Allowed

Indian Bank v. Smt. Harpreet Kaur and Another

DRT12 Mar 2026OA/945/2025

Case brief

AI extract

What is this about?

Indian Bank filed an Original Application under Section 19 RDB Act for recovery of Rs.49,03,564 from borrowers of a housing loan who failed to pay dues. The tribunal heard the application ex parte, found the case proved, and allowed it, directing the defendants to pay the principal plus uniform simple interest at 8% p.a.

What did the court decide?

Defendants directed to pay Rs.49,03,564 with costs and simple interest at 8% p.a.; recovery certificate issued; enforcement via sale of mortgaged or personal assets permitted.

Indian Bank versus Smt. Harpreet Kaur and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.945/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.07.2025

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DATE OF DECISION: 12.03.2026

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Indian Bank, a Body Corporate, constituted under The Banking Companies Acquisition and Transfer of Undertaking Act 1970, having its Corporate Office at PB No.5555, 254-260, Royapettah, Chennai and its branches throughout India and amongst other branches one of its Branch Office at Bhai Randhir Singh Nagar Branch, Ludhiana through its Constituted Attorney/Authorized Officer Ms. Tamanna Soni, Branch Manager, Indian Bank, Bhai Randhir Singh Nagar Branch, Ludhiana and who is also the principal officer of the Plaintiff/ Applicant.

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……..Applicant Versus

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Smt. Harpreet Kaur W/o Sh. Ranbir Singh, R/o House no. B-XXI5850/, Street no.1, Shimla Puri, Ludhiana- 141003.

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Sh. Ranbir Singh s/o Sh. Nachattar Singh, R/o House no. B-XXI5850/, Street Ludhiana- 141003. no.1, Shimla Puri, Ludhiana- 141003

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……….Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for the applicant Defendants are ex-parte vide order dated 07.01.2026.

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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.49,03,564.00 (Rupees Forty Nine Lacs Three Thousand Five Hundred Sixty Four only). The Original Application has been filed through Ms. Tamanna Soni, Branch Manager, of the applicant, who is competent to institute the Original Application vide Letter of Authority by Sh. Vikram Singh, Chief Manager dated 01.07.2025, which is Annexure A2 to this OA; Power of Attorney of Sh. Vikram Singh, Chief Manager dated 20.06.2022, which is Annexure A1 to this OA.

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OA NO. 945/2025 INDIAN BANK VS. HARPREET KAUR AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Housing Loan of Rs.25.00 Lacs vide loan application 19.12.2019, which is Annexure A3 to this OA. Thereafter, the defendants approached the applicant for Top-Up Home Loan (Home Loan Plus) of Rs.17.00 Lacs.

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The applicant sanctioned Housing Loan of Rs.25.00 Lacs vide sanction letter dated 21.01.2020, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. The applicant also sanctioned a loan of Rs.35,290.00 for paying Insurance Premium for coverage of Home Loan. Thereafter, the applicant sanctioned Top-Up Home Loan (Home Loan Plus) of Rs.17.00 Lacs vide sanction letter dated 28.02.2020, which is Annexure A14 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged her immovable property i.e. House measuring 202 sq. yards situated at Village Gill-2, Had bast No.263, Tehsil and District Ludhiana, Punjab through equitable mortgage of Transfer deed bearing vasika no. 11272 dated 20.03.2017, along with its translation, which is Annexure A11 to this OA; Correction deed no. 2019-20/103/1/11278 dated 24.12.2019, along with its translation, which is Annexure A12 to this OA; Letter dated 09.03.2020 regarding confirmation of creation of equitable mortgage, which is Annexure A13 to this OA; Letter dated 16.03.2020 regarding confirmation of extension of equitable mortgage, which is Annexure A19 to this OA. Documents executed: Joint and several demand promissory note, term loan agreement, letter of authority, Declaration by borrowers on details of relatives etc., Joint and several demand promissory note, term loan agreement all dated 12.02.2020, which are Annexures A5 to A10 to this OA; DP Note, Term loan agreement, Declaration by borrowers on details of relatives etc., all dated 09.03.2020, which are Annexures A15, A16 and A18 to this OA; Details of family members of borrower/guarantor, which is Annexure A17 to this OA; Letter of acknowledgement of debt dated 03.02.2023, 02.02.2023, which are Annexures A20 to A22 to this OA and Statement of accounts, which are Annexures A23 to A25 to this OA.

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OA NO. 945/2025 INDIAN BANK VS. HARPREET KAUR AND ANOTHER

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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 was a debit of Rs.49,03,564.00, 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 07.01.2026.

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In support of the OA, affidavit of Ms. Tamanna Soni, Branch Manager, Indian Bank has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned 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 A25 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 bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts 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.49,03,564.00 (Rupees Forty Nine Lacs Three Thousand Five Hundred Sixty Four 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.65%p.a. with 2% penal interest and half yearly rests from 16.07.2025 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 instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising

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OA NO. 945/2025 INDIAN BANK VS. HARPREET KAUR AND ANOTHER

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the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in all 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.49,03,564.00 (Rupees Forty Nine Lacs Three Thousand Five Hundred Sixty Four only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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/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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.04.2026. 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: 12.03.2026.

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

Indian Bank v. Smt. Harpreet Kaur and Another

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Indian Bank v. Smt. Harpreet Kaur and Another

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