Allowed

Punjab National Bank v. Pirthi Ram and Anr.

DRT2 Sept 2026OA/1178/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 23.65 million against borrowers and heirs. The Tribunal exercised discretion to grant interest at 8% per annum instead of the claimed rate and authorized recovery via hypothecated/mortgaged assets under SARFAESI.

What did the court decide?

Defendants declared liable to pay Rs. 23,65,931 plus interest @ 8% p.a.; Recovery Certificate issued for enforcement via SARFAESI provisions.

Punjab National Bank versus Pirthi Ram and Anr. — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1178/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.09.2023

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DATE OF DECISION: 02.09.2026

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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 a Branch amongst others, one at OCR, Nawanshahr through Sh. Abhishek Jasuja, Branch Manager, Punjab National Bank, OCR, Nawanshahr, Principal Officer and duly Constituted Attorney

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……..Applicant

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Versus

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Sh. Pirthi Ram, S/o Sh. Amar Chand (since deceased) now represented through his Legal Heirs namely:

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i. Smt. Parsan Kaur, W/o Sh. Pirthi Ram, R/o Village Katwara, Tehsil Balachaur, District SBS Nagar, Punjab

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ii. Sh. Satnam Singh, S/o Sh. Pirthi Ram, R/o Village Katwara, Tehsil Balachaur, District SBS Nagar, Punjab

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iii. Smt. Parminder Kaur, D/o Sh. Pirthi Ram, R/o Village Katwara, Tehsil Balachaur, District SBS Nagar, Punjab

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Smt. Parveen Kumari, W/o Sh. Satnam Singh, R/o Village Katwara, Tehsil Balachaur, District SBS Nagar, Punjab

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………Defendants

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Advocates:

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Argued by Sh. Bharat Kawal, Advocate proxy for Sh. P.S. Sobti, Advocate for applicant

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None for defendants (already ex-parte vide order dated 29.08.2026)

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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 defendants for recovery of Rs. 23,65,931.00 (Rupees Twenty Three Lacs Sixty Five Thousand Nine Hundred Thirty One Only). The Original Application has been filed through Sh. Abhishek

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2 OA NO. 1178/2023 PUNJAB NATIONAL BANK VS. PIRTHI RAM THROUGH HIS LEGAL HEIRS AND ANOTHER

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Jasuja, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 10.05.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 (since deceased) and defendant no. 2 approached the applicant for grant of KCC Limit of Rs. 20.00 Lacs vide Loan Application dated 14.03.2018, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs. 20.00 Lacs vide Sanction Letter dated 21.03.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by defendant no. 1 (since deceased) and defendant no. 2.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land measuring 40K 11M 07S situated at Village Katwara, Hadbast no. 372, Tehsil Balachaur, SBS Nagar, Punjab vide Declaration u/s 4 (1) of Punjab Agriculture Credit Operations and Miscellaneous Provisions (Bank) Act, 1978 dated 21.03.2018 and Jamabandi for the year 2009-2010 along with its translation, which are Annexure A7, A8 and A8A to this OA.

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Defendant no. 1 (since deceased) and defendant no. 2 hypothecated their existing and future crops vide Hypothecation Agreement dated 28.03.2018, which is Annexure A4 to this OA.

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Documents executed: Letter of Undertaking and Consent Letter, both dated 28.03.2018, which are Annexure A5 and A6 to this OA; Notice dated 10.03.2023, which is Annexure A9 to this OA; Balance Confirmation dated 14.01.2021, which is Annexure A10 to this OA and Statement, which is Annexure 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. 23,65,931.00 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.

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3 OA NO. 1178/2023 PUNJAB NATIONAL BANK VS. PIRTHI RAM THROUGH HIS LEGAL HEIRS AND ANOTHER

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 29.08.2026.

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In support of the OA, affidavit of Sh. Abhishek Jasuja, Branch Manager, Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 Annexure A1 to A11 to this OA, it is proved that defendant no. 1 (since deceased) and defendant no. 2 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, 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. 23,65,931.00 (Rupees Twenty Three Lacs Sixty Five Thousand Nine Hundred Thirty One Only) along with interest from all the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @9.75%p.a. plus @2% penal interest with half yearly rests w.e.f. 29.03.2023 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 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

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4 OA NO. 1178/2023 PUNJAB NATIONAL BANK VS. PIRTHI RAM THROUGH HIS LEGAL HEIRS AND ANOTHER

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@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 defendants are liable to pay to the applicant a total sum of Rs.23,65,931.00 (Rupees Twenty Three Lacs Sixty Five Thousand Nine Hundred Thirty One 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 of defendant no. 1 (since deceased) and defendant no. 2 and mortgaged property of defendant no. 1 (since deceased) 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 defendant no. 2 and also of defendant nos. 1. (i) to 1. (iii) to the extent they inherited the property of deceased defendant no. 1. 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 17.09.2026.

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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: 02.09.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Pirthi Ram and Anr.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Pirthi Ram and Anr.

Case brief

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What did the court decide?

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