Allowed

Punjab Gramin Bank v. Sh. Rinku Singh

DRT31 Oct 2025OA/923/2025

Case brief

AI extract

What is this about?

Coram Mridulesh Kumar Singh, Presiding Officer, DRT-III, Chandigarh by vide order dated 31.10.2025, the present application was allowed by which it was declared that the defendant was liable to pay the applicant a total sum of Rs.33,64,548 along with penal and interest at the rate of 08% p.a. and costs. To this effect, recovery certificate was issued accordingly.

What did the court decide?

Recovery certificate issued for Rs.33,64,548 with 08% simple interest p.a. from date of filing till realization.

Punjab Gramin Bank versus Sh. Rinku Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.923/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.04.2025

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DATE OF DECISION: 31.10.2025

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Punjab Gramin Bank, a body corporate constituted under the Provisions of the Regional Rural Bank Act, 1976 (Act No.21 of 1976) having its Head Office at Markfed Road Kapurthala, and amongst others a branch office a Badalgarh, Tehsil Moonak, District Sangrur, Punjab through Sh. Deepak Kumar son of Sh. Sohan Lal, Authorized Officer, General Attorney of the applicant.

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……..Applicant Versus Sh. Rinku Singh S/o Sh. Surjit Singh, R/o Village Banga, Moonak, District Sangrur, (Punjab)-148033.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant

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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.33,64,548.00p (Rupees Thirty Three Lacs Sixty Four Thousand Five Hundred Forty Eight Only). The Original Application has been filed through Sh. Deepak Kumar, Authorized Officer, o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.6.50 Lacs, Term Loan under KGS of Rs.2.00 Lacs, Term Loan of Rs.1.00 Lac for Debt Swap, vide Loan Applications dated 08.08.2018, which are Annexures A2, A7, and A12 to this OA. The defendant also approached the applicant for grant of

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2 OA/923/2025 PUNJAB GRAMIN BANK VS SH.RINKU SINGH

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Term Loan of Rs. 7.20 Lacs vide loan application dated 29.09.2018, which is Annexure A18 to this OA.

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The applicant sanctioned the KCC Limit of Rs.6.50 Lacs vide letter of arrangement dated 16.08.2018, which is Annexure A3 to this OA; Sanctioned Term Loan of Rs.2.00 Lacs under KGS vide letter of arrangement dated 16.08.2018, which is Annexure A8 to this OA & sanctioned Term Loan of Rs. 1.00 Lac for Debt Swap Loan vide letter of arrangement dated 16.08.2018, which is Annexure A13 to this OA and the terms and conditions were duly accepted by the defendant. Thereafter, term loan of Rs. 7.20 Lacs was sanctioned vide letter of arrangement dated 21.11.2018, which is Annexure A19 to this OA.

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Defendant had mortgaged his immovable properties i.e. 42Kanal03Marla situated at Village Banga, Tehsil Moonak, District Sangrur, Punjab, vide Declaration u/s 4(1) dated 16.08.2018 and 28.12.2018, which are Annexures A17 and A23 to this OA. Documents executed: - Demand Promissory Note, Letter of undertaking, Loan agreement, all dated 23.08.2018, which are Annexure A4 to A6, A9 to A11, A14 to A16 to this OA; Demand Promissory Note, Letter of undertaking, Loan agreement, all dated 31.12.2018, which are Annexures A20 to A22 to this OA; Balance Confirmation letter dated 10.06.2021, 04.01.2024, which are Annexure A24 to this OA; Notice dated 29.04.2023, along with its translation which is Annexure A25 to this OA and Statement of accounts, which are Annexures A26 to A29 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.33,64,548.00p, 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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3 OA/923/2025 PUNJAB GRAMIN BANK VS SH.RINKU SINGH

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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 16.09.2025. 7. In support of the OA, affidavit of Sh. Deepak Kumar, Branch Manager, 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 A29 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,64,548.00p (Rupees Thirty Three Lacs Sixty Four Thousand Five Hundred Forty Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.00%p.a. along 2%p.a. penal interest in KCC, KGS and Debt Swap Account and interest @13%p.a. with 2% p.a. penal interest in Term Loan, with half yearly rests from 21.04.2025 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 defendant, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising

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4 OA/923/2025 PUNJAB GRAMIN BANK VS SH.RINKU SINGH

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the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in all 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 defendant is liable to pay to the applicant a total sum of Rs.33,64,548.00p (Rupees Thirty Three Lacs Sixty Four Thousand Five Hundred Forty Eight Only) with costs, current and future simple interest @08.00%p.a. in all 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 defendant 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 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 11.11.2025. 15. 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: 31.10.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Rinku Singh

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Punjab Gramin Bank v. Sh. Rinku Singh

Case brief

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