Allowed

Punjab Gramin Bank v. Sh. Surjit Singh

DRT26 May 2026OA/345/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte original application filed by Punjab Gramin Bank against Surjit Singh for recovery of a loan of Rs. 21.12 lacs. The court modified the applicant's claimed interest rate to 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 21,12,009.00 with simple interest @ 8% p.a. from date of filing.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 345/2026

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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: 26.05.2026

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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 (Pb) and having its branches at different places including one at Nurdi Chowk, Tehsil and Distt. Tarn Taran (PB) through its Constituted Attorney/ Manager Sh. Dalbir Singh.

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…..Applicant

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Sh. Surjit Singh S/o Sh. Balwinder Singh R/o Village Panjwar Khurd, Tehsil Chabal, Distt. Tarn Taran (PB).

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………. Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) None for Defendant (Already ex parte vide order dated 22.05.2026)

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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 & Bankruptcy Act 1993, against the defendant for recovery of Rs. 21,12,009.00 (Rupees Twenty One Lacs Twelve Thousand Nine Only). The Original Application has been filed through Sh. Dalbir Singh, Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 09.01.20107, 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 KCC Limit (Crops) of Rs. 16.30 Lacs and KCC Limit (Animal Husbandry) of Rs. 5.00 Lacs vide Loan Application dated 15.07.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit (Crops) of Rs. 16.30 Lacs and KCC Limit (Animal Husbandry) of Rs. 5.00 Lacs vide Sanction

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OA/345/2026 PUNJAB GRAMIN BANK VS SURJIT SINGH

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Letter dated 04.08.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his agricultural land measuring 70Kanal05Marla situated at Village Panjwar, tehsil and District Tarn Taran (PB) vide Declaration Under Section 4(1) dated 09.08.2022, which is Annexure A5 to this OA.

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Documents executed : Loan Agreement dated 22.08.2022, which is Annexure A4 to this OA; Legal Notice dated 12.8.2022, which is Annexure A6 to this OA; BC Letters, both dated 01.03.2025. which are Annexures A7 & A8 to this OA; Statement of Accounts, which is Annexure A9 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.21,12,009.00, 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 defendant and he was proceeded ex-parte on 22.05.2026

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In support of the OA, affidavit of Sh. Dalbir Singh, Manager, Punjab Gramin Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel, through video conferencing, 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 A9 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement

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OA/345/2026 PUNJAB GRAMIN BANK VS SURJIT SINGH

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between the parties. Subsequently, both the accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,12,009.00 (Rupees Twenty One Lacs Twelve Thousand Nine 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50% p.a. along with 2%p.a. penal interest with yearly rests from 01.03.2026 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 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.

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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.21,12,009.00 (Rupees Twenty One Lacs Twelve Thousand Nine Only) with costs, current and future simple interest @08.00%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 property 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. 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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OA/345/2026 PUNJAB GRAMIN BANK VS SURJIT SINGH 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.06.2026 15. 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. Pronounced by me in the open Tribunal . Dated:26.05.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Surjit Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Surjit Singh

Case brief

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What did the court decide?

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