The Debt Recovery Tribunal allowed the applicant bank's application for recovery of a loan debt of Rs. 24,70,974. The court exercised discretion to fix interest at 8% per annum and directed recovery from mortgaged properties.
Recovery Certificate issued; Defendant ordered to pay Rs. 24,70,974 with interest at 8% p.a. recoverable from sale of mortgaged properties.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1320/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.08.2025
DATE OF DECISION: 20.12.2025
Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its Head Office, at Markfed Road Kapurthala (Pb) and having its branches at different places including one at Dhilwan, District Kapurthala (PB) through its Constituted Attorney/Branch Head Sh. Randhir Singh.
……..Applicant Versus Sh. Dalbir Singh S/o Resham Singh, resident of Village Dhaliwal, District Kapurthala (PB). ….……Defendant Advocates: Argued by Sh. Bhushan Bhatia, Advocate for applicant (through VC) Defendant already ex parte
FINAL ORDER 1. 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.24,70,974.00 (Rupees Twenty Four Lacs Seventy Thousand Nine Hundred Seventy Four Only). The Original Application has been filed Sh. Randhir Singh, Constituted Attorney/Branch Head 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. 2. The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.9.75 Lacs vide Loan Application dated 25.05.2011, which is Annexure A2 to this OA. Thereafter, the approached the applicant for Term Loan of Rs. 1.00 Lac for Debt Swap.
2 OA/1320/2025 PUNJAB GRAMIN BANK VS. DALBIR SINGH
Mortgage deed bearing vasika no. 1120 dated 19.02.2010 for land measuring 8K-11M situated at Village Dhaliwal Bet, District Kapurthala, Punjab is filed as Annexure A5. However, the same pertains to loan of Rs. 22.00 Lacs and no relief for any loan sanctioned for Rs. 22.00 Lacs is claimed by the applicant in this OA.
Documents executed: Hypothecation agreement dated 28.05.2011, which is Annexure A4 to this OA; Notice dated 04.08.2025, which is Annexure A6 to this OA; BC Letters dated 24.02.2023, 27.11.2020, 22.02.2018, 21.11.2015, 30.11.2013, 09.01.2025 and 01.09.2022, which are Annexures A7, A7/1 to this OA and Statement of account along with certificate, which is Annexure A8 to this OA. 5. 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.24,70,974.00, which is recoverable and the defendant was served recall notices 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 exparte on 28.11.2025.
3 OA/1320/2025 PUNJAB GRAMIN BANK VS. DALBIR SINGH
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/hypothecated assets, 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
4 OA/1320/2025 PUNJAB GRAMIN BANK VS. DALBIR SINGH
realization of the amount ordered vide this final order. It is ordered accordingly.
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 08.01.2026. 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.
Pronounced by me in the open Tribunal . Dated: 20.12.2025.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the debt recovery tribunal was justified in allowing the application for recovery of the outstanding loan amount.
Whether the tribunal had the discretion to fix a uniform simple interest rate lower than what was claimed by the applicant.
2 provisions across 2 enactments
Punjab Gramin Bank
Dalbir Singh
Mridulesh Kumar Singh
As recorded by the court registry
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