Allowed

Bank of India v. Sh Lal Chand

DRT19 May 2026OA/824/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act for recovery of an outstanding loan of ₹40,80,350 along with interest. The court confirmed the bank's evidence regarding the loan instrument, garnishment, and security documents.

What did the court decide?

Recovery of ₹40,80,350 with interest at 12.95% per annum from 17.04.2023, costs, and issuance of Recovery Certificate.

Bank of India versus Sh Lal Chand — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 824/2023 Date of Institution: 17.04.2023 Date of Decision: 19.05.2026

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Bank of India having its branches all over India and a branch at Opposite Sanjeev Cinema, G.T. Road, Fazilka, Punjab.

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……..Applicant

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Vs.

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Sh. Lal Chand s/o Sh. Ganesha Ram, r/o VPO Lakhewali Dhab, Tehsil and District Fazilka, Punjab.

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Sh. Ram Kumar s/o Sh. Ganesha Ram, r/o VPO Lakhewali Dhab, Tehsil and District Fazilka, Punjab.

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……….Defendants

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Advocates

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Ms. Seerat Sharma proxy counsel for Sh. Pankaj Beri, Counsel for the applicant bank.

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Defendants- ex parte vide order dated 31.05.2024 .

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OA for the Recovery of ₹40,80,350/- with interest @12.95% per annum with half-yearly rests from 17.04.2023.

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ORDER

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Bank of India has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹40,80,350/- with interest against Sh. Lal Chand and others (defendants).

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Bank’s case is that on 08.10.2015, it had granted K.C.C. Limit of ₹5.00 Lacs and an O.D. Limit of ₹10.00 Lacs to defendant No.1 for agricultural purpose. To secure the loan, Defendant No.1 had mortgaged his agricultural land (fully detailed in para No.3A of the application). Defendant No.2 stood as guarantor. The loans were chargeable to interest @12.95% per annum with half-yearly rests. Defendants had duly acknowledged their liability towards the debt on 06.08.2018 and

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08.07.2021. On 28.02.2023, a sum of ₹40,80,350/- was due from the defendants. Despite repeated requests, defendants did not make the
repayment. Hence, this application.
3. On 24.05.2023, summonses were sent to the defendants by
registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 31.05.2024, they were proceeded_ex_ parte.
4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Ved Prakash, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-19.
5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced total loan of ₹15.00 Lacs and on 28.02.2023, a sum of ₹40,80,350/- was due.
6. Accordingly, the application of the bank for the recovery of
₹40,80,350/- (Rupees Forty Lacs Eighty Thousand Three Hundred Fifty
Only) with interest @12.95% per annum with half-yearly rests from
17.04.2023, till the date of payment is hereby allowed with costs. The
liability of both the defendants would be joint and several. Bank can
recover its dues by the sale of mortgaged land fully detailed in para
No.3A of the application as well as from the personal movable and
immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on
23.06.2026,who is directed to distribute the sale proceeds of the
mortgaged land and standing crops as per the provisions of Section 19(20-AB) of the Act.

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 19.05.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Bank of India v. Sh Lal Chand

Case brief

What is this about?

What did the court decide?

Bank of India v. Sh Lal Chand

Case brief

What is this about?

What did the court decide?

What the court decided

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