Allowed

Punjab Gramin Bank v. Sh. Pargat Singh

DRT18 Feb 2026OA/1612/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's original application for recovery of a loan of Rs. 33.19 lakhs against the defendant who failed to repay the KCC facility. The court granted a recovery certificate and permitted recovery through asset sale under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 33,19,780.00 with 8% simple interest until realization; liberty to enforce via asset sale.

Punjab Gramin Bank versus Sh. Pargat Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1612/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.09.2025

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DATE OF DECISION: 18.02.2026

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its Head Office at Markfed Road, Kapurthala (Punjab) and having its branches at different places including one at Kirtowal, District Tarn Taran (PB) through its Constituted Attorney/ Manager Sh. Devendra Kumar Meena. ……..Applicant Versus Sh. Pargat Singh S/o Sh. Natha Singh, R/o Village Subhra, Tehsil Patti, District Tarn Taran (Punjab).

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……..Applicant Versus

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………Defendant Advocates Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through VC) Defendant already ex-parte vide order dated 06.01.2026

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FINAL ORDER 1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendant for recovery of Rs.33,19,780.00 (Rupees Thirty Three Lacs Nineteen Thousand Seven Hundred Eighty Only). The Original Application has been filed through Sh. Devendra Kumar Meena, Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 04.01.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for grant KCC Limit of Rs. 17.80 Lacs vide Loan Application dated 04.08.2015, which is Annexure A2 to this OA.

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2 OA NO.1612/2025 PUNJAB GRAMIN BANK VS. PARGAT SINGH

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The applicant sanctioned the KCC Limit of Rs. 17.80 Lacs vide sanction Letter dated 04.08.2015, which is Annexure A3 to this OA and the terms and conditions were accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. Land Measuring 40 Kanal 17 detailed as under: (i) Land measuring 10K-18M situated at Village Sabhra 2, Tehsil Patti, District Tarn Taran, Punjab (ii) Land measuring 29K-19M situated at Village Sabhra 1, Tehsil Patti, District Tarn Taran, Punjab vide Declaration dated 07.08.2015 under Section 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA. Documents executed : Hypothecation Agreement dated 12.08.2015, which is Annexure A4 to this OA; Notice dated 22.12.2023, which is Annexure A6 to this OA, BC Letter dated 16.11.2017, which is Annexure A7 to this OA; BC Letter dated 08.11.2019, which is Annexure A-7/ 1 to this OA; BC Letter dated 30.09.2022, which is Annexure A-7/2 to this OA; Statement of Account, which is Annexure A8 to this OA. 5. 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. 33,19,780.00 which is recoverable and the defendant was served recall notice but defendant 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 notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 06.01.2026. 7. In support of the OA, affidavit of Sh. Devendra Kumar Meena, Manage r, Punjab Gramin Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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3 OA NO.1612/2025 PUNJAB GRAMIN BANK VS. PARGAT SINGH

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the applicant had proved its case. From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. 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.33,19,780.00 (Rupees Thirty Three Lacs Nineteen Thousand Seven Hundred Eighty Only) along with interest from the defendant, 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 @11.75%p.a. with 2% penal interest with half yearly rests from 23.09.2025 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 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 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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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.33,19,780.00 (Rupees Thirty Three Lacs Nineteen Thousand Seven Hundred Eighty Only) with costs, current and future simple interest @8.00%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

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4 OA NO.1612/2025 PUNJAB GRAMIN BANK VS. PARGAT SINGH

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entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties 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.

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.03.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 18.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Pargat Singh

Case brief

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Punjab Gramin Bank v. Sh. Pargat Singh

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