Allowed

Punjab and Sind Bank v. Sh. Satnam Singh and Another

DRT23 Jul 2026OA/331/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank applicant's application filed under RDBA Section 19 for recovery of Rs. 20.57 lacs. The court confirmed the defendants' liability and awarded simple interest at 8% p.a. instead of the claimed penal rate.

What did the court decide?

Recovery Certificate issued declaring defendants liable to pay Rs. 20,57,327.69 with simple interest at 8% p.a. from filing date until realization.

Punjab and Sind Bank versus Sh. Satnam Singh and… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.331/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 03.03.2026

¶5

DATE OF DECISION: 23.07.2026

¶6

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

¶7

……..Applicant

¶8

Versus

¶9

Sh. Satnam Singh S/o Sh. Desa Singh, R/o Near Baba Deep Singh Gurudwara, Narwana Road Duttal Tehsil Patran, District Patiala - 147105.

¶10

Sh. Tarlochan Singh S/o Sh. Iqbal Singh, R/o Village Duttal, Tehsil Patran, District Patiala - 147105.

¶11

……. .Defendants

¶12

Advocates:

¶13

Argued by Sh. Chiranjiv Singh Kwatra, Advocate for the applicant (through VC)

¶14

None for defendants (Already ex-parte vide order dated 21.07.2026).

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.20,57,327.69 (Rupees Twenty Lacs Fifty Seven Thousand Three Hundred Twenty Seven and Paise Sixty Nine Only). The Original Application has been filed through Sh. Ankur Singla, Branch Manager of the applicant, who is competent to institute the Original Application vide Authorization Letter dated

¶17

2 OA NO.331/2026 PUNJAB AND SIND BANK VS SH. SATNAM SINGH AND ANOTHER

¶18

21.02.2026 and Power of Attorney dated 13.02.2018, which are Annexures A1 & A2 to this OA.

¶19

The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of Rs.6,75,000.00 vide Application Form for Agricultural Credit under PSB Kisan Credit Card Scheme dated 24.04.2017, which is Annexure A4 to this OA.

¶20

Thereafter, the defendant no. 1 a pproached the applicant for grant of Housing Loan of Rs.2,00,000.00 vide Loan Application dated 25.04.2017, which is Annexure A18 to this OA.

¶21

The applicant sanctioned the Kisan Credit Card Limit of Rs.6,75,000.00 vide Sanction Letter for Loans under PSB Kisan Credit Card Scheme dated 24.04.2017, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

¶22

Thereafter, the applicant sanctioned the Housing Loan of Rs.2,00,000.00 vide Sanction Letter dated 25.04.2017, which is Annexure A19 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 mortgaged his immovable properties i.e., Land measuring 30 Kanals 05 Marlas situated in Village Duttal, Tehsil Patran, District Patiala vide Declaration u/s 4(1) and Request Letter for creation of charge on Land in favour of Bank, bearing Deed No. 33 dated 19.04.2017, which is Annexure A3 to this OA.

¶23

Documents executed: Demand Promissory Note, Form No. 106 waiver letter for the presentment of the Pronote, Letter of Continuity, Undertaking, Revised clauses pertaining to Rate of Interest, Form No. 201, Consent Letter by Borrower, Letter of Authority to debit various charges, Hypothecation of Goods to secure – A Demand Cash Credit, Guarantee Deed, Consent Letter by Guarantor, all dated 24.04.2017, which are Annexures A6 to A16 to this OA; Certificate of Execution of Documents dated 27.04.2017, which is Annexure A17 to this OA;

¶24

3 OA NO.331/2026 PUNJAB AND SIND BANK VS SH. SATNAM SINGH AND ANOTHER

¶25

Demand Promissory Note, Form No. 106 waiver letter for the presentment of the Pronote, Undertaking, Revised clauses pertaining to Rate of Interest, Form No. 201, Consent Letter by Borrower, Letter of Undertaking, Letter of Authority to debit various charges, Hypothecation of Goods to secure – A Demand Cash Credit, Guarantee Deed, Consent Letter by Guarantor, all dated 25.04.2017, which are Annexures A20 to A30 to this OA; Certificate of Execution of Documents dated 25.04.2017, which is Annexure A31 to this OA; Balance and Security Confirmation Letters, dated 14.04.2020, 03.03.2023, which are Annexures A32 to A35 to this OA; Legal Notices, dated 30.12.2020, 19.05.2025, along with postal receipts, which are Annexures A36 to A45 to this OA; Statement of Accounts along with certificates, which are Annexures A46 & A47 to this OA.

¶26

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.20,57,327.69, 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 21.07.2026.

¶27

In support of the OA, affidavit of Sh. Ankur Singla, Branch Manager, Punjab and Sind Bank has been filed.

¶28

Heard ex-parte arguments and perused record.

¶29

It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶30

From the perusal of all the Annexures A1 to A47 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facilities which were granted to him, defendant no. 2 stood as guarantor in both the loan accounts and for that they had executed all

¶31

4 OA NO.331/2026 PUNJAB AND SIND BANK VS SH. SATNAM SINGH AND ANOTHER

¶32

the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,57,327.69 (Rupees Twenty Lacs Fifty Seven Thousand Three Hundred Twenty Seven and Paise Sixty Nine 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.

¶33

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. (including penal interest @2%) with half yearly rests from 01.10.2025 till the realization.

¶34

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 properties, undertaking of the defendants, quantum of loans 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 both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶35

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.20,57,327.69 (Rupees Twenty Lacs Fifty Seven Thousand Three Hundred Twenty Seven and Paise Sixty Nine Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 properties of defendant no. 1 i n execution proceedings if not sold earlier under the provisions

¶36

¶37

OA NO.331/2026 PUNJAB AND SIND BANK VS SH. SATNAM SINGH AND ANOTHER

¶38

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.

¶39

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 07.08.2026.

¶40

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: 23.07.2026

¶41

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

Punjab and Sind Bank v. Sh. Satnam Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Sh. Satnam Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Overseas Bank versus Sh. Amarjit Singh and Another

Hdfc Bank Limited versus Sh. Amrinder Singh and Others

State Bank of India versus M/S Sandeep Dairy Farm and Another

Bank of Baroda versus M/S Bansal Industries and Others

Union Bank of India versus Sh. Jasvir Singh

Union Bank of India versus Sh. Hardeep Singh