Allowed

Punjab Gramin Bank v. Sh. Kashmir Singh

DRT25 Jul 2025OA/1153/2024

Case brief

AI extract

What is this about?

Order allows Original Application under RDB Act 1993. Tribunal confirms defendant liability to pay principal sum and orders uniform simple interest at 8% p.a. instead of claimed 11.50%. Directs issuance of Recovery Certificate under SARFAESI Act. Case proceeded ex parte.

What did the court decide?

Defendant liable to pay Rs.30,78,792 with interest @8% p.a. Recovery Certificate issued. Applicant entitled to recover via SARFAESI Act or attachment of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1153/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.09.2024

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DATE OF DECISION: 25.07.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act, 1976 carrying the business of Banking and having its Head Office at Markfed Road, Kapurthala and inter-alia a branch office at Village Satnampura, Tehsil Phagwara, District Kapurthala, Punjab through its Branch Manager Sh. Saurabh Bansal, duly constituted Attorney.

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……..Applicant

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Versus

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Sh. Kashmir Singh S/o Sh. Chuhar Singh R/o House No.217, Mehata, Tehsil Phagwara, District Kapurthala (Punjab).

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2^nd address: VPO Raipur Pharla, Tehsil and District Jalandhar, Punjab144401.

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….……Defendant

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Advocates:

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Argued by Sh. Varun Mittal, Advocate for the applicant

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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 bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.30,78,792.00p (Rupees Thirty Lacs Seventy Eight Thousand Seven Hundred Ninety Two Only). The Original Application has been filed through Sh. Saurabh Bansal, Branch Manager, o f the applicant, who is competent to institute the Original Application vide Power of attorney dated 25.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs & Term Loan of

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2 OA NO.1153/2024 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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Rs.5.00 Lacs vide Loan Applications dated 02.06.2014 & 21.02.2015, which are Annexures A2 & A6 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs & Term Loan of Rs.5.00 Lacs vide Sanction letters dated 12.06.2014 & 28.02.2015, which are Annexures A3 & A7 to this OA. and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage his immovable properties i.e. total land measuring 11K-5.50M situated at Village Naurangshahpur, Hadbast no. 90, Tehsil Phagwara, District Kapurthala, Punjab vide Mortgage Deed bearing vasika no.879 dated 06.06.2014, which is Annexure A4 to this OA; Rapat/Sanction of mutation dated 06.06.2014, which are Annexure A5 to this OA; Letter to Sub Registrar for creation of charge dated 13.05.2011, which is Annexure A11 to this OA; Encumbrance certificate dated 17.04.2015, which is Annexure A12 to this OA. Documents executed:- Agreement of hypothecation, Undertaking both dated 12.06.2014, which are Annexures A8 & A9 to this OA; Agreement of hypothecation dated 13.05.2015, which is Annexure A10 to this OA; Balance And Security certificate dated 31.10.2015, 01.07.2017, 28.08.2018, 12.02.2021, 20.09.2023 &, which are Annexures A13 & A14 to this OA; Recall notice dated 12.08.2024, which is Annexure A15 to this OA and Statements of accounts, which is Annexure A16 to this OA. 5. 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.30,78,792.00p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA NO.1153/2024 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 23.07.2025.

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In support of the OA, affidavit of Sh. Saurabh Bansal, Branch 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 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 defendant approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,78,792.00p (Rupees Thirty Lacs Seventy Eight Thousand Seven Hundred Ninety Two Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% with 2%p.a. with half yearly rests from 06.09.2024 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 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

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4 OA NO.1153/2024 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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just and appropriate to grant uniform simple interest @08.00%p.a. in both 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 defendant is liable to pay to the applicant a total sum of Rs.30,78,792.00p (Rupees Thirty Lacs Seventy Eight Thousand Seven Hundred Ninety Two Only) with costs, current and future simple interest @08.00%p.a. in both 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.09.2025.

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Copy of this order be given Dasti to the applicant bank 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 . Dated: 25.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Kashmir Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Kashmir Singh

Case brief

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