Allowed

Punjab National Bank v. Sh. Harnek Singh

DRT31 Dec 2025OA/751/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Nationalized Bank's Original Application for recovery of loan dues against the defendant. The court modified the claimed interest rate to 8% p.a. and ordered the issuance of a recovery certificate enforceable under SARFAESI Act.

What did the court decide?

Defendant declared liable to pay Rs. 28,50,864.20 with interest @8% p.a. from filing date; Recovery Certificate issued.

Punjab National Bank versus Sh. Harnek Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.751/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.03.2023

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DATE OF DECISION: 31.12.2025

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act No. 5 of 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 11075 and amongst others a branch office at Mohallon, Punjab Pin-144514 through Sh. Varinderjit Singh Mann, Officer of the applicant.

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……..Applicant Versus

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Sh. Harnek Singh S/o Sh. Hari Singh, R/o Village Dhaul, Nawanpind Tapprian, District Nawanshahar, Punjab-144521

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……….Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant Defendant already ex parte

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FINAL ORDER 1. 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.28,50,864.20 (Rupees Twenty Eight Lacs Fifty Thousand Eight Hundred Sixty Four and Paise Twenty Only). The Original Application has been filed through Sh. Varinderjit Singh Mann, Officer, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 30.12.2016 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide loan application dated 15.04.2013, which is Annexure A3 to this OA.

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OA NO. 751/2023 PUNJAB NATIONAL BANK VS. HARNEK SINGH

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The applicant sanctioned the of KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 16.04.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e., total land measuring 21K-14M, situated at Village Mandiani, Tehsil Balachour, District Shaheed Bhagat Singh Nagar, Punjab vide Mortgage Deed no.89 dated 09.04.2013 which is Annexure A6 to this OA.

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Documents executed : Amalgamation Scheme/Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Hypothecation Agreement dated 16.04.2013 which is Annexure A5 to this OA; Balance and Security Confirmation Letter dated 16.04.2016, 02.11.2018, 09.04.2019 and 31.03.2020, which are Annexures A7 to A10 to this OA; Notice dated 13.09.2022 which is Annexure A11 to this OA; Statement of account which is Annexure A12 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.28,50,864.20 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 notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 15.10.2025.

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In support of the OA, affidavit of Sh. Varinderjit Singh Mann, Manager, Punjab National Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A12 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

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OA NO. 751/2023 PUNJAB NATIONAL BANK VS. HARNEK SINGH

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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.28,50,864.20 (Rupees Twenty Eight Lacs Fifty Thousand Eight Hundred Sixty Four and Paise Twenty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00% p.a. plus 2% penal interest with yearly rest from 03.10.2022 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.28,50,864.20 (Rupees Twenty Eight Lacs Fifty Thousand Eight Hundred Sixty Four and Paise Twenty Only), 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 defendant in execution proceedings if not sold earlier

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OA NO. 751/2023 PUNJAB NATIONAL BANK VS. HARNEK SINGH

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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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.01.2026.

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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. Pronounced by me in the open Tribunal . Dated: 31.12.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Harnek Singh

Case brief

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Punjab National Bank v. Sh. Harnek Singh

Case brief

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