Allowed

Punjab Gramin Bank v. Sh. Suba Singh

DRT21 Oct 2025OA/1113/2025

Case brief

AI extract

What is this about?

In an ex-parte disposal of anOriginal Application filed under Section 19 of the RDB Act, 1993, the Tribunal declared the defendant liable to pay Rs. 22,95,414.00. The Tribunal exercised its discretion to grant uniform simple interest at 8% p.a. from the filing date and allowed the recovery of dues from mortgaged properties under the SARFAESI Act.

What did the court decide?

Recovery of Rs.22,95,414.00 with costs and simple interest @08.00%p.a. from the date of filing of the OA; entitlement to realize from sale of mortgaged properties under SARFAESI Act,

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1113/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2025

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DATE OF DECISION: 21.10.2025

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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 Dharamkot, Distt. Moga (Punjab) through its Constituted Attorney/Branch Head Sh. Mandhir Singh.

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……. Applicant

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Versus

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Sh. Suba Singh S/o Avtar Singh, resident of village Bakerwale, Tehsil Dharamkot and Distt. Moga (PВ). …….

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Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) 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 defendant for recovery of Rs.22,95,414.00p (Rupees Twenty Two Lacs Ninety Five Thousand Four Hundred Fourteen Only). The Original Application has been filed through Sh. Mandhir Singh, Constituted Attorney/Branch Head of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached

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the applicant for grant of KCC Limit of Rs.14.50 Lacs vide Loan Application dated 22.01.2021, which is Annexure A2 to this OA.

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2 OA NO. 1113/2025 PUNJAB GRAMIN BANK VS SH. SUBA SINGH

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3. The applicant sanctioned KCC Limit of Rs.14.50 Lacs vide
Sanction dated 24.03.2021, which isAnnexure A3to this OA.
4. Defendant had mortgaged her immovable properties i.e. Land
measuring 39K-06M detailed as under: -
(i) Land measuring 12K-03M situated at Village Said-Jalalpur, Tehsil Dharamkot, District Moga, Punjab. (ii) Land measuring 27K-03M situated at Village Baker-Wala, Tehsil
Dharamkot, District Moga, Punjab vide Declaration U/s 4(1) dated 24.03.2021, which isAnnexure A5to this OA.
Documents executed: - Hypothecation agreement dated
06.04.2021, which isAnnexure A4to this OA; Notice dated
20.01.2025, which isAnnexure A6to this OA; BC Letter dated
07.11.2023, which isAnnexure A7to this OA and Statement of
Account along with certificate by the Officer Incharge of Computer
System, which isAnnexure A8to this OA.
5. The loan accounts became irregular and was classified as NPA
and after adjusting debit and credit entries in loan account there was a debit of Rs.22,95,414.00p, which is recoverable and the defendant 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.
6. The defendant was served notices to appear before this Tribunal
but no one appeared on behalf of defendant and he was proceeded ex- parte on 15.10.2025.
7. In support of the OA, affidavit of Sh. Mandhir Singh, Constituted
Attorney/Branch Manager, Punjab Gramin Bank,has been filed.
8. Heard ex-parte arguments and perused record.
9. 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

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3 OA NO. 1113/2025 PUNJAB GRAMIN BANK VS SH. SUBA SINGH

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of all the Annexures A1 to A8 to this OA, it is proved that the defendant 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 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,95,414.00p (Rupees Twenty Two Lacs Ninety Five Thousand Four Hundred Fourteen Only) along with interest from the defendant, 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 @11.00%p.a. with 2% penal interest from 01.07.2025 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 defendant, 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 @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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.22,95,414.00p (Rupees Twenty Two Lacs Ninety Five Thousand Four Hundred Fourteen 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

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4 OA NO. 1113/2025 PUNJAB GRAMIN BANK VS SH. SUBA SINGH

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shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. 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 31.10.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 21.10.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Suba Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Suba Singh

Case brief

What is this about?

What did the court decide?

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