Allowed

Punjab and Sind Bank v. Sh. Mandeep Singh and Others

DRT11 Aug 2026OA/233/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab & Sind Bank to recover dues of Rs. 28.41 lakh from borrowers and a guarantor. The court issued a Recovery Certificate and granted simple interest at 8% p.a., permitting sale of mortgaged property or personal assets for realization.

What did the court decide?

Recovery Certificate issued; defendants to pay Rs. 28.41 lakh plus costs and simple interest at 8% p.a. from filing date.

Punjab and Sind Bank versus Sh. Mandeep Singh and Others — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 233/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.02.2026

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DATE OF DECISION: 11.08.2026

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Punjab & Sind Bank, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 with its Head Office at 21, Rajendra Place, New Delhi and Branches amongst other places at Patran, Tehsil Patran, Distt. Patiala through Sh. Ankur Singla, Branch Manager, Punjab & Sind Bank, Branch Office Patran, Tehsil Patran, District Patiala-147105 (Punjab)

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……..Applicant

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Versus

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Sh. Mandeep Singh S/o Sh. Balwinder Singh, R/o Village Noorpura, Tehsil Patran, Distt. Patiala-147105

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Smt. Daljit Kaur W/o Sh. Balwinder Singh, R/o Village Noorpura, Tehsil Patran, Distt. Patiala-147105

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Sh. Puran Singh S/o Sh. Singara Singh, R/o Village Noorpura, Tehsil Patran, Distt. Patiala-147105

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…….Defendants

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Advocates:

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Argued by Sh. Chiranjiv Singh Kwatra, Advocate for Applicant (through

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VC)

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None for Defendants (already ex-parte vide order dated 07.08.2026)

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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 defendants for recovery of Rs.28,41,316.20 (Rupees Twenty Eight Lac Forty One Thousand Three Hundred Sixteen and Paise Twenty Only). The Original Application has been filed through Sh. Ankur Singla, Branch Manager, of the Applicant, who is competent to institute the Original

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2 OA/233/2026

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PUNJAB & SIND BANK VS. SH. MANDEEP SINGH AND OTHERS

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Application vide Letter of Authorization for filing OA, which is Annexure A1 to this OA; Power of Attorney of Sh. Ankur Singla, which is Annexure A2 to this OA.

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The brief facts of the OA are that the Defendant no.1 and defendant no.2, approached the applicant for grant of KCC Limit of Rs.9.00 lacs vide Application for KCC Limit dated 29.05.2012, which is Annexure A4 to this OA. Defendant no.3 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.9.00 lacs vide Loan Sanction Letter dated 29.05.2012, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant nos. 1 & 2 mortgaged their property that’s agricultural land measuring 16Kanal-0Marla, situated at Village Noorpura, Tehsil Patran, District Patiala, Punjab, vide Mortgage Deed bearing Vasika no.486 dated 18.05.2012, which is Annexure A3 to this OA; Documents executed: Pronote for Rs. 9,00,000/- dated 29.05.2012, which is Annexure A6 to this OA; Form No. 106 Waiver Letter for the presentment of the Pronote dated 29.05.2012, which is Annexure A7 to this OA; Form No. 159 Letter of Continuity dated 29.05.2012, which is Annexure A8 to this OA; Form No. 199 Undertaking dated 29.05.2012, which is Annexure A9 to this OA; Form No. 200 dated 29.05.2012, which is Annexure A10 to this OA; Form No. 201 dated 29.05.2012, which is Annexure A11 to this OA; Consent Letter dated 29.05.2012 by the Borrowers, which is Annexure A12 to this OA; Debits and Credit Vouchers for Rs. 9,00,000/- dated 29.05.2012, which are Annexures A13 & A14 to this OA; Deed of Hypothecation dated 29.05.2012, which is Annexure A15 to this OA; Deed of Guarantee by Defendant No. 3 dated 29.05.2012, which is Annexure A16 to this OA; Consent Letter by the Guarantor dated 29.05.2012, which is Annexure A17 to this OA; Certificate of Execution of Documents dated 29.05.2012, which is Annexure A18 to this OA; Pronote for Rs. 9,00,000/- dated 15.05.2015, which is Annexure A19 to this OA; Form No. 106 Waiver Letter dated 15.05.2015, which is Annexure A20 to

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3 OA/233/2026 PUNJAB & SIND BANK VS. SH. MANDEEP SINGH AND OTHERS

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this OA; Form No. 200 dated 15.05.2015, which is Annexure A21 to this OA; Form No. 201 dated 15.05.2015, which is Annexure A22 to this OA; Balance & Security Confirmation Letter dated 20.04.2017, which is Annexure A23 to this OA; Balance & Security Confirmation Letter dated 06.04.2020, which is Annexure A24 to this OA; Balance & Security Confirmation Letter dated 07.02.2023, which is Annexure A25 to this OA; Copy of Legal Notice dated 21.01.2019 along with Postal Receipts, which are Annexures A26 to A29 (Colly.) to this OA; Copy of Legal Notice dated 09.01.2026 along with Postal Receipts, which are Annexures A30 to A33 (Colly.) to this OA; Statement of Account, which is Annexure A34 to this OA.

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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.28,41,316.20 (Rupees Twenty Eight Lac Forty One Thousand Three Hundred Sixteen and Paise Twenty Only), 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 but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.08.2026. 7. In support of the OA, affidavit of Sh. Ankur Singla, Branch Manager , Punjab & Sind Bank , has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A34 to this OA, it is proved that the defendant nos. 1 & 2, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. Defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per

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4 OA/233/2026 PUNJAB & SIND BANK VS. SH. MANDEEP SINGH AND OTHERS

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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.28,41,316.20 (Rupees Twenty Eight Lac Forty One Thousand Three Hundred Sixteen and Paise Twenty 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 @13.60% p.a. plus 2.00% penal interest with half yearly rests from 01.10.2025 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, 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 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.28,41,316.20 (Rupees Twenty Eight Lac Forty One Thousand Three Hundred Sixteen and Paise Twenty Only), 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 nos.1 & 2 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied,

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OA/233/2026

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PUNJAB & SIND BANK VS. SH. MANDEEP SINGH AND OTHERS

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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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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 27.08.2026 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: 11.08.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Mandeep Singh and Others

Case brief

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Punjab and Sind Bank v. Sh. Mandeep Singh and Others

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