Allowed

Punjab National Bank v. Sh. Ram Singh and Another

DRT19 Feb 2026OA/1592/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an ex-parte original application filed by Punjab National Bank for recovery of Rs. 35.65 Lakhs as agriculture cash credit. The court granted 8% simple interest and directed issuance of a recovery certificate to enable sale of mortgaged properties under SARFAESI Act.

What did the court decide?

Recovery of Rs. 35,65,818.00 with 8% p.a. simple interest; directed issuance of Recovery Certificate for execution of mortgage.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1592/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.09.2025

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DATE OF DECISION: 19.02.2026

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Punjab National Bank, a body incorporated constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and its Branch offices at ARMB, AMRITSAR, B-10, Adjoining Old Passport Office, B-Block Ranjit Avenue, Amritsar Punjab-143001 through Sh. Pardeep Singh, Senior Manager, being General Attorney Holder of the Applicant.

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……..Applicant Versus

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Sh. Ram Singh S/o Sh. Baga Singh, Resident of Village Assal Uttar, Khem Karan, Tehsil Patti, District Tarn Taran, Punjab.

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Sh. Balwinder Singh S/o Sh. Ram Singh, Resident of Village Assal Uttar, Khem Karan, Tehsil Patti, District Tarn Taran, Punjab.

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……….Defendants

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Advocates:

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Argued by Ms. Ravisha Mahajan, Advocate for Applicant

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Defendants already ex parte vide order dated 07.01.2026.

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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,

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against the defendants for recovery of Rs.35,65,818.00 (Rupees Thirty

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Five Lacs Sixty Five Thousand Eight Hundred Eighteen Only). The Original Application has been filed through Sh. Pardeep Singh, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2019, which is Annexure A1 to this OA.

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OA NO. 1592/2025 PUNJAB NATIONAL BANK VS. RAM SINGH AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Agriculture Cash Credit Facility of Rs.36.00 Lacs under KGS Scheme vide Loan Application dated 13.01.2021, which is Annexure A2 to this OA.

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The applicant sanctioned Agriculture Cash Credit Facility of Rs.36.00 Lacs under KGS Scheme vide memorandum of sanction dated 22.02.2021, which is Annexure A5 to this OA and terms and conditions duly accepted by the defendants.

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Defendant no.1 mortgaged his immoveable properties i.e. Land measuring 200K-17M situated in Village Asal Uttar, Hadbast no. 83, Tehsil Patti, District Tarn Taran, Punjab vide declaration u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 and letter to Sub-Registrar for registration of charge bearing mutation no. 334 dated 25.02.2021, which is Annexure A6 to this OA.

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Documents executed : Letter of Authorization, which is Annexure A3 to this OA; Master agreement, which is Annexure A4 to this OA; Balance and Security Confirmation letter dated 16.02.2024, which is Annexure A7 to this OA; Statement of Account, which is Annexure A8 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 loan account there was a debit of Rs.35,65,818.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.01.2026.

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In support of the OA, affidavit of Sh. Pardeep Singh, Senior Manager, Punjab National Bank has been filed.

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OA NO. 1592/2025 PUNJAB NATIONAL BANK VS. RAM SINGH AND ANOTHER

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A8 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, 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.35,65,818.00 (Rupees Thirty Five Lacs Sixty Five Thousand Eight Hundred Eighteen 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 @10.35%p.a. plus 2% penal interest with monthly rests from 28.02.2025 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 uniform 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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OA NO. 1592/2025 PUNJAB NATIONAL BANK VS. RAM SINGH AND ANOTHER

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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 Rs.35,65,818.00 (Rupees Thirty Five Lacs Sixty Five Thousand Eight Hundred Eighteen 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 hypothecated/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.

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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 07.03.2026.

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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: 19.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Ram Singh and Another

Case brief

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Punjab National Bank v. Sh. Ram Singh and Another

Case brief

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