Debts Recovery Tribunal allowed the applicant bank's application against the defendant for recovery of a loan classified as NPA. The court recognized the debt but modified the interest rate to 8% p.a., directing execution against mortgaged or personal assets.
Recovery of Rs.39,83,966.00p with simple interest @08.00%p.a. via sale of mortgaged or personal assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.126/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.01.2025
DATE OF DECISION: 02.06.2025
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 Hamira, District Kapurthala (Pb) through its Constituted attorney/Manager Sh. Manga Singh.
……..Applicant Versus
Sh. Avtar Singh S/o Sh. Ladha Singh R/o Village Lakhan Kalan, District Kapurthala (Pb)-144601.
….……Defendant
Advocates:
Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through VC) Defendant is ex parte
FINAL ORDER
2 OA NO.126-2025 PUNJAB GRAMIN BANK VS AVTAR SINGH
Documents executed:-Loan agreement dated 09.05.2016, which is Annexure A4 to this OA; Notice dated 09.01.2024, which is Annexure A6 to this OA; BC Letters dated 11.03.2022, which is Annexure A7 to this OA and Statement of account with certificate, which is Annexure A8 to this OA.
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 o 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
3 OA NO.126-2025 PUNJAB GRAMIN BANK VS AVTAR SINGH
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.39,83,966.00p (Rupees Thirty Nine Lacs Eighty Three Thousand Nine Hundred Sixty Six 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 bank in relief clause has claimed interest @11.25%p.a. with yearly rests from 08.12.2024 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 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 the defendant is liable to pay to the applicant a total sum of Rs.39,83,966.00p (Rupees Thirty Nine Lacs Eighty Three Thousand Nine Hundred Sixty Six 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 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
4
OA NO.126-2025 PUNJAB GRAMIN BANK VS AVTAR SINGH
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. 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 18.06.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 02.06.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the application for recovery of granted loan amount and accrued interest is maintainable under Section 19 of the RDBFI Act.
Whether the applicant is entitled to a uniform rate of simple interest on the outstanding amount till realization.
1 provisions across 1 enactments
Punjab Gramin Bank
Avtar Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
