Allowed

Punjab Gramin Bank v. Sh. Jaj Singh Alias Judge Singh through His Legal Heirs

DRT15 Jun 2026OA/341/2026

Case brief

AI extract

What is this about?

The DT allowed the bank's original application to recover Rs. 43,07,106 from the legal heir of the deceased borrower, granting 8% p.a. interest and directing issuance of a Recovery Certificate.

What did the court decide?

Declaration for recovery of Rs. 43,07,106 with 8% simple interest; recovery certificate issued; lien on mortgaged property affirms; execution proceedings permitted.

Punjab Gramin Bank versus Sh. Jaj Singh Alias Judge Singh… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.341/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.03.2026

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DATE OF DECISION: 15.06.2026

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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, Kapurthala 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. Jaj Singh @ Judge Singh (since deceased) S/o Sh. Tek Singh, R/o Village Hamirgarh, Tehsil Moonak, District Sangrur through his legal heir namely:

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Sh. Gurjeevan Singh S/o Late Sh. Jaj Singh @ Judge Singh S/o Sh. Tek Singh, R/o Village Hamirgarh, Tehsil Moonak, District Sangrur - 148033.

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……..Defendant

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate proxy for Sh. Ajay Singla, Advocate for the applicant

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None for Defendant (Already ex-parte vide order dated 11.06.2026).

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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.43,07,106.00 (Rupees Forty Three Lacs Seven Thousand One Hundred and Six Only). The Original Application has been filed through Sh. Harvinder Singh, Branch Manager of the applicant bank, 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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2 OA NO.341/2026 PUNJAB GRAMIN BANK VS SH. JAJ SINGH ALIAS JUDGE SINGH THROUGH HIS LEGAL HEIR

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The brief facts of the OA are that Sh. Jaj Singh (since deceased & father of defendant) approached the applicant for grant of Production Credit under PGB Gold Card scheme of Rs.28,00,000.00 vide Loan Application Form for Agricultural Credit dated 26.07.2021, which is Annexure A2 to this OA.

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The applicant sanctioned the Production Credit under PGB Gold Card scheme of Rs.28,00,000.00 vide Letter of Sanction dated 18.08.2021, which is Annexure A3 to this OA and terms and conditions were duly accepted by Sh. Jaj Singh (since deceased & father of defendant) vide Sanction of credit facilities, Credit facility sanction in our favour, both dated 18.08.2021, which are Annexures A4 & A5 to this OA.

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Sh. Jaj Singh (since deceased & father of defendant) mortgaged his immoveable property i.e., Total Land measuring 93K-02M situated at Hamirgarh, Tehsil Moonak, District Sangrur, Punjab vide Declaration under section 4(1) dated 18.08.2021 bearing no. 205 and lien marked in favour of applicant has been entered vide rapat no. 9 dated 07.09.2021 and Declaration regarding agricultural land dated 25.01.2022 which are Annexures A10 & A11 to this OA.

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Documents executed : Letter of Undertaking, Hypothecation Agreement, Master Agreement, Credit facility sanction in our favour, all dated 25.01.2022, which are Annexures A6 to A9 to this OA; Balance and Security Confirmation Letter dated 14.06.2023, which is Annexure A12 to this OA; Legal Notices dated 21.12.2024, 04.07.2025 along with its translation and postal receipts, which are Annexures A13 & A15 to this OA; Overdue Notice dated 24.04.2025, along with its translation and postal receipt, which is Annexure A14 to this OA; Statement of account along with certificate, which is Annexure A16 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 loan account, there was a debit of Rs.43,07,106.00, which is recoverable and the defendant

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3 OA NO.341/2026 PUNJAB GRAMIN BANK VS SH. JAJ SINGH ALIAS JUDGE SINGH THROUGH HIS LEGAL HEIR

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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 11.06.2026.

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In support of the OA, affidavit of Sh. Harvinder Singh, Branch Manager, 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 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 A16 to this OA, it is proved that Sh. Jaj Singh (since deceased & father of 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.43,07,106.00 (Rupees Forty Three Lacs Seven Thousand One Hundred and Six 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 property, undertaking of the defendant, quantum of loan and prevalent market rates of

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OA NO.341/2026 PUNJAB GRAMIN BANK VS SH. JAJ SINGH ALIAS JUDGE SINGH THROUGH HIS LEGAL HEIR

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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.43,07,106.00 (Rupees Forty Three Lacs Seven Thousand One Hundred and Six 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 mortgaged property of Sh. Jaj Singh (since deceased & father of 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 to the extent, he inherited from the property of Late Sh. Jaj Singh. 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

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Tribunal on 30.06.2026.

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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: 15.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Jaj Singh Alias Judge Singh through His Legal Heirs

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Jaj Singh Alias Judge Singh through His Legal Heirs

Case brief

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