Allowed

Punjab Gramin Bank v. Late Sh. Harbhajan Singh through His Legal Heir

DRT29 Oct 2025OA/67/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab Gramin Bank for recovery of a loan of Rs. 38.16 Lacs against the legal heir of a deceased borrower. The Tribunal reduced the claimed interest rate from 12.15% to 8% per annum. The defendant was adjudged liable and the application was disposed of ex-parte.

What did the court decide?

Defendant declared liable to pay Rs. 38,16,322.00 plus costs and future interest at 8% per annum. Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.67/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.01.2025

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DATE OF DECISION: 29.10.2025

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Punjab Gramin Bank, a corporate body constituted under the provisions of the Regional Rural Bank Act 1976 (Act No.21 of 1976) has its Head Office at Markfed Road, Kapurthala, and amongst others a branch office at Badalgarh, Tehsil Moonak, District Sangrur, Punjab through Ms Nisha Batta Daughter of Sh. Surinder Kumar, Branch Manager, General Attorney and Principal Officer of the applicant.

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……..Applicant Versus Sh. Harbhajan Singh son of Sh. Natha Singh Resident of House No 95, Nava Gaon, Tehsil Moonak, District Sangrur, Punjab, since the deceased survived by following legal heir:

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a. Gurjinder Singh, son Resident of House No 95, Nava Gaon, Tehsil Moonak, District Sangrur, Punjab,

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…….Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate for Applicant (through VC) Defendant 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 defendant for recovery of Rs.38,16,322.00p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Twenty Two Only). The Original Application has been filed through Ms. Nisha Batta, Branch Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Sh. Habhajan Singh (since deceased) had approached the applicant for grant of KCC Limit of

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2 OA NO. 67/2025 PUNJAB GRAMIN BANK VS LATE SH. HARBHAJAN SINGH THROUGH HIS LEGAL HEIR

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Rs.8.25 Lacs, Term Loan under KGC of Rs.6.50 Lacs vide Loan Applications dated 24.02.2015 which are Annexures A2 and A7 to this OA & for Term Loan of Rs.1.00 Lac for Debt swap vide Loan Applications dated 02.03.2015, which is Annexure A12 to this OA.

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The applicant sanctioned KCC Limit of Rs.8.25 Lacs, Term Loan under KGC of Rs.6.50 Lacs & Term Loan of Rs.1.00 Lacs for debt swap vide Letters of arrangement/sanction letters dated 02.03.2015, which are Annexures A3, A8 & A13 this OA.

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Sh. Habhajan Singh (since deceased) had mortgaged his immovable properties i.e. land measuring 32K-00M situated at Village Nawangaon, Tehsil Moonak District Sangrur, Punjab vide Declaration u/s 4 (1) dated 04.03.2015, which is Annexure A17 to this OA.

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Documents executed : -Demand Promissory Note, Letter of undertaking, Loan agreement, all dated 07.04.2015, which are Annexures A4 to A6, A9 to A11 & A14 to A16 to this OA; Revival letters dated 20.01.2018, which is Annexure A18 to this OA; Balance and security confirmation letters dated 11.01.2021 and 05.11.2022, which is Annexure 19 to this OA; letter of undertaking by Legal heir dated 05.11.2022, which is Annexure A20 to this OA; Notice dated 26.10.2022, 02.05.2023 & 04.12.2024, along with their translations which is Annexure A21 to this OA and Statements of Accounts, which are Annexures A22 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.38,16,322.00p, 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 24.10.2025.

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3 OA NO. 67/2025 PUNJAB GRAMIN BANK VS LATE SH. HARBHAJAN SINGH THROUGH HIS LEGAL HEIR

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In support of the OA, affidavit of Ms. Nisha Batta, 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 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 A24 to this OA, it is proved that Sh. Harbhajan Singh (since deceased) 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. Sh. Harbhajan Singh (since deceased) failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.38,16,322.00p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Twenty two Only) along with interest from the defendant i.e. legal heir of late Sh. Harbhajan Singh, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.15%p.a. with 2%p.a. penal interest in all accounts with half yearly rests from 16.12.2024 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/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

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4 OA NO. 67/2025 PUNJAB GRAMIN BANK VS LATE SH. HARBHAJAN SINGH THROUGH HIS LEGAL HEIR

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@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 defendant is liable to pay to the applicant a total sum of Rs.38,16,322.00p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Twenty Two 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 mortgaged properties/hypothecated assets 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.

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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 10.11.2025

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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: 29.10.2025.

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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. Harbhajan Singh through His Legal Heir

Case brief

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Punjab Gramin Bank v. Late Sh. Harbhajan Singh through His Legal Heir

Case brief

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