Allowed

Punjab Gramin Bank v. Sh. Jassa Singh

DRT9 Apr 2026OA/1084/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte original application filed by Punjab Gramin Bank for recovery of an agricultural loan. The court quantified the principal, awarded reduced interest, and directed recovery from mortgaged assets.

What did the court decide?

Defendant liable to pay Rs.21,86,429.35 plus costs and future simple interest at 8% p.a.; Recovery from mortgaged assets or personal assets allowed.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1084/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.08.2025

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DATE OF DECISION: 09.04.2026

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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 Branch Office Kot Budha, Tehsil Patti, District Tarn Taran, Punjab through its Authorized Representative Sh. Rajan Koral.

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……..Applicant Versus Sh. Jassa Singh S/o Banta Singh, R/o Village Bahowal, Tehsil Patti, District Tarn Taran, Punjab.

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……..Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for Applicant

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None for Defendant (Already ex-parte vide order dated 07.01.2026).

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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 defendant for recovery of Rs.21,86,429.35 (Rupees Twenty One Lacs Eighty Six Thousand Four Hundred Twenty Nine and Paise Thirty Five 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.

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The brief facts of the OA are that the defendant approached the applicant for grant of Kisan Cash Credit Limit of Rs.9.80 Lacs vide Application form for Agriculture Credit dated 18.09.2013, which is Annexure A2 to this OA.

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2 OA NO. 1084/2025 PUNJAB GRAMIN BANK VS SH. JASSA SINGH

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The applicant sanctioned Kisan Cash Credit Limit of Rs.9.80 Lacs vide Sanction letter dated 18.09.2013, which is Annexure A3 to this OA and terms and condition were duly accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. land measuring 16Kanal situated at Village Bahowal, Tehsil Patti, District Tarn Taran, Punjab as per Jamabandi 2009-10, vide Mortgaged Deed bearing vasika no.3843 dated 01.01.2014, which is Annexure A5 to this OA.

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Documents executed : Hypothecation agreement dated 03.01.2014, which is Annexure A4 to this OA; Statement of account along with certificate, which are Annexures A6 and A7 to this OA; Legal Notice dated 08.06.2024, which is Annexure A8 to this OA; Balance and Security Confirmation Letters dated 05.12.2016, 02.12.2019, 01.12.2022, which are Annexures A9 to A11 to this OA.

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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.21,86,429.35, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order 07.01.2026.

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In support of the OA, affidavit Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all

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the relevant documents in favour of the bank. The defendant failed to

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3 OA NO. 1084/2025 PUNJAB GRAMIN BANK VS SH. JASSA SINGH

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pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,86,429.35 (Rupees Twenty One Lacs Eighty Six Thousand Four Hundred Twenty Nine and Paise Thirty Five Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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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 yearly/half yearly rests with penal interest @2% from 01.08.2026 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 defendant, 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,86,429.35 (Rupees Twenty One Lacs Eighty Six Thousand Four Hundred Twenty Nine and Paise Thirty Five Only), 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 hypothecated assets/mortgaged property of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still

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4 OA NO. 1084/2025 PUNJAB GRAMIN BANK VS SH. JASSA SINGH

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remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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 29.04.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 09.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Jassa Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Jassa Singh

Case brief

What is this about?

What did the court decide?

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