Debts Recovery Tribunal allowed an ex-parte application filed by Punjab National Bank for recovery of recovered loan dues. The Court quantified the outstanding amount, directed sale of personal assets, and issued a Recovery Certificate.
Order for recovery of outstanding dues by attachment and sale of assets and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1309/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.04.2022
DATE OF DECISION: 01.09.2026
Punjab National Bank, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi - 110075 and Office Circle Sastra, IInd Floor, SCF - 43, Sector 54, SAS Nagar Mohali (Punjab) through Sh. Ravi Kumar S/o Sh. Ram Kumar Thakur, Chief Manger of the Applicant Bank.
……..Applicant
Versus
Advocates:
Argued by Sh. Anirudh Gupta, Advocate for the applicant
None for defendants (Already ex-parte vide order dated 08.06.2026).
FINAL ORDER
2 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
the Original Application vide Power of Attorney, dated 17.11.2009, which is Annexure A1 to this OA.
Thereafter, the defendant no. 1 a pproached the applicant for grant of Housing Loan Overdraft Facility of Rs.15,60,000.00.
Thereafter, the defendant nos. 1 & 2 a pproached the applicant for grant of Term Loan Facility for renovation of house of Rs.8,50,000.00 vide Application Form for Housing Loan, dated 14.10.2020, which is Annexure A19 to this OA.
Thereafter, the defendant no. 1 a pproached the applicant for grant of Cash Credit Limit of Rs.25,000.00.
Thereafter, t he applicant sanctioned the Housing Loan Overdraft Facility of Rs.15,60,000.00 vide Sanction Memo and Acceptance Letter, dated 30.07.2019, which is Annexure A14 to this OA and the terms and conditions were duly accepted by the defendant no. 1.
Thereafter, t he applicant sanctioned the Term Loan Facility II for renovation of house of Rs.8,50,000.00 vide Sanction Memo and Acceptance Letter, dated 16.12.2020, which is Annexure A20 to this OA and the terms and conditions were duly accepted by the defendant nos. 1 to 3. Defendant no. 3 stood as guarantor.
Thereafter, t he applicant sanctioned the Cash Credit Limit of Rs.25,000.00 vide PNB General Credit Card-Loan Application cum Sanction Letter, dated 18.01.2010, which is Annexure A28 to this OA
3 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
and the terms and conditions were duly accepted by the defendant no. 1. 4. Defendant no. 1 mortgaged his Immovable Property i.e., Residential House measuring 0 Kanals 5 Marlas, as per Jamabandi for the year 2010-2011, situated at Village Dobetta, Hadbast no. 280, Purana Gurdwara Nangal Township, District Ropar (Punjab) , vide Transfer Deed bearing Rapat No. 146, dated 27.04.2016, along with its translation and Annexure II, dated 19.05.2016 & Annexure III, dated 20.05.2016 executed for deposit and acknowledgement of Transfer Deed no.146 with applicant, Non Encumbrance Certificate along with its translation and Copy of CERSAI, which are Annexures A8 to A12 to this OA.
Furthermore, to secure additional credit facilities, defendant No. 1 executed a Mortgage Deed dated 30.07.2019 and a Letter of Continuity dated 31.07.2019, which were acknowledged by the Applicant vide letter dated 01.11.2019, which are Annexures A16 to A18 to this OA.
However, as per affidavit of Sh. Manjeet Singh, Manager of the applicant, with Sale Certificate, filed on 12.03.2026 vide Dairy no. 4364, the above mortgaged property was already sold by the applicant.
