Allowed

Bank of India v. Sh. Bikram Singh through His Legal Heirs and Another

DRT27 Aug 2026OA/705/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Bank of India against deceased borrower's legal heirs and a guarantor. The court ordered recovery of a principal debt, adjusted interest at 8% p.a., and confirmed the applicant's right to execute mortgaged property or attach personal assets.

What did the court decide?

Declaration of liability to pay Rs. 23,92,995.00 plus costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to execute mortgaged property or attach personal assets.

Bank of India versus Sh. Bikram Singh through His Legal Heirs… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.705/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.05.2026

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DATE OF DECISION: 27.08.2026

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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 Doraha, District Ludhiana (Punjab), through its Principal cum Authorized Officer, Sh. Ramandeep Singh Aulakh, Senior Branch Manager.

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……..Applicant

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Versus

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Sh. Bikram Singh S/o Sh. Hari Singh, since expired through his following legal heirs:-

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1A. Sh. Balwinder Singh S/o Sh. Bikram Singh, R/o Village & Post Office Jatana, Tehsil Khanna, District Ludhiana, Punjab -141421.

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1B. Sh. Sandeep Singh S/o Sh. Bikram Singh, R/o Village & Post Office Jatana, Tehsil Khanna, District Ludhiana, Punjab -141421.

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Smt. Kushminder Kaur W/o Late Sh. Sikander Singh, VPO Nagra, Tehsil Samrala, District Ludhiana, Punjab – 141114.

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…….. Defendants

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Advocates:

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Argued by Ms. Meena Malhotra, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 24.08.2026).

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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 & Bankruptcy Act 1993,

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2 OA NO.705/2026 BANK OF INDIA VS SH. BIKRAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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against the defendants for recovery of Rs.23,92,995.00 (Rupees Twenty Three Lacs Ninety Two Thousand Nine Hundred and Ninety Five Only). The Original Application has been filed through Sh. Ramandeep Singh Aulakh, Senior Branch Manager of the applicant, who is competent to institute the Original Application vide NPA Management Policy 2024 along with Authority Letter, dated 20.01.2026, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 (since deceased) a pproached the applicant for grant of Kisan Credit Card Limit of Rs.3,00,000.00 and Agriculture Overdraft Limit of Rs.5,00,000.00 vide Application Form for Agriculture Credit and BOI Star Mortgage Loan Application, both dated 03.12.2007, which are Annexures A2 & A3 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.3,00,000.00 and Agriculture Overdraft Limit of Rs.5,00,000.00 vide Sanction Letters, dated 02.01.2008, which are Annexures A4 & A5 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and Sh. Sikander Singh (since deceased and husband of defendant no. 2). Sh. Sikander Singh (since deceased) stood as guarantor.

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Defendant no. 1 (since deceased) mortgaged his Immovable Properties i.e.,

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Total Land measuring 6 Bigha 8 Biswa as detailed below:

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(i) Land measuring 4 Bigha 0 Biswa as per Jamabandi for the year 2005-2006, situated at Village Jatana, Hadbast no. 149, Tehsil Khanna, District Ludhiana, vide Mortgage Deed bearing serial no. 4131 dated 15.01.2008, along with its translation, which is Annexure A6 to this OA.

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(ii) Land measuring 2 Bigha 8 Biswa as per Jamabandi for the year 2005-2006, situated at Village Jatana, Hadbast no. 149, Tehsil Khanna, District Ludhiana, vide Mortgage Deed bearing serial no. 4132

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3 OA NO.705/2026 BANK OF INDIA VS SH. BIKRAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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dated 15.01.2008, along with its translation, which is Annexure A7 to this OA.

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Documents executed: Demand Promissory Notes, Bearer Letters, Hypothecation Agreement, L-516, Miscellaneous Declarations, Guarantee Deeds, all dated 21.01.2008, which are Annexures A8 to A18 to this OA; Acknowledgements of Debt/Securities, dated 31.10.2010, 03.11.2010, 16.09.2013, 05.10.2013, 18.07.2016, 06.06.2019, 07.06.2021, 03.06.2024, which are Annexures A19 to A30 to this OA; Legal Notices, dated 13.06.2025, along with postal receipts, which are Annexure A31(Colly) to this OA; Statement of Accounts, along with certificates, which are Annexures A32 & A33 to this OA.

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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.23,92,995.00, 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 summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 24.08.2026. 7. In support of the OA, affidavit of Sh. Ramandeep Singh Aulakh, Senior Branch Manager, Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A33 to this OA, it is proved that the defendant no. 1 (since deceased) a pproached applicant for availing of loan facilities which were granted to him, Sh. Sikander Singh (since deceased) s tood as guarantor and for that they had executed all the relevant documents in favour of the bank. The

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4 OA NO.705/2026 BANK OF INDIA VS SH. BIKRAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 is entitled to recover a sum of Rs.23,92,995.00 (Rupees Twenty Three Lacs Ninety Two Thousand Nine Hundred and Ninety Five 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.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.00%p.a. with half yearly rests in Kisan Credit Card Limit and interest @13.50%p.a. with half yearly rests in Agriculture Overdraft Limit, 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 properties, 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.23,92,995.00 (Rupees Twenty Three Lacs Ninety Two Thousand Nine Hundred and Ninety Five 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 (since deceased) i n execution proceedings if not sold earlier under the provisions of the SARFAESI

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5 OA NO.705/2026 BANK OF INDIA VS SH. BIKRAM SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 defendant nos. 1(A) & 1(B) up to the extent, they inherited the property of deceased defendant no.1 and attachment and sale of personal assets of the defendant no. 2 up to the extent, she inherited the property of Sh. Sikander Singh (since deceased). 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 11.09.2026.

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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: 27.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Bikram Singh through His Legal Heirs and Another

Case brief

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Bank of India v. Sh. Bikram Singh through His Legal Heirs and Another

Case brief

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