BANK OF MAHARASHTRA vs SMT. Kiran Jot and others on 19 August 2026

FINAL ORDER

1. Present Transfer Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.21,88,741.00 (Rupees Twenty One Lacs Eighty Eight Thousand Seven Hundred and Forty One Only). The Transfer Application has been filed through Sh. Puneet Chandyok, Manager of the applicant, who is competent to institute the Transfer Application vide Bank Circular dated 19.04.2022, which is Annexure A2 to this TA.

2. The brief facts of the TA are that the defendants approached the applicant for grant of Term Loan Facility for purchase of plot and construction of house of Rs.20,00,000.00.

3. The applicant sanctioned the Term Loan Facility for purchase of plot and construction of house of Rs.20,00,000.00 vide Home Loan Application Form, dated 22.01.2022, along with Sanction Letter, dated 24.01.2022, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendant nos. 1 & 2 mortgaged their Immovable Property i.e., Residential Plot measuring 80.23 Square Yards as per Jamabandi for the year 2009-10, situated at Village Lohara, Hadbast No.260, Locality known as Captain Nagar, Ludhiana, vide Sale Deed bearing Vasika No. 2020-21/103/1/12869, along with Memorandum of Record of Deposit of Title Deeds by the Borrower and Mortgagors declaration for proposed equitable mortgage, all dated 07.02.2022, which are Annexures A7 to A9 to this TA. Documents executed: Valuation Report, dated 31.07.2024, which is Annexure A1 to this TA; Demand Promissory Note, Facility Agreement for Housing Loan, Consent Letter for Unconditional Cancelability Clause, all dated 04.02.2022, which are Annexures A4 to A6 to this TA; Notice u/s 13(2) dated 03.11.2023, which is Annexure A10 to this TA; Statement of Account along with certificate, which is Annexure A11 to this TA; Mortgagors Letter of Confirmation of Equitable Mortgage, dated 11.02.2022, which is Annexure A12 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.21,88,741.00, 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.

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 17.08.2026.

7. In support of the TA, affidavit of Sh. Puneet Chandyok, Manager, Bank of Maharashtra has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned counsel for applicant 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 A12 to this TA, it is proved that the defendants approached applicant for availing of 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,88,741.00 (Rupees Twenty One Lacs Eighty Eight Thousand Seven Hundred and Forty One 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 @8.95%p.a. with monthly rests 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 @8.00%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 sum of Rs.21,88,741.00 (Rupees Twenty One Lacs Eighty Eight Thousand Seven Hundred and Forty One 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 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 defendant nos. 1 & 2 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 03.09.2026.

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: 19.08.2026

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