Allowed

Punjab National Bank v. Sh. Davinder Singh and Another

DRT23 Apr 2026OA/1088/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank against two borrowers for recovery of a loan of Rs.41.26 lakh and interest. The case was heard ex-parte as defendants did not appear. The tribunal directed recovery via sale of hypothecated assets or attachment of personal property.

What did the court decide?

Recovery of Rs.41,26,630 plus costs and 8% p.a. simple interest; declaration of joint and several liability; liberty to execute claim.

Punjab National Bank versus Sh. Davinder Singh and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1088/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.04.2022

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DATE OF DECISION: 23.04.2026

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Punjab National Bank, a body corporate, constituted under provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi -110075 and w.e.f. 01.04.2020, being the successor of Oriental Bank of Commerce in terms of Gazette of India Notification No. G.S.R. 153 (E) dated 04^th March, 2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970) and Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1980, after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank Scheme, 2020. The erstwhile Oriental Bank of Commerce’s Branch Office at Nurpur Bet, Tehsil and District Ludhiana (Punjab), now known as Punjab National Bank (e-OBC), Nurpur Bet, Tehsil and District Ludhiana (Punjab). Lateron, the account has been maintained by Punjab National Bank, Circle SASTRA (west), Site No. 5, PNB House, Ferozepur Road, Ludhiana (Punjab), through its General Power of Attorney holder Sh. Ramesh Kumar Aggarwal, posted as Deputy Manager of the Applicant.

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	Versus	……..Applicant
1. Sh. Davinder Singh S/o Haibowal Khurd, Ludhiana	Sh. Jagbir (Punjab)-1	Singh, R/o House No. 1246, 41001
2. Sh. Aruth Singh S/o Sh.	Harbhajan	Singh, R/o House No. 2794,
Street No. 6, Ward No.	3, Shimla	Colony, Ludhiana (Punjab)-
141007
		.……Defendants

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2 OA/1088/2022 PUNJAB NATIONAL BANK VS DAVINDER SINGH AND ANOTHER

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for Applicant None for Defendants (already ex parte vide order dated 20.04.2026)

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FINAL ORDER
1. 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.41,26,630.00 (Rupees Forty One Lacs
Twenty Six Thousand Six Hundred Thirty Only). The Original Application has been filed throughSh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 24.09.2013, which isAnnexure A1to this
OA.
2. The brief facts of the OA are the Defendant No.1 approached the
applicant for grant of OGC Loan of Rs.20.00 Lacs vide Loan Application
Form cum Process Note dated 05.08.2010, which isAnnexure A2
(colly)to this OA. Defendant No. 2 stood as Guarantor.
3. The applicant sanctioned the OGC Loan of Rs.20.00 Lacs vide
Sanction Letter dated 16.08.2010, which isAnnexure A3to this OA and terms and conditions were duly accepted by the defendants.
4. Defendant No.1 mortgaged his land measuring 24K-0M, situated
at Village Birmi, Hadbast No. 146, Sub Tehsil Mullanpur, Tehsil & District
Ludhiana vide Registered Mortgage Deed No 934 dated 18.082010,
along with Legal Opinion/LSR, NEC, Declaration Form 7 Jamabandi,
which isAnnexure A4(colly)to this OA.
Documents executed:Hypothecation Agreement dated 16.08.2010,
which isAnnexure A5to this OA; Agreement of Guarantee dated
16.08.2010, which isAnnexure A6to this OA; Legal Notice dated
24.07.2020 with postal receipts, which isAnnexure A7(colly)to this
OA; BC Letters dated 02.08.2013 & 08.05.2019, which isAnnexure
A8(colly)to this OA; Statement of Account with certificate, which is Annexure A9(colly)to this OA.

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3 OA/1088/2022

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PUNJAB NATIONAL BANK VS DAVINDER SINGH AND ANOTHER

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.41,26,630.00 (Rupees Forty One Lacs Twenty Six Thousand Six Hundred Thirty 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 defendants and they were proceeded ex-parte on vide order dated 20.04.2026 7. In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manager, Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A9(colly) 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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.41,26,630.00 (Rupees Forty One Lacs Twenty Six Thousand Six Hundred Thirty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.60% p.a. with half yearly rests from 18.03.2022 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

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4 OA/1088/2022

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PUNJAB NATIONAL BANK VS DAVINDER SINGH AND ANOTHER

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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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.41,26,630.00 (Rupees Forty One Lacs Twenty Six Thousand Six Hundred Thirty 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 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 14.05.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 23.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Davinder Singh and Another

Case brief

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Punjab National Bank v. Sh. Davinder Singh and Another

Case brief

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