Allowed

Punjab Gramin Bank v. Sh. Ajit Singh

DRT18 Mar 2026OA/353/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of ₹42.13 lacs with interest advanced as a loan to a deceased borrower. The court held the legal heirs liable up to the value of inherited property. A recovery certificate was issued, and an appearance date was fixed for distribution of sale proceeds from mortgaged land.

What did the court decide?

Application allowed; recovery of ₹42,13,731.14 plus interest ordered; liability of legal heirs limited to extent of inherited property;

Punjab Gramin Bank versus Sh. Ajit Singh — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 353/2025 Date of Institution: 25.02.2025 Date of Decision: 18.03.2026

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Punjab Gramin Bank having its branches all over India and a branch at Jalalabad (W), Tehsil Jalalabad (W), District Fazilka, Punjab.

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……..Applicant Vs.

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Sh. Ajit Singh s/o Sh. Sulakhan Singh, (now deceased) through LRs’

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(i) Smt. Gurmeet Kaur w/o Late Sh. Ajit Singh.

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(ii) Sh. Kartar Singh s/o Late Sh. Ajit Singh

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Both r/o Village Boor Wala, P.O. Chak Mahanta Wala, Tehsil Jalalabad (W), District Fazilka, Punjab

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……….Defendants

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Advocates

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Sh. Tejinder Singh proxy counsel for Sh. R.K. Pasricha, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 12.08.2025 .

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OA for the Recovery of ₹42,13,731.14p with interest @11.50% per annum with half-yearly rests from 25.02.2025.

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ORDER

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Punjab Gramin Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹42,13,731.14p with interest against Sh. Ajit Singh and others (defendants).

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Bank’s case is that on 18.02.2016, it had granted a loan of ₹29.28 Lacs to defendant i.e. Sh. Ajit Singh (since deceased now survived through his legal heirs) in the form of K.C.C Limit for agricultural purpose. To secure the loan, Deceased Defendant had mortgaged his land (fully detailed in para No.3A of the application). The loan was

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chargeable to interest @11.50% per annum with half-yearly rests. Defendants/Legal Heirs had duly acknowledged their liability towards the debt on 17.07.2018, 20.01.2021, 20.09.2023 and 12.03.2024. On 31.10.2024, a sum of ₹42,13,731.14p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 12.03.2025, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 12.08.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Vinod Kumar, Assistant Manager along with the loan and security documents and marked them as Exhibit A-1 to A-14.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹29.28 Lacs and on 31.10.2024, a sum of ₹42,13,731.14p was due.

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Accordingly, the application of the bank for the recovery of ₹42,13,731.14p (Rupees Forty Two Lacs Thirteen Thousand Seven Hundred Thirty One and Paise Fourteen Only) with interest @11.50% per annum with half-yearly rests from 25.02.2025, till the date of payment is hereby allowed with costs. The liability of legal heir of Sh. Ajit Singh would be limited upto the extent of the property inherited by them from him. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the movable and immovable property(ies) inherited by the legal heirs from Sh. Ajit Singh (now deceased).

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 28.04.2026, who is directed to distribute the sale proceeds of the mortgaged land and standing crops as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 18.03.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Punjab Gramin Bank v. Sh. Ajit Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Ajit Singh

Case brief

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