Allowed

Punjab National Bank v. Sh. Parveen Kumar and Others

DRT30 Apr 2026OA/1078/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Punjab National Bank's application for recovery of Rs. 25,04,000. The Tribunal decreed joint and several liability on borrowers and guarantors, adjusted contractual interest to 8% simple interest per annum, and directed the issuance of a recovery certificate.

What did the court decide?

Decree for recovery of Rs. 25,04,000 with 8% simple interest; Recovery Certificate issued.

Punjab National Bank versus Sh. Parveen Kumar and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1078/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2023

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DATE OF DECISION: 30.04.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office situated at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and having its Branch Offices throughout India, having one of its Branch Office situated at Punjab National Bank- Sastra Circle, near Natraj Hotel, Kapurthala, Punjab- 144601 represented through its Deputy Manager and GPA Holder, Sh. Baljit Kumar

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……..Applicant

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Versus

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Sh. Parveen Kumar, S/o Sh. Durga Dass, R/o VPO Takarla,

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Balachaur, District SBS Nagar, Punjab- 144521

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Sh. Vikram Kumar, S/o Sh. Jalsu, VPO Thopia, Tehsil Balachaur, District SBS Nagar, Punjab- 144521

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Sh. Des Raj, S/o Sh. Durga Dass, R/o VPO Takarla, Tehsil

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Balachaur, District SBS Nagar, Punjab- 144521

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….……Defendants

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Advocates:

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Argued by Sh. Abhay Gupta, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 24.04.2026)

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 25,04,000.00 (Rupees Twenty Five Lacs Four Thousand Only). The Original Application has been filed through Sh. Baljit Kumar, Deputy Manager o f the applicant, who is competent to institute the Original Application vide Resolution dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of OGC Facility of Rs. 19.20 Lacs

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2 OA NO.1078/2023

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PUNJAB NATIONAL BANK VS. PARVEEN KUMAR AND OTHERS

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vide Application Form dated 17.08.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the OGC Facility of Rs. 19.20 Lacs and the terms and conditions were duly accepted by the defendants. Defendant nos. 2 and 3 stood as guarantors. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 27K 19M situated at Village Takrala, Tehsil Balachaur, District SBS Nagar, Punjab vide Declaration u/s 4 (1) of the Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act, 1978 dated 01.09.2015 and Letter to Sub-Registrar, which are Annexure A5 and A6 to this OA. Documents executed: Agreement for Hypothecation and Agreement of Guarantee, both dated 04.09.2015, which are Annexure A3 and A4 to this OA; Legal Notices dated 25.01.2019 along with its translation, which are Annexure A7 to A9 to this OA; Statement of Account with certificate, which are Annexure A10 and A13 to this OA and Balance and Security Confirmations dated 27.08.2018 and 27.08.2021, which are Annexure A11 and A12 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. 25,04,000.00 (Rupees Twenty Five Lacs Four Thousand Only) 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 these defendants and they were proceeded ex-parte on 24.04.2026. 7. In support of the OA, affidavit of Sh. Baljit Kumar, Deputy Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through VC) 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 NO.1078/2023 PUNJAB NATIONAL BANK VS. PARVEEN KUMAR AND OTHERS

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From the perusal of all the Annexure A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were 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. 25,04,000.00 (Rupees Twenty Five Lacs Four Thousand 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed contractual interest @11.5%p.a. with half yearly rests from the date of institution of this application till actual 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/hypothecated asstes, 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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.25,04,000.00 (Rupees Twenty Five Lacs Four Thousand Only) jointly and severally, with costs, current and future simple interest @8.00%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 assets/mortgaged property of defendants in execution proceedings if

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OA NO.1078/2023 PUNJAB NATIONAL BANK VS. PARVEEN KUMAR AND OTHERS

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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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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.05.2026.

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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.

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Pronounced by me in the open Tribunal . Dated: 30.04.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Parveen Kumar and Others

Case brief

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Punjab National Bank v. Sh. Parveen Kumar and Others

Case brief

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