Allowed

Punjab Gramin Bank v. Mangal Singh

DRT10 Sept 2025OA/836/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab Gramin Bank against a defendant for recovery of an outstanding loan amount of Rs. 23,51,553.42. The court confirmed the defendant's liability and granted simple interest at 8.00% p.a., allowing recovery via enforcement of hypothecated properties.

What did the court decide?

Recovery Certificate issued for Rs. 23,51,553.42 plus costs and simple interest @8.00% p.a. from filing date until realization.

Punjab Gramin Bank versus Mangal Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.836/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.07.2025 DATE OF DECISION: 10.09.2025

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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 B.O. Baghapurana, Tehsil Baghapurana, District Moga (Pb) through its Authorized Signatory Sh. Gautam Mittal.

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……..Applicant Versus Sh. Mangal Singh S/o Sh. Gurbaksh Singh R/o VPO Kotla Rai Kha, Tehsil Baghapurana, District Moga.

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….……Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant Defendant 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 & Bankruptcy Act, 1993, against the defendant for recovery of Rs.23,51,553.42p (Rupees Twenty Three Lakh Fifty One Thousand Five Hundred Fifty Three and Paise Forty Two Only). The Original Application has been filed through Sh. Gautam Mittal, through its Authorized Signatory, o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.12.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.13.00 Lacs vide Loan Application (KCC) dated 27.08.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC limit of Rs.13.00 Lacs vide Sanction dated 14.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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2 OA NO. 836/2025 PUNJAB GRAMIN BANK VS. SH. MANGAL SINGH

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Defendant had mortgaged his immovable property i.e. Total land measuring 27K-18M situated at Village Kotla Rai Ka, Tehsil Baghapurana, District Moga, vide Declaration u/s 4(1) and letter to Sub Registrar for creation of charge bearing no. 1166 dated 15.09.2015, which is Annexure A5 to this OA. Documents executed :- Hypothecation Agreement dated 17.09.2015, which is Annexure A4 to this OA; Security Confirmation Letters dated 12.06.2017, 09.04.2020 and 29.03.2023, which are Annexures A6 to A8 to this OA; Statement of Account, which is Annexure A9 to this OA; Certificate by Officer Incharge of the Computer System, which is Annexure A10 to this OA and Notice dated 03.08.2024, which is Annexure A11 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.23,51,553.42p, 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. 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 25.08.2025. 7. In support of the OA, affidavit of Sh. Gautam Mittal, Authorized Signatory, Punjab Gramin Bank h as 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 A11 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 applicant. The

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3 OA NO. 836/2025 PUNJAB GRAMIN BANK VS. SH. MANGAL SINGH

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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.23,51,553.42p (Rupees Twenty Three Lakh Fifty One Thousand Five Hundred Fifty Three and Paise Forty 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 in relief clause has claimed interest @12.50%p.a. with penal interest @2% p.a. with half monthly rest from 03.04.2025 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 @8.00%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.23,51,553.42p (Rupees Twenty Three Lakh Fifty One Thousand Five Hundred Fifty Three and Paise Forty Two 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

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OA NO. 836/2025

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PUNJAB GRAMIN BANK VS. SH. MANGAL SINGH

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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.
13. Issue Recovery Certificate accordingly.
14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.10.2025.
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: 10.09.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Mangal Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Mangal Singh

Case brief

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