Allowed

Punjab National Bank v. Sh. Sandeep Singh

DRT22 Apr 2026OA/410/2026

Case brief

AI extract

What is this about?

In an ex-parte hearing, the Tribunal allowed the bank's recovery application for a loan of Rs. 40.12 Lakhs. The Tribunal fixed simple interest at 8% p.a. instead of the claimed rate and authorized recovery from hypothecated assets or attachment of personal assets.

What did the court decide?

Recovery of Rs. 40,12,610.69 with costs and simple interest at 8% p.a.; recovery authorized from hypothecated assets or personal assets.

Punjab National Bank versus Sh. Sandeep Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.410/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2026

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DATE OF DECISION: 22.04.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970, having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi110075 and its Branch Office at Punjab National Bank, BO Old Court Road, Nawanshahr, District SBS Nagar, Punjab- 144513 and Punjab National Bank, ARMB, Civil Lines, Jalandhar, Punjab- 144001 through its Authorized Representative, Sh. Ajay Sharma, Senior Manager, Punjab National Bank, BO Old Court Road, Nawanshahr, District SBS Nagar, Punjab- 144513

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……..Applicant

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Versus

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Sh. Sandeep Singh, S/o Sh. Jasvir Singh, Village Jaffarpur, Tehsil Nawanshahr, District SBS Nagar, Punjab- 144517

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….……Defendant

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Advocates:

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Argued by Sh. Jiteshwar Malhi, Advocate proxy for Sh. Rehan Chaudhary, Advocate for applicant (through VC) None for defendant (already ex parte vide order 20.04.2026)

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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. 40,12,610.69 (Rupees Forty Lacs Twelve Thousand Six Hundred Ten and Paise Sixty Nine Only). The Original Application has been filed through Sh. Ajay Sharma, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.02.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant approached the applicant for the grant of KCC Limit of Rs. 30.00 Lacs vide Loan Application dated 04.02.2023, which is Annexure A2 to this OA.

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2 OA/410/2026 PUNJAB NATIONAL BANK VS. SANDEEP SINGH

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The applicant sanctioned the KCC Limit of Rs. 30.00 Lacs vide Sanction Letter dated 08.02.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. Land measuring 02K 01M situated at Jafarpur, Tehsil Nawanshahr, Punjab vide Transfer Deed dated 08.12.2022, which is Annexure A5 to this OA.

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Documents executed: Letter of Intent, Hypothecation Agreement and Master Agreement, all dated 28.02.2023, which are Annexure A4, A6 and A7 to this OA; Legal Notice dated 17.02.2026, which is Annexure A8 to this OA and Statement of Account, which is Annexure A9 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. 40,12,610.69 (Rupees Forty Lacs Twelve Thousand Six Hundred Ten and Paise Sixty Nine Only) which is recoverable and the

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defendant was served recall notice 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 20.04.2026.

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In support of the OA, affidavit of Sh. Ajay Sharma, Senior Manager, Punjab National 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 (through VC) that in

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view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexure A1 to A9 to this OA, it is proved that the 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

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favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that

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3 OA/410/2026

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PUNJAB NATIONAL BANK VS. SANDEEP SINGH

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applicant is entitled to recover a sum of Rs. 40,12,610.69 (Rupees Forty Lacs Twelve Thousand Six Hundred Ten and Paise Sixty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.40%p.a. plus penal interest @2% with yearly rests from date of NPA 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 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.40,12,610.69 (Rupees Forty Lacs Twelve Thousand Six Hundred Ten and Paise Sixty Nine 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 hypothecated assets/mortgaged property of the 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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Issue Recovery Certificate accordingly.

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4 OA/410/2026

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PUNJAB NATIONAL BANK VS. SANDEEP SINGH

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.05.2026.

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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: 22.04.2026

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

Punjab National Bank v. Sh. Sandeep Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Sandeep Singh

Case brief

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