Allowed

Punjab National Bank v. Sh. Amarjit Singh and Another

DRT19 Dec 2025OA/247/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs.32,30,772.00 from two defendants. The tribunal decreed payment with modified interest rates and ordered the issuance of a recovery certificate and attachment of properties.

What did the court decide?

Defendants directed to pay Rs.32,30,772.00 with interest @8.00% p.a.; Recovery Certificate issued; Execution proceedings permitted.

Punjab National Bank versus Sh. Amarjit Singh and Another — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.247/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.08.2022

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DATE OF DECISION: 19.12.2025

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Punjab National Bank, a body corporate constituted under banking companies (Acquisition & Transfer of Undertaking) Act, having its Head Office at Sector-10, Dwarka, New Delhi and one of its branch office amongst other at Sarai Amanat Khan, Tehsil and District Tarn Taran, through its General Power of Attorney Holder.

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……..Applicant

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Versus

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Sh. Amarjit Singh, S/o Sh. Kartar Singh Resident of Abadi Manakpura VPO Sarai Amanat Khan, Tehsil and District Tarn Taran, Punjab.

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Sh. Gurbachan Singh S/o Sh. Amarjit Singh Resident of Abadi Manakpura VPO Sarai Amanat Khan, Tehsil and District Tarn Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, Advocate for Applicant

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Defendants already ex parte

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FINAL ORDER

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1.Present Original Application was instituted by the applicant under Section 19 of the Recovery Debts Due to Banks and Bankruptcy Act,1993, against the defendants for recovery of Rs.32,30,772.00 (Rupees Thirty Two Lacs Thirty Thousand Seven Hundred Seventy Two only). The Original Application has been filed through Sh. Balwinder Singh, Branch Manager, o f the applicant, who is competent to institute

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the Original Application vide General Power of Attorney dated 07.08.2020, which is Annexure A12 to this OA.

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2 OA/247/2023 PUNJAB NATIONAL BANK VS. AMARJIT SINGH AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application, which is Annexure A1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide sanction dated 22.09.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable Property i.e. land measuring 48Kanal situated at Sarai Amanat Khan, District Tarn Taran, Punjab vide Declaration u/s 4(1) dated 22.09.2016 & Letter to Sub Registrar for Creation of Charge dated 22.09.2016 and declaration dated 27.09.2016, which are Annexures A3 to A5 to this OA.

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Documents executed: Hypothecation agreement dated 27.09.2016, which is Annexure A6 to this OA; Balance and Security Confirmation letters dated 26.04.2019 & 25.04.2022, which are Annexures A7 & A8 to this OA; Notice dated 20.04.2021, along with its translation, which is Annexure A9 to this OA; Account statement along with certificate under Banker’s Book Evidence Act, which are Annexures A10 & A11 to this OA and Id proof of defendants, which is Annexure A13 to this OA.

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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.32,30,772.00, 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 25.04.2025. 7. In support of the OA, affidavit of Sh. Balwinder Singh, Branch Manager, Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/247/2023 PUNJAB NATIONAL BANK VS. AMARJIT SINGH AND ANOTHER

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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 A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,30,772.00 (Rupees Thirty Two Lacs Thirty Thousand Seven Hundred Seventy Two only) along with interest from the defendants, jointly and severally, 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 in relief clause has claimed [email protected]%p.a. including 2% penal interest with half yearly rests from 30.04.2022 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 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 @8.00%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 defendants are liable to pay to the applicant a total sum of

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4 OA/247/2023

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PUNJAB NATIONAL BANK VS. AMARJIT SINGH AND ANOTHER

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Rs.32,30,772.00 (Rupees Thirty Two Lacs Thirty Thousand Seven Hundred Seventy Two only) jointly and severally, with costs, current and future simple interest @8.00%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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 07.01.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 19.12.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Amarjit Singh and Another

Case brief

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Punjab National Bank v. Sh. Amarjit Singh and Another

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