Allowed

Union Bank of India v. Sh. Rajinder Singh and Another

DRT6 Mar 2026OA/750/2024

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed a Debt Recovery Tribunal application filed by Union Bank of India against borrowers and guarantors for Rs. 27,99,662. Defendants did not appear and were absconded from case. Court awarded uniform simple interest at 8% p.a. and directed issue of Recovery Certificate.

What did the court decide?

Recovery of Rs. 27,99,662.00 with simple interest at 8% p.a. from the date of filing; issuance of Recovery Certificate; liberty to enforce through sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.750/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.03.2024

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DATE OF DECISION: 06.03.2026

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Union Bank of India, a body corporate, duly constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021, and one of its branches at Doraha, Tehsil Payal District, Ludhiana through Sh. K.K. Sinha, Branch Manager, Union Bank of India, Doraha, District Ludhiana, its Principal Officer and Constituted Attorney.

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……..Applicant

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Versus

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Sh. Rajinder Singh S/o Sh. Mal Singh Village Ber Kalan, Tehsil Payal, District Ludhiana.

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Sh. Balwinder Singh S/o Sh. Mehar Singh Village Ber Kalan, Tehsil Payal, District Ludhiana.

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……….Defendants

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Advocates:

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Argued by Sh. R.V. Mehra, Advocate for the applicant (Through VC) Defendants already ex-parte vide order dated 27.01.2026

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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 & Bankruptcy Act 1993, against the defendants for recovery Rs.27,99,662.00 (Rupees Twenty Seven Lacs Ninety Nine Thousand Six Hundred and Sixty Two Only). The Original Application has been filed Sh. K.K. Sinha, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 03.12.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 approached the applicant for grant of KCC Limit of Rs.19.50 Lacs vide Loan Application dated 11.03.2019, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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OA NO.750/2024 UNION BANK OF INDIAVS. RAJINDER SINGH AND ANOTHER

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The applicant sanctioned KCC Limit of Rs.19.50 Lacs vide Sanction Letter dated 22.03.2019, which is Annexure A3 to this OA. and the terms and conditions are duly accepted by defendants. 4. Defendant no. 1 mortgaged his immovable property i.e. Land Measuring 41Kanals-3-1/2Marla (5.15 Acres) detailed as under: (i) Land measuring 26Kanal-03Marla situated at Village Ber Khalan, Hadbast No.398, Sub Tehsil Malaudh, District Ludhiana, Punjab

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(ii) Land measuring 14Kanal-19-1/2Marla situated at Village Ber Khurd, Hadbast No.397, Sub Tehsil Malaudh, District Ludhiana, Punjab vide Declaration dated 19.03.2019 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A8 to this OA.

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Documents Executed: Demand Promissory Note, Hypothecation Agreement, Simple Loan Agreement, Simple Agreement, Letter of declaration/undertaking, Interest Agreement, Letter of Continuity, Letter of confirmation, Letter of Undertaking from borrower, Letter of Undertaking from guarantor, Agreement of Guarantee, all dated 22.03.2019, which are Annexures A3 to A13 and A15 to this OA; Debit Balance Confirmation Letter dated 11.12.2020, which is Annexure A16 to this OA; Debit Balance Confirmation dated 17.07.2023, which is Annexure A17 to this OA; Statement of Account, which is Annexure A18 to this OA; Legal Notice dated 08.01.2024, with Postal Receipts, which are Annexures A19 to A21 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. 27,99,662.00 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 27.01.2026.

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OA NO.750/2024 UNION BANK OF INDIAVS. RAJINDER SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. K.K. Sinha, Branch Manager, Union Bank of India h as been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by 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 A21 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to him and for that he 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.27,99,662.00 (Rupees Twenty Seven Lacs Ninety Nine Thousand Six Hundred and Sixty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @12.00%p.a. with half yearly rests from 16.01.2024 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 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 uniform 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.

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OA NO.750/2024 UNION BANK OF INDIAVS. RAJINDER SINGH AND ANOTHER

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,99,662.00 (Rupees Twenty Seven Lacs Ninety Nine Thousand Six Hundred and Sixty Two 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 properties/ hypothecated assets of the defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.03.2026. 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: 06.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Rajinder Singh and Another

Case brief

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Union Bank of India v. Sh. Rajinder Singh and Another

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