Allowed

Bank of India v. Sh. Gurwinder Singh and Another

DRT9 Mar 2026OA/650/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application against borrowers and a guarantor for recovery of an outstanding KCC loan. The court fixed interest at 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Declarations of liability for Rs.55,27,367.98 with 8% p.a. interest; Recovery Certificate issued; Liberty to enforce claim under SARFAESI Act.

Bank of India versus Sh. Gurwinder Singh and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.650/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.03.2022

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DATE OF DECISION: 09.03.2026

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Bank of India, a body corporate constituted under the banking companies (Acquisition and Transfer of undertakings) Act, 1970 having its Head Office at Star House C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and a Branch Office amongst other places at Banga Branch, Shivalik Complex, Phagwara Road, Tehsil Banga, District SBS Nagar through its Power of Attorney Holder/Authorized Officer

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……..Applicant

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Versus

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Sh. Gurwinder Singh s/o Sh. Mohan Singh R/o Village Birowal, P.O Jadla, Tehsil Nawanshahar, District SBS Nagar

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Sh. Amrik Singh S/o Sh. Mohinder Singh R/o Village Malpur

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Arkan, Tehsil Nawanshahar, District SBS Nagar

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…….Defendants

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Advocates:

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Argued by Sh. Abhay Gupta, Advocate for the applicant

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Defendants already ex-parte vide order dated 17.10.2025

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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 the defendants for recovery of Rs.55,27,367.98 (Rupees Fifty Five Lacs Twenty Seven Thousand Three Hundred Sixty Seven and Paise Ninety Eight Only). The Original Application has been filed through Sh. Ashok Kumar, Power of Attorney Holder/Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney of Bank Official dated 10.06.2020, which is Annexure A19 to this OA.

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2 OA/650/2022 BANK OF INDIA VS. GURWINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no.1 approached the applicant for the grant of KCC limit of Rs.30.00 Lacs vide loan application dated 24.06.2014, which is Annexure A1 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.30.00 Lacs vide Sanction letter, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 1 mortgaged his immovable property i.e. Land measuring 18K-16M situated at Village Beerowal, Tehsil and District Nawanshahar, Punjab mortgage deed bearing vasika no. 1089 dated 02.07.2014, along with its translation which is Annexure A21 to this OA; Jamabandi for the Year 2019-2020, along with its translation, which is Annexure A22 to this OA.

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Above documents placed on record vide IA No. 08/2026 filed on 05.01.2026, along with Power of Attorney of Sh. Mohit Garg, Chief Manager of applicant filed as Annexure A23. The above IA was allowed vide order dated 26.02.2026. Documents executed: Hypothecation Agreement of standing crops, Hypothecation cum loan agreement, Deed of guarantee, Letter of Declaration, Undertaking & Authority, Letter of Authority, Declaration, DP Note all dated 03.07.2014 which are Annexure A3 to A9 to this OA; Acknowledgement of Debt/Securities both dated 22.02.2017 and 16.10.20219 which are Annexure A10 and A11 to this OA; Demand Notice dated 27.07.2017 which is Annexure A12 to this OA; Legal Notices dated 07.04.2021 and 15.12.2021 which are Annexure A13 and A14 to this OA; Valuation report dated 06.03.2019 which is Annexure A15 to this OA; Account statement, with computation chart and certificate, which are Annexure A16 to A18 this OA; ID

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3 OA/650/2022 BANK OF INDIA VS. GURWINDER SINGH AND ANOTHER

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Proof i.e. PAN Card of defendant no. 1, which is Annexure 20 to this OA.

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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.55,27,367.98 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 17.10.2025.

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In support of the OA, affidavit of Sh. Ashok Kumar, Power of Attorney Holder/Authorized Officer, 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 that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexure A1 to A23 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that 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.55,27,367.98 (Rupees Fifty Five Lacs Twenty Seven Thousand Three Hundred Sixty Seven and Paise Ninety Eight 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.

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4 OA/650/2022 BANK OF INDIA VS. GURWINDER SINGH AND ANOTHER

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.90% p.a. with half yearly rests from 01.02.2022 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/hypothecated assets, undertaking of 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 uniform 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.55,27,367.98 (Rupees Fifty Five Lacs Twenty Seven Thousand Three Hundred Sixty Seven and Paise Ninety Eight Only), jointly and severally, with costs, current and future simple interest @8.00%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 assets/mortgaged properties of the defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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5 OA/650/2022

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BANK OF INDIA VS. GURWINDER SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.03.2026.

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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.

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Pronounced by me in the open Tribunal

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Dated: 09.03.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Gurwinder Singh and Another

Case brief

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Bank of India v. Sh. Gurwinder Singh and Another

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