Allowed

Punjab National Bank v. Sh. Ajmer Singh

DRT25 Aug 2026OA/172/2026

Case brief

AI extract

What is this about?

Allowed an original application for recovery of a secured agricultural loan. Declared the defendant liable to pay the principal amount and granted simple interest at 8% per annum from the date of filing. Ordered issuance of Recovery Certificate.

What did the court decide?

Recovery order passed directing payment of Rs.31,91,303.35 with simple interest at 8% p.a. and order to issue Recovery Certificate.

Punjab National Bank versus Sh. Ajmer Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.172/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2026

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DATE OF DECISION: 25.08.2026

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Punjab National Bank, a body corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi - 110075 and a Branch amongst others one at Punjab National Bank, Branch at Grain Market, Tehsil Jagraon, District Ludhiana, 142026 represented through duly constituted Attorney of the Applicant Bank Sh. Navin Kumar Bansal S/o Sh. Ram Rattan, Senior Manager, presently posted at Branch Office at ARMB Ludhiana, 1^st Floor, Site No5, situated at Ferozepur Road, Near Wave Mall Ludhiana, District Ludhiana.

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……..Applicant

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Versus

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Sh. Ajmer Singh S/o Sh. Babu Singh, R/o House no. 145, Village Kokri Buttran, Tehsil Dharamkot and District Moga, Punjab142041.

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……. .Defendant

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Advocates:

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Argued by Sh. Kamal, Advocate for the applicant (through VC) None for Defendant (Already ex-parte vide order dated 18.08.2026)

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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 defendant for recovery of Rs.31,91,303.35 (Rupees Thirty One Lacs Ninety One Thousand Three Hundred Three and Paise Thirty Five Only). The Original Application has been filed through Sh. Navin Kumar Bansal, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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2 OA NO.172/2026 PUNJAB NATIONAL BANK VS SH. AJMER SINGH

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The brief facts of the OA are that the defendant approached the applicant for grant of Kisan Credit Card Limit of Rs.14,00,000.00. 3. The applicant sanctioned the Kisan Credit Card Limit of Rs.14,00,000.00 vide Application Form for Agricultural Credit, along with Sanction Letter, dated 06.11.2012, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his Immoveable Property i.e., Total Land measuring 19K 17M, situated at Village Kokri Buttran, Hadbast No. 282, Tehsil Dharamkot, District Moga, vide Mortgage Deed 2314, dated 06.11.2012, along with its translation and Jamabandi for the year 2009-2010, along with its translation, which are Annexures A3 & A7 to this OA. Documents executed : Hypothecation Agreement, Letter of Undertaking, Letter of Consent, all dated 30.11.2012, which are Annexures A4 to A6 to this OA; Balance and Security Confirmation Letters, dated 17.08.2019, 12.08.2017, 08.07.2015, which are Annexure A8(Colly) to this OA; Statement of account along with certificate, which are Annexures A9 & A10 to this OA; Legal Notice dated 31.07.2021, along with postal receipt, which is Annexure A11 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.31,91,303.35, which is recoverable and the defendant was served recall notices 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 18.08.2026. 7. In support of the OA, affidavit of Sh. Navin Kumar Bansal, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA NO.172/2026 PUNJAB NATIONAL BANK VS SH. AJMER SINGH

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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. From the perusal of all the Annexures A1 to A11 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 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.31,91,303.35 (Rupees Thirty One Lacs Ninety One Thousand Three Hundred Three and Paise Thirty 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 in relief clause has claimed interest @11.50%p.a. with half yearly rests, with penal interest @2%p.a. from 01.12.2024 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 defendant is liable to pay to the applicant a total sum of Rs.31,91,303.35 (Rupees Thirty One Lacs Ninety One Thousand Three Hundred Three and Paise Thirty Five Only), with costs, current and

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OA NO.172/2026 PUNJAB NATIONAL BANK VS SH. AJMER SINGH

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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 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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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 09.09.2026.

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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: 25.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Ajmer Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Ajmer Singh

Case brief

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