Allowed

Punjab Gramin Bank v. Kuldeep Singh and Another

DRT20 May 2026OA/235/2026

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a loan of Rs. 22.09 lakhs granted to the respondents under KCC. Being an ex-parte proceeding, the court exercised inherent discretion to reduce the claimed interest by 4%, setting it at 8% p.a., and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 22,09,990.50 plus simple interest at 8% p.a. from the date of filing; ordering issuance of Recovery Certificate.

Punjab Gramin Bank versus Kuldeep Singh and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.235/2026

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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: 20.05.2026

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Punjab Gramin Bank, a Body Corporate constituted under the Regional Rural Bank Act no. 21 of 1976, having its Head Office at Markfed Road, Kapurthala, Punjab and having its Branches at different places including one at B.O. Takhtu Chak, Tehsil Khadoor Sahib, District Taran Taran, Punjab through its Authorized Representative, Sh. Pankaj Makkar

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… …..Applicant Versus 1. Sh. Kuldeep Singh, S/o Sh. Mahinder Singh

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Sh. Harpreet Singh, S/o Sh. Kuldeep Singh

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Both residents of Village Harde Sarli Kalan, Tehsil Khadoor Sahib, District Tarn Taran, Punjab

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…Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate proxy for Sh. Ankit Kaushal, Advocate for applicant

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None for defendants (Already ex-parte vide order dated 18.05.2026)

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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. 22,09,990.50 (Rupees Twenty Two Lacs Nine Thousand Nine Hundred Ninety and Paise Fifty Only). The Original Application has been filed through Sh. Pankaj Makkar, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendants approached the applicant for grant of KCC Limit of Rs. 12.00 Lacs vide Loan Application dated 20.02.2015, which is Annexure A2 to this OA.

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2 OA/235/2026

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PUNJAB GRAMIN BANK Vs KULDEEP SINGH AND ANOTHER

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The applicant sanctioned KCC Limit of Rs. 12.00 Lacs vide Sanction Letter dated 07.03.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 mortgaged his immovable property i.e. Land measuring 33K 07M situated at Village Hardu Sarli, Tehsil Khadoor Sahib, District Tarn Taran, Punjab vide Mortgaged Deed dated 23.02.2015, which is Annexure A5 to this OA.

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Documents executed: Hypothecation Agreement dated 07.03.2015, which is Annexure A4 to this OA; Security Confirmations dated 23.03.2017, 16.03.2019, 24.11.2021, 29.09.2023 and 21.01.2025, which are Annexure A6 to A10 to this OA; Notice dated 07.05.2024, which is Annexure A11 to this OA; Statement of Account with certificate, which are Annexure A12 and A13 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 h the loan account there were a debit of Rs. 22,09,990.50 which is recoverable and the defendants were served recall notice 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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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on vide order dated 18.05.2026.

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In support of the OA, affidavit of Sh. Pankaj Makkar, Authorized Representativ e, Punjab Gramin 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 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 A13 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the account of the defendants was classified as NPA. From the documentary evidence

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OA/235/2026

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PUNJAB GRAMIN BANK Vs KULDEEP SINGH AND ANOTHER

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brought on record, it is proved that applicant is entitled to recover a sum of Rs. 22,09,990.50 (Rupees Twenty Two Lacs Nine Thousand Nine Hundred Ninety and Paise Fifty 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 @12%p.a. plus @2% p.a. penal interest with yearly rests from the date of filing of the application 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 hypothecated assets/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 @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 liable to pay to the applicant a total sum of Rs.22,09,990.50 (Rupees Twenty Two Lacs Nine Thousand Nine Hundred Ninety and Paise Fifty Only) jointly and severally, with costs, current and future simple interest @8.00% 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. 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, 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.

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Issue Recovery Certificate accordingly.

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OA/235/2026

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PUNJAB GRAMIN BANK Vs KULDEEP SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.06.2026.

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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: 20.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Kuldeep Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Kuldeep Singh and Another

Case brief

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