Documents executed: Copies of Pan Cards, which are Annexures A2 to A4 to this OA; Agreement for Housing Loan, dated 18.05.2026, which is Annexure A7 to this OA; Balance and Security Confirmation Letter, dated 06.04.2019, which is Annexure A13 to this OA; Agreement for Overdraft Facility for Housing Loan Borrower, dated 30.07.2019, which is Annexure A15 to this OA; Format of Authorization and Consent clause to be included in the loan documents to be executed by the borrowers, which are Annexures A21 & A22 to this OA; Agreement for Housing Loan, Master Agreement, both dated 16.12.2020, which are Annexures A23 & A24 to this OA; Agreement of Guarantee, dated 17.12.2020, which is Annexure A25 to this OA;
4 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
Format of Authorization and Consent clause to be included in the loan documents to be executed by the guarantor, which are Annexures A26 & A27 to this OA; Agreement for Loan/Cash Credit/Overdraft, dated 18.01.2010, which is Annexure A29 to this OA; Letter of Undertaking, which is Annexure A30 to this OA; Balance and Security Confirmation Letters, dated 06.07.2012, 05.06.2015, 06.03.2018, 10.12.2020, which are Annexure A31(Colly) to this OA; Notices, dated 06.02.2021, 25.06.2021, which are Annexures A32 & A33 to this OA; Notice u/s 13(2), which is Annexure A34 to this OA; Possession Notice along with copies of paper publication, dated 19.02.2022, which are Annexures A35 & A36 to this OA; Legal Notice, dated 30.03.2022, along with postal receipt, which is Annexure A37 to this OA; Statement of Accounts along with certificate, which are Annexures A38 to A41 to this OA; Valuation Report, dated 09.12.2020, which is Annexure A42 to this OA.
5 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
Housing Loan Overdraft Facility and Cash Credit Facility, which were granted to him, the defendant nos. 1 & 2 a pproached applicant for availing of Term Loan Facility I, which was granted to them and the defendant nos. 1 & 2 a pproached applicant for availing of Term Loan Facility II, which was granted to them, defendant no. 3 stood as guarantor.
They had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. Subsequently, as per the affidavit and Sale Certificate filed by Sh. Manjeet Singh, Manager of the applicant, on 12.03.2026 vide Dairy no. 4364, the mortgaged property was already sold by the applicant. Furthermore, in compliance of order dated 10.06.2026, Sh. Hardeep Singh Bajwa, Manager of the applicant filed an affidavit on 29.08.2026 vide dairy no. 16517, confirming that recovery amount of Rs.18,60,000.00 was credited in the loan accounts of the defendants, as detailed in the table below.
| Amount | Period |
|---|---|
| Rs. 28,95,069.78 | Date of filingOA to 19.01.2024 |
| Rs. 16,60,069.78 | 20.01.2024 to 22.01.2024 |
| Rs. 10,35,069.78 | 23.01.2024 totill realization |
From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.6,10,533.24 (Rupees Six Lacs Ten Thousand Five Hundred Thirty Three Paise Twenty Four Only (Rs.5,83,989.37 (Rupees Five Lacs Eighty Three Thousand Nine Hundred Eighty Nine and Paise Thirty Seven Only) in Housing Loan Overdraft Facility & Rs.26,543.87 (Rupees Twenty Six Thousand Five Hundred Forty Three and Paise Eighty Seven Only) in Cash Credit Limit), along with interest from the defendant no. 1, Rs.92,946.97 (Rupees Ninety Two Thousand Nine Hundred and Forty Six and Paise Ninety Seven Only) in Term Loan Facility I, along with interest from the defendant nos. 1 & 2, jointly and severally and Rs.3,31,589.57
6 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
(Rupees Three Lacs Thirty One Thousand Five Hundred Eighty Nine and Paise Fifty Seven Only) in Term Loan Facility II, along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.
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 undertaking of the defendants, quantum of loans 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 @7.25%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
7 OA NO.1309/2022 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH NARULA AND OTHERS
amount. Accordingly, the applicant shall be entitled to recover aforesaid amount 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 .
Pronounced by me in the open Tribunal .
Dated: 01.09.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the Defendant is liable to repay the outstanding loan amount to the Plaintiff bank.
Whether the Tribunal should grant a Recovery Certificate against the Defendants in the ex-parte proceeding.
2 provisions across 2 enactments
Punjab National Bank
Sh. Sukhwinder Singh Narula
Smt. Manpreet Kaur Narula
Sh. Jaspal Singh
Mridulesh Kumar Singh
As recorded by the court registry
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