Allowed

Punjab National Bank v. Smt. Amar Kaur and Others

DRT17 Mar 2026OA/1163/2023

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed a debtor recovery application by Punjab National Bank against respondents for Rs. 27,96,800. The bank proved the loan and non-repayment via documentary evidence. The Tribunal granted simple interest at 8% per annum and directed issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.27,96,800 plus costs and simple interest @8% p.a.; Issue of Recovery Certificate.

Punjab National Bank versus Smt. Amar Kaur and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1163/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.09.2023

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DATE OF DECISION: 17.03.2026

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Punjab National Bank, a body corporate with perpetual succession constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its office at Plot no. 04, Sector 10 Dwarka, New Delhi 110075 and a Branch Office, amongst others at Sangrur (SAFB) D-4873 through Shri Gurcharan Singh, Senior Manager, Circle Sastra Center, Patiala being the officer of the Applicant.

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……..Applicant

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Versus

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Smt. Amar Kaur W/o Niranjan Singh, R/o Kahangarh Gharacho, Khewatdar Hariaukhurd, Tehsil Patran, District Patiala, Punjab-

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147105

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Sh. Niranjan Singh S/o Chota Singh, R/o Ward No. 5, Village Kahangarh Gharcho, Patran, District Patiala, Punjab- 147105

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Sh. Darshan Kumar S/o Kedar Nath, R/o Village Kahangarh

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Gharcho, Patran, District Patiala, Punjab- 147105

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…….Defendants

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Advocates:

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Argued by Sh. R K Bansal, Advocate for the applicant

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Defendants already ex-parte vide order dated 06.02.2026.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.27,96,800.00 (Rupees Twenty Seven Lacs Ninety Six Thousand Eight Hundred Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager, of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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2 OA NO.1163/2023 PUNJAB NATIONAL BANK VS. AMAR KAUR AND OTHERS

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The brief facts of the OA are that the defendant nos.1 & 2 approached the applicant for grant of KCC Limit of Rs.10.00 Lacs, Agriculture Term Loan of Rs.3.00 Lacs for land development and Term Loan of Rs.1.00 Lac for Debt Swap vide Application Form dated 20.05.2015, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs, Agriculture Term Loan of Rs.3.00 Lacs for land development and Term Loan of Rs.1.00 Lac for Debt Swap vide Sanction Letter dated 20.05.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged her immovable property i.e. Land measuring 24K-0M (3 Acres) situated at Village Haryu Khurd, Tehsil Patran, District Patiala, Punjab vide Declaration dated 08.06.2015 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, along with its translation, which are Annexure A11 & A12 to this OA. Non-Encumbrance Certificate dated 18.02.2015, along with its translation, which are Annexures A9 and A10 to this OA.

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Documents executed: Agreement for Hypothecation, Deed of Guarantee, Term and conditions, Letter of Undertaking, Letter of Consent, all dated 09.06.2015, which are Annexure A4 to A8 to this OA; Balance and Confirmation Letters dated 26.10.2017 and 03.10.2020, along with Recall Notice dated 01.09.2022 which is Annexure A13 to this OA; Accounts Statement along with Legal Notice dated 05.09.2023, which is Annexure A14 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 the loan accounts there was a debit of Rs.27,96,800.00, which is recoverable and the defendants were served recall notice 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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3 OA NO.1163/2023 PUNJAB NATIONAL BANK VS. AMAR KAUR AND OTHERS

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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 06.02.2026. 7. In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank, has been filed. 8. 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 bank had proved its case. From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 27,96,800.00 (Rupees Twenty Seven Lacs Ninety Six Thousand Eight Hundred 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. 10. 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. along with 2% penal interest and monthly rests from 25.08.2023 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 defendants, 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

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4 OA NO.1163/2023 PUNJAB NATIONAL BANK VS. AMAR KAUR AND OTHERS

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Tribunal deems it just and appropriate to grant uniform simple interest @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.27,96,800.00 (Rupees Twenty Seven Lacs Ninety Six Thousand Eight Hundred Only), jointly and severally, with costs, current and future simple interest @8.00%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 property of 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. 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 07.04.2026. 15. 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 . Dated: 17.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Amar Kaur and Others

Case brief

What is this about?

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Punjab National Bank v. Smt. Amar Kaur and Others

Case brief

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What did the court decide?

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