Allowed

Punjab National Bank v. Sh. Chhinder Singh Alias Sinder Singh

DRT6 May 2026OA/166/2025

Case brief

AI extract

What is this about?

The court allowed the Original Application filed by Punjab National Bank to recover an outstanding debt of Rs. 30,01,696.95 from the defendant. The court awarded simple interest at 8% p.a. instead of the claimed rate and directed the issuance of a Recovery Certificate for enforcement through sale of assets.

What did the court decide?

Recovery of Rs. 30,01,696.95 plus costs and simple interest at 8% p.a.; issue of Recovery Certificate.

Punjab National Bank versus Sh. Chhinder Singh Alias Sinder… — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 166/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.02.2025

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DATE OF DECISION: 06.05.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi110075 and having Branches throughout India amongst others one Branch Office at Massinghan, District Patiala, Punjab through Sh. Gurnitar Singh, S/o Sh. Nath Singh, Authorized Representative Circle Sastra Center, Punjab National Bank, Patiala being the Principal Officer of the applicant

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……..Applicant

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Versus

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Sh. Chhinder Singh alias Sh. Sinder Singh, S/o Sh. Diyal Singh, R/o House no. 91, Village Magar Sahib, P.O. Massinghan, District Patiala, Punjab- 147111

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…Defendant

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Advocates:

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Argued by Sh. Brijeshwar Vashist, Advocate for applicant

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None for defendant (already ex-parte vide order dated 29.04.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs. 30,01,696.95 (Rupees Thirty Lacs One Thousand Six Hundred Ninety Six and Paise Ninety Five Only). The Original Application has been filed through Sh. Gurnitar Sing h, Principal Officer of the applicant , who is competent to institute the Original Application vide General Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant approached the applicant for the grant of KCC Limit of Rs. 20.00 Lacs vide Loan Application dated 08.01.2015, which is Annexure A2 to this OA.

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2 OA/166/2025 PUNJAB NATIONAL BANK VS. CHHINDER SINGH ALIAS SINDER SINGH

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The applicant sanctioned the KCC Limit of Rs. 20.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. Land measuring 17B3-1/2B situated at Magarh Sahib, Hadbast no. 292, Sub Tehsil Dudhan Sadhan, District Patiala, Punjab vide Declaration u/s 4 (1) of Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 19.01.2025 and Jamabandi for the year 2010-2011, which are Annexure A7 and A8 to this OA. Documents executed: Hypothecation Agreement, Letter of Undertaking and Master Agreement, all dated 22.01.2015, which are Annexure A4 to A6 to this OA; Balance and Confirmation Letters dated 10.06.2019 and 27.05.2022, which are Annexure A9 and A10 to this OA; Legal Notice dated 15.01.2025 along with postal receipts, which are Annexure A11 and A12 to this OA and Statement of Account, which is Annexure A13 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. 30,01,696.95, which is recoverable and the defendant was served recall notice 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 the defendant and he was proceeded ex-parte vide order dated 29.04.2026. 7. In support of the OA, affidavit of Sh. Gurnitar Singh , Authorized Officer, Punjab National Bank h as 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, the applicant had proved its case. From the perusal of all the Annexure A1 to A13 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 bank. The defendant failed to pay

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3 OA/166/2025 PUNJAB NATIONAL BANK VS. CHHINDER SINGH ALIAS SINDER SINGH

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back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 30,01,696.95 (Rupees Thirty Lacs One Thousand Six Hundred Ninety Six and Paise Ninety Five Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant has claimed interest @12.25% p.a. with half yearly rests from 13.01.2025 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 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.30,01,696.95 (Rupees Thirty Lacs One Thousand Six Hundred Ninety Six and Paise Ninety Five Only) 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 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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OA/166/2025 PUNJAB NATIONAL BANK VS. CHHINDER SINGH ALIAS SINDER SINGH

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.05.2026.

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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: 06.05.2026

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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. Chhinder Singh Alias Sinder Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Chhinder Singh Alias Sinder Singh

Case brief

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