Allowed

Punjab Gramin Bank v. Sh. Bakshish Singh

DRT22 Jul 2025OA/474/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab Gramin Bank against Sh. Bakshish Singh for recovery of Rs.26,07,990.21. The court granted a uniform simple interest rate of 8% p.a. and directed recovery from mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued; claim allowed with 8% per annum simple interest; recovery directed from mortgaged and personal assets.

Punjab Gramin Bank versus Sh. Bakshish Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.474/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2025

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DATE OF DECISION: 22.07.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act, 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 (Punjab) through its Authorized Representative Sh. Rajan Koral.

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… …..Applicant Versus Sh. Bakshish Singh S/o Sh. Kashmir Singh R/o Village Jodh Singh Wala, P.O. Bhangala, Tehsil Patti, District Tarn Taran (Pb). ….……Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the Applicant

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Defendant is already 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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.26,07,990.21p (Rupees Twenty Six Lacs Seven Thousand Nine Hundred Ninety & Twenty One Paise 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 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 for the grant of KCC Limit of Rs.12.90 Lacs vide Loan Application Form dated 15.05.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.12.90 Lacs vide Sanction letter dated 15.05.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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2 OA/474/2025 PUNJAB GRAMIN BANK VS SH. BAKSHISH SINGH

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Defendant had mortgaged his immovable properties i.e. total land measuring 35K-07M situated at Village Jodh Singh Wala, Tehsil Patti, District Tarn Taran (Pb) vide Mortgaged Deed bearing vasika no.368 dated 10.06.2013, along with its translation which is Annexure A5 to this OA.

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Documents executed:- Hypothecation agreement dated 26.06.2013, which is Annexure A4 to this OA; statement of account along with certificate by officer in charge, which are Annexures A6 & A7 to this OA and Security Confirmations letters dated 13.04.2016, 13.04.2019 & 02.04.2022, which are Annexures A8 to A10 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.26,07,990.21p, 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 18.07.2025. 7. In support of the OA, affidavit of Sh.Rajan Koral , Authorized Representative, Punjab Gramin Bank, h as been filed. 8. Heard ex- parte arguments and perused record 9. 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 A10 to this OA, it is proved that the defendant approached 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

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3 OA/474/2025 PUNJAB GRAMIN BANK VS SH. BAKSHISH SINGH

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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,07,990.21p (Rupees Twenty Six Lacs Seven Thousand Nine Hundred Ninety & Twenty One Paise Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.35%p.a. inclusive of penal interest @2% p.a. from 01.04.2025 till the date of 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.26,07,990.21p (Rupees Twenty Six Lacs Seven Thousand Nine Hundred Ninety & Twenty One 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 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

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OA/474/2025 PUNJAB GRAMIN BANK VS SH. BAKSHISH SINGH

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assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.08.2025. 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: 22.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Bakshish Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Bakshish Singh

Case brief

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What did the court decide?

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