Allowed

Punjab National Bank v. Sh. Harchand Singh and Others

DRT7 Feb 2026OA/35/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Punjab National Bank against borrowers and a guarantor for recovery of Rs.33,52,129.00. The court modified the claim for interest, fixing it at 8.00% p.a., and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.33,52,129.00 jointly and severally with simple interest @8.00% p.a. and costs; order to issue Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.35/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.01.2025

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DATE OF DECISION: 07.02.2026

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Punjab National Bank, a Body Corporate constituted under Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having the Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and a Branch amongst others one at Punjab National Bank (Transferee Bank from erstwhile Oriental Bank of Commerce), Branch at Raikot Road, VPO Pakhowal, District Ludhiana-141108 represented through duly constituted Attorney of the Applicant bank Sh. Sukhpal Grewal, S/o Sh. Jagwinder Singh, Deputy Manager, presently posted at Branch office at Circle Sastra Centre Ludhiana, 1^st Floor, site No.5 situated at Ferozepur Road, Near Wave Mall, Ludhiana, District Ludhiana.

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……..Applicant

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Versus

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Sh. Harchand Singh s/o Sh. Lal Singh

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Sh. Jarnail Singh S/o Sh. Harchand Singh

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Sh. Kuldeep Singh S/o Sh. Ujjagar Singh

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All Residents of Village Bishangarh, Post Office Kalyan, Tehsil and District Malerkotla

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…….Defendants

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Advocates:

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Argued by Sh. Kamal, Advocate for the applicant

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Defendants already ex-parte vide order dated 14.01.2026

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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 defendants for recovery of Rs.33,52,129.00 (Rupees Thirty Three Lacs Fifty Two Thousand One Hundred Twenty Nine Only). The Original Application has been filed through Sh. Sukhpal Grewal, Deputy Manager of the applicant, who is competent to institute the Original

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OA/35/2025

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PUNJAB NATIONAL BANK VS. HARCHAND SINGH AND OTHERS

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Application vide Power of Attorney dated 11.09.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 & 2 approached the applicant for the grant of KCC Limit of Rs.18.00 vide loan application dated 13.11.2010 which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.18.00 Lacs vide Sanction letter dated 15.11.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 had mortgaged immovable property i.e. land measuring 48Kanals-10Marla (6 Acres) situated at Village Bishangarh, Hadbast no. 7/97, Sub-Tehsil Ahmedgarh, Tehsil Malerkotla, District Sangrur, Punjab vide Mortgage Deed bearing vasika 1572 dated 16.12.2010, which is Annexure A4 to this OA; Jamabandi for the year 2008-09 and 2013-14, along with its translation, which is Annexure A8 to this OA; Affidavit dated 11.12.2010, which is Annexure A6 to this OA.

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Documents executed: Hypothecation Agreement dated 27.12.2010, which is Annexure A5 to this OA; Agreement of Guarantee dated 27.12.2010 which is Annexures A7 to this OA; Balance Confirmation Letters dated 29.11.2013, 11.05.2016, 21.12.2019, 30.03.2019 and 09.12.2022, which are Annexure A9 to this OA; Account Statement with certificate, which are Annexures A10 to A11 to this OA; Demand Notice dated 15.01.2024 along with postal receipts, which is Annexure A12 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.33,52,129.00 which is recoverable and the defendants were 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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3 OA/35/2025 PUNJAB NATIONAL BANK VS. HARCHAND SINGH AND OTHERS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 14.01.2026. 7. In support of the OA, affidavit of Sh. Sukhpal Grewal, Deputy Manager, Punjab National Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,52,129.00 (Rupees Thirty Three Lacs Fifty Two Thousand One Hundred Twenty 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 account.

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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 @12%p.a. with 2% penal interest with half yearly rests from 28.12.2023 till the realization. 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 defendants, 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

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OA/35/2025

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PUNJAB NATIONAL BANK VS. HARCHAND SINGH AND OTHERS

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Tribunal deems it just and appropriate to grant uniform 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,52,129.00 (Rupees Thirty Three Lacs Fifty Two Thousand One Hundred Twenty Nine Only), jointly and severally, 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 properties of the defendants 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 defendants. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.02.2026. 15. 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: 07.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Harchand Singh and Others

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Punjab National Bank v. Sh. Harchand Singh and Others

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