Allowed

Punjab National Bank v. Late Sh. Nirmal Singh and Another

DRT25 Sept 2025OA/394/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of a loan. The court declared respondents jointly and severally liable to pay the outstanding principal with future simple interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.36,02,222.31 with future simple interest at 8% p.a., issuance of Recovery Certificate, direction to sell hypothecated/mortgaged properties if dues remain unsatisfied.

Punjab National Bank versus Late Sh. Nirmal Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.394/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2024

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DATE OF DECISION: 25.09.2025

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Punjab National Bank a body corporate Constituted under the banking companies (Acquisition & Transfer of Undertakings) , Act, 1970 having its Head office at Plot No.4, Sector-10, Dwarka, New Delhi (A Government of India Undertaking) and having one of its branch situated at Punjab National Bank, Sherpur Road, Jagraon, District Ludhiana, Punjab through Sh. Navin Kumar Bansal, who is presently working as Senior Manager, Punjab National Bank, ARMB, Plot No.5, Ferozepur Road, Near Wave Mall Ludhiana, Punjab constituted Power of attorney holder of the Applicant and Principal Officer.

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……..Applicant Versus
1. Sh. Nirmal Singh (Deceased) S/o Sh. Chanan Singh, Through his LRs:
i. Smt. Mohinder Kaur W/o Late Sh. Nirmal Singh
ii. Sh. Sukhdev Singh S/o Late Sh. Nirmal Singh
iii. Sh. Amarjit Singh S/o Late Sh. Nirmal Singh
Address of all above R/o Village Malliana, Tehsil and District
Moga, Punjab.
2. Sh. Sukhdev Singh S/o Late Sh. Nirmal Singh, R/o Village Malliana, Tehsil and District Moga, Punjab. ….……Defendants
Advocates:
Argued by Sh. Surinder Nath Sharma, Advocate for Applicant
(through VC)
Defendants already ex parte

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2 OA NO. 394/2024 PUNJAB NATIONAL BANK VS LATE SH.NIRMAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.36,02,222.31p (Rupees Thirty Six Lacs Two Thousand Two Hundred Twenty Two & Paise Thirty One Only). The Original Application has been filed through Mr. Navin Kumar Bansal, Senior Manager of the applicant, who are competent to institute the Original Application vide Power of attorney dated 05.12.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 (since deceased) and defendant no. 2 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide loan application dated 12.11.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction letter dated 12.11.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 29K-04M situated at Village Malliana, Tehsil and District Moga, Punjab, vide Declaration u/s 4(1) dated 10.12.2014, along with its translation which are Annexure A5 & A5-T to this OA.

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Documents executed :- Notification dated 04.03.2020, which is Annexure A1-A to this OA; Advocate report dated 17.11.2014, which is Annexure A4 to this OA; Hypothecation agreement, Letter of undertaking, Letter of consent, Declaration regarding agriculture land, Letter of borrower, all dated 16.12.2014, which are Annexures A6 to A10 to this OA; Balance conformation letters dated 07.01.2017, 31.03.2018 & 03.03.2021, which are Annexures A11 to A13 to this OA; Notice of recall of Bank’s dues by Advocate dated 15.02.2024,

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3 OA NO. 394/2024 PUNJAB NATIONAL BANK VS LATE SH.NIRMAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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which is Annexure A14 to this OA and Statement of account, which is Annexure A15 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.36,02,222.31p, which is recoverable and the defendant no. 1 (since deceased) and defendant no. 2 were 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.

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The defendants i.e. legal heirs of deceased defendant no. 1 and the defendant no. 2 were served notices to appear before this Tribunal but no one appeared on their behalf and they were proceeded ex-parte on 10.06.2025.

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In support of the OA, affidavit of Mr. Navin Kumar Bansal, Senior Manager, Punjab National Bank, has been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned Counsel (through Video

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Conferencing) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexure A1 to A15 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 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 bank. The defendant no. 1 (since deceased) and defendant no. 2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no. 1 (since deceased) and defendant no. 2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,02,222.31p (Rupees Thirty Six Lacs Two Thousand Two Hundred

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4 OA NO. 394/2024 PUNJAB NATIONAL BANK VS LATE SH.NIRMAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Twenty two & Paise Thirty One Only) along with interest from the defendants i.e. legal heirs of deceased defendant no. 1 and the defendant no. 2, 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% p.a. with penal interest @2%p.a. with half yearly rests from 17.12.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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 defendants are liable to pay to the applicant a total sum of Rs.36,02,222.31p (Rupees Thirty Six Lacs Two Thousand Two Hundred Twenty two & Paise Thirty One 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 bank 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

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5 OA NO. 394/2024 PUNJAB NATIONAL BANK VS LATE SH.NIRMAL SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 17.10.2025.

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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: 25.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Late Sh. Nirmal Singh and Another

Case brief

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Punjab National Bank v. Late Sh. Nirmal Singh and Another

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