Allowed

Punjab National Bank v. Sh. Karam Chand

DRT5 Feb 2026OA/1108/2023

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Punjab National Bank against a borrower for recovery of Rs. 20.51 lakhs. The tribunal, considering market rates, directed uniform simple interest at 8% p.a. and authorized recovery from mortgaged or personal assets.

What did the court decide?

Defendant directed to pay Rs. 20,51,121.07 plus costs and simple interest at 8% p.a. from filing date. Recovery to be made from mortgaged/personal assets.

Punjab National Bank versus Sh. Karam Chand — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1108/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.09.2023

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DATE OF DECISION: 05.02.2026

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and Brach Offices, amongst others at Branch Office at Sastra, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the Applicant.

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……..Applicant Versus Sh. Karam Chand son of Sh. Gondi Ram, resident of House no. 285, Sector- 10A, Chandigarh, 160011 Secondary address: Village Tibba Tapprian, Hadbast no. 520, Tehsil Nurpur Badi, District Rupnagar.

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…….Defendant

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Advocates:

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Argued by Sh. B.S. Walia, Advocate for Applicant (through VC)

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Defendant already ex-parte vide order dated 14.11.2025.

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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.20,51,121.07 (Rupees Twenty Lacs Fifty One Thousand One Hundred Twenty One & Paise Seven Only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager, Principal Officer, of the applicant who is competent to institute the Original Application vide Power of attorney dated 05.02.1998, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs.15.00 Lacs vide loan application dated 05.08.2020, which is Annexure A2 to this OA. Thereafter, the

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2 OA NO. 1108/2023 PUNJAB NATIONAL BANK VS. KARAM CHAND

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defendant approached the applicant for grant of Term Loan of Rs.6. Lacs for Pig Farming vide loan application dated 25.01.2021, which is Annexure A10 to this OA. Thereafter, the defendant approached the applicant for Term Loan of Rs.1.00 Lac for repaying debt of private money lender and thereafter, again approached for Overdraft facility of Rs. 50,000.00 under Kisan Tatkal Rin Yojana. 3. The applicant sanctioned KCC Limit of Rs.14.79 Lacs, vide letter of sanction dated 28.08.2020, which is Annexure A3 to this OA. Thereafter, the applicant sanctioned Term loan of Rs.6.00 Lacs for Pig Farming vide letter of sanction dated 12.09.2021, which is Annexure A11 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs.1.00 Lac for repayment of debt of private money lender vide loan application cum sanction dated 29.06.2021, which is Annexure A17 to this OA and sanctioned Overdraft Limit of Rs. 50,000.00 under PNB Kisan Tatkal Rin Yojana vide sanction dated 29.06.2021, which is Annexure A21 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable properties i.e. detailed as under: -

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(i) Land measuring 40K-00M (5 Acres) situated at Village Tibba Tapparian, Hadbast No.520, Tehsil Nurpurbedi, District Roop Nagar, Punjab vide declaration u/s 4(1) dated 03.09.2020, which is Annexure A7 to this OA.

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(ii) Land measuring 13K-06M-6S situated at Village Tibba Tapparian, Hadbast No.520, Tehsil Nurpurbedi, District Roop Nagar, Punjab vide declaration u/s 4(1) dated 25.02.2021, which is Annexure A14 to this OA.

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Affidavit dated 14.08.2020, regarding property ownership, which is Annexure A8 to this OA.

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Documents executed : Hypothecation agreement, master agreement, letter of undertaking all dated 23.09.2020, which are Annexures A4 to A6 to this OA; Affidavit dated 14.08.2020, which is Annexure A8 to this OA; Hypothecation agreement, master agreement, both dated

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3 OA NO. 1108/2023 PUNJAB NATIONAL BANK VS. KARAM CHAND

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08.03.2021, which are Annexures A12 & A13 to this OA; Agreement, which is Annexure A15 to this OA; Master agreement, Hypothecation agreement, both dated 28.06.2021, which are Annexures A18 & A19 to this OA; Master agreement, Hypothecation agreement, both dated 29.06.2021, which are Annexures A22 & A23 to this OA; Recall notice dated 07.02.2023, which is Annexure A25 to this OA and Statements of Accounts along with certificate of Banker Books Evidence, which are Annexures A9, A16, A20 & 24 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.20,51,121.07 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 14.11.2025. 7. In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A25 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,51,121.07 (Rupees Twenty Lacs Fifty One Thousand One Hundred Twenty One & Paise

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4 OA NO. 1108/2023 PUNJAB NATIONAL BANK VS. KARAM CHAND

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Seven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. in KCC Limit, interest @10.45%p.a. in Term loan, interest @9.85%p.a. in Term loan (debt swap) & interest @9.85%p.a. Kisan Tatkal OD, with 2% penal interest in all accounts from 01.04.2023 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 loans 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 uniform simple interest @08.00%p.a. in all 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 defendant is liable to pay to the applicant a total sum of Rs.20,51,121.07 (Rupees Twenty Lacs Fifty One Thousand One Hundred Twenty One & Paise Seven Only) with costs, current and future simple interest @08.00%p.a. in all 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 defendant 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 defendant. 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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5 OA NO. 1108/2023 PUNJAB NATIONAL BANK VS. KARAM CHAND

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.02.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 05.02.2026

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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. Karam Chand

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Karam Chand

Case brief

What is this about?

What did the court decide?

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