Allowed

Punjab National Bank v. Sh. Gulab singh

DRT29 Oct 2025OA/71/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of a loan classified as NPA. The court granted a uniform interest rate of 8% p.a. and directed the issuance of a Recovery Certificate, permitting subsequent execution proceedings against the mortgaged and personal assets.

What did the court decide?

Application allowed; defendant liable to pay outstanding sum with 8% p.a. interest; Recovery Certificate issued; applicant entitled to recovery via sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Gulab singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.71/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.01.2025

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DATE OF DECISION: 29.10.2025

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Dane Wala, Tehsil Malout, District Muktsar through Sh. Ravinder Mohan Goyal, Senior Manager and Attorney holder presently posted at Circle Sastra Centre, Fazilka.

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……..Applicant Versus Sh. Gulab Singh son of Sh. Mehal Singh resident of Village Shamkot, Tehsil Malout, District Sri Muktsar Sahib, Punjab. ……….Defendant

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Advocates:

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Argued by Ms. Rajni Narula, Advocate for the 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 & Bankruptcy Act 1993, against the defendant for recovery of Rs.25,26,529.28p (Rupees Twenty Five Lacs Twenty Six Thousand Five Hundred Twenty Nine & Paise Twenty Eight Only). The Original Application has been filed Sh. Ravinder Mohan Goyal, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.03.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit Rs.12.50 Lacs vide Loan application dated 05.08.2017, which is Annexure A2 to this OA.

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OA NO.71/2025 PUNJAB NATIONAL BANK VS SH. GULAB SINGH

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The applicant sanctioned KCC Limit Rs.12.50 Lacs vide Sanction letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. land measuring 42Kanal situated at Village Shamkot, Hadbast No. 53, Tehsil Malout, District Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 10.08.2017 & Letter to Sub Registrar for Creation of Charge, which is Annexure A7 to this OA.

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Documents executed: -Hypothecation agreement, Letter of Consent (revised), Letter of Undertaking, all dated 19.08.2017, which are Annexures A4 to A6 to this OA; Balance & Security Confirmation letters 07.07.2020 & 04.07.2023, which is Annexure A8 (Colly) to this OA; Notice dated 19.10.2019, which is Annexure A9 to this OA and Statement of Account, which is Annexure A10 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.25,26,529.28p, which is recoverable and the defendant was 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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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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In support of the OA, affidavit of Sh. Ravinder Mohan Goyal, Senior Manager, Punjab National Bank, has been filed.

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Heard ex-parte arguments and perused record. 9. 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 A10 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which

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OA NO.71/2025 PUNJAB NATIONAL BANK VS SH. GULAB SINGH

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were 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.25,26,529.28p (Rupees Twenty Five Lacs Twenty Six Thousand Five Hundred Twenty Nine & Paise Twenty Eight Only) along with interest from the defendant, 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 @10.15%p.a. with 2% penal interest with half yearly rests from 01.01.2025 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 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 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.25,26,529.28p (Rupees Twenty Five Lacs Twenty Six Thousand Five Hundred Twenty Nine & Paise Twenty Eight 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.

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OA NO.71/2025 PUNJAB NATIONAL BANK VS SH. GULAB SINGH

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Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/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.

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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 National Bank v. Sh. Gulab singh

Case brief

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Punjab National Bank v. Sh. Gulab singh

Case brief

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