Debts Recovery Tribunal allowed an application under the RDB Act filed by Punjab Gramin Bank against two defendants for recovery of an agricultural loan classified as NPA, granting a lower interest rate due to market conditions.
Decree for recovery of Rs. 27,16,414.53 with interest at 8% p.a. and directive to issue 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.1070/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.08.2025
DATE OF DECISION: 29.08.2026
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 B.O. Kot Budha, Tehsil Patti, District Tarn Taran, Punjab through its Authorized Representative, Sh. Rajan Koral
……..Applicant
Versus
Both residents of Village Valtoha, Tehsil Patti, District Tarn Taran, Punjab
……….Defendants
Advocates:
Argued by Sh. Ankit Kaushal, Advocate for applicant
None for defendants (already ex-parte vide order dated 25.08.2026)
FINAL ORDER
2 OA NO. 1070/2025 PUNJAB GRAMIN BANK VS. JAGTAR SINGH AND ANOTHER
Rs. 1.50 Lac vide Loan Application dated 15.04.2016, which is Annexure A2 to this OA.
Documents executed: Hypothecation Agreement dated 17.05.2016, which is Annexure A4 to this OA; Statement of Account with certificate, which are Annexure A6 and A7 to this OA; Notice dated 21.02.2023, which is Annexure A8 to this OA and Security Confirmation Letters dated 22.11.2018, 09.08.2021 and 17.07.2024, which are Annexure A9 to A11 to this OA.
3 OA NO. 1070/2025 PUNJAB GRAMIN BANK VS. JAGTAR SINGH AND ANOTHER
From the perusal of all the Annexure A1 to A11 to this OA, it is proved that the defendants 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.27,16,414.53 (Rupees Twenty Seven Lacs Sixteen Thousand Four Hundred Fourteen and Paise Fifty 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 amount.
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 hypothecated assets/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 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.
4 OA NO. 1070/2025 PUNJAB GRAMIN BANK VS. JAGTAR SINGH AND ANOTHER
(Rupees Twenty Seven Lacs Sixteen Thousand Four Hundred Fourteen and Paise Fifty 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 mortgaged property of defendant no. 1 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.09.2026. 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: 29.08.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 for recovery of agricultural loan is maintainable in the absence of the defendants.
Whether interest at 8 percent per annum is appropriate given the reduction in market rates.
3 provisions across 2 enactments
Punjab Gramin Bank
Sh. Jagtar Singh
Sh. Kuldeep Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
