Allowed

Punjab Gramin Bank v. Sh. Madan Mohan Singh through His Legal Heirs

DRT8 Jun 2026OA/393/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Punjab Gramin Bank against the legal heirs of the deceased borrower. The court upheld the claim for the principal amount plus interest at 8% per annum, authorizing recovery through sale of mortgaged assets or attachment of personal assets.

What did the court decide?

Recovery of Rs. 24,09,484.00 plus simple interest at 8% p.a. granted; Recovery Certificate issued.

Punjab Gramin Bank versus Sh. Madan Mohan Singh through His Legal… — Cheque Dishonour | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 393/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.04.2024

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DATE OF DECISION: 08.06.2026

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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, Punjab and having its Branches at different places including one at Bhaddi, Tehsil Balachaur, District SBS Nagar, Punjab through its Constituted Attorney, Sh. Gurpreet Singh, Manager, BO Nawanshahr representing on behalf of applicant

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……..Applicant

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Versus

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Sh. Madan Mohan Singh, S/o Sh. Hari Chand, since deceased through his Legal Heirs:

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i. Smt. Santosh Kumari, W/o Sh. Madan Mohan Singh

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ii. Ms. Shama, D/o Sh. Madan Mohan Singh

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iii. Sh. Sajan, S/o Sh. Madan Mohan Singh

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All are residents of Village Khivewal, Tehsil Balachaur, District SBS Nagar, Punjab and presently residing at House no. 7, Shop no. 4, Kirti Nagar, Hoshiarpur, Punjab

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…Defendants

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for applicant (through VC) None for defendant no. 1 (i)

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None for defendant nos. 1 (ii) and 1 (iii) (already ex-parte vide order dated 21.12.2024)

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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. 24,09,484.00 (Rupees Twenty Four Lacs Nine Thousand Four Hundred Eighty Four Only). The Original Application has been filed through Sh. Gurpreet Singh, Manager of the applicant, who is competent to institute the Original Application vide

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2 OA/393/2024 PUNJAB GRAMIN BANK VS. MADAN MOHAN SINGH THROUGH HIS LEGAL HEIRS

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General Power of Attorney dated 25.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs. 14.00 Lacs and Term Loan of Rs. 1.00 Lac vide Application dated 11.03.2015, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs. 14.00 Lacs and Term Loan of Rs. 1.00 Lac vide Sanction dated 14.03.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased).

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land measuring 16K 05M situated at Village Malewal Bhatia, Hadbast no. 390, Tehsil Balachaur, District SBS Nagar, Punjab vide Mortgage Deed dated 14.03.2015, which is Annexure A5 to this OA.

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Defendant no. 1 (since deceased) hypothecated his crops and other assets vide Loan Agreement dated 17.03.2015, which is Annexure A4 to this OA.

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Documents executed: Notice dated 31.05.2023, which is Annexure A6 to this OA; BC Letters dated 02.06.2017, 19.03.2020 and 12.03.2021, which are Annexure A7 to A7/5 to this OA; Statement of Account, which is Annexure A8 to this OA and Death Certificate dated 06.11.2020, 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. 24,09,484.00, which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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During the pendency of OA, defendant no. 1 reported dead and his Legal Heirs were impleaded as defendant nos. 1 (i) to 1 (iii). 6. The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Mohit Kokar, Advocate appeared on behalf of defendant no. 1 (i) on 21.12.2024 and had filed Power of Attorney on 20.09.2025. Paper book was supplied to him. WS

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3 OA/393/2024 PUNJAB GRAMIN BANK VS. MADAN MOHAN SINGH THROUGH HIS LEGAL HEIRS

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on behalf of defendant no. 1 (i) was filed on 21.03.2025 i.e. beyond stipulated period. Therefore, WS was not taken on record and opportunity to file WS by defendants was closed and defence was struck off vide order dated 25.05.2026. No one appeared on behalf of defendant nos. 1 (ii) and 1 (iii) and therefore, they were proceeded exparte vide order dated 21.12.2024.

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In support of the OA, affidavit of Sh. Gurpreet Singh, Manager, Punjab Gramin Bank h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel (through VC) 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 Annexure A1 to A9 to this OA, it is proved that defendant no. 1 (since deceased) approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 24,09,484.00 (Rupees Twenty Four Lacs Nine Thousand Four Hundred Eighty Four Only), along with interest from the defendants, jointly and severally, 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 @10.00%p.a. plus @2% penal interest with half yearly rests from 29.02.2024 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 defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal,

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4 OA/393/2024 PUNJAB GRAMIN BANK VS. MADAN MOHAN SINGH THROUGH HIS LEGAL HEIRS

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this Tribunal deems it just and appropriate to grant simple interest @8.00% 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 defendants are liable to pay to the applicant a total sum of Rs.24,09,484.00 (Rupees Twenty Four Lacs Nine Thousand Four Hundred Eighty Four Only), jointly and severally, with costs, current and future simple interest @8.00% 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 hypothecated assets/mortgaged property of the defendant no. 1 (since deceased) 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 defendant nos. 1 (i) to 1 (iii) to the extent they inherited the property of deceased defendant no. 1. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2026. 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: 08.06.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Madan Mohan Singh through His Legal Heirs

Case brief

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Punjab Gramin Bank v. Sh. Madan Mohan Singh through His Legal Heirs

Case brief

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