Allowed

Punjab National Bank v. Sh. Shamsher Singh and Others

DRT14 Jan 2026OA/2080/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of ₹45.73 Lacks plus interest. The court directed the defendants to pay the adjusted amount within interest and authorized enforcement via sale of mortgaged or personal assets.

What did the court decide?

Recovery certificate issued; Defendants ordered to pay adjusted principal with 8% p.a. simple interest. Enforcement via sale of assets authorized.

Punjab National Bank versus Sh. Shamsher Singh and Others — Insolvency and Bankruptcy | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.2080/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.12.2022

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DATE OF DECISION: 14.01.2026

¶6

Punjab National Bank, a body corporate constituted by the under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot no.4, Sector-10, Dwarka, New Delhi, and its Branch Offices throughout India amongst others one of the Branch Offices at Circle Sastra Centre, SAS Nagar, Punjab.

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……..Applicant

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Versus

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Sh. Shamsher Singh Son of Sh. Amar Singh, R/o Village Kangar, PO Basali, Sub Tehsil Nurpur Bedi, Tehsil Anandpur Sahib, District Ropar, Punjab.

¶10

Sh. Varender Singh Son of Sh. Shamsher Singh Son of Sh. Amar Singh, R/o Village Kangar, PO Basali, Sub Tehsil Nurpur Bedi, Tehsil Anandpur Sahib, District Ropar, Punjab.

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Sh. Savinder Singh Son of Sh. Shamsher Singh Son of Sh. Amar Singh, R/o Village Kangar, PO Basali, Sub Tehsil Nurpur Bedi, Tehsil Anandpur Sahib, District Ropar, Punjab.

¶12

Sh. Harnek Singh Son of Sh. Shamsher Singh Son of Sh. Amar Singh, R/o Village Kangar, P.O. Basali, Sub Tehsil Nurpur Bedi, Tehsil Anandpur Sahib, District Ropar, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. D.S. Bainola, Advocate for Applicant

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None for defendants Nos. 1 & 2

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Defendant nos. 3 & 4 already ex-parte order dated 19.10.2023

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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,

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2 OA NO.2080/2022 PUNJAB NATIONAL BANK VS. SHAMSHER SINGH AND OTHERS

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against the defendants for recovery of Rs.45,73,626.01 (Rupees Forty Five Lacs Seventy Three Thousand Six Hundred Twenty Six & Paise One Only). The Original Application has been filed through Sh. Ravi Kumar, Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 approached the applicant for the grant of KCC Limit of Rs.30.00 Lacs vide Loan Application dated 18.01.2017 which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

¶23

The applicant sanctioned the KCC Limit of Rs.30.00 Lacs vide sanction letter dated 27.03.2017, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

¶24

Defendant nos.1, 3 and 4 had mortgaged their immovable properties detailed as under:

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(i) Land measuring 8K-0M (in the name of defendant no. 1) situated at Village Kangar, Hadbast no. 506, Tehsil Noorpur Bedi, District Roopnagar, Punjab.

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(ii) Land measuring 16K-0M (in the name of defendant no. 3, mortgaged through defendant no. 1, GPA Holder) situated at Village Kangar, Hadbast no. 506, Tehsil Noorpur Bedi, District Roopnagar, Punjab.

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(iii) Land measuring 14K-0M (in the name of defendant no. 4, mortgaged through defendant no. 1, GPA Holder) situated at Village Kangar, Hadbast no. 506, Tehsil Noorpur Bedi, District Roopnagar, Punjab.

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vide Declaration u/s 4(1) dated 27.03.2017, along with letter dated 27.03.2017 to Tehsildar for creation of charge, which is Annexure A6 to this OA. S pecial report on title by advocate dated 30.01.2017, which is Annexure A5 to this OA; Mutation i.e.

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3 OA NO.2080/2022 PUNJAB NATIONAL BANK VS. SHAMSHER SINGH AND OTHERS

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jamabandi for the year 2012-13, along with its translation, which is Annexure A9 to this OA; Certificates dated 22.10.2019 of genuineness of General Power of Attorney executed by Sh. Shavinder Singh (defendant no. 3) and Sh. Harnek Singh (defendant no. 4) in favour of Sh. Shamsher Singh (defendant no. 1), which are Annexures A7 and A8 to this OA.

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Documents executed: ID Proof of defendant no. 1, which is Annexure A3 to this OA; Certificate of genuineness of GPA dated 22.10.2019, which are Annexures A7 & A8 to this OA; Hypothecation agreement, Agreement of guarantee, both dated 30.03.2017, which are Annexures A10 & A11 to this OA; Balance & security confirmation letter dated 18.12.2019 and 21.06.2022, which is Annexure A12 to this OA; Legal notice dated 29.11.2022, which is Annexure A13 to this OA and Statement of account along with interest certificate, which is Annexure A14 to this OA.

¶32

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit Rs.45,73,626.01, 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. 6. The defendants were served notices to appear before this Tribunal. Sh. H.K. Barinda, Advocate appeared on behalf of defendant no. 1 and 2 on 19.10.2023 and filed his Power of Attorney on their behalf. No one appeared on behalf of defendant nos. 3 and 4 and they were proceeded ex-parte vide order dated 19.10.2023. Since, WS was not filed by defendant nos. 1 and 2, their opportunity to file WS was closed and their defense was struck off vide order dated 15.04.2024.

¶33

In support of the OA, affidavit of Sh. Ravi Kumar, Manager, Punjab National Bank, h as been filed.

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4 OA NO.2080/2022 PUNJAB NATIONAL BANK VS. SHAMSHER SINGH AND OTHERS

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Heard arguments and perused record. No one appeared on behalf of defendant nos. 1 and 2 for arguments.

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It was argued by learned counsel for applicant 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 A14 to this OA, it is proved that the approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the was classified as NPA.

¶37

An IA No. 948/2024 was filed by counsel of defendant nos. 1 and 2 on 11.06.2024 for placing on record the account statement dated 05.06.2024 regarding deposit of Rs.2.00 Lacs on 21.02.2024 and Rs.3.00 Lacs on 05.06.2024. This IA was allowed on 11.06.2024.

¶38

From the documentary evidence brought on record, it is proved that applicant was entitled to recover a sum of Rs.45,73,626.01 (Rupees Forty Five Lacs Seventy Three Thousand Six Hundred Twenty Six & Paise One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application

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i.e. 15.12.2022 as per amounts mentioned below in the table:

¶40

Amount	Period
Rs.45,73,626.01	15.12.2022 to 20.02.2024
Rs.43,73,626.01	21.02.2024 to 04.06.2024
Rs.40,73,626.01	05.06.2024 till realization

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed

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5 OA NO.2080/2022 PUNJAB NATIONAL BANK VS. SHAMSHER SINGH AND OTHERS

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[email protected]%p.a. with yearly rests from 01.10.2022 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 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 uniform simple interest @8.00%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, jointly and severally, liable to pay to the applicant the amount, as per details below, with costs, current and future simple interest @08.00%p.a. in the loan account from date of filing of this OA till the date of realization of the amount:

¶46

Amount	Period	Simple rate of interest
Rs.45,73,626.01	15.12.2022 to 20.02.2024	@8% p.a.
Rs.43,73,626.01	21.02.2024 to 04.06.2024	@8% p.a.
Rs.40,73,626.01	05.06.2024 till realization	@8% p.a.

¶47

Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/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 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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6 OA NO.2080/2022 PUNJAB NATIONAL BANK VS. SHAMSHER SINGH AND OTHERS

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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 30.01.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 14.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Shamsher Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Shamsher Singh and Others

Case brief

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What did the court decide?

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