Allowed

Punjab Gramin Bank v. Late Sh. Jassa Singh through His Legal Heirs

DRT23 Feb 2026OA/1079/2025

Case brief

AI extract

What is this about?

The DRT allowed an application by Punjab Gramin Bank to recover a debt of approx. Rs. 25.25 lacs from the legal heirs of a deceased borrower. The tribunal deemed it appropriate to grant uniform simple interest at 8% p.a. instead of the claimed rate and ordered issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued; defendants liable to pay Rs.25,25,287.14 with simple interest at 8% p.a. from filing date till realization.

Punjab Gramin Bank versus Late Sh. Jassa Singh through His… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1079/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.07.2025

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DATE OF DECISION: 23.02.2026

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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.

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……..Applicant

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Versus

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Late Sh. Jassa Singh through his legal heirs:

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i. Sh. Harchand Singh S/o Sh. Late Jassa Singh

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ii. Smt. Raj Kaur Wd/o Sh. Late Jassa Singh

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Both Residents Village Sito Nau Abad, PO Kot Budha, Tehsil Patti, District Tarn Taran, Punjab

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…….Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant

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Defendants already ex-parte vide order dated 09.01.206

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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.25,25,287.14 (Rupees Twenty Five Lacs Twenty Five Thousand Two Hundred Eighty Seven and Paise Fourteen 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 General Power of Attorney dated 22.01.2021 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant (since deceased) and his legal heir no. (ii) approached the applicant for the

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OA NO.1079/2025 PUNJAB GRAMIN BANK VS. JASSA SINGH THROUGH HIS LEGAL HEIRS

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grant of KCC Limit of Rs.8.00 Lacs vide loan application dated 01.12.2012 which is Annexure A2 to this OA and Term Loan of Rs.1.00 Lac for Debt Swap vide loan application dated 31.12.2012, which is Annexure A3 to this OA.

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The applicant sanctioned KCC Limit of Rs.8.00 Lacs vide Sanction letter dated 01.12.2012, which is Annexure A4 and sanctioned Term Loan of Rs.1.00 Lac for Debt Swap vide Sanction dated 31.12.2012, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendant (since deceased) and his legal heir no. (ii).

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Defendant (since deceased) and his legal heir no. (ii) mortgaged their immovable property i.e. Land measuring 37Kanal-10Marla situated at Village Seeto, Tehsil Patti, District Tarn Taran, Punjab 18.12.2012 which is Annexure A8 to this OA.

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Documents executed: Hypothecation Agreement dated 27.12.2022 and 31.12.2012, which are Annexures A6 and A7 to this OA; Statement of Accounts, which are Annexure A9(Colly) to this OA; Certificate by Officer Incharge of the computer system, which is Annexure A10 to this OA; Notice dated 31.08.2022, which is Annexure A11 to this OA; Security Confirmation Letters (Term Loan), dated 22.06.2015, 18.01.2018, 29.09.2020, 12.05.2021, 18.08.2023,

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which are Annexures A12 to A15 to this OA; Letter Security Confirmation Letter (KCC) dated 12.11.2015, 29.04.2018, 28.04.2021,18.08.2023, which are Annexures A16 to A19 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.25,25,287.14 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.

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OA NO.1079/2025 PUNJAB GRAMIN BANK VS. JASSA SINGH THROUGH HIS LEGAL HEIRS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 09.01.2026.

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In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank has been filed.

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Heard ex-parte arguments and perused record.

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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. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendant (since deceased) and his legal heir no. (ii) 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.25,25,287.14 (Rupees Twenty Five Lacs Twenty Five Thousand Two Hundred Eighty Seven and Paise Fourteen Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13% p.a. with 2% interest from 31.07.2025 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/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester

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OA NO.1079/2025 PUNJAB GRAMIN BANK VS. JASSA SINGH THROUGH HIS LEGAL HEIRS

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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.

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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.25,25,287.14 (Rupees Twenty Five Lacs Twenty Five Thousand Two Hundred Eighty Seven and Paise Fourteen Only) 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/mortgaged properties 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.

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12. 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 09.03.2026.

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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.

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Dated: 23.02.2026.

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

Punjab Gramin Bank v. Late Sh. Jassa Singh through His Legal Heirs

Case brief

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Punjab Gramin Bank v. Late Sh. Jassa Singh through His Legal Heirs

Case brief

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