Allowed

Punjab Gramin Bank v. Sh. Gurnam Singh

DRT20 Apr 2026OA/1786/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of Rs.40,71,387.00 outstanding from a failed agricultural credit facility. The court, exercising discretion, ordered 8.00% simple interest instead of the claimed 11.50% and directed issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs.40,71,387.00 with simple interest at 8.00% p.a.; defendant liable to pay from hypothecated assets under SARFAESI Act.

Punjab Gramin Bank versus Sh. Gurnam Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1786/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.12.2025

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DATE OF DECISION: 20.04.2026

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No. 21 of 1976 having its Head Office, at Markfed Road, Kapurthala, Punjab and having its branches at different places including one at Nangal Sirsa, District Rupnagar, Punjab through its Constituted Attorney/Manager Sh. Sachin Kumar, presently posted at BO Baraudi.

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……..Applicant

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Versus

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Sh. Gurnam Singh S/o Sh. Swaran Singh, R/o Village Bara Pind, District Rupnagar.

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……..Defendant

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Advocates:

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Argued by Sh. Bhuhsan Bhatia, Advocate for the applicant (through

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VC)

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None for Defendant (Already ex-parte vide order dated 11.02.2026)

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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.40,71,387.00 (Rupees Forty Lacs Seventy One Thousand Three Hundred and Eighty Seven Only). The Original Application has been filed through Sh. Sachin Kumar, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney of Bank Official dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for the grant of Overdraft Limit of Rs.3.00 Lacs and Kisan Cash Credit Limit of Rs.14.50 Lacs vide Loan Applications dated

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2 OA/1786/2025 PUNJAB GRAMIN BANK VS. SH. GURNAM SINGH

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07.04.2012 and 12.09.2015, which are Annexures A2 & A2/1 to this OA.

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The applicant sanctioned Overdraft Limit of Rs.3.00 Lacs and Kisan Cash Credit Limit of Rs.14.50 Lacs vide Memorandom for Sanction of Cash Credit/Short Term Loan (Crop Loan) dated 30.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Land measuring 17 Kanal 07 Marla in Village Beli, Tehsil and District Rupnagar, Punjab, Hadbast No.6, vide declaration u/s 4(1) dated 15.10.2025, which is Annexure A5 to this OA. Documents executed: Hypothecation Agreement dated 09.10.2015 and Hypothecation of Goods to secure a demand cash credit dated 28.04.2012, which are Annexures A4 & A4/1 to this OA; Legal Notice dated 29.05.2024 along with postal receipts which are Annexures A6 and A6/1 to this OA; Balance and Security Confirmation Letter dated 24.03.2015, 12.07.2017, 12.03.2019, 06.07.2021, 05.09.2022, 16.06.2025, 26.04.2018, 17.12.2020, 05.09.2022, 17.06.2025 which are Annexures A7 & A7/1 to this OA; Statement of accounts along with certificate which is Annexure A8 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.40,71,387.00 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 defendant and he was proceeded ex-parte vide order dated 11.02.2026. 7. In support of the OA, affidavit of Sh. Sachin Kumar , Manager, Punjab Gramin Bank has been filed.

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3 OA/1786/2025 PUNJAB GRAMIN BANK VS. SH. GURNAM SINGH

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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. From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendant 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. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.40,71,387.00 (Rupees Forty Lacs Seventy One Thousand Three Hundred and Eighty Seven Only(Rs.7,97,528.00 in Overdraft Limit & Rs.32,73,859.00 in Kisan Cash Credit Limit)) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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 25.09.2025 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 @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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4 OA/1786/2025 PUNJAB GRAMIN BANK VS. SH. GURNAM SINGH

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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.40,71,387.00 (Rupees Forty Lacs Seventy One Thousand Three Hundred and Eighty Seven Only(Rs.7,97,528.00 in Overdraft Limit & Rs.32,73,859.00 in Kisan Cash Credit Limit)) 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 amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/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 11.05.2026.

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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: 20.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Gurnam Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Gurnam Singh

Case brief

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