Allowed

Bank of India v. Sh. Satpal Singh and Another

DRT9 Apr 2026OA/963/2025

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of dues of Rs. 22.84 lakhs granted ex-parte. The court held defendants liable to pay principal with 8% simple interest and authorized recovery via sale of mortgaged assets. Order based on unrebutted documentary evidence.

What did the court decide?

Recovery Certificate issued; Defendants directed to pay Rs. 22,84,401.31 plus 8% simple interest; authorities empowered to sell mortgaged assets.

Bank of India versus Sh. Satpal Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.963/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.07.2025

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DATE OF DECISION: 09.04.2026

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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, G-Block, Bandra Kurla Complex, Bandra(East), Mumbai-400051 and Branch Office amongst other places at Jagraon, District Ludhiana, through Sh. Rajesh Kumar, Branch Manager, Authorized by Applicant Bank.

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……..Applicant

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Versus

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Sh. Satpal Singh S/o Sh. Sikander Singh, R/o Village Sherpur Kalan, Tehsil Jagraon, District Ludhiana.

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Sh. Jogjiwan Singh @ Sh. Jagjiwan Singh @ Sh. Jogjeewan Singh S/o Sh. Gurmail Singh, R/o Village Sherpur Kalan, Tehsil Jagraon, 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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None for Defendants (Already ex-parte vide order dated 06.04.2026)

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.22,84,401.31 (Rupees Twenty Two Lacs Eighty Four Thousand Four Hundred One and Paise Thirty One Only). The Original Application has been filed through Sh. Rajesh Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 10.06.2025, which is Annexure A1 to this OA.

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OA NO.963/2025 BANK OF INDIA VS SH. SATPAL 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 Kisan Cash Credit Limit of Rs.10.00 Lacs vide Application form for agriculture credit dated 06.05.2014, which is Annexure A2 to this OA. Thereafter, the Defendant no.1 approached the applicant for grant of Agriculture Overdraft Limit of Rs.10.00 Lacs vide Loan Application dated 07.05.2014, which is Annexure A9 to this OA;

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The applicant sanctioned the Cash Credit Limit of Rs. 10.00 Lacs and Agriculture Overdraft Limit of Rs.10.00 Lacs vide Sanction Letters dated 30.05.2014, which are Annexures A3 & A10 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no.1 mortgaged his immovable property i.e., Total Land Measuring 32 Kanals 00 Marla as per Jamabandi for the year 20122013 situated at Village Sherpur Kalan, Tehsil Jagraon, District Ludhiana vide Registered Mortgaged Deed vide Wasika No. 567 dated 17.05.2014 along with Translation, which are Annexures A15 & A15(T) to this OA;

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Documents executed: Demand Promissory Note, Hypothecation Cum Loan Agreement, Letter of Declaration, Undertaking & Authority, L- 516, all dated 30.05.2014, which are Annexures A4 to A7 to this OA; Deed of Guarantee dated 30.05.2014 which is Annexure A14 to this OA; Demand Promissory Note, Letter of Declaration, Undertaking & Authority, L-516, Deed of Guarantee, all dated 06.06.2014, which are Annexures A11 to A13 to this OA; Deed of Guarantee dated 06.06.2014 which is Annexure A8 to this OA; Acknowledgement of Debt/securities dated 16.05.2017, 19.09.2019, 13.09.2022, 18.03.2025, which are Annexure A16(Colly) to this OA, Recall Notice date 15.09.2023 along with postal receipts, which is Annexure A17 to this OA; Legal Notice dated 03.06.2019, 05.09.2019, 21.12.2023, 30.05.2025, which are Annexures A18 & A19 to this OA; Statement

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OA NO.963/2025 BANK OF INDIA VS SH. SATPAL SINGH AND ANOTHER

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of Accounts along with certificate, which are Annexures A20 & A21 to this OA; 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.22,84,401.31 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 06.04.2026.

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In support of the OA, affidavit of Sh. Rajesh Kumar, Branch Manager Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendants approached applicant bank 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 loan 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, it is proved that applicant bank is entitled to recover a sum of Rs.22,84,401.31 (Rupees Twenty Two Lacs Eighty Four Thousand Four Hundred One and Paise Thirty One 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 @10.35%p.a. with half yearly rests in KCC Limit and interest

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OA NO.963/2025 BANK OF INDIA VS SH. SATPAL SINGH AND ANOTHER

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@11.60% with half yearly rests in Agriculture Overdraft Limit with penal interest @2% in both the accounts from 25.07.2025 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 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 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.22,84,401.31 (Rupees Twenty Two Lacs Eighty Four Thousand Four Hundred One and Paise Thirty One Only), jointly and severally, with costs, current and future simple interest @8.00%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 assets/mortgaged property of 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.

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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

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Tribunal on 29.04.2026.

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OA NO.963/2025 BANK OF INDIA VS SH. SATPAL SINGH AND ANOTHER

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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. Pronounced by me in the open Tribunal . Dated: 09.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Sh. Satpal Singh and Another

Case brief

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Bank of India v. Sh. Satpal Singh and Another

Case brief

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