Allowed

Bank of India v. Gurpreet Singh Alias Sh Gurprit Singh and Another

DRT23 Jun 2026OA/707/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of India for recovery of Rs. 21,85,015.09. The court upheld the loan advance and mortgage, modified the claimed interest rates to 8% p.a., and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs. 21,85,015.09 with 8% p.a. interest and order to issue Recovery Certificate.

Bank of India versus Gurpreet Singh Alias Sh Gurprit Singh and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 707/2026

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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: 23.06.2026

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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 Pohir, Distt. Ludhiana, through its duly constituted attorney, Sh. Sitaram Jha, Chief Manager, presently posted at Malerkotla.

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……..Applicant

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Versus

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Sh. Gurpreet Singh @ Sh. Gurprit Singh S/o. Sh. Ranjit Singh R/o. Village Manakheri, Tehsil & Distt. Malerkotla.

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Sh. Pritam Singh S/o. Sh. Mehar Singh R/o. H.No.14, Village Manakheri, Tehsil & Distt. Malerkotla.

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.……Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate proxy for Ms. Puja Sharma, Advocate for applicant

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None for Defendants (already ex parte vide order dated 20.06.2026)

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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. 21,85,015.09 (Rupees Twenty One Lacs Eighty Five Thousand Fifteen and Paise Nine Only). The Original Application has been filed through Sh. Sitaram Jha, Chief Manager, of

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2 OA/ 707/2026 BANK OF INDIA VS SH. GURPREET SINGH ALIAS GURPRIT SINGH AND ANOTHER

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the applicant,who is competent to institute the Original Application vide Power of Attorney, which isAnnexure A1to this OA.
2. The brief facts of the OA are that the defendant no. 1 approached
the applicant for KCC Limit of Rs. 7.00 lacs vide Loan Application dated
10.10.2013, which isAnnexure A2to this OA. Thereafter, the defendant no. 1 again approached the applicant for
AGOD Limit of Rs. 5.00 lacs vide Loan Application dated 10.10.2013, which isAnnexure A10to this OA. Defendant no. 2 stood as guarantor in both the loan accounts.
3. The applicant sanctioned the KCC Limit of Rs. 7.00 lacs vide
Sanction Letter dated 06.12.2013, which isAnnexure A3to this OA
and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the AGOD Limit of Rs. 5.00
lacs vide Sanction Letter dated 11.12.2013, which isAnnexure A11to this OA.
4. Defendant no.1 mortgaged his agricultural land as under:
i. Land measuring 9Bighe-1Biswa-4Biswasi situated at Village Manak Kheri (Jhuner), Tehsil Ahmedgarh, District Malerkotla,
Punjab vide Registered Mortgage Deed executed on 03.12.2013 vide Wasika No. 2207 along with English Translation, which are Annexure A9 and A9Tto this OA;
ii. Land measuring 4Bighe-16Biswe situated at Village Manak Kheri (Jhuner), Tehsil Ahmedgarh, District Malerkotla, Punjab vide Registered Mortgage Deed executed on 03.12.2013 vide Wasika No. 2208 along with English Translation, which areAnnexure
A16 and A16Tto this OA.
Documents executed: D.P. Note dated 06.12.2013, which is
Annexure A4to this OA; Hypothecation Agreement dated 06.12.2013, which isAnnexure A5to this OA; Letter of Declaration, Undertaking &
Authority dated 06.12.2013, which isAnnexure A6to this OA;
Agreement dated 06.12.2013, which isAnnexure A7to this OA; Deed
of Guarantee dated 06.12.2013, which isAnnexure A8to this OA; D.P.
Note dated 11.12.2013, which isAnnexure A12to this OA; Letter of

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3 OA/ 707/2026 BANK OF INDIA VS SH. GURPREET SINGH ALIAS GURPRIT SINGH AND ANOTHER

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Declaration, Undertaking & Authority dated 11.12.2013, which is Annexure A13 to this OA; Agreement dated 11.12.2013, which is Annexure A14 to this OA; Deed of Guarantee dated 11.12.2013, which is Annexure A15 to this OA; Acknowledgement of Debt for KCC dated 12.05.2016, 22.10.2018, 25.06.2021 and 20.06.2024, which is Annexure A17 to this OA; Acknowledgement of Debt for AGOD dated 12.05.2016, 22.10.2018, 02.06.2021 and 30.05.2024, which is Annexure A17A to this OA; Legal Notice dated 18.10.2023 and 10.06.2024, which is Annexure A18 to this OA; Legal Notice dated 31.07.2024, which is Annexure A19 to this OA; Statement of Accounts, which are Annexure A20 and A21 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 loan accounts, there was a debit of Rs. 21,85,015.09 (Rupees Twenty One Lacs Eighty Five Thousand Fifteen and Paise Nine 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. 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 20.06.2026. 7. In support of the OA, affidavit of Sh. Sitaram Jha, Chief Manager, Bank of India, h as 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 had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facilities, which were granted to them. 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

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4 OA/ 707/2026 BANK OF INDIA VS SH. GURPREET SINGH ALIAS GURPRIT SINGH AND ANOTHER

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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. 21,85,015.09 (Rupees Twenty One Lacs Eighty Five Thousand Fifteen and Paise Nine 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @13.00%p.a. in KCC Limit and @13.50% p.a. in AGOD Limit, plus penal interest @2.00% p.a. with half yearly rests from 04.03.2026 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, 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.21,85,015.09 (Rupees Twenty One Lacs Eighty Five Thousand Fifteen and Paise Nine 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

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5 OA/ 707/2026 BANK OF INDIA VS SH. GURPREET SINGH ALIAS GURPRIT SINGH AND ANOTHER

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defendants. 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 08.07.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 23.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Gurpreet Singh Alias Sh Gurprit Singh and Another

Case brief

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Bank of India v. Gurpreet Singh Alias Sh Gurprit Singh and Another

Case brief

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