The DRT-III, Chandigarh allowed an ex-parte application by Bank of India for recovery of Rs. 27.99 lakhs as an NPA from loan accounts with defendants acting as borrowers and guarantors. The Tribunal fixed interest at 8% p.a.
Recovery of Rs. 27,99,173.35 plus simple interest at 8% p.a. authorized via sale of mortgaged or personal assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.87/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.11.2023
DATE OF DECISION: 22.04.2026
Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970 having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and Branch Office amongst other places at Jagraon, District Ludhiana through its duly Constituted Attorney, Sh. Rajesh Kumar, Branch Manager, Authorized by Applicant Bank.
……..Applicant
Versus
Both residents of Village Pona, Tehsil Jagraon, District
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant
None for defendants (Already ex-parte vide order dated 17.04.2026)
FINAL ORDER
2 OA/87/2024 BANK OF INDIA VS SMT. PARMINDER KAUR AND OTHERS
against the defendants for recovery of Rs.27,99,173.35 (Rupees Twenty Seven Lacs Ninety Nine Thousand One Hundred Seventy Three and Paise Thirty Five Only). The Original Application has been filed through Sh. Rajesh Kumar, Branch Manager, who is competent to institute the Original Application vide Authorization Letter dated 30.09.2023 which is Annexure A1 to this OA.
Documents executed: Demand Promissory Note, Hypothecation cum Loan Agreement, Letter of Authority, Deed of Guarantee, all dated 04.03.2014, which are Annexures A4 to A6 to this OA; Letters of
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OA/87/2024 BANK OF INDIA VS SMT. PARMINDER KAUR AND OTHERS
Declaration Undertaking and Authority, L-516, both dated 04.03.2014, which are Annexures A8 & A9 to this OA; Demand Promissory Note, Hypothecation cum Loan Agreement, Deed of Guarantee, L-516, all dated 30.06.2015, which are Annexures A12 to A14 to this OA; Acknowledgment of Debt/Security letters dated 26.05.2016, which is Annexure A17 to this OA; Legal Notice dated 01.06.2021, 10.08.2022, 03.10.2023, along with postal receipts, which are Annexures A18 to A20 to this OA; Statement of accounts along with certificate, which are Annexure A21 & A22 to this OA;
From the perusal of all the Annexures A1 to A22 to this OA, it is proved that the defendant no.1 approached applicant for availing of the loan facilities which were granted to her, Sh. Gurmel Sing (now deceased and husband of defendant no. 2(i) & father of defendant no. 2(ii)) & defendant no.3 stood as guarantors and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record,
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OA/87/2024
BANK OF INDIA VS SMT. PARMINDER KAUR AND OTHERS
it is proved that applicant is entitled to recover a sum of Rs.27,99,173.35 (Rupees Twenty Seven Lacs Ninety Nine Thousand One Hundred Seventy Three and Paise Thirty Five Only(Rs.9,21,715.80 in Kisan Credit Card Account no. 651932110000426 & Rs.18,77,457.74 in Agricultural Overdraft Account no.651925210000059)), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with half yearly rests in KCC account and interest @13.50%p.a. with half yearly rests in Agriculture Overdraft account with penal interest @2%p.a. in both the loan accounts from 01.09.2023 till realization.
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 hypothecated assets/mortgaged property, undertaking of the defendants, quantum of loans 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 both the loan accounts 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/87/2024 BANK OF INDIA VS SMT. PARMINDER KAUR AND OTHERS
to recover aforesaid amount from the sale of hypothecated assets/mortgaged property of the defendant no.1 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.
Pronounced by me in the open Tribunal .
Dated: 22.04.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant was entitled to recover the outstanding loan amount and interest from the defendants jointly and severally.
Whether the Tribunal could exercise discretion to grant a reduced uniform rate of simple interest.
2 provisions across 2 enactments
Bank of India
Smt. Parminder Kaur
Smt. Satwant Kaur
Sh. Kewal Singh (heir of Gurmel Singh)
Sh. Kewal Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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