Allowed

Punjab National Bank v. Sh. Bikkar Singh and Others

DRT16 Apr 2026OA/1262/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's claim for recovery of Rs. 32,79,127 against the deceased borrower and legal heirs after ex-parte hearing. The court allowed 7% p.a. simple interest instead of the claimed rate and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 32,79,127 with 7% simple interest; issuance of Recovery Certificate; liberty to enforce through execution proceedings.

Punjab National Bank versus Sh. Bikkar Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1262/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.10.2023

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DATE OF DECISION: 16.04.2026

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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 Grain Market, Jagraon, District Ludhiana through Sh. Navin Kumar Bansal, Senior Manager, PNB, Circle Sastra Centre, Ludhiana and duly Constituted Attorney of the Applicant Bank.

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……. Applicant

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Versus

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Sh. Bikkar Singh, S/o Sh. Pala Singh, since deceased now represented through his following Legal Heirs:

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i. Sh. Gurpreet Singh, S/o Sh. Bikkar Singh, Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab

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ii. Sh. Manpreet Singh, S/o Sh. Bikkar Singh, Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab

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iii. Sh. Surjit Singh, S/o Sh. Bikkar Singh, Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab

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Sh. Gurpreet Singh, S/o Sh. Bikkar Singh, Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab

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Sh. Manpreet Singh, S/o Sh. Bikkar Singh, Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab

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……. Defendants

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Advocates:

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Argued by Ms. Harpreet Kaur, Advocate proxy for Sh. P S Sobti, Advocate for applicant

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None for defendants (already ex-parte vide order dated 07.04.2026)

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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. 32,79,127.00 (Rupees

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2 OA NO.1262/2023 PUNJAB NATIONAL BANK VS. BIKKAR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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Thirty Two Lacs Seventy Nine Thousand One Hundred Twenty Seven Only). The Original Application has been filed through Sh. Navin Kumar Bansal, Senior Manager, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2005, 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 nos. 2 and 3 approached the applicant for grant of KCC Limit of Rs. 18.00 Lacs vide Loan Application dated 08.01.2013, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs. 18.00 Lacs vide Sanction Letter dated 08.01.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant nos. 2 and 3. 4. Defendant no. 1 (since deceased) and defendant nos. 2 and 3 mortgaged their immovable property i.e. Land measuring 16K 10M situated at Village Kokri Buttran, Tehsil Dharamkot, District Moga, Punjab vide Mortgage Deed dated 14.02.2013 along with its translation, which are Annexures A5 and A-5A to this OA and Report of Halqa Patwari dated 15.02.2013 along with its translation, which are Annexure A6 and A-6A to this OA. Documents executed : Hypothecation Agreement dated 23.02.2013, which is Annexure A4 to this OA; Notices dated 10.05.2018, 19.06.2019 and 28.09.2019, which are Annexures A7 to A9 to this OA; Balance Confirmation Letters dated 18.06.2015, 26.12.2017 and 22.10.2020, which are Annexures A10 to A12 to this OA and Statement of Account, which is Annexure A13 to this OA. 5. 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. 32,79,127.00 (Rupees Thirty Two Lacs Seventy Nine Thousand One Hundred Twenty Seven Only) which is recoverable and 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.1262/2023 PUNJAB NATIONAL BANK VS. BIKKAR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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 on 07.04.2026.

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In support of the OA, affidavit of Sh. Navin Kumar Bansal, 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 proxy counsel 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 A13 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant nos. 2 and 3 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 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,79,127.00 (Rupees Thirty Two Lacs Seventy Nine Thousand One Hundred Twenty Seven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7% p.a. plus 2% penal interest with half yearly rests w.e.f. 20.10.2023 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 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, this Tribunal deems it just and appropriate to grant simple interest @07.00%p.a. in the loan account from the date of filing of the OA till

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4 OA NO.1262/2023 PUNJAB NATIONAL BANK VS. BIKKAR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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.32,79,127.00 (Rupees Thirty Two Lacs Seventy Nine Thousand One Hundred Twenty Seven Only) jointly and severally, with costs, current and future simple interest @07.00%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 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.

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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 06.05.2026.

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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: 16.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Bikkar Singh and Others

Case brief

What is this about?

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Punjab National Bank v. Sh. Bikkar Singh and Others

Case brief

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What did the court decide?

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