Allowed

Bank of India v. Sh. Hakam Singh through His Legal Heirs and Another

DRT25 Aug 2026OA/566/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Bank of India to recover a principal sum of Rs.29,61,193.52 along with costs and a uniform simple interest rate of 8.00% p.a. The approved interest rate was adjusted downward from the claimed rates to reflect current market conditions.

What did the court decide?

Recovery of Rs.29,61,193.52, costs, and simple interest at 8.00% p.a. Recovery Certificate issued; execution proceedings authorized.

Bank of India versus Sh. Hakam Singh through His Legal Heirs… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 566/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.04.2026

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DATE OF DECISION: 25.08.2026

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Bank of India, a body corporate and a Nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970 with its H.O. at Bank of India, Star House, C- 5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and amongst others a Branch at Village Mandaur, Tehsil Nabha, Distt. Patiala, Punjab through Sh. Ajay Singh working as Chief Manager, Principal Officer and General Attorney at Zonal Office Ludhiana, Distt Ludhiana, Punjab.

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……..Applicant

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Versus

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Sh. Hakam Singh S/o Sh. Isher Singh, (now deceased) through his LRs:

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1(a) Smt. Charanjit Kaur Wd/o Late Sh. Hakam Singh

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1(b) Sh. Manjot Singh S/o Late Sh. Hakam Singh

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1(c) Sh. Dalvir Singh S/o Late Sh. Hakam Singh

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{1(a), 1(b) & 1(c) are Legal Heirs of Late Sh. Hakam Singh}

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Sh. Najam Singh S/o Sh. Tarlok Singh,

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All are R/o Village Mandaur, Tehsil Nabha, District Patiala, Punjab.

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.……Defendants

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Advocates:

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Argued by Sh. Gaurav Kamra, Advocate for applicant

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None for Defendants (already ex parte vide order dated 18.08.2026)

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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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the defendants for recovery of Rs.29,61,193.52 (Rupees Twenty Nine

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2 OA/566/2026 BANK OF INDIA VS SH. HAKAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Lac Sixty One Thousand One Hundred Ninety Three and Paise Fifty Two Only). The Original Application has been filed through Sh. Ajay Singh, Chief Manager , of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 12.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs.3.00 lacs and AGOD Limit of Rs.7.00 lacs vide Loan Application of KCC Limit of Rs.3.00 Lacs dated 14.11.2017, which is Annexure A2 to this OA; Loan Application of AGOD Limit of Rs.7.00 Lacs dated 14.11.2017, which is Annexure A3 to this OA. Defendant no.2 stood as guarantor.

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Thereafter, the defendant no. 1 (since deceased) again approached the applicant for enhancement of KCC Limit from Rs.3.00 lacs to Rs.15.00 lacs and AGOD Limit from Rs.7.00 lacs to Rs.10.00 lacs vide Loan Application of KCC Limit of Rs. 15.00 Lacs dated 01.09.2018, which is Annexure A19 to this OA; Loan Application of AGOD Limit of Rs. 10.00 Lacs dated 01.09.2018, which is Annexure A20 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.3.00 lacs and AGOD Limit of Rs.7.00 lacs vide Sanction Letter for KCC dated 08.12.2017, which is Annexure A4 to this OA; Sanction Letter for AGOD dated 08.12.2017, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of KCC Limit from Rs.3.00 lacs to Rs.15.00 lacs and AGOD Limit from Rs.7.00 lacs to Rs.10.00 lacs vide Sanction Letter for KCC for Rs. 15.00 Lacs dated 17.09.2018, which is Annexure A21 to this OA; Sanction Letter for AGOD Rs. 10.00 Lacs dated 17.09.2018, which is Annexure A22 to this OA. As per OA, the defendant no.1 got expired and his Legal Representatives were impleaded as defendant nos. 1(a) to 1(c) by the applicant. 4. Defendant no. 1 (since deceased) mortgaged his agricultural land measuring 33Bigha-12Biswa as under:

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3 OA/566/2026 BANK OF INDIA VS SH. HAKAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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i. Land measuring 19Bigha-04Biswa mortgaged in KCC Limit, situated at Village Mandaur, Hadbast no. 02, Tehsil Nabha, District Patiala, Punjab vide Declaration under Section 4(1) of Act 1978 for KCC of Rs. 3.00 Lacs Vasika No. 905 dated 11.12.2017, which is Annexure A17 to this OA; Declaration under Section 4(1) of Act 1978 for KCC for Rs. 12.00 Lacs Vasika No. 554 dated 20.09.2028, which is Annexure A36 to this OA;

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ii. Land measuring 14Bigha-08Biswa mortgaged in AGOD Limit, situated at Village Mandaur, Hadbast no. 02, Tehsil Nabha, District Patiala, Punjab vide Declaration under Section 4(1) of Act 1978 for Rs. 7.00 Lacs Vasika No. 906 dated 11.12.2017, which is Annexure A18 to this OA; Declaration under Section 4(1) of Act 1978 for AGOD Vasika No. 553 dated 20.09.2028, which is Annexure A37 to this OA;

