Allowed

Punjab Gramin Bank v. Late Sh. Simranjit Singh Since Deceased through Lrs and Anr.

DRT13 Oct 2025OA/997/2025

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 RDB Act, the DRT allowed Punjab Gramin Bank to recover Rs. 39.71 lakhs from borrowers. The court reduced the claimed interest rate to 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Order for recovery of Rs. 39,71,173.00 with interest at 8% p.a. and issuance of Recovery Certificate.

Punjab Gramin Bank versus Late Sh. Simranjit Singh Since… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.997/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.07.2025

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DATE OF DECISION: 13.10.2025

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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, (Punjab) and having its branches at different places including one at Said Kheri, Tehsil Rajpura, District Patiala, (Punjab) through its Constituted Attorney/Manager Sh. Jaspreet Singh.

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……..Applicant

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Versus

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Sh. Simranjit Singh S/o Sh. Iqbal Singh since deceased through LRs

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a. Sh. Gurkirat Singh S/o Late Sh. Simranjit Singh

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b. Sh. Sandeep Singh, S/o Late Sh. Simranjit Singh

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c. Ms. Komaldeep Kaur D/o Late Sh. Simranjit Singh

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d. Ms. Amandeep Kaur D/o Late Sh. Simranjit Singh

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All the residents Village Said Kheri, Tehsil Rajpura, District Patiala (Punjab).

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Sh. Harbhajan Singh S/o Sh. Hari Singh, R/o Village Said Kheri,

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Tehsil Rajpura, District Patiala (Punjab).

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………Defendants

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Advocates:

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

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.39,71,173.00p (Rupees Thirty Nine Lacs Seventy One Thousand One Hundred Seventy Three Only). The Original Application has been filed through Sh. Jaspreet

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2 OA NO.997/2025 PUNJAB GRAMIN BANK Vs SH.SIMRANJIT SINGH SINCE DECEASED THROUGH LRs AND ANOTHER

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Singh, Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 25.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) had approached the applicant for grant of KCC Limit of Rs.30.00 Lacs, vide Loan Application dated 12.08.2020, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs.30.00 Lacs, vide Sanction letter dated 28.08.2020, which is Annexure A3 to this OA. and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no. 2.

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Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 27Bigha 07Biswa situated at Village Saidkheri, Hadbast no. 72, Tehsil Rajpura, District Patiala, Punjab, vide Declaration u/s 4(1) dated 03.09.2020, which is Annexure A5 to this OA.

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Documents executed : - Hypothecation agreement and agreement of guarantee, both dated 11.09.2020, which are Annexures A4 and A4/1 to this OA; notice dated 03.08.2024, which is Annexure A6 to this OA; BC Letter dated 10.04.2023, which is Annexure A7 to this OA; Statement of account, which is Annexure A8 to this OA and Death certificate, which is Annexure A9 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.39,71,173.00p, which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 22.09.2025.

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3 OA NO.997/2025 PUNJAB GRAMIN BANK Vs SH.SIMRANJIT SINGH SINCE DECEASED THROUGH LRs AND ANOTHER

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In support of the OA, affidavit of Sh. Jaspreet Singh, Manager, Punjab Gramin Bank, h as been filed.

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Heard ex-parte arguments and perused record.

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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. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 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.39,71,173.00p (Rupees Thirty Nine Lacs Seventy One Thousand One Hundred Seventy Three 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.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. with 2% penal interest with yearly rests from 01.07.2025 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 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.997/2025 PUNJAB GRAMIN BANK Vs SH.SIMRANJIT SINGH SINCE DECEASED THROUGH LRs AND ANOTHER

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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.39,71,173.00p (Rupees Thirty Nine Lacs Seventy One Thousand One Hundred Seventy Three 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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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 23.10.2025. 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: 13.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Late Sh. Simranjit Singh Since Deceased through Lrs and Anr.

Case brief

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Punjab Gramin Bank v. Late Sh. Simranjit Singh Since Deceased through Lrs and Anr.

Case brief

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