Allowed

Punjab Gramin Bank v. Sh. Kashmir Singh

DRT8 Oct 2025OA/722/2025

Case brief

AI extract

What is this about?

In an ex-parte Original Application under Section 19 RDB Act 1993, the DRT allowed the bank's claim for recovery of outstanding dues. The Tribunal issued a Recovery Certificate, ordered recovery from mortgaged and personal assets, and fixed a uniform interest rate of 8% p.a.

What did the court decide?

Issued a Recovery Certificate for Rs.32,87,732.11 plus 8% simple interest; directed recovery from sale of mortgaged/mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.722/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.05.2025

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DATE OF DECISION: 08.10.2025 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 B.O. Valtoha, Tehsil Patti, District Tarn Taran (Punjab) through its Authorized Representative Sh. Rajan Koral.

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……..Applicant Versus Sh. Kashmir Singh S/o Sh. Kala Singh R/o Village Radhalke, Tehsil Patti, District Tarn Taran, Punjab.

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………. Defendant Advocates: Argued by Sh. Ankit Kaushal, Advocate for the applicant (through VC) Defendant already ex-parte FINAL ORDER 1. 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.32,87,732.11 (Rupees Thirty Two Lacs Eighty Seven Thousand Seven Hundred Thirty Two & Eleven Paise Only). The Original Application has been filed Sh. Rajan Koral, Authorized Representative o f the applicant, who is competent to institute the Original Application vide General Power of attorney dated 22.01.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for grant of Loan of Rs. 25,00.00 for Industrial Workshop vide loan application dated 14.10.2006, which is Annexure A3 to this OA. Thereafter, the defendant approached the applicant for Term Loan of Rs. 1.00 Lac for Debt Swap and again for KCC Limit of Rs.10.00 Lacs vide loan applications dated 24.05.2011 and 15.12.2011, which is Annexure A4 and A2 to this OA.

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OA NO.722/2025 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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The applicant sanctioned Loan of Rs. 25,00.00 for Industrial Workshop vide sanction dated 14.10.2006, which is Annexure A6 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs. 1.00 Lac for Debt Swap and KCC Limit of Rs.10.00 Lacs vide sanctions dated 24.05.2011 and 15.12.2011, which are Annexure A7 and A5 to this OA. The terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 23Kanal-07Marla situated at Village Munianwala, Tehsil Patti, District Tarn Taran, Punjab vide Mortgaged Deed bearing vasika no.1432 dated 11.01.2012, along with its translation w hich is Annexure A10 to this OA. Documents executed:- Hypothecation agreements, both dated 14.10.2006 & 14.01.2012, which are Annexures A9 & A8 to this OA; statements of account along with certificate by officer in charge, which are Annexures A11 & A12 to this OA; Notice dated 22.07.2024, which is Annexure A13 to this OA and Security Confirmation letters dated 26.04.2014, 29.07.2016, 24.06.2019, 26.05.2022, 26.04.2014, 21.04.2017, 06.02.2020, 23.01.2023, 12.08.2012, 20.07.2015, 04.07.2018, 01.07.2021 & 14.06.2024, which are Annexures A14 to A26 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.32,87,732.11, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 31.07.2025. 7. In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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OA NO.722/2025 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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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 A26 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,87,732.11 (Rupees Thirty Two Lacs Eighty Seven Thousand Seven Hundred Thirty Two & Eleven Paise Only) along with interest from the defendant, 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 @12.50%p.a. in KCC, @13.00%p.a. in loan of Industrial workshop & Debt swap along with 2% penal interest from 01.05.2025 till the date of 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 defendant, quantum of loans 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 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.32,87,732.11 (Rupees Thirty Two Lacs Eighty Seven Thousand

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OA NO.722/2025 PUNJAB GRAMIN BANK VS SH. KASHMIR SINGH

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Seven Hundred Thirty Two & Eleven Paise 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 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. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 21.10.2025 15. 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. Pronounced by me in the open Tribunal . Dated: 08.10.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Kashmir Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Kashmir Singh

Case brief

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