Allowed

Punjab Gramin Bank v. Sh. Jasvir Singh and Others

DRT29 Jul 2025OA/518/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab Gramin Bank against the legal heirs of a deceased borrower for recovery of Rs. 37,81,459.00P. The court upheld the claim based on documentary evidence but granted uniform simple interest at 8% p.a. instead of claimed rates and ordered issue of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 37,81,459.00P with interest at 8% p.a. and costs; issue of Recovery Certificate; right to sell mortgaged properties and attach personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.518/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.03.2025

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DATE OF DECISION: 29.07.2025

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Punjab Gramin Bank, a body corporate Constituted under the regional Rural Bank Act, 1976 Act No.21 of 1976 (Herein after registered to as the Act) and having its head office at Near Markfed Chowk, Kapurthala, (Herein after registered to as ‘BANK’) and one of its branch situated at Punjab Gramin Bank, Suhron, Tehsil Rajpura District Patiala Punjab through its Attorney Holder Sh. Jaspreet Singh Authorized Officer.

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……..Applicant

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Versus

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Sh. Jasvir Singh @Jasbir Singh S/o Sh. Santa Singh R/o VPO Suhron Tehsil Rajpura, District Patiala Punjab,through its legal heirs: -

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a. Smt. Baljeet Kaur W/o Sh. Jasvir Singh @Jasbir Singh R/o VPO Suhron-140402, Tehsil Rajpura, District Patiala, Punjab.

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b. Sh. Lakhvir Singh S/o Sh. Jasvir Singh @Jasbir Singh R/o VPO Suhron-140402, Tehsil Rajpura, District Patiala, Punjab

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c. Sh. Vikramjeet Singh S/o Sh. Jasvir Singh @Jasbir Singh R/o VPO Suhron-140402, Tehsil Rajpura, District Patiala, Punjab

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….……Defendants

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Advocates:

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Argued by, Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammed, Advocate for Applicant

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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 defendant for recovery of Rs.37,81,459.00P (Rupees Thirty Seven Lacs Eighty One Thousand Four Hundred Fifty Nine Only). The Original Application has been filed through Sh. Jaspreet Singh

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2 OA NO.518/2025 PUNJAB GRAMIN BANK VS LATE SH. JASVIR SINGH THROUGH LEGAL HEIRS

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Authorized Officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.06.2019, which is Annexure A1 to this OA.

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The brief facts of the OA that the deceased defendant had approached the applicant for the grant of KCC Limit of Rs.16.30 Lacs, KGC Term Loan of Rs.10.00 Lacs and Loan of Rs. 1.00 Lac for debt swap (total amount Rs. 27.30 Lacs) vide Loan Applications dated 03.11.2015, which is are Annexures A2 to A4 to this OA.

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The applicant sanctioned the KCC Limit of Rs.16.30 Lacs, KGC Term Loan of Rs.10.00 Lacs and Loan of Rs. 1.00 Lac for debt swap (total amount Rs. 27.30 Lacs) vide Sanction letters dated 09.11.2015, which are Annexures A5 to A7 to this OA. and the terms and conditions were duly accepted by the deceased defendant.

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The deceased Defendant had mortgage his immovable properties i.e. total land measuring 20Bigha 11Biswa situated at Village Suhron, Tehsil Rajpura, District Patiala Punjab vide Registered Mortgage Deed bearing vasika no.1183 dated 03.11.2015 & Letter to Sub Registrar for Creation of Charge, which is Annexure A12 to this OA.

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Documents executed:- DP Note, Loan agreement, all dated 21.11.2015, which are Annexures A8 to A11 to this OA; Title search report dated 17.11.2015, which is Annexure A13 to this OA; NonEncumbrance Certificate, which is Annexure A14 to this OA; Affidavit dated 14.11.2015, which is Annexure A15 to this OA; Revival letters dated 15.10.2018, along with Undertaking from legal heirs dated 29.01.2020, which are Annexure A16 & A17 to this OA; Balance Confirmation letter by legal heirs dated 29.01.2020 & 13.12.2022, which are Annexures A18 & A19 to this OA; Demand Notice dated 25.05.2023, which is Annexure A20 to this OA and Account

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3 OA NO.518/2025 PUNJAB GRAMIN BANK VS LATE SH. JASVIR SINGH THROUGH LEGAL HEIRS

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statement along with Bank certificate, which are Annexures A21 to A24 to this OA.

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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.37,81,459.00P, which is recoverable and the legal heirs of deceased defendant 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 legal heirs of deceased defendant were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte on 25.07.2025.

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In support of the OA, affidavit of Sh. Jaspreet Singh, Authorized Officer, Punjab Gramin Bank, h as been filed.

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Heard ex-parte arguments and perused record

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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 the Annexures A1 to A24 to this OA, it is proved that the deceased defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The deceased defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the deceased defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,81,459.00P (Rupees Thirty Seven Lacs Eighty One Thousand Four Hundred Fifty Nine Only) along with interest from the legal heirs of the deceased defendant, from the date of filing of the present Original Application till realization of the accounts.

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4 OA NO.518/2025 PUNJAB GRAMIN BANK VS LATE SH. JASVIR SINGH THROUGH LEGAL HEIRS

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% @8.50%p.a. & @11.50%p.a. respectively in KCC, KGC and debt swap loan with yearly rests and penal interest @2%p.a. from 22.11.2024 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, undertaking of the legal heirs of deceased defendant, 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 all 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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In the result, the application is allowed declaring that the legal heirs of the deceased defendant are liable to pay to the applicant a total sum of Rs.37,81,459.00P (Rupees Thirty Seven Lacs Eighty One Thousand Four Hundred Fifty Nine Only) 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 hypothecated/mortgaged properties of the legal heirs of the deceased defendant 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 legal heirs of the deceased defendant. The applicant is at liberty to enforce the claim through due process of law.

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5 OA NO.518/2025 PUNJAB GRAMIN BANK VS LATE SH. JASVIR SINGH THROUGH LEGAL HEIRS

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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 04.09.2025.

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Copy of this order be given Dasti to the applicant 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.

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Pronounced by me in the open Tribunal .

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Dated: 29.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Jasvir Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Jasvir Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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