Allowed

Punjab National Bank v. Sh. Ranjodh Singh and Another

DRT18 Dec 2025OA/521/2024

Case brief

AI extract

What is this about?

Drugs Tribunal allowed the bank's application for recovery of Rs.21.25 lakhs from the borrowers and guarantor. The court modified the interest rate to 8% p.a. and ordered issuance of a Recovery Certificate, authorizing recovery from collateral or personal assets.

What did the court decide?

Recovery Certificate ordered; decree adjusted to Rs.21,25,704.06 plus interest at 8% p.a. enforcement allowed.

Punjab National Bank versus Sh. Ranjodh Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.521/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.04.2024

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DATE OF DECISION: 18.12.2025

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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 110075 having one of its branch office at Dudwindi, District Kapurthala, Punjab through Sh. Ankur Rawat, Senior Manager, Circle Sastra Centre, Kapurthala, Principal officer, General Attorney of the Bank.

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……..Applicant Versus

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Sh. Ranjodh Singh S/o Sh. Gurdeep Singh R/o Village Habitpur, P.O./Tehsil Sultanpur Lodhi, District Kapurthala, Punjab.

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Sh. Paramjit Singh R/o Village Habitpur, P.O./Tehsil Sultanpur Lodhi, District Kapurthala, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Richa, Nodal Officer of 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,25,704.06 (Rupees Twenty One Lacs Twenty Five Thousand Seven Hundred Four & Paise Six Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 17.03.2011. Defendant no. 2 stood as

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2 OA/521/2024 PUNJAB NATIONAL BANK VS. RANJODH SINGH AND ANOTHER

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guarantor. Thereafter, the defendant no. 1 approached the applicant for enhancement of the limit to Rs.12.00 Lacs vide Loan Application dated 21.09.2012.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs vide loan application cum sanction letter dated 17.03.2011, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant enhanced the limit to Rs. 12.00 Lacs vide loan application cum sanction letter dated 21.09.2012, which is Annexure A9 to this OA.

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Defendant No.1 had mortgaged his immovable properties i.e. land measuring 23K-03M situated at Village Habitpur, Hadbast no. 30, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide Mortgaged Deed bearing vasika no. 3454 dated 17.03.2011, with its translations, which is Annexure A6 and A6A to this OA and Fard Jamabandi, with its translation, which are Annexures A7 and A7A to this OA.

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Documents executed: Agreement of hypothecation, Letter of undertaking, Letter of Consent, Agreement of guarantee, all dated 23.03.2011, which are Annexures A4 to A6 & A8 to this OA; Agreement of hypothecation dated 22.09.2012, which is Annexure A10 to this OA; Legal notice dated 14.05.2021 & 16.01.2023, which are Annexures A11 & A12 to this OA; Balance Confirmation letters dated 03.01.2014, 11.09.2015, 04.09.2018 & 03.08.2021, which are Annexures A13 to A16 to this OA and statement of account with certificate, which is Annexure A17 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.21,25,704.06, 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. 6. 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 08.08.2025.

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3 OA/521/2024 PUNJAB NATIONAL BANK VS. RANJODH SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by Nodal Officer of applicant 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 A17 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 bank. 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.21,25,704.06 (Rupees Twenty One Lacs Twenty Five Thousand Seven Hundred Four & Paise Six 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 interest @10.00%p.a. with 2% penal interest with half yearly rests from 24.03.2023 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 @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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OA/521/2024 PUNJAB NATIONAL BANK VS. RANJODH SINGH AND ANOTHER

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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.21,25,704.06 (Rupees Twenty One Lacs Twenty Five Thousand Seven Hundred Four & Paise Six Only) jointly and severally, 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.01.2026. 15. 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 . Dated: 18.12.2025.

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

Punjab National Bank v. Sh. Ranjodh Singh and Another

Case brief

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Punjab National Bank v. Sh. Ranjodh Singh and Another

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