Allowed

Punjab Gramin Bank v. Late Sh. Ranjit Singh through His Legal Heirs and Another

DRT25 Sept 2025OA/545/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application for recovery of dues against borrowers who failed to repay KCC and animal husbandry loans, modifying the claimed interest rate to 8% p.a. and directing issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 22,50,702.00 jointly and severally with simple interest @8% p.a. from filing date; Issuance of Recovery Certificate; Liberty to enforce via sale of mortgaged or personal assets.

Punjab Gramin Bank versus Late Sh. Ranjit Singh through His… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.545/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.04.2025

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DATE OF DECISION: 25.09.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976 (Act No. 21 of 1976) having its Head Office at Markfed Road, Kapurthala, Punjab, and having its branches at different places including one at Kanwan, PO Parmanand, District Pathankot, Punjab through its Constituted Attorney/ Manager Sh. Mulkh Raj.

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……..Applicant

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Versus

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Sh. Ranjit Singh S/o Sh. Dhanna Singh, Since Deceased through LRs:

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a) Smt. Santosh Kumari W/o Late Sh. Ranjit Singh

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b) Sh. Harbinder Singh S/o Late Sh. Ranjit Singh

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c) Ms. Amandeep Kaur D/o Late Sh. Ranjit Singh

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d) Ms. Sandeep Kaur D/o Late Sh. Ranjit Singh

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All residents of Village Danor, PO Parmanand, District Pathankot, Punjab-143534.

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Sh. Harbinder Singh S/o Late Sh. Ranjit Singh, resident of Village Danor, PO Parmanand, District Pathankot, Punjab143534

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….……Defendants

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Advocates:

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Argued by Sh. Bhushan Bhatia, 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.22,50,702.00 (Rupees Twenty Two Lacs Fifty Thousand Seven Hundred Two Only). The Original Application has been filed through Sh. Mulkh Raj, Branch Manager o f the applicant, who is competent to institute the Original

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2 OA NO.545/2025 PUNJAB GRAMIN BANK VS LATE SH. RANJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Application vide General Power of Attorney dated 04.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant no. 1 (since deceased) and defendant no. 2 had approached the applicant for the grant of KCC Limit of Rs. 12.00 Lacs and CC for Animal Husbandry of Rs. 1.50 Lacs vide Loan Applications dated 25.06.2018 and 04.07.2020, which are Annexures A2and A2/1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 12.00 Lacs and CC for Animal Husbandry of Rs. 1.50 Lacs vide sanction letters, which are Annexures A3 and A3/1 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. 13K-2M detailed as under: - i) l and measuring 11K-13M situated at Village Danour, HB no. 172, Tehsil and District Pathankot, Punjab. ii) land measuring 1K-9M situated at Village Gurdaspur Bhaiyan, HB no. 176, Tehsil and District Pathankot, Punjab vide declaration u/s 4(1) dated 26.06.2018, which is Annexure A5 to this OA. Documents executed: - hypothecation agreements dated 04.07.2018 and 04.07.2020, which are Annexures A4 and A4/1 to this OA; Notice dated 15.01.2024, which is Annexure A6 to this OA; BC Letters dated 09.02.2021 and 15.06.2023, which are Annexures A7, A7/1 and A7/2 , to this OA; Account Statement, which is Annexure A8 to this OA; Death Certificate dated 15.11.2020, which is Annexure A9 to this OA. 5. 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.22,50,702.00, which is recoverable and the defendants, were 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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3 OA NO.545/2025 PUNJAB GRAMIN BANK VS LATE SH. RANJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte on 28.07.2025.

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In support of the OA, affidavit of Sh. Mulkh Raj, Branch Manager, Punjab Gramin Bank has been filed.

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Heard ex-parte arguments and perused record

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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 A9 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,50,702.00 (Rupees Twenty Two Lacs Fifty Thousand Seven Hundred 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 accounts.

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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, @12.35%p.a. with yearly rests in KCC and @11.25%p.a. with yearly rests in CC (animal husbandry), plus additional interest @2% in both the loan accounts, from 01.04.2025 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 defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while

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OA NO.545/2025

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PUNJAB GRAMIN BANK VS LATE SH. RANJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in both 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 defendants are liable to pay to the applicant a total sum of Rs.22,50,702.00 (Rupees Twenty Two Lacs Fifty Thousand Seven Hundred Two Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 defendants 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 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,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Late Sh. Ranjit Singh through His Legal Heirs and Another

Case brief

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Punjab Gramin Bank v. Late Sh. Ranjit Singh through His Legal Heirs and Another

Case brief

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