Allowed

Punjab National Bank v. Sh. Pargat Singh

DRT3 Jul 2026OA/171/2026

Case brief

AI extract

What is this about?

In an ex-parte application under the RDB Act, the Tribunal allowed the bank's claim for recovery of Rs.22,11,712.80 from the legal heir of a deceased borrower. Interest was fixed at 8% p.a., and execution proceedings were permitted under the SARFAESI Act.

What did the court decide?

Recovery of Rs.22,11,712.80 with simple interest @08% p.a. granted; Recovery Certificate issued; Execution under SARFAESI Act authorized.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.171/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.01.2026

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DATE OF DECISION: 03.07.2026

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Punjab National Bank, a body corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi - 110075 and amongst others a branch at VPO Dakala District Patiala, Punjab – 147001, Patiala through Sh. Mansatpreet Singh, Branch Manager and Attorney holder presently posted at Dakala District Patiala.

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……..Applicant

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Versus

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Sh. Pargat Singh, S/o Kaka Singh (Borrower), Now Deceased, through his Legal Heir:-

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Smt. Parwinder Kaur, W/o Late Sh. Pargat Singh, R/o Village Dakala, Tehsil and District Patiala - 147001.

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……..Defendant

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Advocates:

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Argued by Sh. Hemant Nanda, Advocate for the applicant (through VC)

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None for Defendant (Already ex-parte vide order dated 01.07.2026).

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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.22,11,712.80 (Rupees Twenty Two Lacs Eleven Thousand Seven Hundred Twelve and Paise Eighty Only). The Original Application has been filed through Sh. Mansatpreet Singh, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 07.08.2020, which is Annexure A1 to this OA.

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2 OA NO.171/2026 PUNJAB NATIONAL BANK VS SH. PARGAT SINGH THROUGH HIS LEGAL HEIR

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The brief facts of the OA are that Sh. Pargat Singh (Since deceased and husband of defendant) approached the applicant for grant of Kisan Gold Card Limit of Rs.13,00,000.00 vide Loan Application Form for Agricultural Credit dated 19.05.2018, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Gold Card Limit of Rs.13,00,000.00 vide Interview cum Assessment form for Kisan Credit Card/Short Term Loan (Crop Loan) requirements dated 28.05.2018, which is Annexure A3 to this OA and terms and conditions were duly accepted by Sh. Pargat Singh (Since deceased and husband of defendant).

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Sh. Pargat Singh (Since deceased and husband of defendant) mortgaged his Immoveable Property i.e., Land measuring 20 Bigha 10 Biswa situated at Dakala, Tehsil and District Patiala vide Mortgage Deed bearing Vasika No. 189 dated 30.05.2018 along with Declaration u/s 4(1), which is Annexure A5 to this OA.

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Documents executed : Hypothecation Agreement dated 04.06.2018, which is Annexure A4 to this OA; Balance and Security Confirmation Letters dated 27.05.2021, 21.04.2023, which are Annexures A6 & A7 to this OA; Death Certificate of Borrower dated 02.08.2021, which is Annexure A8 to this OA; Legal Notice dated 11.12.2025 along with postal receipt, which is Annexure A9 to this OA; Statement of account along with certificate, which is Annexure A10 to this OA. 5. 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.22,11,712.80, which is recoverable and the defendant was served recall notices but she 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 defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and she was proceeded ex-parte vide order dated 01.07.2026.

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3 OA NO.171/2026 PUNJAB NATIONAL BANK VS SH. PARGAT SINGH THROUGH HIS LEGAL HEIR

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In support of the OA, affidavit of Sh. Mansatpreet Singh, Branch Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant through video conferencing 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 A10 to this OA, it is proved that Sh. Pargat Singh (Since deceased and husband of 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 back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,11,712.80 (Rupees Twenty Two Lacs Eleven Thousand Seven Hundred Twelve and Paise Eighty 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 in relief clause has claimed interest @12.30%p.a. with half yearly rests 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 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

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defendant is liable to pay to the applicant a total sum of

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4 OA NO.171/2026 PUNJAB NATIONAL BANK VS SH. PARGAT SINGH THROUGH HIS LEGAL HEIR

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Rs.22,11,712.80 (Rupees Twenty Two Lacs Eleven Thousand Seven Hundred Twelve and Paise Eighty 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 of Sh. Pargat Singh (Since deceased and husband of 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 to the extent, she inherited from the properties of Sh. Pargat Singh (Since deceased and husband of 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.07.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 03.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Pargat Singh

Case brief

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Punjab National Bank v. Sh. Pargat Singh

Case brief

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