Allowed

Punjab Gramin Bank v. Rachpal Singh Alias Rashpal Singh

DRT1 Jul 2025OA/232/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application filed under Section 19 of the RDBFI Act, 1993. Ex-parte, the Tribunal declared the defendant liable to pay the outstanding loan amount, adjusted for the current simple interest rate, and empowered the bank to recover dues via hypothecated assets or personal assets.

What did the court decide?

Recovery certificate issued; defendant liable to pay Rs. 21,32,281.50 with simple interest at 8% p.a.; empowered to execute against mortgaged or personal assets.

Punjab Gramin Bank versus Rachpal Singh Alias Rashpal Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.232/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2025

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DATE OF DECISION: 01.07.2025.

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Punjab Gramin Bank, a body corporate constituted under the regional Rural Bank, 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. Takhtu Chak, Tehsil Khadoor Sahib, District Tarn Taran (PB) through its authorized Representatives Sh. Pankaj Makkar.

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……..Applicant Versus

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Sh. Rachpal Singh @ Rashpal Singh S/o Sh. Suba Singh R/o Village Sarli Kalan, Tehsil Khadoor Sahib, District Tarn Taran.

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….……Defendant

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Advocates:

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Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Ankit Kaushal, Advocate for the applicant Defendant is 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 Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.21,32,281.50p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Eighty One & Fifty Paise Only). The Original Application has been filed through Sh. Pankaj Makkar, Authorized Representatives o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 07.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 10.01.2015, which is Annexure A2 to this OA.

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2 OA NO.232-2025

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PUNJAB GRAMIN BANK VS RACHPAL SINGH @ RASHPAL SINGH

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3. The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs
vide Sanction letter dated 30.01.2015, which isAnnexure A3to 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 28K-3M situated atVillage Hardo Sarli, Hadbast No.118, Tehsil Khadoor Sahib, District Tarn Taran, Punjab vide Declaration u/s 4(1) dated 23.01.2025 & Letter to Tehsildar for Making of lien, with its translations,which isAnnexure A5to this OA.
Documents executed:- Copy of hypothecation agreement dated
30.01.2015,which isAnnexure A4to this OA; Notice dated
07.05.2024, Copy of statement of account along with Certificate, which areAnnexures A6 & A7to this OA; BC Letters dated 23.02.2017,
08.04.2019 & 04.04.2022, which areAnnexures A8 to A10to this OA and Copy of notice dated 03.06.2024, which isAnnexure A11to 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.21,32,281.50p, 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.
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 27.06.2025.
7. In support of the OA, affidavit ofSh. Pankaj Makkar authorized
Representatives, Punjab Gramin Bank,has been filed.
8. Heard arguments and perused record
9. It was argued by learned proxy 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 theAnnexures A1 to A11to this OA, it is proved that the defendant approached

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3 OA NO.232-2025

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PUNJAB GRAMIN BANK VS RACHPAL SINGH @ RASHPAL SINGH

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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.21,32,281.50p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Eighty One & Fifty Paise 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 pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.00%p.a. along with penal interest @2.00%p.a. with yearly rests from 01.02.2025 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.21,32,281.50p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Eighty One & Fifty Paise 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

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4 OA NO.232-2025 PUNJAB GRAMIN BANK VS RACHPAL SINGH @ RASHPAL SINGH 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. 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 19.07.2025 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: 01.07.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Rachpal Singh Alias Rashpal Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Rachpal Singh Alias Rashpal Singh

Case brief

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