Debt Recovery Tribunal allowed the applicant bank's application for recovery of dues classified as NPA. The court fixed uniform simple interest at 8% p.a. and issued a recovery certificate against mortgaged and personal assets of the defendants.
Recovery of Rs.41,67,618.78 with interest @8% p.a., costs, and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 1067/2025
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.08.2025
DATE OF DECISION: 16.05.2026
Punjab & Sind Bank, A Body Corporate constituted under the Banking Companies (Acquisition & Transfer of undertakings Act 1980) with its Head Office at 21, Rajindra Place, New Delhi and Branches amongst other places at Grubax Colony, Patiala, through Sh. Jatinder Kumar, Manager, Punjab & Sind Bank, Branch Office Grubax Colony, Patiala and Sh. Mandeep Singh, Branch Manager, Punjab & Sind Bank, Branch Office Rasulpur Saidan, Patiala (Punjab).
……..Applicant
Versus
.……Defendants
Advocates:
Argued by Sh. Chiranjiv Singh Kwatra, Advocate for applicant
Sh. Sunil Salotra, Advocate proxy for Sh. Sidhant Bhonsle, Advocate for Defendants
FINAL ORDER
2 OA/ 1067/2025 PUNJAB & SIND BANK VS SH. MUKESH AND OTHERS
Only). The Original Application has been filed through Sh. Jatinder Kumar, Manager, Punjab & Sind Bank, Branch Office Grubax Colony, Patiala and Sh. Mandeep Singh, Branch Manager, Punjab & Sind Bank, Branch Office Rasulpur Saidan, Patiala, who is competent to institute the Original Application vide Letter of Authorization for filing OA, which is Annexure A1 to this OA; Copy of POA of Sh. Jatinder Kumar, which is Annexure A2 to this OA; Copy of POA of Sh. Mandeep Singh, which is Annexure A3 to this OA.
Thereafter, the defendant nos. 1 & 2, again approached the applicant for Term Loan of Rs. 5,00,000.00 vide Loan application, which is Annexure A15 to this OA.
Thereafter, the applicant sanctioned the Term Loan of Rs. 5,00,000.00 vide Loan sanction letter dated 30.10.2020, which is Annexure A16 to this OA. 4. Defendants mortgaged their residential property measuring 70 SqYds. Situated at House No. 724/3, Top Khana Road, Patiala, vide Sale Deed bearing Vasika no. 14385 dated 18.03.2016, along with its translation, which is Annexure A12 to this OA. Documents executed: Pronote for Rs. 33,52,839/- dated 09.08.2019, which is Annexure A6 to this OA; Agreement for housing loan dated 09.08.2019, which is Annexure A7 to this OA; Power of Attorney dated 09.08.2019, which is Annexure A8 to this OA; Letter of Undertaking dated 09.08.2019, which is Annexure A9 to this OA; Letter addressed to DHFL dated 09.08.2019, which is Annexure A10 to this OA; Form
3 OA/ 1067/2025 PUNJAB & SIND BANK VS SH. MUKESH AND OTHERS
No. 84-A (Revised) dated 09.08.2019, which is Annexure A11 to this OA; Copy of CERSAI dated 13.11.2019, which is Annexure A13 to this OA; Agreement of Guarantee, which is Annexure A14 to this OA; Pronote for Rs. 5,00,000/- dated 30.10.2020, which is Annexure A17 to this OA; Form No. 106 dated 30.10.2020, which is Annexure A18 to this OA; Form No. 103/291/412 dated 30.10.2020, which is Annexure A19 to this OA; Form No. 199 dated 30.10.2020, which is Annexure A20 to this OA; Form No. 200 dated 30.10.2020, which is Annexure A21 to this OA; Consent letter dated 30.10.2020, which is Annexure A22 to this OA; Term loan agreement dated 30.10.2020, which is Annexure A23 to this OA; Addendum to loan agreement dated 30.10.2020, which is Annexure A24 to this OA; Form No. 84-A (Revised) dated 30.10.2020, which is Annexure A25 to this OA; Form No. 216 dated 30.10.2020, which is Annexure A26 to this OA; Certificate of execution of documents dated 30.10.2020, which is Annexure A27 to this OA; Balance & Security Confirmation Letter dated 08.08.2022, which is Annexure A28 to this OA; Balance & Security Confirmation letter dated 22.05.2023, which is Annexure A29 to this OA; Copy of Notice dated 22.07.2025 under SARFAESI Act along with Postal receipts, which are Annexure A30 to A33 to this OA; Statement of Accounts with certificate, which are Annexures A34 & A35 to this OA.
4 OA/ 1067/2025 PUNJAB & SIND BANK VS SH. MUKESH AND OTHERS
Bhonsle, filed his Power of Attorney on behalf of defendants on 27.09.2025. Set of Paper book was supplied on 04.12.2025. WS was filed on 03.03.2026. Hence, WS was filed beyond stipulate period and none was present on behalf of defendants despite calls to show any reason for non-filling of WS within stipulated period, WS filed by defendants was not taken on record and defense of defendants was struck of vide Order dated 06.05.2026.
Learned counsel for defendants was present but had not advanced any argument on OA.
From the perusal of all the Annexures A1 to A35 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facilities, which were granted to them. Defendant no.3 stood as Guarantor in Housing Loan. They had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,89,023.62 (Rupees Thirty Five Lacs Eighty Nine Thousand Twenty Three and Paise Sixty Two Only), along with interest from the defendant nos. 1 to 3 and Rs.5,78,595.16 (Rupees Five Lacs Seventy Eight Thousand Five Hundred Ninety Five and Paise Sixteen Only), along with interest from the defendant nos. 1 & 2, jointly and severally, 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 @9.05% p.a. in
5 OA/ 1067/2025 PUNJAB & SIND BANK VS SH. MUKESH AND OTHERS
Housing Loan and @11.45% in Term Loan, along with monthly rests from 01.08.2025 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 defendants, quantum of loans 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 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. 11. In the result, the application is allowed declaring that the defendant nos. 1 to 3 are liable to pay to the applicant a total sum of Rs.35,89,023.62 (Rupees Thirty Five Lacs Eighty Nine Thousand Twenty Three and Paise Sixty Two Only) and defendant nos. 1 & 2 are liable to pay to the applicant a total sum of Rs.5,78,595.16 (Rupees Five Lacs Seventy Eight Thousand Five Hundred Ninety Five and Paise Sixteen Only), jointly and severally, with costs, current and future simple interest @8.00% 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 assets 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.
12. Any other application pending stands disposed of.
6 OA/ 1067/2025
PUNJAB & SIND BANK VS SH. MUKESH AND OTHERS
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant is entitled to recovery of dues and interest from the defendants after their loan accounts were classified as NPA.
1 provisions across 1 enactments
Punjab & Sind Bank
Sh. Mukesh S/o Sh. Chuni Lal
Smt. Mamta W/o Sh. Mukesh S/o Sh. Chuni Lal
Sh. Jackie Joeya S/o Sh. Ganpat Ram
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
