Allowed

Punjab National Bank v. Sh. Gurjit Singh

DRT24 Nov 2025OA/59/2022

Case brief

AI extract

What is this about?

This judgment disposed of an Original Application filed by Punjab National Bank for recovery of a loan of Rs. 27,11,685.03 plus interest against the defendant. The defendant did not appear, and the application was decided ex-parte. The Tribunal allowed the application, declared the defendant liable, and granted simple interest at 8% p.a. It directed issuance of a Recovery Certificate and later enf

What did the court decide?

Declaration of liability to pay Rs. 27,11,685.03 with interest at 8% p.a., issuance of Recovery Certificate, and permission to execute against assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.59/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 07.12.2021

¶5

DATE OF DECISION: 24.11.2025

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings), Act, 1970 having the head office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and a branch amongst others one at Village Dandra, District Ludhiana through Sh. Sonu, Chief Manager, Punjab National Bank, Circle Sastra Centre, Ludhiana, Punjab West Ferozepur Road, Ludhiana, and duly constituted attorney of the Applicant.

¶7

……. Applicant Versus

¶8

Sh. Gurjit Singh S/o Sh. Sukhdev Singh R/o Village Dhandra, Tehsil and District Ludhiana, Punjab .

¶9

……. Defendant

¶10

Advocates:

¶11

Argued by Sh. P.S. Sobti, Advocate for Applicant Defendant already ex-parte

¶12

FINAL ORDER

¶13

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.27,11,685.03p (Rupees Twenty Seven Lacs Eleven Thousand Six Hundred Eighty Five & Paise Three Only). The Original Application has been filed through Sh. Sonu, Chief Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.11.2014 which is Annexure A1 to this OA.

¶14

The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 14.12.2009, which is Annexure A2 to this OA and thereafter, for its enhancement to Rs. 20.00 Lacs vide loan application dated 08.12.2014, which is Annexure A8 to this OA.

¶15

2 OA NO. 59/2022 PUNJAB NATIONAL BANK VS SH. GURJIT SINGH

¶16

The applicant sanctioned KCC Limit of Rs.10.00 Lacs vide Sanction dated 28.12.2009, which is Annexure A3 to this OA and thereafter, enhanced the limit to Rs. 20.00 Lacs vide sanction dated 24.12.2014 and letter of intimation dated 24.12.2014, which are Annexures A9 and A10 to this OA. Terms and conditions were duly accepted by the defendant.

¶17

Defendant had mortgaged his immovable property i.e. Land measuring 01B-02B-08B situated at Village Dhandra-I, Hadbast No.274, Tehsil and District Ludhiana, Punjab. Mortgaged Deed bearing vasika no. 9368 dated 30.12.2009, along with its translation, which is Annexure A6 to this OA; Jamabandi for the year 2007-08/report of Halqa Patwari, along with its translation, which are Annexures A7 and A7A to this OA; Declaration u/s 4(1) dated 22.12.2014, which is Annexure A14 to this OA; Fard Jamabandi for the year 2007-08, along with its translation, which are Annexures A15 and A15A to this OA.

¶18

Documents executed : - Hypothecation agreement & Letter of undertaking, both dated 06.01.2010, which are Annexures A4 & A5 to this OA; Hypothecation agreement, letters of undertaking, all dated 24.12.2014, which are Annexures A10 to A13 to this OA; Legal notice dated 07.06.2017, along with its translation, which are Annexures A16 to A16A to this OA; Legal notice dated 30.09.2017, which is Annexure A17 to this OA; Balance confirmation letter dated 05.10.2012, 30.09.2015 & 24.08.2018, which are Annexures A18 to A20 to this OA; Statement of Account along with certificate, which is Annexure A21 to this OA and Order of Hon’ble Supreme Court dated 23.09.2021, which is Annexure A22 to this OA.

¶19

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.27,11,685.03p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶20

3 OA NO. 59/2022 PUNJAB NATIONAL BANK VS SH. GURJIT SINGH

¶21

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.09.2025.

¶22

In support of the OA, affidavit of Sh. Sonu, Chief Manager, Punjab National Bank, has been filed.

¶23

Heard ex-parte arguments and perused record.

¶24

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 A22 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 the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.27,11,685.03p (Rupees Twenty Seven Lacs Eleven Thousand Six Hundred Eighty Five & Paise Three 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.85%p.a. with 2% penal interest with yearly from 01.10.2021 till the realization.

¶25

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 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

¶26

4 OA NO. 59/2022 PUNJAB NATIONAL BANK VS SH. GURJIT SINGH

¶27

realization of the amount ordered vide this final order. It is ordered accordingly.

¶28

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.27,11,685.03p (Rupees Twenty Seven Lacs Eleven Thousand Six Hundred Eighty Five & Paise Three 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 assets/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 applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

¶29

12. Any other application pending stands disposed of.

¶30

Issue Recovery Certificate accordingly.

¶31

Parties to appear before Learned Recovery Officer of this Tribunal on 05.12.2025.

¶32

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.

¶33

Pronounced by me in the open Tribunal .

¶34

Dated: 24.11.2025.

¶35

(MRIDULESH KUMAR SINGH)

¶36

Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Gurjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Gurjit Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of Baroda versus M/S Perfect Paving and Another

State Bank of India versus Late Sh. Maya Chand through His Legal Heirs and Another

Punjab National Bank versus Sh. Lakhwinder Singh and Another

Union Bank of India versus M/S Mehak Enterprises and Another

State Bank of India versus Sh. Sukhwinder Singh

Icici Bank Limited versus Ms Swastik Traders and Another