Allowed

Punjab and Sind Bank v. Sh. Arshdeep Singh and Others

DRT16 Apr 2026OA/1567/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed under the Recovery of Debts and Bankruptcy Act, 1993 by Punjab and Sind Bank. The Tribunal held the defendants liable to repay the outstanding loan amount along with adjusted interest and granted recovery certificates.

What did the court decide?

Declaration of liability to pay principal amounts; uniform simple interest @08.00% p.a.; issuance of Recovery Certificate.

Punjab and Sind Bank versus Sh. Arshdeep Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1567/2025

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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 and Sind Bank, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 (Act no. 40 of 1980), with its Head Office at 21, Rajindra Place, New Delhi and Branches amongst other places, one at Railway Road, Moga, Tehsil and District Moga and one at Godhewala, Tehsil and District Moga, through its Authorized Attorney Sh. Anoop Kumar Gupta, Chief Manager.

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……..Applicant

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Versus

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1. Sh. Arshdeep Singh S/o Sh. Jagjeet Singh, R/o Plot No. 50, Yuvraj Enclave, Near Kotakpura Byepass, Moga. 2^nd Address: H. No. 634, W.NO. 31, Near Khooni Masit, Purana Moga, Moga. 3^rd Address: Sagar Poultry Farm, Bahona Road, Moga.

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1. Sh. Vikramjeet Singh S/o Sh. Jagjeet Singh, R/o Plot No. 50, Yuvraj Enclave, Near Kotakpura Byepass, Moga. 2^nd Address: H. No. 634, W.NO. 31, Near Khooni Masit, Purana Moga, Moga.

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1. Smt. Deepinder Kaur W/o Sh. Jagjeet Singh, R/o Plot No. 50, Yuvraj Enclave, Near Kotakpura Byepass, Moga. 2^nd Address: H. No. 634, W.NO. 31, Near Khooni Masit, Purana Moga, Moga.

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Sh. Gurwinder Singh S/o Sh. Sukhmander Singh, R/o H. No. 301, Patti Usang, Moga. 2^nd Address: Goodwill Graphics, Opp. Petrol Pump, Green Field Colony, Moga.

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M/S Sagar Poultry Farm C/O Ram Baoli, Bahona Chownk, Moga, through its proprietor Sh. Arshdeep Singh S/o Sh. Jagjeet Singh

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….……Defendants

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2 OA/1567/2025 PUNJAB AND SIND BANK VS. ARSHDEEP SINGH AND OTHERS

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Advocates:

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Argued by Sh. A. B. S. Sidhu, Advocate for Applicant (through VC) None for Defendants (already ex-parte vide order dated 10.04.2026)

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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.46,72,953.12 (Rupees Forty Six Lacs Seventy Two Thousand Nine Hundred Fifty Three and Paise Twelve Only). The Original Application has been Sh. Anoop Kumar Gupta, Chief Manager of the applicant, who are competent to institute the Original Application vide Power of Attorney dated 22.05.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for grant of Housing Loan of Rs.35.00 Lacs vide Loan Application dated 13.07.2022, which is Annexure A2 to this OA. Defendant nos. 3 and 4 stood as Guarantor. Thereafter, the defendant nos. 1 and 2 approached the applicant for grant of additional Housing Loan of Rs.7.00 Lacs. Thereafter, Defendant no. 5 through its proprietor defendant no. 1, approached the applicant bank for grant of OD Limit of Rs.8.80 Lacs vide Loan Application dated 24.01.2023, which is Annexure A16 to this OA. 3. The applicant sanctioned Housing Loan (Takeover from Indian Overseas Bank) of Rs.28.00 Lacs vide Sanction Letter dated 02.09.2022 which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned another Housing Loan of Rs.7.00 Lacs vide Sanction Letter dated 16.11.2022, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned OD Limit of Rs.8.80 Lacs vide Sanction Letter dated 03.02.2023, which is Annexure A17 to this OA. 4. Defendant no. 1 mortgaged his immovable property i.e. Residential House measuring 4Marla-01Sarsai-06Sq.Ft. situated at Village Moga Mehla Singh-II, Tehsil and District Moga, Punjab through equitable mortgage of Sale deed bearing Vasika no. 2509 dated

