Allowed

Punjab Gramin Bank v. Sh. Jarnail Singh

DRT30 Apr 2026OA/1635/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab Gramin Bank against Sh. Jarnail Singh for recovery of a loan amount. The court issued a recovery certificate, fixed interest at 8% per annum, and directed recovery from mortgaged property or personal assets under the SARFAESI Act.

What did the court decide?

Awarded recovery of Rs. 41,65,591.00 plus costs and simple interest at 8% p.a. from filing date; issued Recovery Certificate; directed recovery from mortgaged/sale of assets.

Punjab Gramin Bank versus Sh. Jarnail Singh — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1635/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.11.2025

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DATE OF DECISION: 30.04.2026

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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 (Pb) and having its branches at different places, including one at Malikpur, Distt Rupnagar (Pb), through its Constituted Attorney/Branch Head, Sh. Vikram Bhardwaj.

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……..Applicant

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Versus

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Sh. Jarnail Singh s/o Sh. Piara Singh, resident of Village Alipur, PO. Ghanouli, Distt Rupnagar (Pb)-140113

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…….Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through VC)

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None for Defendants (already ex parte vide order dated 24.04.2026).

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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.41,65,591.00 (Rupees Forty One Lacs Sixty Five Thousand Five Hundred Ninety One Only). The Original Application has been filed through Sh. Vikram Bhardwaj, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 28.06.2019, which is Annexure A1 to this OA.

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2 OA/1635/2025 PUNJAB GRAMIN BANK VS. SH. JARNAILSINGH

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The brief facts of the OA are that the Defendant approached the applicant for grant of KCC Limit of Rs.10.00 Lacs, TL-Dairy of 3.00 Lacs and TL-Shed of 2.00 Lacs vide Loan Application dated 01.05.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs, TL-Dairy of 3.00 Lacs and TL-Shed of 2.00 Lacs vide Sanction Letter dated 10.05.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. Total Land measuring 24Kanal-12Marla, situated at Village Alipur, Hadbast No. 18, Tehsil Nangal, District Rupnagar, Punjab, vide Mortgage Deed bearing Vasika No.499, dated 10.05.2012, along with its Translation, which is Annexure A5 to this OA.

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Documents executed: Hypothecation Agreement dated 16.01.2013, which is Annexure A4 to this OA; Legal Notice dated 17.05.2023 with Postal Receipts, which is Annexures A6 to this OA; BC Letters, dated 13.09.2014, 20.08.2016, 11.04.2019, 04.04.2022 and 28.10.2024, which are Annexures A7 to A7/4 to this OA; Statement of account with Certificate, which is Annexure A8 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.41,65,591.00 (Rupees Forty One Lacs Sixty Five Thousand Five Hundred Ninety One 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 but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 24.04.2026 7. In support of the OA, affidavit of Sh. Vikram Bhardwaj, Branch Manager , Punjab Gramin Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/1635/2025 PUNJAB GRAMIN BANK VS. SH. JARNAILSINGH

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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 Annexures A1 to A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, all the account of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.41,65,591.00 (Rupees Forty One Lacs Sixty Five Thousand Five Hundred Ninety One 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00% p.a. plus 2.00% penal interest from 29.10.2025 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 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 simple interest @8.00% p.a. in all the loan accounts 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 Rs.41,65,591.00 (Rupees Forty One Lacs Sixty Five Thousand Five Hundred Ninety One Only), with costs, current and future simple interest @8.00% p.a. in all the loan accounts from the date of filing of OA till the

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OA/1635/2025 PUNJAB GRAMIN BANK VS. SH. JARNAILSINGH

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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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.05.2026

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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: 30.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Jarnail Singh

Case brief

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Punjab Gramin Bank v. Sh. Jarnail Singh

Case brief

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