Allowed

Punjab Gramin Bank v. Smt. Rajwant Kaur and Another

DRT19 Sept 2025OA/1005/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application by Punjab Gramin Bank to recover a principal sum of Rs. 45 Lacs from two defendants who defaulted on agricultural loans. The defendants did not appear. The court reduced the claimed interest rate and directed enforcement via sale of mortgaged property under SARFAESI.

What did the court decide?

Recovery of principal sum of Rs. 45,85,980.39 p plus simple interest at 8% p.a. from the sale of mortgaged and personal properties.

Punjab Gramin Bank versus Smt. Rajwant Kaur and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1005/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2024

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DATE OF DECISION: 19.09.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank, Act, 1976 Act No.21, of 1976 having its head office at Jalandhar Road, Kapurthala, (Pb) and having its branches at different places including one at B.O. Bhulla Rai, Tehsil Phagwara, District Kapurthala (Pb), through its Authorized Representative Sh. Pawan Kumar.

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……..Applicant

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Versus

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Smt. Rajwant Kaur W/o Sh. Kulwant Singh

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Sh. Varinderjit S/o Sh. Kulwant Singh

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Both R/o Green Land Colony, Hadidbad, Tehsil Phagwara, District Kapurthala, Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant (through VC)

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Defendant already ex-parte

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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.45,85,980.39p (Rupees Forty Five Lacs Eighty Five Thousand Nine Hundred Eighty & Thirty Nine Paise Only). The Original Application has been filed through Sh. Pawan Kumar, Authorized Representative w ho is competent to institute the Original Application vide General Power of Attorney dated

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04.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had

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approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs

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OA NO. 1005/2024 PUNJAB GRAMIN BANK Vs SMT.RAJWANT KAUR AND ANOTHER

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and Agri. Term Loan of Rs. 4.00 Lacs vide loan application dated 16.09.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.16.00 Lacs and Agri. Term Loans of Rs. 4.00 Lacs (Rs. 3.00 Lacs and Rs. 1.00 Lac) vide Sanction Letter which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 2 had mortgaged his immovable properties i.e. total land measuring 14Kanal-04Marla situate at Village Hadidabad, Tehsil Phagwara, District Kapurthala, Punjab vide Declaration u/s 4(1) of the Punjab Agriculture Credit Operation & Miscellaneous Provision (Banks) Act, 1978 dated 05.10.2015, along with translation and Letter to Sub Registrar for creation of Bank’s Charge, which is Annexure A5 to this OA. Documents executed :- Hypothecation agreement dated 08.10.2015, which is Annexure A4 to this OA; Statement of account along with certificate by officer In charge of the computer system, which are Annexures A6 & A7 to this OA; Balance and Security Confirmation letters dated 05.01.2018, 22.06.2020, & 14.12.2022, which are Annexures A8 to A16 to this OA.

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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.45,85,980.39p, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 09.09.2025. 7. In support of the OA, affidavit of Sh. Pawan Kumar, Authorized Representative, Punjab Gramin Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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OA NO. 1005/2024 PUNJAB GRAMIN BANK Vs SMT.RAJWANT KAUR AND ANOTHER

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It was argued by learned 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 A16 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 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.45,85,980.39p (Rupees Forty Five Lacs Eighty Five Thousand Nine Hundred Eighty & Thirty Nine Paise 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.

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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 @12.00%p.a. in KCC and Term Loans, with penal interest @2.00%p.a. with yearly rests from 01.07.2024 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, 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 @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

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OA NO. 1005/2024 PUNJAB GRAMIN BANK Vs SMT.RAJWANT KAUR AND ANOTHER

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Rs.45,85,980.39p (Rupees Forty Five Lacs Eighty Five Thousand Nine Hundred Eighty & Thirty Nine Paise 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.10.2025.

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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.

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Pronounced by me in the open Tribunal . Dated: 19.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Smt. Rajwant Kaur and Another

Case brief

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Punjab Gramin Bank v. Smt. Rajwant Kaur and Another

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