Allowed

Punjab Gramin Bank v. Late Sh. Nirmal Singh Since Deceased through Lrs

DRT18 Oct 2025OA/1035/2025

Case brief

AI extract

What is this about?

In an ex-parte disposal, the Debt Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act for recovery of an NPA loan. The court modified the claimed interest rate to 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Application allowed; Recovery Certificate issued; Defendants ordered to pay Rs. 31,55,593.00 with costs and simple interest at 8% p.a. from the date of filing the application.

Punjab Gramin Bank versus Late Sh. Nirmal Singh Since Deceased… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1035/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.07.2025

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DATE OF DECISION: 18.10.2025

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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 Markfed Road Kapurthala (Punjab) and having its branches at different places including one at Bhullana (RCF), District Kapurthala, (Punjab) through its Constituted Attorney/Manager Sh. Sumit Bagga.

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……..Applicant Versus

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Sh. Nirmal Singh S/o Sh. Banta Singh

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since deceased through LRs:

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a. Sh. Baldev Singh S/o Sh. Nirmal Singh (Son)

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b. Sh. Makhan Singh S/o Sh. Nirmal Singh (Son)

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Address: House No.137, Village Razapur, PO Khanowal, District Kapurthala, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through

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VC)

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Defendants already ex-parte

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FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act,1993, against the defendants for recovery of Rs.31,55,593.00p (Rupees Thirty One Lacs Fifty Five Thousand Five Hundred Ninety Three Only). The Original Application has been filed through Sh. Sumit Bagga, constituted Attorney/Branch Manager, of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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OA NO.1035/2025 PUNJAB GRAMIN BANK Vs SH. NIRMAL SINGH SINCE DECEASED THROUGH LRs

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The brief facts of the OA that the defendant (since deceased) had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide Loan Application dated 05.12.2011, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs vide Letter of Sanction dated 05.12.2011, which is Annexure A3 to this OA. and the terms and conditions were duly accepted by the defendant (since deceased).

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Defendant (since deceased) had mortgaged his immovable properties i.e. total land measuring 11K-½M situated at Village Razapur, PO Khanowal, District Kapurthala, Punjab vide Mortgage Deed bearing vasika no.3766 dated 12.12.2011, which is Annexures A5 to this OA.

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Documents executed:- Hypothecation agreement dated 22.12.2011, which is Annexure A4 to this OA; Notice dated 20.11.2023, which is Annexure A6 to this OA; BC Letters dated 27.11.2014, 22.03.2017, 05.03.2020, 30.06.2022 & 19.02.2025, which are Annexures A7, A7/1 , A7/2 & A7/3 to this OA and Statement of account along with Certificate, which is Annexure A8 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.31,55,593.00p, which is recoverable and the defendant (since deceased) was served recall notice but he 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 defendant nos. 1(a) and 1(b) i.e. legal heirs of Sh. Nirmal

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Singh were served notices to appear before this Tribunal but no one appeared on their behalf and they were proceeded ex-parte on 22.09.2025.

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3 OA NO.1035/2025 PUNJAB GRAMIN BANK Vs SH. NIRMAL SINGH SINCE DECEASED THROUGH LRs

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In support of the OA, affidavit of Sh. Sumit Bagga, constituted Attorney/Senior Manager, Punjab Gramin Bank, h as been filed.

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Heard ex-parte arguments and perused record.

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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 A8 to this OA, it is proved that the defendant (since deceased) approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant (since deceased) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,55,593.00p (Rupees Thirty One Lacs Fifty Five Thousand Five Hundred Ninety Three Only) along with interest from the legal heirs of the deceased defendant i.e. from defendant no. 1(a) and 1(b), from the date of filing of the present Original Application till realization of the account.

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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 @ 11.50% p.a. along with 2%p.a. penal interest with half yearly rests from 01.06.2025 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, 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

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OA NO.1035/2025 PUNJAB GRAMIN BANK Vs SH. NIRMAL SINGH SINCE DECEASED THROUGH LRs

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just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that that the defendants i.e. defendant no. 1(a) and 1(b) are liable to pay to the applicant a total sum of Rs.31,55,593.00p (Rupees Thirty One Lacs Fifty Five Thousand Five Hundred Ninety Three Only) with costs, current and future simple interest @08.00%p.a. in the loan account 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. 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 30.10.2025. 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: 18.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Late Sh. Nirmal Singh Since Deceased through Lrs

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Late Sh. Nirmal Singh Since Deceased through Lrs

Case brief

What is this about?

What did the court decide?

What the court decided

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