Allowed

Punjab National Bank v. Sh. Baljinder Singh and Another

DRT29 May 2026OA/1642/2022

Case brief

AI extract

What is this about?

This Drama Recovery Tribunal allowed the applicant's Original Application for recovery of overdue loan dues. It granted relief to declare the respondents liable to pay the principal amount with costs and simple interest at 8% p.a., directed the issuance of a Recovery Certificate, and authorized recovery through sale of mortgaged or personal assets under the SARFAESI Act.

What did the court decide?

Declaration of liability to pay Rs. 28,15,926.00 with 8% p.a. simple interest; issuance of Recovery Certificate; liberty to recover through sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Baljinder Singh… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1642/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.06.2022

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DATE OF DECISION: 29.05.2026

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Punjab National Bank erstwhile Oriental Bank of Commerce, the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank Scheme, 2020 dated 04.03.2020 issued by the Government of India was published under Extraordinary Part II, section 3 (i) in the Gazette of India sanctioning the amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in terms of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980). The Scheme comes into force on 01.04.2020. Punjab National Bank is a Body Corporate and having its Head Office at Sector 10, Dwarka, New Delhi and one of its Branch Office amongst other at District Moga, Punjab through its General Power of Attorney Holder

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… …..Applicant

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Versus

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Sh. Baljinder Singh, S/o Sh. Darshan Singh, R/o VPO Bilaspur, Tehsil Nihalsingh Wala, District Moga, Punjab

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Sh. Kuldeep Singh, S/o Sh. Kartar Singh, R/o VPO Daudhar Sharki, District Moga, Punja b …Defendants

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Advocates:

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Argued by Sh. Kanwar Harbir Singh Bath, Advocate for applicant None for defendants (already ex-parte vide order dated 26.05.2026)

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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. 28,15,926.00 (Rupees Twenty Eight Lacs Fifteen Thousand Nine Hundred Twenty Six Only). The Original Application has been filed through Sh. Sandeep Kumar, Power of

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2 OA/1642/2022

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PUNJAB NATIONAL BANK VS. BALJINDER SINGH AND ANOTHER

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Attorney Holder of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A13 to this OA.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of OGC Facility of Rs. 12.00 Lacs vide Application for Loan dated 29.05.2012, which is Annexure A1 to this OA. 3. The applicant sanctioned OGC Facility of Rs. 12.00 Lacs vide Sanction Letter dated 29.05.2012, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 16K 03M situated at Village Bilaspur, Tehsil Nihal Singh Wala, District Moga, Punjab vide Mortgage Deed dated 06.06.2012 along with its translation, which is Annexure A3 to this OA. Documents executed: Affidavit dated 04.06.2012, which is Annexure A4 to this OA; Agreement of Guarantee and Agreement of Hypothecation, both dated 09.06.2012, which are Annexure A5 and A6 to this OA; Notices dated 24.07.2017 and 18.06.2018, which are Annexure A7 and A8 to this OA; Balance Security Confirmations dated 03.05.2014 and 31.03.2020, which are Annexure A9 and A10 to this OA; Account Statement with certificate, which are Annexure A11 and A12 to this OA and ID Proof, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs. 28,15,926.00, 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 26.05.2026. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Power of Attorney Holder, Punjab National Bank, h as been filed.

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3 OA/1642/2022 PUNJAB NATIONAL BANK VS. BALJINDER 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.

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facility, which was granted to him. Defendant no. 2 stood as guarantor. Defendants 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, the 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. 28,15,926.00 (Rupees Twenty Eight Lacs Fifteen Thousand Nine Hundred Twenty Six Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @14.25%p.a. with monthly rests plus @2% p.a. penal interest w.e.f. 26.05.2022 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, 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.

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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.28,15,926.00 (Rupees Twenty Eight Lacs Fifteen Thousand Nine Hundred Twenty Six Only) jointly and severally, with costs, current

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OA/1642/2022

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PUNJAB NATIONAL BANK VS. BALJINDER SINGH AND ANOTHER

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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 of defendant no. 1 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 19.06.2026.

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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: 29.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Baljinder Singh and Another

Case brief

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Punjab National Bank v. Sh. Baljinder Singh and Another

Case brief

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