UNION BANK OF INDIA vs SH. TARSEM LAL AND ANOTHER on 8 July 2026

FINAL ORDER

1. Present Transfer 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.22,92,452.78 (Rupees Twenty Two Lac Ninety Two Thousand Four Hundred Fifty Two and Paise Seventy Eight Only). The Transfer Application has been filed through Sh. Madhur Tripathi, Branch Manager, of the Applicant, who is competent to institute the Transfer Application vide General Power of Attorney dated 04.07.2016, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the Defendant no.1 approached the applicant for grant of KCC Limit of Rs.10.00 Lacs vide Written Proposal dated 14.09.2011, which is Annexure A2 to this TA. Defendant no.2 stood as guarantor.

Thereafter, Defendant no.1 approached the applicant for renewal of KCC Limit of Rs.10.00 lacs vide Request Letter, which is Annexure A17 to this TA; Request Letter dated 26.09.2014, which is Annexure A26 to this TA.

Thereafter, Defendant no.1 approached the applicant for enhancement of KCC Limit from Rs.10.00 lacs to Rs.14.00 lacs vide Loan Application, which is Annexure A31 to this TA.

3. The applicant sanctioned the KCC Limit of Rs.10.00 lacs, vide Sanction Letter dated 24.09.2011, which is Annexure A9 to this TA and terms and conditions were duly accepted by the defendants.

Thereafter, the applicant sanctioned the renewal of KCC Limit of Rs.10.00 lacs, vide Sanction Letter, which is Annexure A18 to this TA; Sanction Letter dated 26.09.2014, which is Annexure A27 to this TA.

Thereafter, the applicant sanctioned the enhancement of KCC Limit from Rs.10.00 lacs to Rs.14.00 lacs, vide Sanction Letter along with Terms and Conditions (Colly), which is Annexure A32 to this TA.

4. Defendant no. 1 mortgaged his property ie. agricultural land measuring 17Kanal-16Marla situated at Village Haidrabad Bait, Hadbast no.123, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide Mortgage Deed bearing Document No. 1865 dated 21.09.2011, which is Annexure A3 to this TA, and its English Translation, which is Annexure A4 to this TA; Declaration under Section 4(1) dated 16.12.2014, which is Annexure A33 to this TA; Documents executed: Jamabandi for the year 2019-20, which is Annexure A5 to this TA, and its English Translation, which is Annexure A6 to this TA; Fard Haqiat, which is Annexure A7 to this TA, and its English Translation, which is Annexure A8 to this TA; Demand

Promissory Note dated 24.09.2011 for Rs.10,00,000/- (SD-21 I), which is Annexure A10 to this TA; Letter of Continuity dated 24.09.2011 for Rs.10,00,000/- (AD-09 Modified), which is Annexure A11 to this TA; Declaration/Undertaking (AD-01) dated 24.09.2011, which is Annexure A12 to this TA; Hypothecation Agreement (SD-07) dated 24.09.2011 for Rs.10,00,000/-, which is Annexure A13 to this TA; Agreement on Rate of Interest (Annexure-II) dated 24.09.2011, which is Annexure A14 to this TA; Simple Loan Agreement (SD-13) for Agricultural Advances dated 24.09.2011 for Rs.10,00,000/-, which is Annexure A15 to this TA; Deed of Continuing Guarantee dated 24.09.2011 for a sum of Rs.10,00,000/-, which is Annexure A16 to this TA; Demand Promissory Note dated 16.10.2012 for Rs.10,00,000/- (SD-21 I) (MCLR New), which is Annexure A19 to this TA; Letter of Continuity dated

