Allowed

Punjab Gramin Bank v. Sh. Mangal Singh and Another

DRT1 Nov 2025OA/1378/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 23,49,776.85 plus interest at 8% p.a. from two borrowers who defaulted on KCC and term loans, ordering a recovery certificate and execution against mortgaged assets.

What did the court decide?

Recovery of Rs. 23,49,776.85 with interest at 8% p.a. granted via recovery certificate; enforceable against mortgaged and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1378/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.11.2024

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DATE OF DECISION: 01.11.2025

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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 (Pb) and having its branches at different places including one at B.O. Kot Budha, Tehsil Patti, District Tarn Taran (Pb) through its Authorized Representative Sh. Rajan Koral.

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……..Applicant Versus 1. Sh. Mangal Singh s/o Swaran Singh, R/o VPO Kot Nauabad, Tehsil Patti, District Tarn Taran, Punjab.

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Sh. Gurtej Singh s/o Mangal Singh, R/o VPO Kot Nauabad, Tehsil Patti, District Tarn Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant (through VC)

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,49,776.85p (Rupees Twenty Three Thousand Forty Nine Hundred Seven Hundred Seventy Six & Eighty Five 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 dated 22.01.2021, which is Annexure A1 to this OA.

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2 OA NO.1378/2024 PUNJAB GRAMIN BANK VS SH.MANGAL SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no. 1 approached the applicant for the grant of KCC Limit of Rs. 12.75 Lacs and Agri Term Loan of Rs.1.50 Lacs vide Loan applications dated 05.02.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 12.75 Lacs & Agri Term Loan of Rs.1.50 Lacs vide Sanction letters dated 05.02.2016, which is Annexure A3 to this OA.

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Defendant no.1 had mortgaged his immovable properties i.e. Land measuring 41Kanal-02 Marla situated in village Kot Nau Abad, Hadbast no. 192, Tehsil Patti, District Ludhiana, Punjab vide declaration u/s 4(1) dated 17.02.2016, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation agreement dated 16.03.2016, which is Annexure A4 to this OA; Statement of Accounts along with Certificate by Officer in charge of the Computer System, which are Annexures A6 & A7 to this OA; Notice dated 19.01.2022, which is Annexure A8 to this OA and Security Confirmation Letters dated 29.11.2018 27.03.2018 09.07.2020 A26.11.2021, which are Annexures A9 to A12 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.23,49,776.85p 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.

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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 03.09.2025. 7. In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank, has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA NO.1378/2024

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PUNJAB GRAMIN BANK VS SH.MANGAL SINGH AND ANOTHER

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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 of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,49,776.85p (Rupees Twenty Three Thousand Forty Nine Hundred Seven Hundred Seventy Six & Eighty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ 12.50% p.a. with 2% penal interest in KCC & interest @ 13% p.a. with 2% penal interest in Term Loan with yearly rests from 12.11.2024 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/hypothecated assets, undertaking of the defendants, quantum of loans 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 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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4 OA NO.1378/2024 PUNJAB GRAMIN BANK VS SH.MANGAL SINGH AND ANOTHER

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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.23,49,776.85p (Rupees Twenty Three Thousand Forty Nine Hundred Seven Hundred Seventy Six & Eighty Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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 mortgaged properties/hypothecated assets of the defendants 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 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 12.11.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 01.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Mangal Singh and Another

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What is this about?

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Punjab Gramin Bank v. Sh. Mangal Singh and Another

Case brief

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