The DRT allowed the bank's application for recovery of Rs. 27,03,911.63 owed by two borrowers and their guarantor on agricultural loans. The court granted uniform simple interest at 8%p.a. and directed issuance of a Recovery Certificate.
Recovery of Rs.27,03,911.63 with simple interest @8%p.a.; Issue of Recovery Certificate.
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.672/2025
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 11.05.2025
DATE OF DECISION: 24.03.2026
Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970, having its Head Office at "Star House" C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at New Patiala Area, District Patiala through Sh. Ashutosh Ahirwar, Branch Manager Authorized by Applicant Bank.
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant
Defendants already ex-parte vide order dated 07.03.2026.
FINAL ORDER
2 OA/672/2025 BANK OF INDIA VS. PARNEET SINGH AND ANOTHER
09.08.2016, which are Annexures A2 & A9 to this OA. Defendant No. 2 stood as guarantor. 3. The applicant sanctioned the Kisan Cash Credit (KCC) Limit of Rs.4.00 Lacs & Agriculture Over Draft Limit of Rs.10.00 Lacs (Total Credit Facility of Rs.14.00 Lacs) vide sanction letter dated 17.08.2016, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant No.1 mortgaged his immovable property i.e. land measuring 41Bigha-02Biswa situated at Village Mandi, Tehsil and District Patiala, Punjab vide Declaration under amended Section 4A, sub section (1)(2) & section 4B of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act 1978, dated 22.08.2016 along with letter to Sub Registrar for creation of charge dated 01.09.2016, which are Annexures A13 & A14 to this OA. Documents executed: DP Notes, Letters of declaration undertaking & authority, Hypothecation cum loan agreement, Agreements, Deed of Guarantee, all dated 06.09.2019, Which are Annexures A4 to A8, A10 to A12 to this OA; Acknowledgement of debt/securities dated 01.03.2019, 22.02.2022, Which are Annexure A15(Colly) to this OA; Legal notices dated 12.07.2021, 04.09.2023, 11.09.2024, 03.05.2025, along with postal receipts, which are Annexures A16 to A17 and A17A to this OA and Statement of Account along with certificate, which are Annexures A18 & A19 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.27,03,911.63, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.03.2026.
3 OA/672/2025 BANK OF INDIA VS. PARNEET SINGH AND ANOTHER
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 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 @08.00%p.a. in both the loan accounts from the date of filing of the
4 OA/672/2025 BANK OF INDIA VS. PARNEET SINGH AND ANOTHER
OA till realization of the amount ordered vide this final order. It is ordered accordingly.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal . Dated: 24.03.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant bank was entitled to receive recovery of outstanding dues from the defendants for non-payment of loan facilities.
What rate of interest should be granted on the outstanding amount during the pendency of the proceedings.
Whether the defendants are liable to pay the claimed amount jointly and severally.
2 provisions across 2 enactments
Bank of India
Sh. Parneet Singh
Sh. Gurtej Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
