Allowed

Union Bank of India v. Sh. Balvir Singh and Others

DRT29 Jun 2026OA/727/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Union Bank of India against the defendants for recovery of a defaulted KCC loan. The Tribunal fixed simple interest at 8% p.a. and issued a Recovery Certificate, authorizing recovery from mortgaged property and personal assets.

What did the court decide?

Recovery of Rs.20,88,933.50 jointly and severally with simple interest @8% p.a. from filing date; Recovery Certificate issued.

Union Bank of India versus Sh. Balvir Singh and… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 727/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 16.05.2026

¶5

DATE OF DECISION: 29.06.2026

¶6

Union Bank of India, a body corporate, constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai & having a Branch office at Village Ghawaddi, Tehsil and District Ludhiana, through its duly Authorized Person, Sh. Vimal Singh Gautam, Branch Manager.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Balvir Singh son of Sh. Amarnath alias Amar Singh

¶10

Sh. Surender Pal Kaur widow of Late Sh. Gurjit Singh

¶11

Sh. Paramjit Singh son of Late Sh. Gurjit Singh

¶12

All residents of VPO-Shanker, Tehsil and district Ludhiana

¶13

Smt. Sukhjinder Kaur wife of Sh. Sukhwinder Singh (daughter of

¶14

Late Sh. Gurjit Singh) resident of village Kalaran, District Sangrur

¶15

Sh. Avtar Singh son of Sh. Malkit Singh resident of village Shankar,

¶16

Tehsil and district Ludhiana.

¶17

…….Defendants

¶18

Advocates:

¶19

Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate for Applicant.

¶20

None for Defendants (already ex-parte vide order dated 24.06.2026)

¶21

FINAL ORDER

¶22

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.20,88,933.50 (Rupees Twenty Lacs Eighty Eight Thousand Nine Hundred Thirty Three and Paise Fifty Only).

¶23

¶24

OA/727/2026 UNION BANK OF INDIA VS. SH. BALVIR SINGH AND OTHERS

¶25

The Original Application has been filed through Sh. Vimal Singh Gautam, Branch Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney & translation dated 17.08.2022, which is Annexure A1 to this OA.

¶26

The brief facts of the OA are that the Defendant no.1 with Sh. Gurjit Singh (since deceased), approached the applicant for grant of KCC Limit of Rs.9.50 lacs vide Application Form for Agricultural Credit dated 19.01.2013, which is Annexure A2 to this OA. Defendant no. 2 to 4 are Legal Representatives of deceased Sh. Gurjit Singh. Defendant no.5 stood as guarantor.

¶27

The applicant sanctioned the KCC Limit of Rs.9.50 lacs, vide Interview-cum-Assessment Form (Annexure-A) dated 08.02.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants vide Terms and Conditions of Sanction duly accepted by the defendants dated 18.02.2013, which is Annexure A4 to this OA.

¶28

Defendant no. 1 & Sh. Gurjit Singh (since deceased), mortgaged their property ie. Agricultural land measuring 18Kanal-5Marla, situated at Village Shankar, Hadbast no. 320, Tehsil Dehlon, District Ludhiana, Punjab, vide Mortgage Deed bearing Vasika No. 1772 along with translation thereof dated 13.02.2013, which is Annexure A12 to this OA; Jamabandi for the year 2010–2011 along with translation thereof dated 20.02.2013, which is Annexure A13 to this OA. Documents executed: Demand Promissory Note for Rs. 9.50 Lakhs dated 18.02.2013, which is Annexure A5 to this OA; Letter of Continuity dated 18.02.2013, which is Annexure A6 to this OA; Hypothecation Agreement dated 18.02.2013, which is Annexure A7 to this OA; Agreement on Rate of Interest dated 18.02.2013, which is Annexure A8 to this OA; Declaration/Undertaking dated 18.02.2013, which is Annexure A9 to this OA; Deed of Guarantee by Avtar Singh dated 18.02.2013, which is Annexure A10 to this OA; Annexure-II dated 18.02.2013, which is Annexure A11 to this OA; Application for

