Allowed

Indian Overseas Bank v. Sh. Karanbir Singh and Others

DRT4 Aug 2026OA/781/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Overseas Bank against borrowers and a guarantor for recovery of Rs. 25,10,196.86 arising from a default in a Kisan Credit Card facility. The Tribunal modified the interest rate to 8% p.a. and authorized recovery from mortgaged properties.

What did the court decide?

Recovery of Rs.25,10,196.86 with interest at 8% p.a. from the date of filing till realization; Recovery Certificate issued.

Indian Overseas Bank versus Sh. Karanbir Singh and Others — Consumer Protection | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.781/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2025

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DATE OF DECISION: 04.08.2026

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Indian Overseas Bank, a body corporate and Nationalized Bank constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 with its Head Office at 763, Anna Salai, Chennai - 600002 and amongst others at branch at Grain Market, Sri Muktsar Sahib, Tehsil and District Sri Muktsar Sahib Punjab 152026 through its Branch Manager, Principal officer and Constituted Attorney Sh. Sohan Lal Mahanth.

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……..Applicant

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Versus

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Sh. Karanbir Singh S/o Sh. Amarjeet Singh, R/o Village Sammewali, Tehsil and District Sri Muktsar Sahib, Punjab - 152026.

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Sh. Gurpinderjeet Singh S/o Sh. Rajbeer Singh, R/o Village Sammewali, Tehsil and District Sri Muktsar Sahib, Punjab - 152026.

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Sh. Rajbir Singh S/o Sh. Sukhwant Singh, R/o Village Sammewali, Tehsil and District Sri Muktsar Sahib, Punjab - 152026.

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…….. Defendants

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 29.07.2026).

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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.25,10,196.86 (Rupees Twenty Five Lacs Ten Thousand One Hundred Ninety Six and Paise

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2 OA NO.781/2025 INDIAN OVERSEAS BANK VS SH. KARANBIR SINGH AND OTHERS

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Eighty Six Only). The Original Application has been filed through Sh. Sohan Lal Mahanth, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.01.1993, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for grant of Kisan Credit Card Limit of Rs.14,00,000.00 vide Application Form for Agricultural Credit ShortTerm / Term Loan dated 11.02.2020, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.14,00,000.00 vide Credit Sanction Advice dated 19.02.2020, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant nos. 1 & 2 mortgaged their Immovable Properties i.e., Agricultural Land measuring 64K 00M situated in Village Sammewali, Hadbast No. 47, Tehsil & District Sri Muktsar Sahib, as per Jamabandi for the year 2017-18 vide Declaration u/s 4(1) and Request Letter for creation of charge in favour of Bank, both dated 17.02.2020, which is Annexure A9 to this OA.

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Documents executed: Demand Promissory Note, Letter of Continuity for DPN, Agreement of Hypothecation for Agriculture Loans, Letter of Hypothecation, Guarantee for Cash Credit, all dated 19.02.2020, which are Annexures A4 to A8 to this OA; Revival Letter, dated 28.01.2023, which is Annexure A10 to this OA; Legal Notice dated 02.06.2025, along with postal receipts, which is Annexure A11 to this OA; Statement of Account along with certificate, which is Annexure A12 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.25,10,196.86, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.781/2025 INDIAN OVERSEAS BANK VS SH. KARANBIR SINGH AND OTHERS

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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 defendants and they were proceeded ex-parte vide order dated 29.07.2026.

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In support of the OA, affidavit of Sh. Sohan Lal Mahanth, Branch Manager, Indian Overseas Bank has 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.

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From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendant nos. 1 & 2 a pproached applicant for availing of loan facility which was granted to them, defendant no. 3 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 is entitled to recover a sum of Rs.25,10,196.86 (Rupees Twenty Five Lacs Ten Thousand One Hundred Ninety Six and Paise Eighty Six 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 @11.60%p.a. with half yearly rests with penal interest @2% from 07.06.2025 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 loan and prevalent market rates of

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4 OA NO.781/2025 INDIAN OVERSEAS BANK VS SH. KARANBIR SINGH AND OTHERS

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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.25,10,196.86 (Rupees Twenty Five Lacs Ten Thousand One Hundred Ninety Six and Paise Eighty Six 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 properties of defendant nos. 1 & 2 i n 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.

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.08.2026.

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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 . Dated: 04.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Indian Overseas Bank v. Sh. Karanbir Singh and Others

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Sh. Karanbir Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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