Allowed

Punjab National Bank v. Sh. Jagir Singh And others

DRT12 Jun 2026OA/1930/2022

Case brief

AI extract

What is this about?

The DRT allowed the National Bank's application for recovery of Rs.26.51 lakhs with an adjusted simple interest rate of 8% p.a., directing issuance of a recovery certificate and permitting execution against mortgaged or personal assets.

What did the court decide?

Recovery of Rs.26,51,702.25 plus simple interest at 8% p.a.; Recovery Certificate issued; execution allowed against mortgaged or personal assets.

Punjab National Bank versus Sh. Jagir Singh And others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1930/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.10.2022

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DATE OF DECISION: 12.06.2026

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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 at Kotkapura Road, Moga through its General Power of Attorney Holder, Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle Office, Partap Singh Chowk, Moga.

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........A pplicant

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Versus

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Sh. Jagir Singh S/o Sh. Ujjagar Singh, R/o Village Chak Kanian Kalan, Tehsil and District Moga.

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Sh. Rajinder Singh S/o Sh. Jagir Singh, R/o Village Chak Kanian Kalan, Tehsil and District Moga.

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Sh. Baljeet Singh S/o Sh. Charanjit Singh, R/o Village Kot Ise Khan, Tehsil and District Moga.

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........Defendants

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Advocates:

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Argued Sh. Arpit Chawla, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 10.06.2026).

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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 defendants for recovery of Rs.26,51,702.25 (Rupees Twenty Six Lacs Fifty One Thousand Seven Hundred Two and Paise Twenty Five Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager, who is competent to institute the

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2 OA NO.1930/2022 PUNJAB NATIONAL BANK VS SH. JAGIR SINGH AND OTHERS

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Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for grant of Oriental Green Card Limit of Rs.20,00,000.00 vide Application Form for OGC Facility dated 13.06.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the Oriental Green Card Limit of Rs.20,00,000.00 vide Sanction Letter dated 19.06.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 mortgaged his immovable property i.e., total Land measuring 32 Kanal 16 Marlas situated at Village Chak Kanian Kalan, Tehsil and District Moga as per Jamabandi for the year 20092010 vide Registered Mortgage Deed bearing Vasika No. 930, dated 24.06.2013 along with its translation, which are Annexures A7 & A7T to this OA.

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Documents executed : Voter Identity Proof, which is Annexure A4 to this OA; Agreement for Hypothecation of existing and future crops/moveable assets/live stock to secure a Cash Credit Account of Oriental Green Card, Agreement of Guarantee, both dated 28.06.2013, which are Annexures A5 & A6 to this OA; Balance and Security Confirmation Letters dated 28.04.2016, 01.04.2019, which are Annexures A8 & A9 to this OA; Legal Notice dated 19.09.2022 along with postal receipts, which is Annexure A10 to this OA; Statement of account along with certificate, 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 loan account there was a debit of Rs.26,51,702.25, 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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3 OA NO.1930/2022 PUNJAB NATIONAL BANK VS SH. JAGIR SINGH AND OTHERS

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 10.06.2026.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior 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 proxy counsel for applicant 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 A11 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facility which was granted to them, defendant no. 3 stood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants 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.26,51,702.25 (Rupees Twenty Six Lacs Fifty One Thousand Seven Hundred Two and Paise Twenty Five Only), along with interest from the defendants, jointly and severally, 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 @8.50%p.a. with half yearly rests with penal interest @2% 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 defendants, 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

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4 OA NO.1930/2022 PUNJAB NATIONAL BANK VS SH. JAGIR SINGH AND OTHERS

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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 defendants are liable to pay to the applicant a total sum of Rs.26,51,702.25 (Rupees Twenty Six Lacs Fifty One Thousand Seven Hundred Two and Paise Twenty Five Only), along with interest, jointly and severally, 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 the defendant no. 1 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 defendants. The applicant is at liberty to enforce the claim through due process of law. 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 29.06.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 12.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Jagir Singh And others

Case brief

What is this about?

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Punjab National Bank v. Sh. Jagir Singh And others

Case brief

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