Allowed

Punjab National Bank v. Sh. Baldev Singh and Another

DRT16 Apr 2026OA/1563/2025

Case brief

AI extract

What is this about?

DRT allowed Original Application by Punjab National Bank against two defaulter borrowers for recovery of Rs. 41,86,350.99. The Division Bench granted a Recovery Certificate authorizing the sale of mortgaged assets for dues recovery and capped interest at 8% p.a.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.41,86,350.99 with interest @8% p.a.; Realization from sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Baldev Singh and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1563/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.11.2025

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DATE OF DECISION: 16.04.2026

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Punjab National Bank, a Body Corporate and Nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and amongst other a Branch Office at Jamalpur Awana, District Ludhiana, Punjab, through its Constituted Attorney and Senior Manager, Sh. Debabrata Padhan, S/o Sh. Upendra Padhan posted at Punjab National Bank, ARM Branch, Ludhiana, Punjab situated at 1^st Floor, Site no. 5, Ferozepur Road, Ludhiana, Punjab

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……..Applicant

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Versus

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1. Sh. Baldev Singh, S/o Sh. Babu Singh, R/o Village Jiwanpur, PO Khwaj Ke, District Ludhiana, Punjab- 141007

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Sh. Gurdeep Singh, S/o Sh. Baldev Singh, R/o Village Jiwanpur, PO Khwaj Ke, District Ludhiana, Punjab- 141007

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……….Defendants

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Advocates:

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Argued by Ms. Harpreet Kaur, Advocate proxy for Sh. Kanwar Harbir Singh Bath, Advocate for applicant

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None for defendants (already ex-parte vide order dated 19.02.2026)

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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. 41,86,350.99 (Rupees Forty One Lacs Eighty Six Thousand Three Hundred Fifty and Paise Ninety Nine Only). The Original Application has been filed through Sh. Debabrata Padhan, Senior Manager of the Applicant, who is competent

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2 OA NO. 1563/2025 PUNJAB NATIONAL BANK VS. BALDEV SINGH AND ANOTHER

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to institute the Original Application vide Power of Attorney dated 24.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of OGC Facility of Rs. 29.00 Lacs vide Loan Application dated 18.04.2012, which is Annexure A2 to this OA. Thereafter, the defendants approached the applicant for renewal of OGC Facility of Rs 29.00 Lacs vide Renewal Application cum Sanction dated 13.10.2017, which is Annexure A6 to this OA. 3. The applicant sanctioned the OGC Facility of Rs. 29.00 Lacs vide Sanction Letter dated 16.06.2012, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the renewal of OGC Facility of Rs.29.00 Lacs. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 49K 05M situated at Village Jiwanpur, Hadbast no. 57, District Ludhiana, Punjab, vide Registered Mortgage Deed bearing vasika no. 323 along with its translation dated 19.06.2012, which is Annexure A5 to this OA. Documents executed: Agreement of Hypothecation dated 25.06.2012, which is Annexure A4 to this OA; Balance and Security Confirmation Letters dated 02.05.2015, 13.10.2017, 26.11.2019 and 10.11.2022, which are Annexure A7 to A10 to this OA; Recall Notice dated 04.11.2023, which is Annexure A11 to this OA and Loan Account Statement with certificate, which is Annexure A12 to this OA. 5. 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. 41,86,350.99, which is recoverable and the defendants were served recall notice 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 the behalf of defendants and they were proceeded ex-parte vide order dated 19.02.2026.

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3 OA NO. 1563/2025

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PUNJAB NATIONAL BANK VS. BALDEV SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Debabrata Padhan, Senior 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 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 Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the 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, the account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 41,86,350.99 (Rupees Forty One Lacs Eighty Six Thousand Three Hundred Fifty and Paise Ninety Nine Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @13.05% (including penal interest @2%) with half yearly rests from 26.06.2025 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/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 simple interest @08.00% 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 a total sum of

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OA NO. 1563/2025 PUNJAB NATIONAL BANK VS. BALDEV SINGH AND ANOTHER

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Rs.41,86,350.99 (Rupees Forty One Lacs Eighty Six Thousand Three Hundred Fifty and Paise Ninety Nine Only), jointly and severally, 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/hypothecated assets of the defendants 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. 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 06.05.2026 15. Copy of this order be given dasti to the applicant and be sent to the defendants 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 . Dated: 16.04.2026

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

Punjab National Bank v. Sh. Baldev Singh and Another

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Punjab National Bank v. Sh. Baldev Singh and Another

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