Allowed

Punjab National Bank v. Sh. Dalbir Singh and Another

DRT23 Oct 2025OA/785/2025

Case brief

AI extract

What is this about?

The DRT allowed an applicant bank's original application for recovery of Rs.37.17 lakhs from borrowers and guarantors. The court held defendants jointly liable and modified the interest rate to 08.00%p.a., ordering issuance of a Recovery Certificate.

What did the court decide?

Declaration of joint and several liability for Rs.37,17,113.50p with future interest @8.00%p.a. Issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.785/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.06.2025

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DATE OF DECISION: 23.10.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 4, Sector -10, Dwarka, New Delhi (A Government of India Undertaking) and having one of its Branch situated at Punjab National Bank, Village Nurpur Bet, District Ludhiana, Punjab through Mr. Ravi Basran who is presently posted as Senior Manager, Punjab National Bank, Asset Recovery Management Branch, Plot No. 5, Ferozepur Road, Near Wave Mall, Ludhiana, Punjab constituted Power of Attorney Holder of the Bank and Principal Officer.

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………..Applicant

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Versus

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Sh. Dalbir Singh S/O Sh. Gurnam Singh, Address: VPO Jassian,

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Tehsil and District Ludhiana, Punjab.

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Sh. Satwinder S/O Sh. Tulsi Ram, Address: Village Manj Phagguwal, Tehsil and District Ludhiana, Punjab. ........Defendants

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Advocates:

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Present: Ms. Deepika Mittal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for Applicant

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.37,17,113.50p (Rupees Thirty Seven Lacs Seventeen Thousand One Hundred Thirteen & Fifty Paise Only). The Original Application has been filed through Sh. Ravi Basran , Senior Manager of the applicant, who is competent to institute

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OA NO.785/2025

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PUNJAB NATIONAL BANK VS SH.DALBIR SINGH AND ANOTHER

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the Original Application vide Power of Attorney dated 07.08.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 had approached the applicant for grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 23.01.2012, which is Annexures A3 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Sanction letter dated 03.02.2012, which is Annexure A3 to this OA. 4. Defendant no.1 had mortgaged his immovable properties i.e. land measuring 08K-00Marla situated at Village Jassian, Hadbast no. 101, Tehsil and District Ludhiana, Punjab vide Registered Mortgage Deed bearing Vasika No. 16860 dated 01.02.2012, along with its Translation, which are Annexure A5, A5-T to this OA; Affidavit of defendant no. 1 dated 25.01.2012, which is Annexure A4 to this OA.

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Documents executed : -Notification dated 04.03.2020, which is Annexure A1A to this OA; Hypothecation agreement, Common agreement, Agreement of guarantee, all dated 03.02.2012, which are Annexures A6 to A8 to this OA; Balance and Security Conformation letters dated 02.12.2014, 28.04.2017, 14.11.2019 & 20.06.2022, which are Annexures A9 to A12 to this OA; Notice of recall of Bank’s dues dated 17.05.2025 by advocate, which is Annexure A13 to this OA and Statement of account, which is Annexure A14 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.37,17,113.50p, 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.

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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 15.10.2025.

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OA NO.785/2025 PUNJAB NATIONAL BANK VS SH.DALBIR SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Ravi Basran, Senior Manager of the applicant has been filed. 8. Matter was listed for ex-parte arguments on 17.10.2025 and again on 21.10.2025. On 17.10.2025, Nodal Officer of applicant sought time for ex-parte arguments. Again on 21.10.2025, the learned proxy counsel for applicant prayed for adjournment. The prayer was declined as there was no ground to adjourn. Perused record. 9. From the perusal of all the Annexures A1 to A14 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 bank. 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.37,17,113.50p (Rupees Thirty Seven Lacs Seventeen Thousand One Hundred Thirteen & Fifty Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.05%p.a. with @2% p.a. penal interest with yearly rests from 04.02.2025 till the realization. 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 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

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OA NO.785/2025 PUNJAB NATIONAL BANK VS SH.DALBIR SINGH AND ANOTHER 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 defendants are liable to pay to the applicant a total sum of Rs.37,17,113.50p (Rupees Thirty Seven Lacs Seventeen Thousand One Hundred Thirteen & Fifty Paise Only) jointly and severally, 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. 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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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 04.11.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 23.10.2025

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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. Dalbir Singh and Another

Case brief

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Punjab National Bank v. Sh. Dalbir Singh and Another

Case brief

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