Allowed

Punjab National Bank v. Sh. Amar Chand and Another

DRT22 Apr 2026OA/1257/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an original application under the RDDB Act 1993. It declared that a bank is entitled to recover a sum of Rs.49,77,231.00 from two borrowers jointly and severally. The Tribunal reduced the claimed interest rate from 11.50% to 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.49,77,231.00 jointly and severally with costs and simple interest @8% p.a. Recovery Certificate issued. Execution allowed via sale of assets under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1257/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.09.2023

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DATE OF DECISION: 22.04.2026

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The Punjab National Bank, a body corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 carrying on business of banking and its branches at different places throughout India, including on at Branch Office Balachaur, Tehsil Balachaur, District S.B.S Nagar (Nawanshahr) through its Branch Manager Sh. Baljit Kumar, General Power of Attorney Holder of the Applicant.

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……..Applicant

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Versus

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Sh. Amar Chand S/o Sh. Maghi, R/o VPO Nighi, Tehsil Balachaur, District SBS Nagar (Nawanshahr).

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Sh. Gurmat Chand S/o Sh. Amar Chand, R/o VPO Nighi, Tehsil Balachaur, District SBS Nagar (Nawanshahr)

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……..Defendants

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Argued by: Ms. Richa Nodal Officer for the applicant

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None for Defendants (Already ex-parte vide order dated 16.03.2026)

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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.49,77,231.00 (Rupees Forty Nine Thousand Seventy Seven Thousand Two Hundred and Thirty One Only). The Original Application has been filed through Sh. Baljit Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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OA/1257/2023 PUNJAB NATIONAL BANK VS SH. AMAR CHAND AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of OGC Limit of Rs.16,00,000.00 vide Application form for OGC facility dated 10.12.2012, which is Annexure A2 to this OA. Thereafter, defendants approached the applicant for renewal cum enhancement of OGC limit of Rs.23,42,560.00 vide Application form for OGC facility dated 22.06.2015, which is Annexure A4 to this OA. 3. The applicant sanctioned the OGC Limit of Rs.16,00,000.00 vide Sanction Letter dated 10.12.2012, which is Annexure A3 to this OA. Thereafter, Renewed and Enhanced the OGC Limit of Rs.23,42,560.00 vide sanction letter dated 23.06.2025, which is Annexure A4-A to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 mortgaged his immovable property i.e., Total Land measuring 14 Kanal 15 Marla as per Jamabandi for the year 2007-08 situated at Village Nighi/404, Tehsil Balachaur, District Sahid Bhagat Singh Nagar vide Registered Mortgaged Deed No.3876 dated 07.12.2012 registered with the office of Sub- Registrar Balachaur along with translation and Non Encumbrance Certificate along with Jamabandi 2007-08, which are Annexures A6 to A8 to this OA; Documents executed: Agreement for Hypothecation of existing and future crops/moveable assets/live stock to secure a cash credit account of Oriental Green Card dated 10.12.2012, which is Annexure A5 to this OA; Balance & Security Confirmation Letter dated 18.09.2015, 07.03.2018, 31.03.2020, 25.01.2023 which are Annexures A9 to A12 to this OA; Supplemental Agreement to secure credit/loan facilities dated 23.06.2015 which is Annexure A13 to this OA; Statement of Account along with certificate, which are Annexures A14 & A15 to this OA; 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.49,77,231.00 which is recoverable and the defendants were served recall notices but they did not repay the

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OA/1257/2023 PUNJAB NATIONAL BANK VS SH. AMAR CHAND AND ANOTHER

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 16.03.2026.

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In support of the OA, affidavit of Sh. Baljit Kumar, Branch Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by Nodal Officer of applicant 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 Annexures A1 to A15 to this OA, it is proved that the defendants 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan 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.49,77,231.00 (Rupees Forty Nine Thousand Seventy Seven Thousand Two Hundred and Thirty One 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. 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. with half yearly rests 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 hypothecated assets/mortgaged property, 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,

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OA/1257/2023 PUNJAB NATIONAL BANK VS SH. AMAR CHAND AND ANOTHER

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this Tribunal deems it just and appropriate to grant 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.49,77,231.00 (Rupees Forty Nine Thousand Seventy Seven Thousand Two Hundred and Thirty One 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 assets/mortgaged property of the defendant no.1 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 13.05.2026. 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: 22.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Amar Chand and Another

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Punjab National Bank v. Sh. Amar Chand and Another

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