Allowed

Punjab Gramin Bank v. Sh. Dilbag Singh

DRT15 May 2026OA/34/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's original application for recovery of Rs. 24,00,000 outstanding in a loan account. The Tribunal modified the claimed interest rate to 8% p.a. and directed enforcement via hypothecated assets or sale of personal assets.

What did the court decide?

Recovery certificate issued for Rs. 24,00,000 with simple interest at 8% p.a. allowing enforcement against hypothecated assets or personal assets.

Punjab Gramin Bank versus Sh. Dilbag Singh — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 34/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 06.01.2026

¶5

DATE OF DECISION: 15.05.2026

¶6

Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No. 21 of 1976 having its Head Office, at Markfed Road Kapurthala, Punjab and having its branches at different places including one at Branch Office Domeli, Tehsil Phagwara, District Kapurthala, Punjab through its Authorized Signatory Sh. Tarun Goyal.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Dilbag Singh S/o Sh. Sohan Singh, R/o Village Sangatpur, Tehsil Phagwara, District Kapurthala.

¶10

……..Defendant

¶11

Advocates:

¶12

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

¶13

None for Defendant (Already ex-parte vide order dated 11.05.2026).

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.24,00,000.00 (Rupees Twenty Four Lacs Only). The Original Application has been filed through Sh. Tarun Goyal, Authorized Signatory of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 08.05.2024, which is Annexure A1 to this OA.

¶16

The brief facts of the OA that the defendant approached the applicant for grant of Kisan Cash Credit Limit of Rs.11,50,000.00 vide Loan Application dated 02.02.2015, which is Annexure A2 to this OA; 3. The applicant sanctioned the Kisan Cash Credit Limit of Rs.11,50,000.00 vide Letter of Sanction dated 09.02.2015, which is

¶17

2 OA/34/2026 PUNJAB GRAMIN BANK VS SH. DILBAG SINGH

¶18

Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

¶19

Defendant mortgaged his immovable property i.e., total Land Measuring 19 Kanal 07 Marla situated at Village Sangatpur, Tehsil Phagwara, District Kapurthala vide Mortgaged Deed dated 06.02.2015, which is Annexure A5 to this OA;

¶20

Documents executed: Hypothecation Agreement dated 09.02.2015, which is Annexure A4 to this OA; Balance and Security Confirmation Letter dated 24.01.2018, 18.04.2020, 07.07.2022, 15.09.2023, which are Annexures A6 to A9 to this OA; Legal Notice dated 02.02.2025, which is Annexure A10 to this OA; Statement of Account along with Certificate by Officer In charge of the Computer System, which are Annexures A11 & A12 to this OA;

¶21

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.24,00,000.00 which is recoverable and the defendant was served recall notice but he do 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 defendant and he was proceeded ex-parte vide order dated 11.05.2026. 7. In support of the OA, affidavit of Sh. Tarun Goyal, Authorized Signatory, Punjab Gramin Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶22

From the perusal of all the Annexures A1 to A12 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

¶23

¶24

OA/34/2026 PUNJAB GRAMIN BANK VS SH. DILBAG SINGH

¶25

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.24,00,000.00 (Rupees Twenty Four Lacs Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶26

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.25%p.a. with monthly rests with penal interest@2%p.a. from 01.01.2026 till the realization.

¶27

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/hypothecated assets, 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 @8.00%p.a. 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.

¶28

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,00,000.00 (Rupees Twenty Four Lacs Only), 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 hypothecated assets/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

¶29

¶30

OA/34/2026 PUNJAB GRAMIN BANK VS SH. DILBAG SINGH

¶31

attac	hment and sale of personal assets of th	e defendant. The applicant
is at 12.	liberty to enforce the claim through due Any other application pending sta	process of law. nds disposed of.
13.	Issue Recovery Certificate accordingly	.
14.	Parties to appear before Learned	Recovery Officer of this
Tribu 15.	nal on 06.06.2026. Copy of this order be given dasti to th	e applicant and be sent to
defen	dant through registered/speed post	and this order be also
uploa consi Pron Date	ded on the official website of this gned. ounced by me in the open Tribunal. d: 15.05.2026	Tribunal and record be
	(MRI	DULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Dilbag Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Dilbag Singh

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

Kotak Mahindra Bank Limited versus Sh. parveen and another

State Bank of India versus Sh. Satwinder Singh

State Bank of India versus Sh. Balvir Singh

Union Bank of India versus M/S Dev Foods and Another

Icici Bank Limited versus Sh. Sarwan Saini and Another

Indian Bank versus Sh. Abhishek and Another