Allowed

Bank of India v. Sh. Manjot Singh and Another

DRT27 Aug 2026OA/575/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Bank of India for recovery of a defaulting loan of approximately Rs. 24.92 lacs secured by mortgaged property and guaranteed by a legal heir. It granted the claim with a uniform simple interest rate.

What did the court decide?

Recovery of Rs.24,92,811.79 with costs and simple interest at 8% per annum. In the event of non-payment, authority to sale mortgaged property and attach personal assets of respondents.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.575/2026

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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: 27.08.2026

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Bank of India, a body corporate and a Nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 with its Head Office 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, District Patiala, Punjab through Sh. Ajay Singh working as Chief Manager, Principal Officer and General Attorney at Zonal Office Ludhiana.

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……..Applicant

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Versus

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Sh. Manjot Singh S/o Late Sh. Hakam Singh,

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Sh. Hakam Singh S/o Sh. Isher Singh (Now Deceased)

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i. Sh. Manjot Singh S/o Late Sh. Hakam Singh,

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ii. Smt. Charanjit Kaur W/o Late Sh. Hakam Singh,

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iii. Sh. Dalvir Singh S/o Late Sh. Hakam Singh, ((i), (ii) & (iii) are Legal Heir of Sh. Hakam Singh S/o Sh. Isher Singh, Now Deceased)

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

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…….. Defendants

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Advocates:

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Argued by Sh. Gaurav Kamra, Advocate for the 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.24,92,811.79 (Rupees Twenty Four Lacs Ninety Two Thousand Eight Hundred Eleven and Paise Seventy Nine Only). The Original Application has been filed throug h Sh. Ajay Singh, Chief Manager o f the applicant, who is

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2 OA NO.575/2026 BANK OF INDIA VS SH. MANJOT SINGH AND ANOTHER

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competent to institute the Original Application vide Power of Attorney dated 20.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of Rs.10,00,000.00 and Agricultural Mortgage Overdraft Limit of Rs.10,00,000.00 vide Application Form for Agricultural Credit and BOI Star Mortgage Loan Application, both dated 20.07.2015, which are Annexures A2 & A3 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.10,00,000.00 and Agricultural Mortgage Overdraft Limit of Rs.10,00,000.00 vide Sanction Letters, dated 22.07.2015, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendant no.1 and Sh. Hakam Singh (Since deceased). Sh. Hakam Singh (Since deceased) stood as guarantor in both the loan accounts.

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Defendant no. 1 mortgaged his Immovable Property i.e., Total Land measuring 24 Bighas 00 Biswa as per Jamabandi for the year 2013-2014, situated at Village Mandaur, Hadbast No. 02, Tehsil Nabha, District Patiala, Punjab, vide declarations u/s 4(1) bearing Vasika Nos. 753, 762, both dated 23.07.2015, which are Annexures A17 & A18 to this OA.

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Documents executed: Demand Promissory Notes, Letters of Declaration undertaking & authority, Hypothecation cum Loan Agreements, Drafts Declaration to be obtained from the borrower, L- 516, Deeds of Guarantee, all dated 27.07.2015, which are Annexures A6 to A16 to this OA; Acknowledgements of Debt/Securities, dated 23.11.2017, 20.11.2020, 31.10.2023, which are Annexures A19 to A24 to this OA; Legal Notice, dated 13.08.2025, along with postal receipts, which is Annexure A25 to this OA; Statement of Accounts, along with certificates, which are Annexures A26 & A27 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.24,92,811.79, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.575/2026 BANK OF INDIA VS SH. MANJOT SINGH AND ANOTHER

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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 the defendants and they were proceeded ex-parte vide order dated 18.08.2026.

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In support of the OA, affidavit of Sh. Ajay Singh, Chief Manager, Bank of India has been filed.

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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 A27 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facilities which were granted to him, Sh. Hakam Singh (Since deceased) s tood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,92,811.79 (Rupees Twenty Four Lacs Ninety Two Thousand Eight Hundred Eleven and Paise Seventy Nine 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 @13.00%p.a. with half yearly rests, with penal interest @2% in KCC Limit and interest @13.50%p.a. with half yearly rests, with penal interest @2% in AGOD Limit, 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

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4 OA NO.575/2026 BANK OF INDIA VS SH. MANJOT SINGH AND ANOTHER

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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 sum of Rs.24,92,811.79 (Rupees Twenty Four Lacs Ninety Two Thousand Eight Hundred Eleven and Paise Seventy Nine 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 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. 1 and by attachment and sale of personal assets of the defendant nos. 2(i) to 2(iii) to the extent, they inherited from Sh. Hakam Singh (Since deceased). 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 11.09.2026. 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: 27.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Manjot Singh and Another

Case brief

What is this about?

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Bank of India v. Sh. Manjot Singh and Another

Case brief

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