Allowed

Punjab Gramin Bank v. Sh. Gurjit Singh

DRT4 Feb 2026OA/1202/2025

Case brief

AI extract

What is this about?

This order allowed the applicant's recovery application against the defendant for a KCC loan default. The Tribunal declared the defendant liable to pay Rs. 23,84,217.00 plus interest at 08% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 23,84,217.00 plus interest at 08% p.a. from filing date till realization.

Punjab Gramin Bank versus Sh. Gurjit Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1202/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2025

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DATE OF DECISION: 04.02.2026

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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 Paramjitpur, Tehsil Sultanpur Lodhi, Distt. Kapurthala (Punjab) through its Constituted Attorney/ Manager Sh. Munish Sohal.

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……..Applicant Versus

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Sh. Gurjit Singh S/o Sh. Diyal Singh, R/o Village Sangra, PO Kabirpur, District Kapurthala

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….……Defendant

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Advocates:

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Argued by Sh.Bhushan Bhatia, Advocate for applicant (through VC) Defendant already ex parte vide order dated 01.01.2026

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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.23,84,217.00 (Rupees Twenty Three Lac Eighty Four Thousand Two Hundred Seventeen Only). The Original Application has been filed through Sh. Munish Sohal, branch manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant approached the applicant for the grant of KCC Limit of Rs. 15.00 vide loan application dated 17.03.2021, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 15.00 Lac and the terms and conditions were duly accepted by the defendant.

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2 OA/1202/2025 PUNJAB GRAMIN BANK VS. GURJIT SINGH

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4. D	efendant had mortgaged his immovable properties i.e. Total
Land m	easuring 78Kanal-04Marla detailed as under:
i.	Land measuring 13Kanal-02Marla situated in Village Sangra, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab.
ii.	Land measuring 03Kanal-18Marla situated in Village Bhim Kadim, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab.
iii.	Land measuring 08 Kanal-16Marla situated in Village Mand
	Bandu Jadid, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab.
iv.	Land measuring 33Kanal-13Marla situated in Village Mand
	Bhim Kadim, Tehsil Sultanpur Lodhi, District Kapurthala,
	Punjab.
v.	Land measuring 18Kanal-15Marla situated in Village Mand
	Muarakpur, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab
vide de	claration u/s 4(1) of Punjab Agricultural Credit Operations and
Miscella Annex	neous Provisions (Banks) Act, 1978 dated 24.03.2024, which is ure A5to this OA.

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Documents executed: Letter of Undertaking, hypothecation agreement, both dated 30.03.2021, which are Annexure A3 & A4 to this OA; Notice dated 26.11.2024, along with its translation, which is Annexure A6 to this OA; BC Letter dated 18.03.2024 which is Annexure A7 to this OA; Statement of account along with certificate which is Annexure A8 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.23,84,217.00, which is recoverable and the defendant was served recall notices 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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3 OA/1202/2025 PUNJAB GRAMIN BANK VS. GURJIT SINGH

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6. The defendant was served notices to appear before this Tribunal
but no one appeared on behalf of defendant and he was proceeded ex-
parte vide order dated 01.01.2026.
7. In support of the OA, affidavit of Sh. Munish Sohal, Branch
Manager, Punjab Gramin 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
theAnnexures A1 to A8to this OA, it is proved that the defendant 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. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence
brought on record, it is proved that applicant is entitled to recover a sum
of Rs.23,84,217.00 (Rupees Twenty Three Lac Eighty Four Thousand
Two Hundred Seventeen Only) along with interest from the defendant,
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 [email protected]%p.a. with 2% penal interest and yearly rest from 11.08.2025 till realization. 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 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

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4 OA/1202/2025 PUNJAB GRAMIN BANK VS. GURJIT SINGH

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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 defendant is liable to pay the applicant a total sum of Rs.23,84,217.00 (Rupees Twenty Three Lac Eighty Four Thousand Two Hundred Seventeen Only) 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 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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.02.2026.

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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. Pronounced by me in the open Tribunal .

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Dated: 04.02.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Gurjit Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Gurjit Singh

Case brief

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