Allowed

Bank of India v. Sh. Nirmal Singh and Others

DRT23 Feb 2026OA/913/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Bank of India for recovery of Rs. 40,03,675 from borrowers and guarantors. The court granted 8% uniform interest and authorized sale of mortgaged assets under SARFAESI.

What did the court decide?

Order allowing the application and directing payment of Rs. 40,03,675 with 8% p.a. interest and sale of mortgaged assets.

Bank of India versus Sh. Nirmal Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.913/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.07.2025

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DATE OF DECISION: 23.02.2026

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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, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Dakha, 37, Grain Market, Harjinder Palace, P.O Mullanpur Mandi, District Ludhiana through duly constituted Attorney Sh. Ajit Singh Dadwal, Chief Manager posted at Zonal Office, Ludhiana.

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……..Applicant

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Versus

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Sh. Nirmal Singh S/o of Sh. Hajoora Singh, R/o H. No. 444, VPO Raqba, Tehsil Jagroan, District Ludhiana

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Sh. Harinder Singh S/o of Sh. Nirmal Singh, R/o H. No. 444, VPO Raqba, Tehsil Jagroan, District Ludhiana

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Sh. Sandeep Singh S/o of Sh. Surinder Singh, R/o. H. No. 174, VPO Raqba, Tehsil Jagroan, District Ludhiana

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant

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Defendants already ex parte vide order dated 12.01.2026

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.40,03,675.00 (Rupees Forty Lacs Three Thousand Six Hundred Seventy Five Only). The Original Application has been filed through Sh. Ajit Singh Dadwal, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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2 OA/913/2025 BANK OF INDIA VS. NIRMAL SINGH AND OTHERS .

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The brief facts of the OA are that the Defendant nos. 1 and 2 approached the applicant for grant KCC Limit of Rs. 10.00 Lacs and Agriculture Mortgage Overdraft (AGOD) Limit of Rs. 10.00 Lacs vide Loan Applications dated 20.07.2011, which are Annexures A2 & A10 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.10.00 Lacs and Agriculture Mortgage Overdraft (AGOD) Limit of Rs. 10.00 Lacs vide Sanction Letters dated 11.08.2011, which are Annexures A3& A11 to this OA and the terms and conditions are duly accepted by the defendants.

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Defendant nos. 1 and 2 mortgaged their immovable property detailed as under:

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(ii) Defendant no. 1 mortgaged his Land measuring 2Bigha10Biswa-12Biswasi situated at VPO Raqba, Hadbast no.79, Tehsil and District Ludhiana, Punjab vide Mortgage Deed vide vasika no.1263 dated 09.08.2011 along with its translation, which are Annexure A9 & A-9T to this OA.

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(ii) Defendant nos. 1 and 2 mortgaged their Land measuring 2Bigha-13Biswa-11Biswasi situated at VPO Raqba, Hadbast no.79, Tehsil and District Ludhiana, Punjab vide Mortgage Deed vide vasika no.1262 dated 09.08.2011 along with Translation, which are Annexure A16 & A-16T to this OA. Documents executed: DP Notes, Hypothecation- Cum- Loan Agreement, Deed of Guarantee, Letter of Declaration, Undertaking & Authority, Agreement all dated 11.08.2011, which are Annexures A4 to A8, A12 to A15 to this OA; Acknowledgment Debt dated 08.08.2014, 09.08.2014, 02.08.2017, 15.11.2019, which are Annexure A17 to this OA; Recall Notice dated 26.11.2020, 11.01.2021, which is Annexure A18 to this OA; Legal Notice dated 28.05.2021, with postal receipts, which is Annexure A19 to this OA; Legal Notice dated 05.07.2025, with postal receipts, which is Annexure A20 to this OA; Statement of Accounts which are Annexures A20 & A21 to this OA.

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3 OA/913/2025 BANK OF INDIA VS. NIRMAL SINGH AND OTHERS .

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there were debit of Rs.40,03,675.00, 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 12.01.2026.

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In support of the OA, affidavit of Sh. Ajit Singh Dadwal, Chief Manager, Bank of India has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by proxy counsel 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 facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.40,03,675.00 (Rupees Forty Lacs Three Thousand Six Hundred Seventy Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest and half yearly rests in KCC and @11.70%p.a. with 2% penal interest and half yearly rests in AGOD from 25.06.2025 till the 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

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4 OA/913/2025 BANK OF INDIA VS. NIRMAL SINGH AND OTHERS .

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instant case including nature of the mortgaged property/hypothecated assets, 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 @8.00%p.a. in both the loans 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.40,03,675.00 (Rupees Forty Lacs Three Thousand Six Hundred Seventy Five Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 hypothecated assets/ mortgaged properties 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.

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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 09.03.2026.

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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: 23.02.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Nirmal Singh and Others

Case brief

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Bank of India v. Sh. Nirmal Singh and Others

Case brief

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