Allowed

Punjab National Bank v. Sh. Lakhwinder Singh and Another

DRT21 Nov 2025OA/649/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against two respondents for recovery of Rs. 65.23 lakh. The Tribunal approved the recovery claim, adjusted the interest rate to 8% p.a., and ordered recovery through sale of hypothecated properties.

What did the court decide?

Recovery of Rs. 65,23,272.00 with costs and simple interest @ 8% p.a. to be recovered from sale of hypothecated properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.649/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.05.2025

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DATE OF DECISION: 21.11.2025

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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 and a branch amongst others one at Punjab National Bank, Raikot Road, VPO Pakhowal, District Ludhiana, Punjab represented through its Branch Manager and duly constituted attorney of the applicant, Sh. Balwinder Khanna Son of Sh. Yashpal Khanna.

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……..Applicant

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Versus

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Sh. Lakhwinder Singh Son of Sh. Sher Singh, resident of Village Tibba, Tehsil Dhuri, District Sangrur, Punjab-148025.

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Sh. Surjit Singh Son of Sh. Jagdev Singh, resident of Village

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Tibba, Tehsil Dhuri, District Sangrur, Punjab-148025.

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….……Defendants

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Advocates:

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Argued by Sh. Kamal, Advocate for Applicant (through VC) 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 defendants for recovery of Rs.65,23,272.00p (Rupees Sixty Five Lacs Twenty Three Thousand Two Hundred Seventy Two Only). The Original Application has been filed through Sh. Balwinder Khanna, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 06.10.2015, which is Annexure A1 to this OA.

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2 OA NO. 649/2025 PUNJAB NATIONAL BANK VS SH.LAKHWINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs vide Loan application dated 15.12.2011, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.16.00 Lacs vide Sanction letter dated 17.12.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable property i.e. Land measuring 18Bigha 01Biswa situated at Village Thulliwal, Hadbast No. 19, Tehsil and District Barnala, Punjab vide Mortgage Deed bearing vasika no.24 dated 22.12.2011, along with its translation, which is Annexure A4 to this OA and jamabandi for the year 2008-2009, along with its translation, which is Annexure A8 to this OA. Documents executed :- Hypothecation agreement & Agreement of guarantee both dated 14.01.2012, which are Annexures A5 & A7 to this OA; Affidavit darted 11.01.2012, which is Annexure A6 to this OA; Balance Confirmation letter dated 21.11.2014, 09.10.2017, 31.03.2020 & 29.03.2021, which is Annexure A9 to this OA; Statement of account with Banker Certificate, which are Annexures A10 & A11 to this OA and Demand Notice dated 15.01.2024 along with postal receipts, which is Annexure A12 to this OA. 5. 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.65,23,272.00p, 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 17.11.2025. 7. In support of the OA, affidavit of Sh. Balwinder Khanna, Branch Manager, Punjab National Bank has been filed.

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3 OA NO. 649/2025 PUNJAB NATIONAL BANK VS SH.LAKHWINDER SINGH AND ANOTHER

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through Video Conferencing 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 A12 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 applicant. 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.65,23,272.00p (Rupees Sixty Five Lacs Twenty Three Thousand Two Hundred Seventy Two Only) rest 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.25% p.a. with 2% penal interest with half yearly rests from 15.01.2025 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/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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4 OA NO. 649/2025 PUNJAB NATIONAL BANK VS SH.LAKHWINDER 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.65,23,272.00p (Rupees Sixty Five Lacs Twenty Three Thousand Two Hundred Seventy Two Only) jointly and severally, with costs, current and future simple interest @8.00%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 03.12.2025. 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. Pronounced by me in the open Tribunal . Dated: 21.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Lakhwinder Singh and Another

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Punjab National Bank v. Sh. Lakhwinder Singh and Another

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