Allowed

Punjab Gramin Bank v. Sh. Satnam Singh

DRT29 Jul 2026OA/340/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab Gramin Bank against a borrower for recovery of Rs. 56,93,413. The Tribunal noted the loan became NPA, reduced the claimed interest rate from 13.25% to 8% per annum, and granted a recovery certificate over mortgaged and personal assets.

What did the court decide?

Order declaring defendant liable to pay Rs. 56,93,413.00 with 8% simple interest per annum; issued Recovery Certificate for attachment and sale of mortgaged properties and personal assets.

Punjab Gramin Bank versus Sh. Satnam Singh — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.340/2026

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PRESIDED OVER BY IyRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.03.2026

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DATE OF DECISION: 29.07.2026

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Punjab Gramin Bank, a body corporate constituted under the provisions of the Regional Rural Bank Act 1976 (Act No.21 of 1976) having its Head Office at Marked Road, Kapurthaia, and amongst others a Branch Office at Hamirgarh, Tehsil Moonak, District Sangrur through Sh. Harvinder Singh, Branch Manager, General Attorney, and Principal Officer of Applicant Bank.

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........Applicant

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Versus

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Sh. Satnam Singh S/o Sh. Tek Singh, R/o Village Bhatuwan, Tehsil Moonak, District Sangrur - 148033.

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........Defendant

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Advocates:

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Argued by Sh. Ajay Singla, Advocate for the applicant

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None for Defendant (Already ex-parte vide order dated 27.07.2026).

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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 defendant for recovery of Rs.56,93,413.00 (Rupees Fifty Six Lacs Ninety Three Thousand Four Hundred and Thirteen Only). The Original Application has been filed through Sh. Harvinder Singh, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, 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 PGB Gold Card Limit of Rs.37,00,000.00 vide Loan Application Form for Agricultural Credit dated 14.10.2021, which is Annexure A2 to this OA.

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9 OA NO.340/2026 PUNJAB GRAMIN BANK VS SH. SATNAM SINGH

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I t I

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The applicant sanctioned the PGB Gold Card Limit of Rs,37,00,000.00 vide Letter of Sanction and Sanction of Credit Facilities, both dated 28.01.2022, which are Annexures A3 & A4 to this OA and terms and conditions were duly accepted by the defendant.

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4, Defendant mortgaged his Immoveable Properties i.e., Total Land measuring 72K 08M situated at Village Dehla & Bhutal I<hurd, TehsiI Moonak, District Sangrur as per Jamabandi for the year 2017-2018 and 2018-2018, vide Declaration u/s 4(1) dated 28.01.2022 registered with the office of Sub Registrar, Moonak, bearing vasika no. 540 and lien in favour of bank has been entered vide rapat no. 218 dated 28.01.2022 and Declaration regarding Agriculture Land dated 03.02.2022, which are Annexures A:lO & All to this OA.

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Documents executed: Consent Letter dated 28.01.2022, which is Annexure A5 to this OA; Letter of Undertaking, Hypothecation Agreement, Master Agreement, Customer Undertaking Letter, all dated 03.02.2022, which are Annexures A6 to A9 to this OA; Balance and Security Confirmation Letters dated 19.04.2023, which is Annexure A12 to this OA; Overdue Notice dated 24.04.2025, along with its translation, which is Annexure A13 to this OA; Statement of account along with certificate, which is Annexure A:14 to this OA. 5. 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.56,93,413.00, 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.

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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 27.07.2026. 7. In support of the OA, affidavit of Sh. Harvinder Singh, Branch Manager, Punjab Gramin Bank has been filed.

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@{:;-

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3 OA NO.340/2026 PUNJAB GRAMIN BANK VS SH. SATNAM SINGH

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Heard ex-parte arguments and perused record.

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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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From the perusal of all the Annexures A1 to A:14 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.56,93,413.00 (Rupees Fifty Six Lacs Ninety Three Thousand Four Hundred and Thirteen 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 @13.25%p.a. with half yearly rests with penal interest @2%p.a. 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 properties, 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.56,93,413.00 (Rupees Fifty Six Lacs Ninety Three Thousand Four Hundred and Thirteen Only), with costs, current and future simple <% d);#

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OA NO.340/2026 PUNJAB GRAMIN BANK VS SH. SATNAIVI SINGH

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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 properties 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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Any other application pending stands disposed of. 13 . Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.08.2026.

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Copy of this order be given dasH 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. Dated: 29.07.2026

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G qVii)Af:IJC) (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-1:II, Chandigarh

Punjab Gramin Bank v. Sh. Satnam Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Satnam Singh

Case brief

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