Allowed

Bank of India v. Sh. Gurdeep Singh and Another

DRT4 Jul 2026OA/681/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by the Bank under Section 19 RDDB Act for recovery of a bank loan which became NPA. The defendants failed to appear, leading to ex-parte proceedings. The Tribunal declared the defendants liable for the principal, costs, and adjusted interest.

What did the court decide?

Directing defendants to pay Rs.27,20,947.81 plus costs and simple interest @8.00% p.a. from the date of filing the OA till realization. Also ordered issue of Recovery Certificate.

Bank of India versus Sh. Gurdeep Singh and Another — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.681/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 07.05.2026

¶5

DATE OF DECISION: 04.07.2026

¶6

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 Bedi Complex, Thandi Sarak, Malerkotla, through its duly constituted attorney, Sh. Sitaram Jha, Chief Manager.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Gurdeep Singh S/o Sh. Kulwant Singh, R/o Village Ahan Kheri, Tehsil & District Malerkotla.

¶10

Sh. Parminder Singh S/o Sh. Jaswant Singh, R/o Village Adampal, Tehsil & District Malerkotla.

¶11

…….. Defendants

¶12

Advocates:

¶13

Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

¶14

None for Defendants (Already ex-parte vide order dated 02.07.2026).

¶15

FINAL ORDER

¶16

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.27,20,947.81 (Rupees Twenty Seven Lacs Twenty Thousand Nine Hundred Forty Seven and Paise Eighty One Only). The Original Application has been filed through Sh. Sitaram Jha, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 24.11.2020, which is Annexure A1 to this OA.

¶17

The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of

¶18

2 OA NO.681/2026 BANK OF INDIA VS SH. GURDEEP SINGH AND ANOTHER

¶19

Rs.10,00,000.00 vide Application Form for Agricultural Credit dated 02.11.20212, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 approached the applicant for grant of Agricultural Overdraft Limit of Rs.10,00,000.00 vide BOI Star Mortgage Loan Application dated 02.11.20212, which is Annexure A9 to this OA.

¶20

The applicant sanctioned the Kisan Credit Card Limit of Rs.10,00,000.00 vide Memorandum of Sanction of Crop Cash Credit Limit dated 30.11.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. Thereafter, the applicant sanctioned the Agricultural Overdraft Limit of Rs.10,00,000.00 vide Memorandum of Sanction Letter dated 21.11.2012, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

¶21

Defendant no. 1 mortgaged his immovable property i.e.,

¶22

Total Land measuring 12 Bighe 0 Biswa 0 Biswasi situated at Village Ahan Kheri, Tehsil and District Malekotla as per Jamabandi for the year 2006-07 vide Registered Mortgage Deed bearing Vasika No. 2536, 2537 dated 05.12.2012, along with its translations, which are Annexures A8, A8T, A15 & A15T to this OA.

¶23

Documents executed: Demand Promissory Note, Hypothecation cum Loan Agreement, Agreement L-516, Deed of Guarantee, all dated 07.12.2012, which are Annexures A4 to A7 to this OA; Demand Promissory Note, Letter of Declaration, Undertaking & Authority, Agreement L-516, Deed of Guarantee, all dated 07.12.2012, which are Annexures A11 to A14 to this OA; Acknowledgements of Debt and Security dated 19.08.2015, 20.03.2018, 26.11.2020, which are Annexure A16(Colly) , Legal Notices dated 07.12.2024, 01.01.2025, 04.02.2026, along with postal receipts, which are Annexures A17, A18 & A18A to this OA; Statement of Accounts along with certificate, which are Annexures A19 & A20 to this OA.

¶24

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.27,20,947.81, which is recoverable and the

¶25

3 OA NO.681/2026 BANK OF INDIA VS SH. GURDEEP SINGH AND ANOTHER

¶26

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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 02.07.2026. 7. In support of the OA, affidavit of Sh. Sitaram Jha, Chief Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

¶27

From the perusal of all the Annexures A1 to A20 to this OA, it is proved that the defendant no. 1 approached applicant for availing of loan facilities which were granted to him, defendant no. 2 stood 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 bank is entitled to recover a sum of Rs.27,20,947.81 (Rupees Twenty Seven Lacs Twenty Thousand Nine Hundred Forty Seven and Paise Eighty One 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.35%p.a. with half yearly rests in KCC Limit and interest @11.55%p.a. with half yearly rests in AGOD Limit with penal interest @2% in both the loan accounts from 03.02.2026 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

¶28

4 OA NO.681/2026 BANK OF INDIA VS SH. GURDEEP SINGH AND ANOTHER

¶29

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 @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.27,20,947.81 (Rupees Twenty Seven Lacs Twenty Thousand Nine Hundred Forty Seven and Paise Eighty One 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

¶30

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 20.07.2026. 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: 04.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Gurdeep Singh and Another

Case brief

What is this about?

What did the court decide?

Bank of India v. Sh. Gurdeep Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Kotak Mahindra Bank Limited versus M/S Ganga Road Lines and Others

Hdfc Bank Limited versus Smt. Paramjit Kaur and Others

Punjab National Bank versus M/S Crystal Knitfab and Others

Kotak Mahindra Bank Limited versus M/S Shri Ram Cargo Movers and Others

Kotak Mahindra Bank Limited versus M/S Navkar Goods Carrier and Others

State Bank of India versus Sh. Jasvir Singh and Another