Allowed

Punjab Gramin Bank v. Sh. Jaswant Singh and Another

DRT19 Aug 2026OA/130/2025

Case brief

AI extract

What is this about?

DRT allowed the bank's application under RDBA Section 19 for recovery of Rs. 47.91 lakhs. After finding evidence unrebutted, the Tribunal adjusted interest from the claimed 11.50% to 8% p.a. ordered joint and several liability, and authorized recovery via mortgaged property or asset attachment.

What did the court decide?

Declaration of liability to repay Rs. 47,91,932.90 with costs and interest at 8% p.a.; order to issue recovery certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.130/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.02.2025

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DATE OF DECISION: 19.08.2026

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Banks Act, 1976 Act No.21 of 1976 (hereinafter referred to as the “Act”) and having its Head Office at Near Markfed Chowk, Kapurthala (hereinafter referred to as “bank”) and one of its Branch situated at Punjab Gramin Bank, Bakarpur, Mohali, Punjab through its Attorney Holder Sh. Tarun Gupta, Authorized Officer, presently posted at Punjab Gramin Bank, Bakarpur, Mohali, Punjab.

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……..Applicant

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Versus

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Sh. Jaswant Singh S/o Sh. Ajit Singh, R/o Village Sekhan Majara Tehsil and District SAS Nagar, Mohali - 140306.

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Sh. Malkeet Singh S/o Sh. Jaswant Singh, R/o Village Sekhan Majra, PO Kurala, Tehsil & District Mohali, Punjab.

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……. .Defendants

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Advocates:

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Argued by Sh. Sharik Minhas, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant None for defendants (Already ex-parte vide order dated 17.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.47,91,932.90 (Rupees Forty Seven Lacs Ninety One Thousand Nine Hundred Thirty Two and Paise Ninety Only). The Original Application has been filed through Sh. Tarun Gupta, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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2 OA NO.130/2025 PUNJAB GRAMIN BANK VS SH. JASWANT SINGH AND ANOTHER

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of Rs.29,30,000.00 vide Application Form for Agriculture Credit, dated 24.04.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.29,30,000.00 vide Sanction Letter, dated 24.04.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his Immovable Property i.e.,

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Total Land measuring 11 Kanal 15 Marla as per Jamabandi for the year 2011-12, situated at Village Sekhanmajra, Hadbast No. 275, Tehsil and District Mohali, vide Mortgage Deed bearing vasika no. 415 and Affidavit of support of Non Encumbrance Certificate, both dated 12.05.2014, along with its translation, which are Annexures A6 & A7 to this OA.

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Documents executed: Hypothecation Agreement, Guarantee Deed, both dated 19.05.2014, which are Annexures A4 & A5 to this OA; Balance and Security Confirmation Letters, 02.11.2016, 07.04.2018, 20.01.2020, 09.06.2022, which are Annexures A8 to A11 to this OA; Legal Notice, dated 21.11.2023, which is Annexure A12 to this OA; Statement of Account along with certificate, which are Annexures A13 & A14 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 the loan account there was a debit of Rs.47,91,932.90, 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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The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 17.08.2026.

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3 OA NO.130/2025 PUNJAB GRAMIN BANK VS SH. JASWANT SINGH AND ANOTHER

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7. In support of the OA,	affidavit ofSh. Tarun Gupta, Authorized
Officer, Punjab Gramin Bank	has been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for 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 A14 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facility which was granted to him, defendant no. 2 stood as guarantor 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.47,91,932.90 (Rupees Forty Seven Lacs Ninety One Thousand Nine Hundred Thirty Two and Paise Ninety 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.

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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 @11.50%p.a. with yearly rests with penal interest @2%p.a 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, 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 @8.00%p.a. in the loan

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4 OA NO.130/2025 PUNJAB GRAMIN BANK VS SH. JASWANT SINGH AND ANOTHER

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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 sum of Rs.47,91,932.90 (Rupees Forty Seven Lacs Ninety One Thousand Nine Hundred Thirty Two and Paise Ninety 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 mortgaged property of 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.

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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 03.09.2026.

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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: 19.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Jaswant Singh and Another

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Jaswant Singh and Another

Case brief

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