Debts Recovery Tribunal allowed the bank's application for recovery of outstanding housing loan dues of Rs. 55.83 lakhs from the borrowers and guarantor, granting simple interest at 8% p.a. and issuing a recovery certificate.
Recovery certificate issued for Rs. 55,83,266.80 with 8% p.a. interest; declaration of joint and several liability.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.609/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 09.05.2025
DATE OF DECISION: 30.04.2026
UCO Bank, a body corporate and a Nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970 with its Head Office at 10 BTM, Sarani, Kolkata and amongst others, having its Branch at Mid Corporate Branch, Ludhiana, Punjab, through its Branch Manager and Constituted Attorney Sh. Satyam Kishor Agrawal.
……..Applicant
Versus
…….Defendants
Advocates:
Argued by for Sh. Sachin Rana, Advocate proxy for Sh. Vishal Mittal, Advocate for the applicant
None for Defendants (already ex-parte vide order dated 17.02.2026)
FINAL ORDER
2 OA/609/2025 UCO BANK VS TARUN SEHGAL AND OTHERS
The Original Application has been filed through Sh. Satyam Kishor Agrawal, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney of Bank Official, which is Annexure A1 to this OA.
| 2. The brief facts of the OA are that the defendant nos.1&2 approached the applicant for the grant of Housing Loan of Rs.55.00 Lacs vide loan application dated 24.06.2019, which isAnnexures A2to this |
|---|
| OA. Defendant no.3 stood as Guarantor. |
| 3. The applicant sanctioned Housing Loan of Rs.55.00 Lacs vide |
| Sanction letter dated 29.06.2019, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendants. |
| 4. Defendant no.1 mortgaged his immovable property i.e. |
| House/Plot No. P-46 measuring 240 Sq Yds situated at Village Sekhewal, Hadbast No.78, Abadi Basant Vihar Colony, Tehsil and District Ludhiana, |
| Punjab, vide Registered Sale Deed No. 2019/20/106/1/8428 dated |
| 05.07.2019, which isAnnexure A6to this OA. |
| **Documents executed:**Loan Agreement, Letter of Guarantee, both |
| dated 29.06.2019, which isAnnexure A4 & A5to this OA; Letter |
| evidencing creating of Mortgage in favour of bank by deposit of Title |
| Deed dated 06.07.2019, which isAnnexure A7to this OA; Annexure I recording creating of Mortgage dated 05.07.2019, which isAnnexure |
| A8to this OA; Notice u/s Section 13(2) of SARFAESI Act, dated |
| 09.01.2025, which isAnnexure A9to this OA; Notice u/s Section 13(8) of SARFAESI Act, dated 19.03.2025 which isAnnexure A10to this OA; |
| Statement of account with certificate, which isAnnexure A11to 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.55,83,266.80 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. |
3 OA/609/2025 UCO BANK VS TARUN SEHGAL AND OTHERS
From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant nos. 1&2 approached applicant for availing of the loan facility, which was granted to them. Defendant no. 3 stood as Guarantor. 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, 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.55,83,266.80 (Rupees Fifty Five Lacs Eighty Three Thousand Two Hundred Sixty Six and Paise Eighty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @8.75 p.a. plus 2% penal interest with monthly rests from 01.04.2025 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, undertaking of
4
OA/609/2025 UCO BANK VS TARUN SEHGAL AND OTHERS
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 @8.00% p.a. 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.
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 21.05.2026 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: 30.04.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the banking did not fail to recover the outstanding loan amount.
Whether the applicant is entitled to recovery certificate and interest at 8% p.a.
3 provisions across 2 enactments
UCO Bank
Sh. Tarun Sehgal
Smt. Tamanna Sehgal
Smt. Shashi Sehgal
MRIDULESH KUMAR SINGH
As recorded by the court registry
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