Allowed

Punjab and Sind Bank v. Sh. Gursatpal Singh and Another

DRT19 Feb 2026OA/167/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab and Sind Bank against a borrower and guarantor for recovery of an NPA loan. After hearing ex-parte arguments, the tribunal declared the defendants liable for the principal amount plus a fixed simple interest rate of 8% p.a., authorizing recovery via hypothecated assets.

What did the court decide?

Recovery of Rs. 22,51,723.89 plus 8% p.a. simple interest from hypothecated assets/mortgaged properties; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.167/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2022

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DATE OF DECISION: 19.02.2026

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Punjab and Sind Bank, a Government of India Undertaking, having come into existence under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1980 with its HQ at 21, Rajindra Place, New Delhi and having its Branches through out India Interalia one of its Branch at G.T Road, Malout, Muktsar, Punjab through its Branch Manager and Power of Attorney Holder Sh. Sundar Lal

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……..Applicant

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Versus

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Sh. Gursatpal S/o Sh. Jagir Singh,

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Deceased through his legal heir Sh. Gurwinder Singh S/o Sh. Gursatpal Singh, R/o Village Enna Khera, P.O. Malout, Muktsar, Punjab

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Sh. Amar Singh S/o Sh. Joginder Singh, R/o Village Enna Khera, P.O. Malout, Muktsar, Punjab

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…….Defendants

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Advocates:

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Argued by Ms. Deepal Tamang, Advocate proxy for Sh. R.S Badhran, Advocate for the applicant (through VC)

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Defendants already ex-parte vide order dated 29.11.2025

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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.22,51,723.89 (Rupees Twenty Two Lacs Fifty One Thousand Seven Hundred Twenty Three and Paise Eighty Nine Only). The Original Application has been filed through Sh. Sundar Lal, Branch Manager of the applicant, who is competent to institute the Original Application vide Authorization letter

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2 OA/167/2022 PUNJAB AND SIND BANK VS. GURSATPAL SINGH THROUGH HIS LEGAL HEIR AND ANOTHER

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dated 15.12.2021, which is Annexure A20 to this OA and Power of Attorney dated 24.11.2007, which is Annexure A26 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) approached the applicant for the grant of KCC Limit of Rs.2.00 Lacs. Defendant no. 2 stood as guarantor. Thereafter, the defendant no. 1 approached the applicant another limit Rs.80,000.00. Request for Cash Credit/Overdraft dated 12.10.2007, which is Annexure A40 to this OA.

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The applicant sanctioned KCC Limit of Rs.2.00 Lacs vide Sanction letter dated 12.06.2002, and later sanctioned another KCC Limit of Rs.80,000.00 vide sanction letter dated 26.03.2005, which are Annexure A1A to this OA. The terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no.2.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land measuring 14Kanal-15Marla situated at Village Enna Khera, Tehsil Malout, District Muktsar, Punjab vide Mortgage Deed bearing vasika no. 813 dated 11.06.2002, along with its translation, which is Annexure A1 to this OA.

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Documents executed: Deed of guarantee dated 12.06.2002, which is Annexure A2 to this OA; Hypothecation agreement, which is Annexure A3 to this OA; DP Note, Letter of continuity, Consent/Undertaking, all dated 24.03.2005 which are Annexures A4 to A6 to this OA; Deed of guarantee dated 26.03.2005, which is Annexure A7 to this OA; DP Note, Undertakings, Confirmation and Undertaking, Letter of continuity, all dated 12.10.2007, which are Annexures A9 to A14 to this OA; Hypothecation agreement, which is Annexure A8 to this OA; Balance Confirmation dated 09.06.2010, 17.01.2013, 01.01.2016, 31.12.2018 which are Annexures A16 to A19 to this OA; Notice dated 08.10.2021, which are Annexure A21 and A22 to this OA; Notice dated 20.12.2021, which is Annexure

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3 OA/167/2022 PUNJAB AND SIND BANK VS. GURSATPAL SINGH THROUGH HIS LEGAL HEIR AND ANOTHER

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A23 to this OA; Notice to Guarantor dated 20.12.2021, along with postal receipt, which are Annexures A24 and A25 to this OA; Accounts Statements with computation chart and certificate, which are Annexures A27 and A30 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.22,51,723.89 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 29.11.2025.

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In support of the OA, affidavit of Sh. Sundar Lal, Branch Manager, Punjab and Sind Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A30 to this OA, it is proved that the defendant no. 1 (since deceased) 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 bank. Defendant no. 2 stood as guarantor for that he had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,51,723.89 (Rupees Twenty Two Lacs Fifty One Thousand Seven

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4 OA/167/2022 PUNJAB AND SIND BANK VS. GURSATPAL SINGH THROUGH HIS LEGAL HEIR AND ANOTHER

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Hundred Twenty Three and Paise Eighty Nine Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @10.15% p.a. interest with monthly rests from 30.12.2021 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 defendants, 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 uniform simple interest @8.00%p.a. in both 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.22,51,723.89 (Rupees Twenty Two Lacs Fifty One Thousand Seven Hundred Twenty Three and Paise Eighty Nine Only) with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amounts. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties 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

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5 OA/167/2022 PUNJAB AND SIND BANK VS. GURSATPAL SINGH THROUGH HIS LEGAL HEIR AND ANOTHER

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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 07.03.2026.

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Copy of this order be given dasti to the applicant and be sent to

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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: 19.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Gursatpal Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Sh. Gursatpal Singh and Another

Case brief

What is this about?

What did the court decide?

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