Debt Recovery Tribunal allowed an ex-parte original application by Union Bank of India to recover Rs. 20,49,420.72 plus 8% simple interest from a borrower who failed to repay a term loan for a combine harvester.
Recovery of Rs. 20,49,420.72 with simple interest at 08% p.a. and issuance of a Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.633/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 29.04.2026
DATE OF DECISION: 23.07.2026
Union Bank of India, a body corporate and banking company constituted under the Banking Companies (Acquisition and Transfer of Undertakings), Act, 1970, having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai - 400021 and amongst other places at Nabha Main Branch, Near Kulwant Furniture, Patiala Road, Tehsil Nabha, District Patiala through Sh. Sujeet Kumar S/o Sh. Ram Ratan Prasad, Senior Manager, Principal Officer and Constituted Attorney of applicant bank.
……..Applicant
Versus
Sh. Jaspal Singh S/o Sh. Jarnail Singh, R/o Village Lout, PO Aalowal, Tehsil Nabha, District Patiala, Punjab - 147001.
……. .Defendant
Advocates:
Argued by Sh. Pankaj Beri, Advocate for the applicant (through VC) None for Defendant (Already ex-parte vide order dated 21.07.2026).
FINAL ORDER
2 OA NO.633/2026 UNION BANK OF INDIA VS SH. JASPAL SINGH
Harvester of Rs.23,85,000.00 vide Application Form for Agricultural Credit dated 05.05.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan facility for purchase of Combine Harvester of Rs.23,85,000.00 vide Letter of Sanction dated 09.05.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant hypothecated his Moveable Asset i.e., Combine Harvester Model Samrat 510, bearing Chassis No. SC5102409, Engine No. JDHZ347752, Registration No. PB11DH4787 vide Quotation dated 30.04.2024, which is Annexure A13 to this OA and Registration Certificate filed vide dairy no. 13629 on 23.07.2026. Documents executed : Demand Promissory Note, Letter of Continuity, Term Loan Agreement (Hypothecation of Movables), Hypothecation (Vehicles) Agreement, Hypothecation Agreement (For Agricultural Advances), Interest Agreement, Declaration / Undertaking, Letter of Undertaking from the Borrower, Simple Loan Agreement (For Agricultural Advances), all dated 09.05.2024, which are Annexures A4 to A12 to this OA; Legal Notice dated 16.02.2026, along with its translation and postal receipt, which is Annexure A14 to this OA; Statement of account along with certificate, which is Annexure A15 to this OA.
3 OA NO.633/2026 UNION BANK OF INDIA VS SH. JASPAL SINGH
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 asset, undertaking of the defendant, 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 realization of the amount ordered vide this final order. It is ordered accordingly.
4 OA NO.633/2026 UNION BANK OF INDIA VS SH. JASPAL SINGH
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 hypothecated Combine Harvester of the defendant 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. 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 07.08.2026. 15. 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: 23.07.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest from the defendant.
Colour shows how this judgement treated each authority
None citedReferred¶19
2 provisions across 2 enactments
Union Bank of India
Mridulesh Kumar Singh
As recorded by the court registry
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