Allowed

Union Bank of India v. Sh. Sarabjit Singh

DRT9 Mar 2026OA/686/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Union Bank of India under Section 19 of the RDBA 1993 to recover Rs. 24.10 Lakhs from the defendant. The creditor proved the loan agreement and NPA classification through documentary evidence which were unrebutted. The Tribunal clarified the applicable interest rate.

What did the court decide?

Recovery of Rs.24,10,478.30 with costs and simple interest @07.00%p.a. from the date of filing till realization.

Union Bank of India versus Sh. Sarabjit Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.686/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.04.2025

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DATE OF DECISION: 09.03.2026

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Union Bank of India, (Erstwhile Corporate Bank) a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and inter alia a Branch Office at LIC Building, G.T Road, Moga, District Moga, Punjab through its Branch Manager, Sh. Sukhad Arora

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……..Applicant

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Versus

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Sh. Sarabjit Singh S/o Sh. Vir Singh, R/o Village Atari, District Moga, Punjab

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…….Defendant

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Advocates:

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Argued by Sh. Ravi Mishra, Advocate proxy for Sh. Karan Singla, Advocate for the applicant (through VC)

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Defendant already ex-parte vide order dated 29.01.2026

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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.24,10,478.30 (Rupees Twenty Four Lacs Ten Thousand Four Hundred Seventy Eight and Paise Thirty Only). The Original Application has been filed through Sh. Sukhad Arora, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 18.04.2025 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan of Rs.25.20 Lacs for purchase of combine harvester vide Loan application dated 20.12.2023 which is Annexure A2 to this OA.

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OA NO.686/2025 UNION BANK OF INDIA VS. SARABJIT SINGH

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The applicant sanctioned Term Loan of Rs.25.20 Lacs vide Sanction Letter dated 29.12.2023 which is Annexure A3 to this OA the terms and conditions were duly accepted by the defendant.

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Defendant hypothecated combine harvester Make : Inderpreet Agro Industries, Model: INDER-930, bearing No. Registration No. PB29AG1164,Engine No. PDHM121617 and Chassis No.IAI9308240020 vide Hypothecation Agreement (for agricultural advances), dated 29.12.2023, which is Annexure A5 to this OA; Quotation dated 19.12.2023 which is Annexure A12 to this OA; Registration Certificate of Vehicle which is Annexure A13 to this OA.

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Documents executed: Term Loan agreement, D.P Note, Interest Agreement, Letter of Continuity, Agreement AD-02A, Simple Loan Agreement, Declaration/undertaking, all dated 29.12.2023 which are Annexures A4 to A11 to this OA; Legal Notice dated 01.02.2025, along with its translation, which is Annexure A13 to this OA; Account statement with certificate, which is Annexure A14 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.24,10,478.30 which is recoverable and the defendant was served recall notice but he 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 29.01.2026.

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In support of the OA, affidavit of Sh. Sh. Sukhad Arora , Branch Manager, Union Bank of India h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by proxy learned counsel through video conferencing 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 Annexures A1 to A14 to this OA, it is proved that the defendant approached applicant for availing of the loan

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OA NO.686/2025 UNION BANK OF INDIA VS. SARABJIT SINGH

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facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,10,478.30 (Rupees Twenty Four Lacs Ten Thousand Four Hundred Seventy Eight and Paise Thirty Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9%p.a. including 2% p.a. penal interest with quarterly rests from 16.04.2025 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 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 uniform simple interest @07.00%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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,10,478.30 (Rupees Twenty Four Lacs Ten Thousand Four Hundred Seventy Eight and Paise Thirty Only), with costs, current and future simple interest @07.00%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 vehicle of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If

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OA NO.686/2025 UNION BANK OF INDIA VS. SARABJIT SINGH

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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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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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) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Sarabjit Singh

Case brief

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Union Bank of India v. Sh. Sarabjit Singh

Case brief

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