Allowed

Punjab National Bank v. Rajesh Sharma and Another

DRT24 Apr 2026OA/2082/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application, holding the borrowers liable to pay the outstanding loan sum of Rs.26,55,791.70. The court reduced the claimed interest from 9.1% to 7.1% p.a. and directed the issuance of a recovery certificate.

What did the court decide?

Liability declared to pay Rs.26,55,791.70 with 7.10% p.a. interest; Recovery Certificate issued.

Punjab National Bank versus Rajesh Sharma and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 2082/2022

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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: 24.04.2026

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Punjab National Bank, body corporate constituted under the Banking Companies (Acquisition and Transfer of Under takings) Act, 1970 having its Corporate Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and its Branch Offices throughout India along with a branch at Zirakpur and office at Circle Sastra, 2^nd Floor, SCF NO. 43, Sector 54, Phase II, SAS Nagar Mohali, Punjab, represented through Sh. Ravi Kumar, Chief Manager being Principal Officer and duly constituted attorney of the applicant Bank.

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……..Applicant Versus

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Sh. Rajesh Sharma, S/o Sh. Kuldeep Parkash Sharma, R/o 41/24,

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Khere wali gali, Opposite Hanuman Mandir, Dayal Bagh, Mahesh Nagar, Amabala, Haryana-133001

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Smt. Preeti Sharma W/o Sh. Rajesh Sharma R/o 41/24, Khere wali gali, Opposite Hanuman Mandir, Dayal Bagh, Mahesh Nagar, Amabala, Haryana-133001

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….……Defendants

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Advocates:

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Argued by Ms. Kanchan Sehgal, Advocate for the applicant

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None for Defendants (already ex parte vide order dated 21.04.2026)

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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.26,55,791.70 (Rupees Twenty Six Lacs Fifty Five Thousand Seven Hundred Ninety One and Paise Seventy Only).The Original Application has been filed through Sh. Ravi Kumar, Chief Manager, of the applicant , who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, which is Annexure A2 to this OA.

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2 OA 2082/2022

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PUNJAB NATIONAL BANK Vs RAJESH SHARMA AND ANOTHER

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The brief facts of the OA that the defendants approached the applicant for grant of Housing Loan of Rs.32.24 Lacs vide Application for Loan dated 04.05.2018, which is Annexure A3 to this OA. 3. The applicant sanctioned the Housing Loan of Rs.32.24 Lacs vide Sanction Letter dated 10.05.2018, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants mortgaged their immovable property i.e. Flat No.101, Land Area 1502 Sq. Ft. situated at Village Ramgarh Bhudda, Zirakpur, Tehsil Derabassi, Mohali, Punjab, vide Agreement for Sale, Allotment Letter, both dated 04.05.2018, which are Annexures A14 & A15 to this OA; Permission to Create Mortgage and Memorandum Evidencing Deposit of Title Deeds, both dated 14.05.2018, which are Annexures A16 & A17 to this OA. Documents executed: Order/Notification dated 04.03.2020, which is Annexure A1 to this OA; Demand Promissory Note, Agreement Under United House Loan Scheme, Letter from Borrower, Letter of Lien, Undertaking, Undertaking Cum Declaration, Power of Attorney, Declaration on Execution of Documents, Tripartite Agreement all dated 14.05.2018, which are Annexures A5 to A13 to this OA; Receipt dated 15.05.2018, 29.09.2018 & 11.10.2018, which are Annexures A18 to A20 to this OA; Demand Letter dated 22.04.2019, 04.05.2019, 01.02.2020, 10.05.2018, 29.09.2018 & 11.10.2018 which are Annexures A21 to A26 to this OA; Balance and Security Confirmation dated 19.03.2021, which is Annexure A27 to this OA; Legal Notice dated 21.11.2022, which is Annexure A28 to this OA; Postal Receipts dated 21.11.2022, which is Annexure A29 to this OA; Statement of Account with certificate, which is Annexure A30 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.26,55,791.70 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 summons to appear before this Tribunal and Ms. Monika Sharma, Advocate appeared on behalf of defendants. WS, on behalf of defendants, was filed on 25.08.2023.

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3 OA 2082/2022

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PUNJAB NATIONAL BANK Vs RAJESH SHARMA AND ANOTHER

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Since, WS was filed beyond the stipulated period, the same was taken on record vide Order dated 28.08.2023, subject to cost of Rs.3000/- and cost was paid. On 15.10.2025, Sh. Lakhwinder Singh, Senior Manager of the applicant, produced the original documents for their admission or denial, which were seen by learned proxy counsel for defendants, who admitted the signatures on documents but denied their contents. The matter was thereafter posted for arguments, wherein no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 21.04.2026.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank, h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record, the applicant had proved its case. From the perusal of all the Annexures A1 to A30 to this OA, it is proved that the defendants 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,55,791.70 (Rupees Twenty Six Lacs Fifty Five Thousand Seven Hundred Ninety One and Paise Seventy 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.10% p.a. plus @2.00% p.a. penal interest with monthly rests from 01.11.2022 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, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising

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4 OA 2082/2022

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PUNJAB NATIONAL BANK Vs RAJESH SHARMA AND ANOTHER

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the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @07.10% 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.26,55,791.70 (Rupees Twenty Six Lacs Fifty Five Thousand Seven Hundred Ninety One and Paise Seventy Only), jointly and severally, with costs, current and future simple interest @07.10%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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal 15.05.2026

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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. Pronounced by me in the open Tribunal . Dated: 24.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Rajesh Sharma and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Rajesh Sharma and Another

Case brief

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What did the court decide?

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