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3 OA/1567/2025 PUNJAB AND SIND BANK VS. ARSHDEEP SINGH AND OTHERS

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13.10.2021, which is Annexure A20 to this OA; Memorandum of mortgage dated 15.10.2022 and 19.11.2022 executed by defendant no. 1 for deposit of original Title deed, which are Annexures A21 & A22 to this OA.

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Defendant No 5, through its proprietor defendant no. 1, hypothecated its Livestock, Feed and other stock, Book Debts, vide Deed of Hypothecation dated 03.02.2023, which is Annexure A19 to this OA. Documents executed: Agreement for Housing Loan dated 15.10.2022, which is Annexure A4 to this OA; Letter of Undertaking dated 15.10.2022, which is Annexure A5 to this OA; Undertaking dated 15.10.2022, which is Annexure A6 to this OA; Annexure dated 15.10.2022, which is Annexure A7 to this OA; Letter of Guarantee dated 15.10.2022, which is Annexure A8 to this OA; Agreement for Housing Loan dated 19.11.2022, which is Annexure A10 to this OA; Letter of Undertaking dated 19.11.2022, which is Annexure A11 to this OA; Undertaking dated 19.11.2022, which is Annexure A12 to this OA; Annexure dated 19.11.2022, which is Annexure A13 to this OA; Appendix A dated 19.11.2022, which is Annexure A14 to this OA; Letter of Guarantee dated 19.11.2022, which is Annexure A15 to this OA; Overdraft Agreement dated 03.02.2023, which is Annexure A18 to this OA; Notice dated 02.07.2025 u/s 13(2) of SARFAESI Act 2002, which is Annexure A23 to this OA; Legal Notice dated 15.09.2025, which is Annexure A24 to this OA; Statement of Accounts with certificate, which are Annexures A25 to A28 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.46,72,953.12, 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 behalf of defendants and they were proceeded ex-parte vide order dated 10.04.2026.

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4 OA/1567/2025 PUNJAB AND SIND BANK VS. ARSHDEEP SINGH AND OTHERS

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In support of the OA, affidavit of Sh. Anoop Kumar Gupta, Chief Manager, Punjab and Sind Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A28 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, all the 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.37,47,656.92 (Rupees Thirty Seven Lacs Forty Seven Thousand Six Hundred Fifty Six and Paise Ninety Two Only), along with interest from the defendant nos. 1 to 4 and Rs.9,25,296.20 (Rupees Nine Lacs Twenty Five Thousand Two Hundred Ninety Six and Paise Twenty only), along with interest from the defendant nos. 1 & 5, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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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 @10.10%p.a. plus 2% penal interest with monthly rests w.e.f. 01.10.2025 till 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 hypothecated asset/mortgaged property, 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 @08.00% p.a. in all the loan accounts from the date of filing

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5 OA/1567/2025

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PUNJAB AND SIND BANK VS. ARSHDEEP SINGH AND OTHERS

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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 to 4 are liable to pay to the applicant a total sum of Rs.37,47,656.92 (Rupees Thirty Seven Lacs Forty Seven Thousand Six Hundred Fifty Six and Paise Ninety Two Only) and the defendant nos. 1 & 5 are liable to pay to the applicant a total sum of Rs.9,25,296.20 (Rupees Nine Lacs Twenty Five Thousand Two Hundred Ninety Six and Paise Twenty only), with costs, jointly and severally, current and future simple interest @08.00%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 hypothecated assets/mortgaged properties 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 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. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Arshdeep Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Sh. Arshdeep Singh and Others

Case brief

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What did the court decide?

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