Allowed

Punjab Gramin Bank v. Sh. Baljinder Singh and Another

DRT30 Apr 2026OA/1636/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's request for recovery of a loan of Rs.22,40,908.00. The court reduced the claimed interest rate to 8% p.a. and declared the amounts recoverable from the defendants' assets.

What did the court decide?

Recovery of Rs.22,40,908.00 with simple interest at 8% p.a. from the date of the order till realization. Issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1636/2025

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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 Gohlani, Tehsil Nangal, Distt Ropar (Pb), through its Constituted Attorney/Branch Head, Sh. Manish Kumar.

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……..Applicant

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Versus

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Sh. Baljinder Singh s/o Sh. Sher Singh, resident of H.No. 190, Gillco Valley, Near Sahibjada Ajit Singh Academy, Distt RupNagar (Pb)

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Smt. Harbhajan Kaur W/o Sh. Sher Singh (Since deceased) through LRs.

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(a) Sh. Baljinder Singh s/o Sh. Sher Singh, Resident of H No 190, Gillco Valley, Near Sahibjada Ajit Singh Academy, District RupNagar (Pb).

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…….Defendants

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Advocates:

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

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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

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Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against

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2 OA/1636/2025 PUNJAB GRAMIN BANK VS. SH. BALJINDER SINGH AND ANOTHER

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the defendants for recovery of Rs.22,40,908.00 (Rupees Twenty Two Lacs Forty Thousand Nine Hundred Eight Only). The Original Application has been filed through Sh. Manish Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the Defendant no. 1 with defendant no.2 (since deceased) approached the applicant for grant of KCC Limit of Rs.9.00 Lacs vide Loan Application dated 12.12.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.9.00 Lacs vide Sanction Letter dated 24.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 2 (since deceased) mortgaged her immovable property i.e. Total Land measuring 5Kanal-9Marla, situated at Village Gohlani, Hadbast No. 435, Tehsil Nangal, District Ropar, Punjab, vide Mortgage Deed bearing Vasika No.2259, dated 09.01.2013, 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 03.04.2023 with Postal Receipts, which is Annexures A6 to this OA; BC Letters, dated 16.05.2015, 10.11.2017, 03.06.2020 and 03.11.2022, which are Annexures A7 to A7/3 to this OA; Statement of account with Certificate, which is Annexure A8 to this OA; Death Certificate of D-2, which is Annexure A9 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.22,40,908.00, 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.04.2026.

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3 OA/1636/2025 PUNJAB GRAMIN BANK VS. SH. BALJINDER SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Manish Kumar, Branch Manager , Punjab Gramin Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A9 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 applicant. 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.22,40,908.00 (Rupees Twenty Two Lacs Forty Thousand Nine Hundred Eight 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. 10. 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 23.10.2025 till the realization. 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 @8.00% 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. 11. 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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4 OA/1636/2025 PUNJAB GRAMIN BANK VS. SH. BALJINDER SINGH AND ANOTHER

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Rs.22,40,908.00 (Rupees Twenty Two Lacs Forty Thousand Nine Hundred Eight Only), jointly and severally, 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 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.

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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 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: 30.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Baljinder Singh and Another

Case brief

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Punjab Gramin Bank v. Sh. Baljinder Singh and Another

Case brief

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