Allowed

Punjab Gramin Bank v. Gurbir Singh

DRT3 Sept 2025OA/790/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab Gramin Bank for recovery of Rs. 23.61 Lakhs. The court reduced the claimed interest rate from 11.50% to 8% and issued a recovery certificate allowing seizure of mortgaged assets.

What did the court decide?

Defendant liable to pay Rs.23,61,102.00 plus 8% simple interest. Recovery Certificate issued permitting sale of mortgaged properties.

Punjab Gramin Bank versus Gurbir Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.790/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.06.2025

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DATE OF DECISION: 03.09.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank, Act, 1976 Act No.21, of 1976 having its head office at Jalandhar Road, Kapurthala (Pb) and having its branches at different places including one at Nurdi Chowk, Tehsil and District Tarn Taran (PB) through its Constituted attorney/Manager Sh. Dalbir Singh.

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……..Applicant

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Versus

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Sh. Gurbir Singh S/o Sh. Buta Singh, Residents of Village Majjupur, PO.Chabal, Tehsil and District Tarn Taran (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh.Bhushan Bhatia, Advocate for the applicant (through VC)

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Defendant already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act,1993, against the defendant for recovery of Rs.23,61,102.00p (Rupees Twenty Three Lacs Sixty One Thousand One Hundred Two Only). The Original Application has been filed through Sh. Dalbir Singh, constituted attorney/Branch Manager, o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.01.2017, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.14.64 Lacs vide Loan Application dated 02.12.2014, which is Annexure A2 to this OA.

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2 OA/790/2025 PUNJAB GRAMIN BANK VS SH.GURBIR SINGH

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The applicant Bank sanctioned the KCC Limit of Rs.14.64 Lacs vide Sanction dated 02.12.2014, which is Annexure A3 to this OA. and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgage his immovable properties i.e. total land measuring 24Kanal-00Marla situated at Village Panjwar, Hadbast No.196, Tehsil and District Tarn Taran (Punjab) vide Declaration u/s 4(1) of Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 16.12.2014 & Letter to Sub Registrar for Creation of Charge dated 16.12.2014, which is Annexures A5 to this OA.

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Documents executed:- Hypothecation agreement dated 29.12.2014, which is Annexure A4 to this OA; Legal notice dated 13.06.2024, which is Annexure A6 to this OA; BC Letters dated 24.08.2023, 24.09.2021,01.12.2018 & 03.05.2016, which are Annexures A7, A7/1, A7/2, A7/3 to this OA and Statement of account along with Certificate, which is Annexure A8 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.23,61,102.00p, 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 14.08.2025. 7. In support of the OA, affidavit of Sh. Dalbir Singh, Constituted attorney/Branch Manager, Punjab Gramin Bank, h as been filed. 8. 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.

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3 OA/790/2025

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PUNJAB GRAMIN BANK VS SH.GURBIR SINGH

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From the perusal of all the Annexures A1 to A8 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 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.23,61,102.00p (Rupees Twenty Three Lacs Sixty One Thousand One Hundred Two 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 bank in relief clause has claimed [email protected]%p.a.along with 2%p.a. penal interest with half yearly rests from 01.06.2025 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, 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.23,61,102.00p (Rupees Twenty Three Lacs Sixty One Thousand One Hundred Two 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. Accordingly, the applicant shall be

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4 OA/790/2025 PUNJAB GRAMIN BANK VS SH.GURBIR SINGH

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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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.09.2025. 15. Copy of this order be given Dasti to the applicant bank 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: 03.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Gurbir Singh

Case brief

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Punjab Gramin Bank v. Gurbir Singh

Case brief

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