Allowed

Punjab National Bank v. Sh. Surinder Kumar

DRT2 Sept 2026OA/1058/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery petition by a bank. The court proved the loan facility and default, reduced the claimed interest from 13.5% to 8% per annum, and ordered recovery of the principal amount and costs.

What did the court decide?

Defendant to pay Rs.24,21,975.50 with costs and simple interest @08.00% p.a. recoverable from defendant persona and by sale of mortgaged property.

Punjab National Bank versus Sh. Surinder Kumar — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1058/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2026

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DATE OF DECISION: 02.09.2026

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Punjab National Bank, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi–110075, and having its Branch Office at Punjab National Bank (erstwhile Oriental Bank of Commerce), Ground Floor, Bhatia Complex, Rahon Road, Machhiwara, Ludhiana–141115, through its Authorised Officer, Sh. Arjun Sharma, Deputy Manager of the Branch. ……..Applicant Versus Sh. Surinder Kumar, S/o Sh. Devi Ditta Ram, resident of Village Sherpur, Machhiwara, Tehsil Samrala, District Ludhiana–141115, Punjab.

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.……Defendant

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Advocate:

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Argued by Sh. Ravinder Kumar, Advocate for the applicant

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None for Defendant (already ex parte vide order dated 29.08.2026)

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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.24,21,975.50 (Rupees Twenty Four Lac Twenty One Thousand Nine Hundred Seventy Five and Paise Fifty Only). The Original Application has been filed through Sh. Arjun Sharma, Deputy Manager , of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 29.11.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for the grant of KCC Limit of Rs. 15.00 Lacs vide Loan Request Application dated 12.10.2010, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 15.00 Lacs vide Sanction Letter dated 15.10.2010, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant.

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2 OA/1058/2026 PUNJAB NATIONAL BANK VS SH. SURINDER KUMAR

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Defendant mortgaged his agricultural land measuring 36Kanal0Marla, situated at Village Stabgarh, Hadbast No. 67, Tehsil Samrala, District Ludhiana, Punjab, vide Simple Mortgage Deed bearing Vasika No. 1333 dated 19.10.2010, along with its Punjabi version and translated copy in English, which are Annexure A5 & A5-A , respectively, to this OA; Documents executed : Agreement for Hypothecation dated 29.10.2010, which is Annexure A4 to this OA; Title Search Report qua the property under reference dated 16.10.2010, which is Annexure A6 to this OA; Jamabandi along with mutation on mortgage for the property under reference dated 17.05.2016, along with its Punjabi version and translated copy in English, which are Annexure A7 & A7-A , respectively, to this OA; Balance and Security Confirmation Letter dated 02.04.2025, 06.03.2023, 12.03.2020, 22.05.2017, 17.05.2016 & 15.10.2013, which are Annexures A8 to A13 to this OA; Legal Notice along with postal receipts dated 13.05.2026, which is Annexure A14 collectively to this OA; Statement of Account along with memoranda supported by Certificate under the Bankers’ Books Evidence Act dated 19.06.2026, which is Annexure A15 collectively to this OA. 5. The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.24,21,975.50 (Rupees Twenty Four Lac Twenty One Thousand Nine Hundred Seventy Five and Paise Fifty Only), 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 summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, he was proceeded ex-parte on 29.08.2026. 7. In support of the OA, affidavit of Sh. Arjun Sharma, Deputy Manager, Punjab National Bank, has 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.

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3 OA/1058/2026 PUNJAB NATIONAL BANK VS SH. SURINDER KUMAR

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From the perusal of all the Annexures A1 to A15 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.24,21,975.50 (Rupees Twenty Four Lac Twenty One Thousand Nine Hundred Seventy Five and Paise Fifty Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% p.a. plus 2.00% p.a. penal interest from 30.10.2025 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 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.

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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.24,21,975.50 (Rupees Twenty Four Lac Twenty One Thousand Nine Hundred Seventy Five and Paise Fifty 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 entitled to recover aforesaid amount from the sale of mortgaged property of the defendant in execution proceedings if not sold earlier

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OA/1058/2026 PUNJAB NATIONAL BANK VS SH. SURINDER KUMAR

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under	the provisions of the SARFAESI Act, 2002. If the dues of the
applic	ant still remain unsatisfied, it shall be entitled to recover the same
by at	tachment and sale of personal assets of the defendant. The
applic	ant 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. on 17	Parties to appear before Learned Recovery Officer of this Tribunal .09.2026
15.	Copy of this order be given dasti to the applicant and be sent to
defen	dant through registered/speed post and this order be also
uploa Pron	ded on the official website of this Tribunal and record be consigned. ounced by me in the open Tribunal.
Dated	: 02.09.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Surinder Kumar

Case brief

What is this about?

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Punjab National Bank v. Sh. Surinder Kumar

Case brief

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