¶29

¶30

OA/727/2026 UNION BANK OF INDIA VS. SH. BALVIR SINGH AND OTHERS

¶31

Renewal of Union Green Card dated 23.11.2015, which is Annexure A14 to this OA; Demand Promissory Note for Rs. 9.50 Lakhs dated 23.11.2015, which is Annexure A15 to this OA; Letter of Continuity dated 23.11.2015, which is Annexure A16 to this OA; Hypothecation Agreement dated 23.11.2015, which is Annexure A17 to this OA; Agreement on Rate of Interest dated 23.11.2015, which is Annexure A18 to this OA; Annexure-1 dated 23.11.2015, which is Annexure A19 to this OA; Application for Disbursement of Limit dated 23.11.2015, which is Annexure A20 to this OA; Application for Disbursement of Limit dated 25.11.2016, which is Annexure A21 to this OA; Debit Balance Confirmation Letter dated 25.11.2016, which is Annexure A22 to this OA; Simple Debit Balance Confirmation Letter dated 10.04.2019, which is Annexure A23 to this OA; Legal Notice along with Postal Receipts dated 18.08.2025, which is Annexure A24 to this OA; Statement of Account duly certified under the Bankers' Books Evidence Act, which is Annexure A25 to this OA; Certificate under Section 63 of BSA, which is Annexure A26 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.20,88,933.50 (Rupees Twenty Lacs Eighty Eight Thousand Nine Hundred Thirty Three and Paise Fifty 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 24.06.2026. 7. In support of the OA, affidavit of Sh. Vimal Singh Gautam, Branch Manager , Union Bank of India, has been filed. 8. Heard arguments and perused record.

¶32

¶33

OA/727/2026 UNION BANK OF INDIA VS. SH. BALVIR SINGH AND OTHERS

¶34

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

¶35

From the perusal of all the Annexures A1 to A26 to this OA, it is proved that the Defendant no. 1 & Sh. Gurjit Singh (since deceased), approached the applicant for availing of the loan facility, which was granted to them. Defendant no.5 stood as guarantor. They had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,88,933.50 (Rupees Twenty Lacs Eighty Eight Thousand Nine Hundred Thirty Three and Paise Fifty 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.

¶36

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.05% p.a. plus 2.00% p.a. penal interest with half yearly rests from 01.05.2026 till the realization.

¶37

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 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 simple interest @08.00% 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.

¶38

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,88,933.50 (Rupees Twenty Lacs Eighty Eight Thousand Nine

¶39

¶40

OA/727/2026 UNION BANK OF INDIA VS. SH. BALVIR SINGH AND OTHERS

¶41

Hundred Thirty Three and Paise Fifty Only), jointly and severally, with costs, current and future simple interest @08.00%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 mortgaged property of the defendant no.1 & Sh. Gurjit Singh (since deceased), 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 defendant nos. 1 & 5 and by attachment and sale of personal assets of the defendant nos. 2 to 4 up to the extent they inherited from the property of deceased Sh. Gurjit Singh. The applicant is at liberty to enforce the claim through due process of law.

¶42

12. Any other application pending stands disposed of.

¶43

Issue Recovery Certificate accordingly.

¶44

Parties to appear before Learned Recovery Officer of this Tribunal on 14.07.2026 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: 29.06.2026.

¶45

(MRIDULESH KUMAR SINGH)

¶46

Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Balvir Singh and Others

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sh. Balvir Singh and Others

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

Punjab National Bank versus Sh. ravinder singh

State Bank of India versus Sh. Sikander Singh

Prince and Another versus Dcb Bank Limited

State Bank of India versus Sh. Gurnoor Singh

Icici Bank Limited versus Sh. Rishab Goyal

Icici Bank Limited versus M/S Manveer Trading Company and Others