Allowed

Punjab National Bank v. Sh. Surinder Singh

DRT21 May 2026OA/283/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of dues Rs. 26.48 lakhs. The defendant appeared ex-parte. The Tribunal confirmed the debt and granted the bank interest for both periods and ordered recovery from mortgaged property.

What did the court decide?

Recovery of Rs. 26,48,914 plus costs and simple interest at 8% p.a. from filing date till realization, to be enforced via sale of mortgaged property.

Punjab National Bank versus Sh. Surinder Singh — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.283/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.02.2023

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DATE OF DECISION: 21.05.2026

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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 Brach Offices, amongst others at Branch Office at Sastra, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Ravi Kumar, Chief Manager, Principal Officer and duly constituted Attorney of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Surinder Singh S/o Rulda Singh, R/o House no. 69 Village

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Kansala, Tehsil Kharar, Tehsil Kharar, District S.A.S. Nagar.

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……..Defendant

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Advocates:

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Argued by Sh. B.S. Walia, Advocate for the applicant

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None for Defendant (Already ex-parte vide order dated 19.05.2026).

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendant for recovery of Rs.26,48,914.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fourteen Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager , of the applicant bank, who is competent to institute the Original Application vide General 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 approached the applicant for grant of Kisan Cash Credit Limit of Rs.17,50,000.00 vide Application form for Agricultural Credit dated 14.08.2013, which is Annexure A2 to this OA.

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OA NO.283/2023 PUNJAB NATIONAL BANK VS SH. SURINDER SINGH

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The applicant sanctioned the Kisan Cash Credit Limit of Rs.17,50,000.00 vide Memorandum of Sanction of Cash Credit/Short Term Loan along with Letter of Sanction dated 04.09.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his Immovable Property i.e. total Land measuring ½ share being 4 Kanal 0 Marla situated at village Khansala no. 157, Sub-Tehsil Majri, District S.A.S. Nagar, Mohali vide Registered Mortgaged Deed Vasika No. 1475 dated 29.08.2013 along with its translation, which is Annexure A8 to this OA. Documents executed : Hypothecation Agreement dated 04.09.2013, which is Annexure A4 to this OA; Letter of Undertaking, Letter of Consent, Supplementary Agreement, all dated 18.09.2013, which are Annexures A5 to A7 to this OA; Balance and Security Confirmation Letters dated 02.01.2016, 15.03.2018, 22.08.2019, 20.07.2022, which are Annexures A9 to A12 to this OA; Legal Notice dated 17.01.2023, which is Annexure A13 to this OA; Statements of account along with certificate, which is Annexure A14 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.26,48,914.00, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 19.05.2026. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

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OA NO.283/2023 PUNJAB NATIONAL BANK VS SH. SURINDER SINGH

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant approached applicant for availing of the loan facility, which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant 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.26,48,914.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fourteen Only), along with interest from the defendant, 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 @8.75%p.a. with penal interest @2.00%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 hypothecated assets/mortgaged property, undertaking of the defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.26,48,914.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fourteen Only), 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

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OA NO.283/2023 PUNJAB NATIONAL BANK VS SH. SURINDER SINGH

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mortgaged property of the defendant 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 defendant. 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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Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2026.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 21.05.2026

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

Punjab National Bank v. Sh. Surinder Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Surinder Singh

Case brief

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What did the court decide?

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