Allowed

Punjab Gramin Bank v. Late Sh. Santokh Singh Thr Lrs

DRT19 Sept 2025OA/833/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by a regional rural bank against the legal heirs of a deceased borrower. The court declared the defendants liable to repay the dues with interest at a modified rate and ordered the issuance of a recovery certificate.

What did the court decide?

Order for joint and several liability of respondents to pay Rs. 23,98,823.00 with interest @8% p.a.; issue Recovery Certificate.

Punjab Gramin Bank versus Late Sh. Santokh Singh Thr Lrs — Property and Title | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.833/2025

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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: 19.09.2025

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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 Markfed 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 Versus

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Sh. Santokh Singh S/o Sh .Major Singh

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(since deceased through LRs)

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a. Smt. Bhagwant Kaur W/o Late Sh. Santokh Singh

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b. Nirmat Kaur D/o Late Sh. Santokh Singh (Minor) under Guardianship of Smt. Bhagwant Kaur

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c. Guntash Singh S/o Late Sh. Santokh Singh (Minor) under Guardianship Bhagwant Kaur

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All r/o Village Bakipur, Tehsil and District Tarn Taran Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for the applicant Defendants 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 defendants for recovery of Rs.23,98,823.00 (Rupees Twenty Three Lacs Ninety Eight Thousand Eight Hundred Twenty Three Only). The Original Application has been filed through Sh. Dalbir Singh, Constituted Attorney/Manager o f the applicant, who is competent to

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2 OA/833/2025 PUNJAB GRAMIN BANK VS LATE SH.SANTOKH SINGH THROUGH LRs

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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 (since deceased) had approached the applicant for the grant of KCC Limit of Rs.13.16 Lacs & Agri. Term Loan of Rs.2.00 Lacs vide Loan Applications dated 19.02.2015 & 27.02.2015, which are Annexure A2 & A2/1 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.13.16 Lacs & Term Loan of Rs.2.00 Lacs vide Sanction letter dated 26.02.2015, which are Annexures A3 and A3/1 to this OA and the terms and conditions were duly accepted by the defendant ().

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Defendant (since deceased) had mortgage his immovable properties i.e. total land measuring 12 Kanal -00 Marla situated at Village Bakipur, District Tarn Taran, Punjab vide declaration u/s 4(1) dated 26.02.2015 and charged registered with Sub-Registrar Tarn Taran vide rapat no. 230 dated 27.02.2015, which is Annexures A5 to this OA.

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Documents executed: - Hypothecation agreement and loan agreement, both dated 28.02.2015, which are Annexure A4, A-4/1 to this OA; notice dated 25.01.2024, which is Annexure A6 to this OA; BC Letters dated 02.01.2017, 03.10.2019, 24.02.2021 & 27.10.2023, which are AnnexuresA7, A7/1, A7/2 and A7/3 to this OA; Statement of account along with Certificate, which is AnnexureA8 to this OA and Death certificate dated 22.11.2019, which is Annexure A9 to this OA. 5. 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.23,98,823.00, which is recoverable and the defendant (since deceased) 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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3 OA/833/2025 PUNJAB GRAMIN BANK VS LATE SH.SANTOKH SINGH THROUGH LRs

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The legal heirs of the deceased defendant were served notices to appear before this Tribunal but no one appeared on behalf of their behalf and they were proceeded ex-parte on 28.08.2025. 7. In support of the OA, affidavit of Sh. Dalbir Singh, Constituted Attorney/Manager, Punjab Gramin Bank, has been filed.

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Heard ex-parte arguments and perused record

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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 A9 to this OA, it is proved that the defendant (since deceased) 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 defendants (since deceased) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,98,823.00 (Rupees Twenty Three Lacs Ninety Eight Thousand Eight Hundred Twenty Three Only) along with interest from the legal heirs of the deceased defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed [email protected]%p.a. 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

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OA/833/2025 PUNJAB GRAMIN BANK VS LATE SH.SANTOKH SINGH THROUGH LRs

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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 both 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 defendants are liable to pay to the applicant a total sum of Rs.23,98,823.00 (Rupees Twenty Three Lacs Ninety Eight Thousand Eight Hundred Twenty Three Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 defendants 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 defendants. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.10.2025.

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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. Pronounced by me in the open Tribunal . Dated: 19.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Late Sh. Santokh Singh Thr Lrs

Case brief

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Punjab Gramin Bank v. Late Sh. Santokh Singh Thr Lrs

Case brief

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