Allowed

Punjab National Bank v. Sh. Ghasita Singh

DRT31 Jul 2026OA/1384/2025

Case brief

AI extract

What is this about?

The DRT allowed an original application by Punjab National Bank for recovery of Rs. 23.38 lakhs against a defendant who failed to repay a secured term loan. The defendant did not appear; the court issued a recovery certificate and ordered recovery from mortgaged property.

What did the court decide?

Recovery Certificate issued directing defendant to pay Rs. 23,38,669.84 plus 8% simple interest annually, enforceable via sale of mortgaged property or attachment of assets.

Punjab National Bank versus Sh. Ghasita Singh — 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. 1384/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.09.2025

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DATE OF DECISION: 31.07.2026

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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 at Sarai Amanat Khan, through Recovery Vertical at Circle Sastra, Amritsar, Punjab, through Sh. Ranjodh Singh Gill, Branch Manager, Principal Officer and duly constituted Attorney of the Applicant Bank.

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……..Applicant

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Versus

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Sh. G hasita Singh, S/o Sh. Mohinder Singh, R/o #200, Village Naushehra, Tehsil & District Tarn Taran, Punjab.

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.……Defendant Advocate: Argued by Sh. Ashutosh Bajpai, Advocate proxy for Sh. Anirudh Gupta, Advocate for the applicant (through VC)

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None for Defendant (already ex parte vide order dated 13.07.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.23,38,669.84 (Rupees Twenty Three Lac Thirty Eight Thousand Six Hundred Sixty Nine and Paise Eighty Four only). The Original Application has been filed through Sh. Ranjodh Singh Gill, Branch Manager , of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 16.07.2015, which is Annexure A1 to this OA.

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OA/1384/2025 PUNJAB NATIONAL BANK VS SH. GHASITA SINGH

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The brief facts of the OA are that the defendant approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs vide Loan Application dated 20.10.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 06.11.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his agricultural land measuring 40Kanal0Marla situated at Village Naushehra, Hadbast no. 177, Tehsil & District Tarn Taran, Punjab vide Declaration under Section 4(1) dated 06.11.2015, which is Annexure A9 to this OA; Documents executed : Hypothecation Agreement dated 06.11.2015, which is Annexure A4 to this OA; Letter of Undertaking dated 06.11.2015, which is Annexure A5 to this OA; Letter of Consent dated 06.11.2015, which is Annexure A6 to this OA; Declaration dated 06.11.2015, which is Annexure A7 to this OA; Affidavit dated 16.06.2014, which is Annexure A8 to this OA; Letter for Marking Lien dated 28.10.2015, which is Annexure A10 to this OA; Balance Confirmation Letter dated 06.11.2018 and 06.11.2021, which is Annexure A11 to this OA; Recall Notice dated 30.11.2019, which is Annexure A12 to this OA; Legal Notice dated 20.09.2024, which is Annexure A13 to this OA; Statement of Accounts, which is Annexure A14 to this OA; Certificate dated 06.11.2024, which is Annexure A15 to this OA. 5. The account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.23,38,669.84 (Rupees Twenty Three Lac Thirty Eight Thousand Six Hundred Sixty Nine and Paise Eighty Four only), which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal and no one appeared on behalf of defendant. Hence, he was proceeded ex-parte on 13.07.2026.

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OA/1384/2025 PUNJAB NATIONAL BANK VS SH. GHASITA SINGH

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In support of the OA, affidavit of Sh. Ranjodh Singh Gill, Branch Manager, Punjab National 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, 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 A15 to this OA, it is proved that the defendant approached applicant for availing of the Term Loan, which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,38,669.84 (Rupees Twenty Three Lac Thirty Eight Thousand Six Hundred Sixty Nine and Paise Eighty Four only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% p.a. plus 2.00% p.a. penal interest with yearly rests from 07.11.2023 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 defendant, 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 @08.00% p.a. in the loan account

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OA/1384/2025 PUNJAB NATIONAL BANK VS SH. GHASITA SINGH

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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 is liable to pay to the applicant a total sum of Rs.23,38,669.84 (Rupees Twenty Three Lac Thirty Eight Thousand Six Hundred Sixty Nine and Paise Eighty Four only), with costs, current and future simple interest @08.00% 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 the defendant 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. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.08.2026 15. Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal at Camp Court District Tarn Taran, Punjab. Dated: 31.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Ghasita Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Ghasita Singh

Case brief

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