Allowed

Union Bank of India v. Sh. Mohan Singh and Another

DRT13 Jan 2026OA/941/2024

Case brief

AI extract

What is this about?

The DRT allowed an application by Union Bank of India against two borrowers for recovery of Rs.37,79,703.60 after default on a KCC account. The court sanctioned pending interest at 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Defendants liable to pay Rs.37,79,703.60 with interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI or attachment.

Union Bank of India versus Sh. Mohan Singh and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.941/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.07.2024

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DATE OF DECISION: 13.01.2026

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Union Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Central office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai 400021 and one of its Branch Offices at Khanna Branch, District Ludhiana, Punjab, through its Branch Manager, Sh. Pankaj Kumar.

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……..Applicant

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Versus

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Sh. Mohan Singh S/o Sh. Amar Singh R/o H. No. 193, Village Badla, Tehsil Khamano (Khanna) District Ludhiana, Punjab.

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Sh. Harpreet Singh S/o Rajinder Singh, R/o House no. L-31, Street no. 2, Ward no. 4, GTB Nagar, Khanna.

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….……Defendants

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Advocates:

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Argued by Sh. Ravi Mishra, Advocate proxy for Sh. Karan Singla, Advocate for applicant (through VC)

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Defendants already ex parte vide order dated 06.12.2025

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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.37,79,703.60 (Rupees Thirty Seven Lacs Seventy Nine Thousand Seven Hundred Three & Paise Sixty Only). The Original Application has been filed through, Sh. Pankaj Kumar, Branch manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 08.07.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of KCC of Rs. 11.00 Lacs vide loan application dated 10.01.2012, which is Annexure A2 to this OA and for its enhancement to Rs.20.00 Lacs vide loan application dated

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OA NO.941/2024 UNION BANK OF INDIA VS. MOHAN SINGH AND ANOTHER

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07.02.2013, which is Annexures A3 to this OA and again for its enhancement to Rs. 30.00 Lacs vide loan application, which is Annexures A4 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned the enhancement of the KCC Limit to Rs. 30.00 Lacs vide sanction letter dated 03.02.2016, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged his immovable properties i.e. measuring 52K-10M i.e. 6.56acres, situated at Village Badla, Tehsil Khamanon, District Sri Fatehgarh Sahib, Punjab vide mortgage deed bearing vasika no. 2263 dated 10.02.2012, bearing vasika no. 2478 dated 22.02.2013, along with translations, which are Annexures A14 and A15 to this OA; Jamabandi for the year 2017-18, along with translation, which is Annexure A16 to this OA.

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Documents executed: Composite agreements 14.02.2012, 01.03.2013 and 20.02.2016, which are Annexures A6 to A8 to this OA; Demand Promissory note dated 16.11.2021, which is Annexure A9 to this OA; Property statement, which is Annexure A10 to this OA; Revival letter dated 16.02.017, which is Annexure A11 to this OA; General form of guarantee dated 01.03.2013 & 20.02.2016, which are Annexures 12 & A13 to this OA; Debit balance confirmation dated 16.11.2021, which is Annexure A17 to this OA; Notice dated 16.01.2024, which is Annexure A18 to this OA and statement of account with banker certificate, which is Annexure A19 to this OA. 5. 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.37,79,703.60, 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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OA NO.941/2024 UNION BANK OF INDIA VS. MOHAN SINGH AND ANOTHER

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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 06.12.2025.

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In support of the OA, affidavit of Sh. Pankaj Kumar, Branch manager, Union 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 proxy 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 bank. 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.37,79,703.60 (Rupees Thirty Seven Lacs Seventy Nine Thousand Seven Hundred Three & Paise Sixty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. with quarterly rests from 01.06.2024 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 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 uniform simple interest

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OA NO.941/2024 UNION BANK OF INDIA VS. MOHAN SINGH AND ANOTHER

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@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 a total sum of Rs.37,79,703.60 (Rupees Thirty Seven Lacs Seventy Nine Thousand Seven Hundred Three & Paise Sixty 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/hypothecated assets of 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.01.2026. 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: 13.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Sh. Mohan Singh and Another

Case brief

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Union Bank of India v. Sh. Mohan Singh and Another

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