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Documents executed: DP Note of Rs. 3.00 Lacs for KCC dated 14.12.2017, which is Annexure A6 to this OA; Letter of Declaration Undertaking & Authority dated 14.12.2017, which is Annexure A7 to this OA; Hypothecation cum Loan Agreement dated 14.12.2017, which is Annexure A8 to this OA; Agreement (L-515) dated 14.12.2017, which is Annexure A9 to this OA; Agreement (L-516) dated 14.12.2017, which is Annexure A10 to this OA; Deed of Guarantee executed by Defendant No. 2 dated 14.12.2017, which is Annexure A11 to this OA; DP Note of Rs. 7.00 Lacs for AGOD dated 14.12.2017, which is Annexure A12 to this OA; Letter of Declaration Undertaking & Authority dated 14.12.2017, which is Annexure A13 to this OA; Agreement (L-515) dated 14.12.2017, which is Annexure A14 to this OA; Agreement (L-516) dated 14.12.2017, which is Annexure A15 to this OA; Deed of Guarantee executed by Defendant No. 2 dated 14.12.2017, which is Annexure A16 to this OA; DP Note of Rs. 15.00 Lacs for KCC dated 27.09.2018, which is Annexure A23 to this OA; Letter of Declaration Undertaking & Authority dated 27.09.2018, which is Annexure A24 to this OA; Supplemental Hypothecation cum Loan Agreement to Secure Additional dated 27.09.2018, which is Annexure

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4 OA/566/2026 BANK OF INDIA VS SH. HAKAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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A25 to this OA; Hypothecation cum Loan Agreement dated 27.09.2018, which is Annexure A26 to this OA; Agreement (L-515) dated 27.09.2018, which is Annexure A27 to this OA; Agreement (L-516) dated 27.09.2018, which is Annexure A28 to this OA; Deed of Guarantee executed by Defendant No. 2 dated 27.09.2018, which is Annexure A29 to this OA; DP Note of Rs. 10.00 Lacs for AGOD dated 27.09.2018, which is Annexure A30 to this OA; Letter of Declaration Undertaking & Authority dated 27.09.2018, which is Annexure A31 to this OA; Supplemental Hypothecation cum Loan Agreement to Secure Additional dated 27.09.2018, which is Annexure A32 to this OA; Agreement (L-515) dated 27.09.2018, which is Annexure A33 to this OA; Agreement (L-516) dated 27.09.2018, which is Annexure A34 to this OA; Deed of Guarantee executed by Defendant No. 2 dated 27.09.2018, which is Annexure A35 to this OA; Acknowledgments of Debt & Securities (KCC) & (AGOD) dated 27.09.2018, 07.12.2020 and 05.08.2023, which are Annexure A38, Annexure A39, Annexure A40, Annexure A41, Annexure A42 and Annexure A43 to this OA; Legal Notice dated 13.08.2025, which is Annexure A44 to this OA; Account Statement, which is Annexure A45 and Annexure A46 to this OA. 5. 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.29,61,193.52 (Rupees Twenty Nine Lac Sixty One Thousand One Hundred Ninety Three and Paise Fifty Two Only), 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. 6. 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 18.08.2026. 7. In support of the OA, affidavit of Sh. Ajay Singh working as Chief Manage r, Bank of India, has been filed.

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5 OA/566/2026 BANK OF INDIA VS SH. HAKAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 A46 to this OA, it is proved that the Defendant no. 1 (since deceased) approached applicant for availing of the loan facilities, which were granted to him. Defendant no.2 stood as guarantor. The defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,61,193.52 (Rupees Twenty Nine Lac Sixty One Thousand One Hundred Ninety Three and Paise Fifty Two 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @11.40%p.a. in KCC Limit and @11.55% in AGOD Limit, plus penal interest @2.00% p.a. with half yearly rests from 01.03.2026 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 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 @8.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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6 OA/566/2026 BANK OF INDIA VS SH. HAKAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Rs.29,61,193.52 (Rupees Twenty Nine Lac Sixty One Thousand One Hundred Ninety Three and Paise Fifty Two Only), jointly and severally, with costs, current and future simple interest @8.00% 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 mortgaged property of the deceased 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 defendant no.2 and personal assets of the defendant nos. 1(a) to 1(c) up to the extent, they inherited the property of deceased defendant no.1. 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 09.09.2026 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: 25.08.2026

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

Bank of India v. Sh. Hakam Singh through His Legal Heirs and Another

Case brief

What is this about?

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Bank of India v. Sh. Hakam Singh through His Legal Heirs and Another

Case brief

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What did the court decide?

What the court decided

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