Allowed

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

DRT10 Jul 2026OA/728/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Union Bank of India against legal heirs and a guarantor. The bank proved a valid loan agreement and mortgage of agricultural land. The Tribunal decreed the recovery of the outstanding principal plus simple interest at 8% per annum, ordering enforcement against mortgaged property and personal assets of heirs.

What did the court decide?

Recovery decree for Rs.21,53,005.87 with simple interest at 8% p.a. from date of filing; Recovery Certificate issued; Enforcement allowed via sale of mortgaged property and personal assets of heirs/gu

Union Bank of India versus Sh. Harjeet Singh and Others — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.728/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.05.2026

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DATE OF DECISION: 10.07.2026

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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.

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……..Applicant

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Versus

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Sh. Harjeet Singh S/o Late Sh. Teja Singh,

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Sh. Malkit Singh S/o Late Sh. Teja Singh,

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Sh. Sukhdev Singh S/o Late Sh. Teja Singh,

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Sh. Lakhbir Singh S/o Late Sh. Teja Singh,

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All residents of Village Bhutta, Tehsil and District Ludhiana.

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Smt. Gurmeet Kaur D/o Late Sh. Teja Singh (W/o Sh. Gurdeep Singh), R/o Village Kokri Kalan, District Moga.

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(All legal heirs / representatives of borrower Late Sh. Teja Singh)

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Sh. Pal Singh S/o Sh. Tara Singh, R/o Village Bhutta, Tehsil and

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District Ludhiana.

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…….. Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 08.07.2026).

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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, against the defendants for recovery of Rs.21,53,005.87 (Rupees Twenty One Lacs Fifty Three Thousand Five and Paise Eighty Seven

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2 OA NO.728/2026 UNION BANK OF INDIA VS SH. HARJEET SINGH AND OTHERS

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Only). 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 dated 17.08.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that Sh. Teja Singh (since deceased) approached the applicant for grant of Union Green Card Limit of Rs.13,00,000.00 vide Application Form for Agricultural Credit dated 20.08.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the Union Green Card Limit of Rs.13,00,000.00 vide Letter of Sanction and Terms and Conditions of Sanction, both dated 20.10.2014, which are Annexures A6 & A7 to this OA and the terms and conditions were duly accepted by the Sh. Teja Singh (since deceased). Defendant no. 6 stood as guarantor.

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Sh. Teja Singh (since deceased) mortgaged his immovable property i.e.,

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Total Agriculture Land measuring 19 Kanal 13 Marla situated in the revenue estate of Village Bhutta, Hadbast No. 253, Tehsil Dehlon, District Ludhiana as per Jamabandi for the year 2009-2010 vide Affidavit dated 05.09.2014, Request Letter for creation of charge on Agriculture Land u/s 4(1) dated 27.10.2014 and Jamabandi for the year 2014-2015 along with its translation, which are Annexures A4, A16 & A17 to this OA.

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Documents executed: Application cum Undertaking for Union Green Card dated 20.08.2014, which is Annexure A3 to this OA; Interview cum Assessment form, Demand Promissory Note, Letter of Continuity (AD-09), Hypothecation Agreement (For Agricultural Advances), Undertaking by Borrower, Agreement on Rate of Ineterest, Declaration/Undertaking (For Agricultural Advances), Deed of Guarantee (For Agricultural Advances), Undertaking by Guarantor, all dated 20.10.2014, which are Annexures A5, A8 to A15 to this OA; Demand Promissory Note, Interest Agreement, Simple Debit Balance Confirmation Letter, all dated 20.07.2017, which are Annexures A18

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3 OA NO.728/2026 UNION BANK OF INDIA VS SH. HARJEET SINGH AND OTHERS

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to A20 to this OA; Legal Notice dated 25.08.2025, along with postal receipts, which is Annexure A21 to this OA; Copy of Death Certificate dated 16.08.2021, which is Annexure A22 to this OA; Statement of Account along with certificate, which are Annexures A23 & A24 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 the loan account there was a debit of Rs.21,53,005.87, 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 08.07.2026. 7. In support of the OA, affidavit of Sh. Vimal Singh Gautam, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A24 to this OA, it is proved that Sh. Teja Singh (since deceased) approached applicant for availing of loan facility which was granted to him, defendant no. 6 stood as guarantor and for that 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,53,005.87 (Rupees Twenty One Lacs Fifty Three Thousand Five and Paise Eighty Seven Only), along with interest from the defendants, jointly and severally, from the

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4 OA NO.728/2026 UNION BANK OF INDIA VS SH. HARJEET SINGH AND OTHERS

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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 @11.25%p.a. with penal interest @2%p.a. with half yearly rests from 01.05.2026 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 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 @8.00%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 defendants are liable to pay to the applicant sum of Rs.21,53,005.87 (Rupees Twenty One Lacs Fifty Three Thousand Five and Paise Eighty Seven Only), jointly and severally, with costs, current and future simple interest @8.00%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 Sh. Teja 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 to 5 to the extent, they inherited from Sh. Teja Singh (since deceased) and by attachment and sale of personal assets of the defendant no. 6. 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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5 OA NO.728/2026 UNION BANK OF INDIA VS SH. HARJEET SINGH AND OTHERS

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.07.2026. 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: 10.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

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

Case brief

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