The Tribunal allowed the Debt Recovery Application filed by Bank of India to recover Rs.33,61,541.23 from the borrowers and guarantor. The Court disbursed the claimed interest rate, granting 8% p.a., and ordered the issuance of a Recovery Certificate.
Recovery of Rs.33,61,541.23 with simple interest @ 8% p.a.; Recovery Certificate issued.
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. 682/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 07.05.2026
DATE OF DECISION: 04.07.2026
Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) 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.
……..Applicant
Versus
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant
None for Defendants (already ex parte vide order dated 02.07.2026)
FINAL ORDER
2 OA/ 682/2026
BANK OF INDIA VS SH. JAGJIWAN SINGH AND ANOTHER
lacs vide Loan Application-KCC dated 02.11.2012, which is Annexure A2 to this OA; Loan Application–AGOD dated 02.11.2012, which is Annexure A10 to this OA; Defendant no.2 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs. 10.00 lacs & AGOD Limit of Rs. 10.00 lacs vide Sanction Letter dated 15.01.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.
i. Defendant no. 1 mortgaged his land measuring 12Bigha-0Biswa, situated at Village Ahan Kheri, Tehsil & District Malerkotla, Punjab, vide Registered Mortgage Deed executed on 22.01.2013 vide Wasika No. 3094, along with English Translation, which are Annexures A9 and A9-A to this OA; ii. Defendant no. 1 mortgaged his land measuring 12Bigha-0Biswa, situated at Village Ahan Kheri, Tehsil & District Malerkotla, Punjab, vide Registered Mortgage Deed executed on 22.01.2013 vide Wasika No. 3095, along with English Translation, which are Annexure A15 and A15A to this OA. Documents executed: D.P. Note dated 25.01.2013, which is Annexure A4 to this OA; Hypothecation-cum-Loan Agreement dated 25.01.2013, which is Annexure A5 to this OA; Letter of Declaration, Undertaking and Authority dated 25.01.2013, which is Annexure A6 to this OA; Agreement dated 25.01.2013, which is Annexure A7 to this OA; Deed of Guarantee dated 25.01.2013, which is Annexure A8 to this OA; D.P. Note dated 25.01.2013, which is Annexure A11 to this OA; Letter of Declaration, Undertaking and Authority dated 25.01.2013, which is Annexure A12 to this OA; Agreement dated 25.01.2013, which is Annexure A13 to this OA; Deed of Guarantee dated 25.01.2013, which is Annexure A14 to this OA; Acknowledgement of Debt dated 28.12.2015, 04.12.2018 and 30.10.2021, which is Annexure A16 to this OA; Legal Notice dated 16.03.2024, which is Annexure A17 to this OA; Legal Notice dated 04.02.2026, which is Annexure A18 to this OA; Statement of Account, which are Annexure A19 and A20 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
3 OA/ 682/2026 BANK OF INDIA VS SH. JAGJIWAN SINGH AND ANOTHER
a debit of Rs.33,61,541.23 (Rupees Thirty Three Lac Sixty One Thousand Five Hundred Forty One and Paise Twenty Three Only), 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.
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 the loan facilities, which were granted to him. Defendant no. 2 stood as guarantor. They had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,61,541.23 (Rupees Thirty Three Lac Sixty One Thousand Five Hundred Forty One and Paise Twenty Three 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.
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
4 OA/ 682/2026 BANK OF INDIA VS SH. JAGJIWAN SINGH AND ANOTHER
instant case including nature of the mortgaged property, 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 @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 a total sum of Rs.33,61,541.23 (Rupees Thirty Three Lac Sixty One Thousand Five Hundred Forty One and Paise Twenty Three 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 the 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. 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
1 issue framed by the court
Whether the defendants are liable to repay the outstanding loan amount of Rs.33,61,541.23 along with interest.
2 provisions across 2 enactments
Bank of India
Sh. Jagjiwan Singh
Sh. Parminder Singh
Mridulesh Kumar Singh
As recorded by the court registry
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