Allowed

Bank of India v. Sh. Bakhshish Singh And Another

DRT13 Apr 2026OA/924/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Bank of India's application for recovery of Rs.62.92 lakhs against two borrowers and a guarantor. The Tribunal directed payment of principal and simple interest at 8% p.a., allowing enforcement via sale of mortgaged or personal assets.

What did the court decide?

Directing defendants to pay Rs.62,92,177 with 8% simple interest; effective recovery via sale of mortgaged/hypothecated or personal assets; Recovery Certificate issued.

Bank of India versus Sh. Bakhshish Singh And Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 924/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.07.2023

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DATE OF DECISION: 13.04.2026

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 with its Head Office at Star House, C-5, G-Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and one of its branches, at Khanna, District Ludhiana, through Sh. Suresh Kumar, Chief Manager, Bank of India, Khanna, District Ludhiana, its Principal Officer and Constituted Attorney.

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……..Applicant

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Versus

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Sh. Bakhshish Singh S/o Sh. Sadha Singh R/o House No. 184, Village Badinpur, Tehsil Amloh, District Fatehgarh Sahib.

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Sh. Tejinder Singh S/o Sh. Sadha Singh R/o House No. 184, Village Badinpur, Tehsil Amloh, District Fatehgarh Sahib.

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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) None for Defendants (already ex parte vide order dated 18.02.2026).

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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.62,92,177.00 (Rupees Sixty Two Lacs Ninety Two Thousand One Hundred Seventy Seven Only). The Original Application has been filed through Sh. Suresh Kumar, Chief Manager 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/924/2023

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BANK OF INDIA VS. SH. BAKHSHISH SINGH AND ANOTHER

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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.48.00 Lacs vide Loan Application dated 10.12.2014, which is Annexure A2 to this OA. Defendant No. 2 stood as Guarantor.

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The applicant sanctioned the KCC Limit of Rs.48.00 Lacs vide Letter of Sanction dated 16.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 1 mortgaged his immovable property i.e. Total Land measuring 28 Kanal 00 Marla, situated at Village Badinpur, Hadbast No. 8, Tehsil Amloh, District Ludhiana, vide Declaration u/s 4(1) of Punjab Agriculture Credit Operation and Misc. Provision (Banks) Act 1978, dated 12.12.2014, along with its Translation, which are Annexures A11 & A12 to this OA.

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Documents executed: Demand Promissory Note, DP Note, Deed of Hypothecation Cum Loan Agreement, Composite Document, Declaration to be obtained from Borrower , Undertaking and Authority Letter, Agreement of Hypothecation of Standing Crops to Secure Demand Cash Credit, Agreement of Guarantee, all dated 16.12.2014, which are Annexures A4 to A10 to this OA; Agreement of Guarantee dated 16.12.2014, which is Annexure A13 to this OA; Letter of Acknowledgement of Debts and Securities dated 30.11.2017 and 11.11.2020, which are Annexures A14 & A15 to this OA; Legal Notice dated 30.06.2023 with Postal Receipts, which are Annexures A16 to A18 to this OA; Statement of account with Certificate, which is Annexure A19 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.62,92,177.00 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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3 OA/924/2023

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BANK OF INDIA VS. SH. BAKHSHISH SINGH AND ANOTHER

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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 18.02.2026.

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In support of the OA, affidavit of Sh. Suresh Kumar, 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 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 A19 to this OA, it is proved that the defendants approached applicant for availing of the loan facility, which was 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 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.62,92,177.00 (Rupees Sixty Two Lacs Ninety Two Thousand One Hundred Seventy Seven 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.60% p.a. with half yearly rests from 16.07.2023 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 simple interest @8.00%

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4 OA/924/2023 BANK OF INDIA VS. SH. BAKHSHISH SINGH AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.62,92,177.00 (Rupees Sixty Two Lacs Ninety Two Thousand One Hundred Seventy Seven 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 property/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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.05.2026 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: 13.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Bakhshish Singh And Another

Case brief

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Bank of India v. Sh. Bakhshish Singh And Another

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