Allowed

Punjab National Bank v. Sh. Ajit Singh through His Legal Heirs and Another

DRT31 Jul 2026OA/1339/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a NPAt profit of Rs.23,53,673.57 against the legal heirs of a deceased borrower and his legal heirs. The Tribunal granted simple interest at 8% per annum and ordered issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.23,53,673.57 with interest at 8% p.a. from the date of filing; issuance of Recovery Certificate.

Punjab National Bank versus Sh. Ajit Singh through His Legal… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT DISTRICT TARN TARAN, PUNJAB

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ORIGINAL APPLICATION NO.1339/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.10.2023

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DATE OF DECISION: 31.07.2026

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Punjab National Bank, a body corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi - 110 075 and amongst others a Branch at Chohla Sahib, District Tarn Taran, Punjab through Smt. Manpreet Kaur, Manager and Attorney Holder presently posted at Punjab National Bank, Chohla Sahib, District Tarn Taran, Punjab.

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……..Applicant Versus

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1. Sh. Ajit Singh S/o Sh. Ujagar Singh, R/o House No. 442 Village Chohla Sahib, Tehsil Tarn Taran, Punjab, Pin Code – 143408. Since deceased survived by following legal heirs:

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1A Sh. Jarnail Singh (since deceased) S/o Late Sh. Ajit Singh Through his legal heirs: 1A(i) Smt. Suwinder Kaur (Wd/o late Sh. Jarnail Singh), 1A(ii) Sh. Sukhwinder Singh (S/o late Sh. Jarnail Singh), 1A(iii) Sh. Lakhwinder Singh (S/o late Sh. Jarnail Singh), All above residents of Village Patti Bhai Ke, VPO Chohla Sahib, Tehsil Tarn Taran, Punjab. 1B Sh. Nirvail Singh S/o Sh. Ajit Singh, 1C Sh. Balwinder Singh S/o Sh. Ajit Singh, 1D Sh. Joga Singh S/o Sh. Ajit Singh (Also arrayed as defendant no.2), All above residents of Village Patti Bhai KE, VPO Chohla Sahib, Tehsil Tarn Taran, Punjab. 2. Sh. Joga Singh S/o Sh. Ajit Singh, R/o Village Patti Bhai KE, VPO Chohla Sahib, Tehsil Tarn Taran, Punjab.

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…….. Defendants

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2 OA NO.1339/2023 PUNJAB NATIONAL BANK VS SH. AJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Advocates:

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Argued by Sh. Ashutosh Bajpai, Advocate proxy for Sh. Manish Singla, Advocate for the applicant (through VC)

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None for defendants (Defendant nos. 1A(i) to 1A(iii) already ex-parte vide order dated 21.05.2026 & Defendant nos. 1B to 1D already exparte vide order dated 09.07.2026)

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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.23,53,673.57 (Rupees Twenty Three Lacs Fifty Three Thousand Six Hundred Seventy Three and Paise Fifty Seven Only). The Original Application has been filed throug h Smt. Manpreet Kaur, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 29.02.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that Sh. Ajit Singh (Since deceased) and defendant no. 2 a pproached the applicant for grant of Kisan Credit Card Limit of Rs.12,00,000.00 vide Application Form for Agricultural Credit dated 29.12.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the Kisan Credit Card Limit of Rs.12,00,000.00. 4. Sh. Ajit Singh (Since deceased) mortgaged his Immovable Property i.e., Land measuring 40 Kanal 0 Marla situated at Village Chohla Sahib, District Tarn Taran as per Jamabandi for the year 2010-2011 vide Registered Mortgage Deed bearing Vasika No. 1179 dated 31.01.2014, which is Annexure A6 to this OA.

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Documents executed: Hypothecation Agreement, Letter of Undertaking, Letter of Consent (Revised), all dated 18.01.2016, which are Annexures A3 to A5 to this OA; Balance and Security

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3 OA NO.1339/2023 PUNJAB NATIONAL BANK VS SH. AJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Confirmation Letters, dated 27.11.2018, 28.04.2021, which are Annexures A7 & A8 to this OA; Death Certificate dated 20.02.2020, which is Annexure A9 to this OA; Legal Notice dated 18.02.2021, which is Annexure A10 to this OA; Statement of Account along with certificate, which is Annexure A11 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.23,53,673.57, 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 defendants and Defendant nos. 1A(i) to 1A(iii) were proceeded ex-parte vide order dated 21.05.2026 & Defendant nos. 1B to 1D & 2 were proceeded ex-parte vide order dated 09.07.2026.

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In support of the OA, affidavit of Smt. Manpreet Kaur, Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant, who appeared through Video Conferencing 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 A11 to this OA, it is proved that Sh. Ajit Singh (Since deceased) and defendant no. 2 approached applicant for availing of 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.23,53,673.57 (Rupees Twenty Three

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4 OA NO.1339/2023 PUNJAB NATIONAL BANK VS SH. AJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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Lacs Fifty Three Thousand Six Hundred Seventy Three and Paise Fifty 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.

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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 @10.00%p.a. with half yearly rests with penal interest @2%p.a. from 19.01.2023 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 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 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.23,53,673.57 (Rupees Twenty Three Lacs Fifty Three Thousand Six Hundred Seventy Three and Paise Fifty Seven 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 Sh. Ajit Singh (Since deceased) 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 nos. 1A(i) to 1A(iii), 1B to 1D inherited to the extent, they inherited from Sh. Ajit Singh (Since deceased) and b y attachment and sale of personal assets of the

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5 OA NO.1339/2023 PUNJAB NATIONAL BANK VS SH. AJIT SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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defendant no. 2. The applicant is at liberty to enforce the claim

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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

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Tribunal on 17.08.2026.

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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 at Camp Court District Tarn Taran, Punjab .

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Dated: 31.07.2026

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

Punjab National Bank v. Sh. Ajit Singh through His Legal Heirs and Another

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Punjab National Bank v. Sh. Ajit Singh through His Legal Heirs and Another

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