A20 to this TA; Agreement on Rate of Interest dated 16.10.2012 for Rs.10,00,000/-, which is Annexure A21 to this TA; Debit Balance Confirmation Letter dated 16.10.2012, which is Annexure A22 to this TA; Demand Promissory Note dated 19.10.2013 for Rs.10,00,000/- (SD- 21 I), which is Annexure A23 to this TA; Letter of Continuity dated 19.10.2013 for Rs.10,00,000/- (AD-09 Modified), which is Annexure A24 to this TA; Agreement on Rate of Interest (Annexure-II) dated 19.10.2013 for Rs.10,00,000/-, which is Annexure A25 to this TA; Demand Promissory Note (SD-21 I New Format) dated 26.09.2014, which is Annexure A28 to this TA; Letter of Continuity (AD-09M) dated 26.09.2014, which is Annexure A29 to this TA; Debit Balance Confirmation and Acknowledgement dated 26.09.2014, which is Annexure A30 to this TA; Demand Promissory Note dated 22.12.2014 for Rs.14,00,000/- (SD-21 I) (MCLR New), which is Annexure A34 to this TA; Letter of Undertaking/Declaration (AD-01) dated 22.12.2014, which is Annexure A35 to this TA; Letter of Continuity dated

A36 to this TA; Hypothecation Agreement (SD-07) dated 22.12.2014 for Rs.14,00,000/-, which is Annexure A37 to this TA; Agreement on Rate of Interest dated 22.12.2014 for Rs.14,00,000/-, which is Annexure A38 to this TA; Simple Loan Agreement (SD-13) for Agricultural Advances dated 22.12.2014 for Rs.14,00,000/-, which is Annexure A39 to this TA; Letter of Undertaking from the Borrower (CIBIL) dated 22.12.2014 for Rs.14,00,000/-, which is Annexure A40 to this TA; Mortgage Deed (SD-12) (Agricultural Advances) dated 22.12.2014 for Rs.14,00,000/-, which is Annexure A41 to this TA; Deed of Continuing Guarantee dated 22.12.2014 for a sum of Rs.14,00,000/-, which is Annexure A42 to this TA; Consent Clause by the Guarantor (CIBIL) (Annexure-II) dated 22.12.2014, which is Annexure A43 to this TA; Simple Debit Balance Confirmation Letter dated 08.05.2019, which is Annexure A44 to this TA; Composite Debit Balance Confirmation dated 21.10.2021, which is Annexure A45 to this TA; Demand Promissory Note (SD-21-I) dated 29.04.2022 for Rs.14,00,000/-, which is Annexure A46 to this TA; Letter of Continuity (AD-09M) dated 29.04.2022 for Rs.14,00,000/-, which is Annexure A47 to this TA; Interest Agreement dated 29.04.2022 for Rs.14,00,000/-, which is Annexure A48 to this TA; Letter of General Lien and Set Off (AD-02A) dated 29.04.2022 for Rs.14,00,000/-, which is Annexure A49 to this TA; Letter of Confirmation dated 29.04.2022 acknowledging liability towards the Applicant Bank, which is Annexure A50 to this TA; Registered Demand Notice dated 11.06.2025, which is Annexure A51 to this TA, and Legal Notices dated 24.09.2021 and 11.07.2025 along with Postal Receipts, which are Annexure A52 (Colly) and A53 (Colly) to this TA respectively; Statement of Accounts duly signed and certified under the Bankers' Books Evidence Act and Section 63 of the B.S.A., 2023, which is Annexure A54 to this TA, and the Certificate, which is Annexure A55 to this TA.

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.22,92,452.78 (Rupees Twenty Two Lac Ninety Two Thousand Four Hundred Fifty Two and Paise Seventy Eight Only), 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.

6. 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 04.07.2026.

7. In support of the TA, affidavit of Sh. Madhur Tripathi, Branch Manager, Bank of India, has been filed.

8. Heard arguments and perused record.

9. 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 A55 to this TA, it is proved that the defendant no.1 approached the applicant for availing of the loan facility, which was granted to him. Defendant no.2 stood as guarantor. 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.22,92,452.78 (Rupees Twenty Two Lac Ninety Two Thousand Four Hundred Fifty Two and Paise Seventy Eight Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the amount.

10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.30% p.a. with half yearly rests from 01.09.2025 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 the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @08.00% p.a. in the loan account from the date of filing of the TA 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.22,92,452.78 (Rupees Twenty Two Lac Ninety Two Thousand Four Hundred Fifty Two and Paise Seventy Eight Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of TA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of mortgaged property of the 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.

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 23.07.2026

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: 08.07.2026.

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