manav Rachna School, Village Thakkarwal, Ludhiana, Punjab- 141116

¶10

….……Defendant

¶11

Advocates:

¶12

Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate for applicant

¶13

None for defendant (already ex-parte vide order dated 20.05.2026)

¶14

FINAL ORDER

¶15

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. 62,62,765.10 (Rupees Sixty Two Lacs Sixty Two Thousand Seven Hundred Sixty Five and Paise Ten Only). The Original Application has been filed through Sh. Jagmohan Singh, Branch Head of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 11.08.2022, which is Annexure A1 to this OA.

¶16

2 OA/550/2026 UNION BANK OF INDIA VS. HONEY SINGH SANDHU

¶17

The brief facts of the OA are that the defendant approached the applicant for grant of New Car Loan of Rs. 14.00 Lacs vide Common Retail Loan Application Form dated 19.12.2023, which is Annexure A2 to this OA. Thereafter, the defendant again approached the applicant for grant of Home Loan of Rs. 52.20 Lacs vide Common Retail Loan Application dated 19.01.2024, which is Annexure A12 to this OA. 3. The applicant sanctioned New Car Loan of Rs. 11.27 Lacs vide Letter of Sanction dated 22.12.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. Thereafter, the applicant sanctioned Home Loan of Rs. 52.20 Lacs vide Letter of Sanction dated 02.02.2024, which is Annexure A15 to this OA. 4. Defendant hypothecated his movable asset namely Ciaz Smart Hybrid Alpha bearing Registration no. PB10JH7570, Engine no. K15BN1381745 and Chassis no. MA3EXGL1500485061 vide RC, which is Annexure A11 to this OA.

¶18

Defendant mortgaged his immovable property i.e. Land measuring 231 Sq. Yards situated at Plot no. 9, Village Thakarwal, Hadbast no. 280, Tehsil Ludhiana (West), Abadi Lucky Enclave, near Western City, District Ludhiana, Punjab vide Letter for Creation of Mortgage dated 22.03.2024, Memorandum of Deposit of Title Deed dated 23.03.2024, Title Deed dated 19.02.2024 along with its translation and Jamabandi for the year 2017-2018, which are Annexure A24 to A27 to this OA. Documents executed: DP Note, Letter of Continuity, Hypothecation Agreement, Agreement on Rate of Interest, Letter of Undertaking, AD02A, Application for Disbursement of Loan, all dated 26.12.2023, which are Annexure A4 to A10 to this OA; Confidential Credit Information dated 19.01.2024, which is Annexure A13 to this OA; Process Note of Housing Loan dated 31.01.2024, which is Annexure A14 to this OA; DP Note, Letter of Continuity, Housing Loan Agreement, Letters of Undertaking, Agreement on Rate of Interest, AD-02A and Letter of Guarantee, which are Annexure A16 to A23 to this OA; Legal Notices dated 21.07.2025 along with postal receipts,

¶19

3 OA/550/2026 UNION BANK OF INDIA VS. HONEY SINGH SANDHU

¶20

which are Annexure A28 (Colly) and A29 (Colly) to this OA; Recall Notices dated 02.02.2026 along with postal receipts, which are Annexure A30 (Colly) and A31 (Colly) to this OA; Demand Notice dated 04.02.2026, which is Annexure A32 (Colly) to this OA and Statements of Account with certificate, which are Annexure A33 to A36 to this OA.

¶21

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. 62,62,765.10 which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶22

The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 20.05.2026. 7. In support of the OA, affidavit of Sh. Jagmohan Singh, Branch Head, Union Bank of India, h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

¶23

From the perusal of all the Annexure A1 to A36 to this OA, it is proved that defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.62,62,765.10 (Rupees Sixty Two Lacs Sixty Two Thousand Seven Hundred Sixty Five and Paise Ten Only) along with interest from the defendant from the date of filing of the present Original Application till realization of the amount.

¶24

4 OA/550/2026 UNION BANK OF INDIA VS. HONEY SINGH SANDHU

¶25

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.20%p.a. in Car Loan Account and @8.00% p.a. in Housing Loan Account plus @2% additional interest with monthly rests from 01.03.2026 till the realization.

¶26

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 hypothecated vehicle/mortgaged property, undertaking of the defendant, 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 Tribunal deems it just and appropriate to grant uniform simple interest @08.00% 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.

¶27

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.62,62,765.10 (Rupees Sixty Two Lacs Sixty Two Thousand Seven Hundred Sixty Five and Paise Ten Only) with costs, current and future simple interest @08.00% 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 vehicle/mortgaged property of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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.

¶28

12. Any other application pending stands disposed of.

¶29

Issue Recovery Certificate accordingly.

¶30

Parties to appear before Learned Recovery Officer of this

¶31

Tribunal on 15.06.2026.

¶32

¶33

OA/550/2026 UNION BANK OF INDIA VS. HONEY SINGH SANDHU

¶34

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. Pronounced by me in the open Tribunal . Dated: 22.05.2026

¶35

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

Union Bank of India v. Sh. Honey Singh

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Honey 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

Punjab National Bank versus Sh. Pyara Singh

Punjab National Bank versus M/S Ggp Buildtech (P) Limited and Another

Punjab National Bank versus Sh. Pusa Singh @ Baljit Singh

State Bank of India versus Sh. Varinder Singh

Punjab National Bank versus M/S Pooja Woolen Industries and Others

Canara Bank versus M/S Parveen Collections and Another