Allowed

Punjab Gramin Bank v. Sh. Kapur Singh since deceased through LRs

DRT26 Feb 2026OA/1136/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab Gramin Bank against the legal heirs of a deceased debtor for recovery of Rs. 32,70,502.00. The Tribunal granted a uniform simple interest rate of 8%p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs. 32,70,502.00 with costs and interest @8%p.a.; issuance of Recovery Certificate.

Punjab Gramin Bank versus Sh. Kapur Singh since deceased… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1136/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2025

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DATE OF DECISION: 26.02.2026

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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 Khallu, District Kapurthala (Punjab) through its Constituted Attorney/ Manager Avtar Ram Sandhu.

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…….Applicant Versus

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Sh. Kapur Singh S/o Sh. Santa since deceased through LRs: 1(a) Nirmal Singh S/o Late Sh. Kapur Singh 1(b) Kulwant Singh S/o Late Sh. Kapur Singh

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Both residents of Village Gopipur, District Kapurthala (Punjab)

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……. Defendants

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) Defendants already ex-parte vide order dated 20.01.2026

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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.32,70,502.00 (Rupees Thirty Two Lacs Seventy Thousand Five Hundred Two Only). The Original Application has been filed through Sh. Avtar Ram Sandhu, Constituted Attorney/Branch Head of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.01.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant i.e. Sh. Kapur Singh (since deceased) was availing KCC Limit of Rs.3.00 Lacs and approached the applicant for enhancement of the Limit to Rs.20.00 Lacs and for sanction of Fresh Term Loan of Rs.1.00 Lac for

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2 OA NO. 1136/2025 PUNJAB GRAMIN BANK VS. KAPUR SINGH THROUGH HIS LEGAL HEIRS

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Debt Swap vide Loan Application dated 13.06.2015, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs. 20.00 and Term Loan of Rs.1.00 Lac for debt swap vide sanction dated 15.06.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant (since deceased). 4. Defendant (since deceased) mortgaged his immovable property i.e. Land Mortgage of land measuring 24-Kanal-03Marla situated at Village Gopipur, Tehsil and District Kapurthala vide Declaration dated 16.06.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA. Documents executed : Hypothecation agreement dated 20.06.2015, which is Annexure A4 to this OA; Notice dated 29.06.2024, which is Annexure A6 to this OA; BC Letter dated 09.05.2017, 06.04.2020 & 20.01.2023 and 04.06.2025 which are Annexures A7, A7/1, A7/2, A7/3 to this OA; Statement of Account, which is Annexure A8 to this OA and death certificate of Sh. Kapur Singh dated 26.01.2024, which is Annexure A9 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.32,70,502.00, which is recoverable and the defendant (since deceased) 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they was proceeded ex-parte vide order dated 20.01.2026. 7. In support of the OA, affidavit of Sh. Avtar Ram Sandhu, Constituted Attorney/Branch Hea d, Punjab Gramin Bank, h as been filed.

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3 OA NO. 1136/2025 PUNJAB GRAMIN BANK VS. KAPUR SINGH THROUGH HIS LEGAL HEIRS

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Heard ex-parte arguments and perused record.

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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 A9 to this OA, it is proved that the defendant Sh. Kapur Singh (since deceased) approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. He failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, 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.32,70,502.00 (Rupees Thirty Two Lacs Seventy Thousand Five Hundred Two 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. with 2% penal interest with half yearly rests from 14.07.2025 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 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 uniform 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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4 OA NO. 1136/2025 PUNJAB GRAMIN BANK VS. KAPUR SINGH THROUGH HIS LEGAL HEIRS

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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.32,70,502.00 (Rupees Thirty Two Lacs Seventy Thousand Five Hundred Two Only), jointly and severally, 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/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 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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.03.2026.

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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: 26.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Kapur Singh since deceased through LRs

Case brief

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Punjab Gramin Bank v. Sh. Kapur Singh since deceased through LRs

Case brief

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