Allowed

Punjab National Bank v. Sh. Karnail Singh

DRT22 May 2026OA/138/2024

Case brief

AI extract

What is this about?

In an ex-parte hearing, the Tribunal allowed the bank's application under Section 19 RDBA 1993 for recovery of approximately Rs. 32 Lacs. The court granted uniform simple interest at 8% p.a. and directed issuance of a recovery certificate to attach and sell mortgaged or hypothecated assets.

What did the court decide?

Recovery certificate issued for Rs. 26,15,334.17 principal plus interest; directed sale of mortgaged/hypothecated assets or attachment of personal assets of respondents.

Punjab National Bank versus Sh. Karnail Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.138/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.12.2023

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DATE OF DECISION: 22.05.2026

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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 amongst others a Branch Office at Lalru Chandigarh Road, Lalru, District Mohali, Punjab are presented through its Constituted Attorney and Principal Officer, others a Branch Office at Sastra, Punjab National Bank, SCO 43, Phase 2, Mohali, Punjab through Sh. Subhash Chandra, Senior Manager and duly Constituted Attorney of the applicant

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……..Applicant

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Versus

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Sh. Karnail Singh, S/o Sh. Jagir Singh (since deceased) through his LRs:

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i. Sh. Sukhwinder Singh

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ii. Sh. Bikram Singh

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Sons of Late Sh. S. Karnail Singh, R/o Village Malakpur, Tehsil Dera Bassi, Mohali, Punjab

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Sh. Gurjant Singh, S/o Sh. Surjeet Singh, R/o Village Malakpur, Tehsil Dera Bassi, Mohali, Punjab

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Sh. Dharampal Singh, S/o Sh. Sher Singh, R/o Village Malakpur, Tehsil Dera Bassi, Mohali, Punjab

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………. Defendants

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Advocates:

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Argued by Sh. B.S. Walia, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 20.05.2026)

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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. 26,57,734.17 (Rupees Twenty Six Lacs Fifty Seven Thousand Seven Hundred Thirty Four and

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2 OA/138/2024 PUNJAB NATIONAL BANK VS. KARNAIL SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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Paise Seventeen Only).The Original Application has been filed through Sh. Subhash Chandra, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.07.2011, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs. 6.50 Lacs vide Application dated 03.01.2009, which is Annexure A4 to this OA. Thereafter, defendant no. 1 (since deceased) approached the applicant for enhancement of KCC Limit to Rs. 20.00 Lacs vide Application dated 08.07.2014, which is Annexure A11 to this OA. Thereafter, defendant no. 1 (since deceased) again approached the applicant for grant of Car Loan of Rs. 7.00 Lacs vide Application dated 28.10.2015, which is Annexure A22 to this OA. Thereafter, defendant no. 1 (since deceased) again approached the applicant for grant of Term Loan of Rs. 50,000.00 vide Application cum Sanction Letter dated 02.06.2020, which is Annexure A29 to this OA.

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The applicant sanctioned KCC Limit of Rs. 6.50 Lacs vide Sanction Letter dated 03.01.2009, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhanced KCC Limit of Rs. 20.00 Lacs vide Sanction Letter, which is Annexure A12 to this OA. Defendant no. 2 stood as guarantor. Thereafter, the applicant sanctioned Car Loan of Rs. 7.00 Lacs vide Sanction Letter dated 29.10.2015, which is Annexure A23 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the applicant sanctioned Term Loan of Rs. 50,000.00.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land Measuring 14 Bighe 00 Biswa situated at Village Malikpur, Tehsil Derabassi, District SAS Nagar, Punjab vide Mortgage Deed bearing vasika no. 8066 dated 07.01.2009, which is Annexure A9 to this OA.

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Defendant no. 1 (since deceased) hypothecated his crops on agricultural land and vehicle vide Hypothecation Agreements dated 12.01.2019, 11.07.2014 and 02.06.2020 and Letter of Hypothecation

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3 OA/138/2024 PUNJAB NATIONAL BANK VS. KARNAIL SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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dated 30.10.2015, which are Annexure A8, A13, A24 and A30 to this OA.

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Documents executed: Death Certificate dated 24.04.2021, which is Annexure A2 to this OA; Letter of Forbearance dated 09.11.2022, which is Annexure A3 to this OA; Letter of Undertaking and Letter of Consent, both dated 12.01.2009, which are Annexure A6 and A7 to this OA; Account Statement, which is Annexure A10 to this OA; Letter of Undertaking, Letter of Consent and Agreement of Guarantee, all dated 11.07.2014, which are Annexure A14 to A16 to this OA; Balance Confirmations dated 24.10.2011, 21.05.2014, 30.06.2017, 30.06.2020, 21.06.2023, 26.10.2018, 22.10.2021 and 01.06.2023 which are Annexure A17 to A21, A27, A28 and A33 to this OA; Agreement of Guarantee dated 30.10.2015, which is Annexure A25 to this OA; Account Statement, which is Annexure A26 to this OA; Master Agreement dated 02.06.2020, which is Annexure A31 to this OA; Account Statement, which is Annexure A32 to this OA and Recall Notice dated 03.04.2023, which is Annexure A34 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 26,57,734.17, 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. 6. 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 20.05.2026 7. In support of the OA, affidavit of Sh. Subhash Chandra, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant (through VC) 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 Annexure A1 to A34 to this OA, it is proved that the defendant no. 1 (since deceased) approached

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OA/138/2024 PUNJAB NATIONAL BANK VS. KARNAIL SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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applicant for availing of the loan facilities which were granted to him. Defendant nos. 2 and 3 stood as guarantors. Defendants 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,45,398.00 (Rupees Twenty Five Lacs Forty Five Thousand Three Hundred Ninety Eight Only) from defendant nos. 1 and 2, jointly and severally, Rs. 60,867.00 (Rupees Sixty Thousand Eight Hundred Sixty Seven Only) from defendant nos. 1 and 3, jointly and severally and Rs.51,469.17 (Rupees Fifty One Thousand Four Hundred Sixty Nine and Paise Seventeen Only) from defendant no. 1, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed @9.90% in KCC Limit Account, @9.75% in Car Loan Account and @9.85% in Term Loan Account plus @2% penal interest from the date of application 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 properties/hypothecated assets, 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 uniform simple interest @08.00% 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.

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In the result, the application is allowed declaring that the defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs.25,45,398.00 (Rupees Twenty Five Lacs Forty Five Thousand Three Hundred Ninety Eight Only) jointly and severally, defendant nos. 1 and

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5 OA/138/2024 PUNJAB NATIONAL BANK VS. KARNAIL SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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3 are liable to pay to the applicant a total sum of Rs. 60,867.00 (Rupees Sixty Thousand Eight Hundred Sixty Seven Only) jointly and severally and defendant no. 1 is liable to pay to the applicant a total sum of Rs. 51,469.17 (Rupees Fifty One Thousand Four Hundred Sixty Nine and Paise Seventeen Only) with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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 properties/hypothecated assets 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 defendant no. 1 (i) and (ii) to the extent they inherited the property of deceased defendant no. 1 and also of defendant nos. 2 and 3. 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 15.06.2026.

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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: 22.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Karnail Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Karnail Singh

Case brief

What is this about?

What did the court decide?

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