Allowed

Punjab Gramin Bank v. Sh. Avtar Singh and Another

DRT28 Oct 2025OA/1069/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab Gramin Bank for recovery of Rs. 22.96 lacs. The court ruled the defendants liable to pay the principal amount along with uniform simple interest at 8.00% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Deemed liable to pay Rs. 22,96,909.76 with costs and simple interest at 8% p.a. from filing; Recovery Certificate issued.

Punjab Gramin Bank versus Sh. Avtar Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1069/2025

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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: 28.10.2025

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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 Marked Road, Kapurthala (Punjab) and having its branches at different places including one at B.O. Kot Budha, Tehsil Patti, Distt Tarn Taran (Punjab) through its Authorized Representative Sh. Rajan Koral.

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……..Applicant

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Versus

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Sh. Avtar Singh s/o Sh. Sewa Singh, R/o Village Jhuggian Noor Mohammad, Tehsil Patti, District Tarn Taran (Punjab.).

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Sh. Sewa Singh s/o Sh. Balwant Singh, R/o Village Jhuggian Noor Mohammad, Tehsil Patti, District Tarn Taran (Punjab.).

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….……Defendants

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Advocates:

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Present: Ms. Seerat Sharma, Advocate proxy for Sh. Ankit Kaushal, Advocate for Applicant

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Defendants 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.22,96,909.76p (Rupees Twenty Two Lacs Ninety Six Thousand Nine Hundred Nine & Seventy Six Paise Only). The Original Application has been filed through Sh. Rajan Koral, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney

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dated 22.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for KCC Limit of Rs. 9.50 Lacs vide Loan application dated 28.05.2013, which is Annexure A2 to this OA.

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2 OA NO. 1069/2025

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PUNJAB GRAMIN BANK VS. SH. AVTAR SINGH AND ANOTHER

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The applicant sanctioned the KCC Limit of Rs. 9.50 Lacs vide Sanction letter dated 28.05.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable property i.e. Land measuring 21Kanal-11Marla situated at Village Ghuggian Nur, Tehsil Patti, District Tarn Taran, Punjab vide Mortgaged deed bearing vasika no. 645 dated 02.08.2013, which is Annexure A5 to this OA. Documents executed : - Hypothecation agreement dated 07.09.2013 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; Notice dated 22.02.2024, which is Annexure A8 to this OA; Balance and Security Confirmation letters dated 08.01.2016, 07.03.2018, 16.06.2020 & 15.06.2023, which are Annexures A9 to A12 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.22,96,909.76p, 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 22.10.2025. 7. In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank, has been filed. 8. Matter was listed for ex-parte arguments on 24.10.2025 wherein the learned proxy counsel for applicant prayed for adjournment. The prayer was declined as there was no ground to adjourn. Perused record. 9. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed

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OA NO. 1069/2025

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PUNJAB GRAMIN BANK VS. SH. AVTAR SINGH AND ANOTHER

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all the relevant documents in favour of the applicant. 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.22,96,909.76p (Rupees Twenty Two Lacs Ninety Six Thousand Nine Hundred Nine & Seventy Six Paise Only) with interest from the defendants, jointly and severally, 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 @13.00%p.a. with penal interest of @2% p.a. from 01.08.2025 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 just and appropriate to grant uniform simple interest @8.00%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.

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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.22,96,909.76p (Rupees Twenty Two Lacs Ninety Six Thousand Nine Hundred Nine & Seventy Six Paise 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 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

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OA NO. 1069/2025

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PUNJAB GRAMIN BANK VS. SH. AVTAR SINGH AND ANOTHER

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.11.2025.

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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 .

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Dated: 28.10.2025.

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

Punjab Gramin Bank v. Sh. Avtar Singh and Another

Case brief

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Punjab Gramin Bank v. Sh. Avtar Singh and Another

Case brief

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