Allowed

Punjab Gramin Bank v. Sh. Ajmer Singh and Another

DRT23 Apr 2026OA/1073/2025

Case brief

AI extract

What is this about?

In an ex-parte hearing under the RD and BA 1993, the Tribunal declared the defendants liable to pay the applicant Rs.38.46 lakhs outstanding. The Court allowed the application and modified the claimed interest rate to 8% p.a. while issuing a Recovery Certificate for execution via SARFAESI or asset attachment.

What did the court decide?

Grant of simple interest @ 8% p.a., declaring respondents liable to pay Rs.38.46 lakhs, and issuance of Recovery Certificate for enforcement under SARFAESI Act.

Punjab Gramin Bank versus Sh. Ajmer Singh and Another — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 1073/2025

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 06.08.2025

¶5

DATE OF DECISION: 23.04.2026

¶6

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.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Ajmer Singh S/o Sh. Bali Singh, R/o Village Ram Singh Wala, PO Toot, Tehsil Patti, District Tarn Taran, Punjab.

¶10

Sh. Yadwinder Singh S/o Sh. Ajmer Singh, R/o Village Ram Singh Wala, PO Toot, Tehsil Patti, District Tarn Taran, Punjab

¶11

…….Defendants

¶12

Advocates:

¶13

Argued by Sh. Chirag Bhagat, Advocate proxy for Sh. Ankit Kaushal, Advocate for Applicant

¶14

None for Defendants (already ex-parte vide order dated 21.04.2026)

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.38,46,440.93 (Rupees Thirty Eight Lacs Forty Six Thousand Four Hundred Forty and Paise Ninety Three Only). The Original Application has been filed through Sh. Rajan Koral, Authorized Representative, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

¶17

2 OA NO. 1073/2025 PUNJAB GRAMIN BANK VS. AJMER SINGH AND ANOTHER

¶18

The brief facts of the OA are that the defendants approached the applicant for grant of KCC Limit of Rs.17.56 Lacs vide Loan Application dated 28.07.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.17.56 Lacs vide Sanction Letter dated 28.07.2014, which is Annexures A3 to this OA and terms and conditions were duly accepted by defendants. 4. Defendant no. 1 mortgaged his immovable property i.e. land measuring 56K-00M situated at Village Rasulpur, Tehsil Patti, District Tarn Taran, Punjab, vide Mortgage Deed bearing Vasika no.714 dated 06.08.2014, along with its translation, which is Annexure A5 to this OA. Documents executed : Hypothecation Agreement dated 14.08.2014, which is Annexure A4 to this OA; Statement of Account with certificate and Interest chart, which are Annexures A6 and A7 to this OA; Balance Confirmation Letter dated 03.05.2017, which is Annexure A8 to this OA; Balance Confirmation Letters dated 01.11.2019 and 30.10.2022, which is Annexure A9 and A10 to this OA. 5. 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.38,46,440.93, which is recoverable and the defendants were served recall notices but they 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 21.04.2026. 7. In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representativ e, Punjab Gramin Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted,

¶19

3 OA NO. 1073/2025 PUNJAB GRAMIN BANK VS. AJMER SINGH AND ANOTHER

¶20

the applicant had proved its case. From the perusal of all the Annexures A1 to A10 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.38,46,440.93 (Rupees Thirty Eight Lacs Forty Six Thousand Four Hundred Forty and Paise Ninety 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.

¶21

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00 p.a. with half yearly rests from 01.08.2025 till the realization.

¶22

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/hypothecated assets, 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.

¶23

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.38,46,440.93 (Rupees Thirty Eight Lacs Forty Six Thousand Four Hundred Forty and Paise Ninety Three Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan

¶24

4 OA NO. 1073/2025 PUNJAB GRAMIN BANK VS. AJMER SINGH AND ANOTHER

¶25

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 assets/mortgaged property 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.

¶26

12. Any other application pending stands disposed of.

¶27

Issue Recovery Certificate accordingly.

¶28

Parties to appear before Learned Recovery Officer of this Tribunal on 14.05.2026

¶29

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.

¶30

Pronounced by me in the open Tribunal .

¶31

Dated: 23.04.2026

¶32

(MRIDULESH KUMAR SINGH)

¶33

Presiding Officer,

¶34

DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Ajmer Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Ajmer Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Kotak Mahindra Bank Limited versus M/S Ashok Panjla Tiles and Others

Punjab National Bank versus Sh. Sandeep Singh

Kotak Mahindra Bank Limited versus Sh. Satnam Singh and Others

State Bank of India versus Sh. Maninder Singh Banaphal

Punjab National Bank versus Sh. Davinder Singh and Another

Bank of India versus Sh. Rajinder Singh Dhaliwal and Another