Allowed

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Jasvir Singh through His Legal Heirs and Others

DRT15 Apr 2026OA/442/2022

Case brief

AI extract

What is this about?

In an ex-parte recovery proceedings, the Tribunal allowed the bank's application for recovery of a loan of Rs.55,66,132 owed by borrowers who defaulted on their KCC facility, directing the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.55,66,132 jointly and severally with 8% simple interest; parties to appear before Recovery Officer.

Punjab National Bank (Erstwhile Oriental Bank of Commerce)… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 442/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.12.2021

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DATE OF DECISION: 15.04.2026

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Punjab National Bank (Erstwhile Oriental Bank of Commerce), a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and having its Branches at different places including one at Ludhiana, Circle Sastra Centre West, Ferozepur Road, Ludhiana (Punjab) through its Constituted Attorney/Chief Manager, Sh. Sonu.

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……..Applicant

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Versus

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Sh. Jasvir Singh S/o Sh. Bhagwan Singh (now deceased) through his legal heirs:

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i. Smt. Manjit Kaur W/o Sh. Bhagwan Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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ii. Smt. Davinder Kaur W/o Late Sh. Jasvir Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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iii. Ms. Simranpreet Kaur D/o Late Sh. Jasvir Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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iv. Ms. Kirtikapreet Kaur D/o Late Sh. Jasvir Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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Smt. Manjit Kaur W/o Sh. Bhagwan Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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Sh. Kashmir Singh S/o Sh. Bhagwan Singh (now deceased) through his legal heir:

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i. Smt. Manjit Kaur W/o Sh. Bhagwan Singh, R/o VPO Indergarh, Tehsil and District Moga, Punjab

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……….Defendants

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Advocates:

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Argued by Sh. Gurinder Singh, Advocate proxy for Sh. Vinish Singla, Advocate for the applicant

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None for defendants (already ex-parte vide order dated 27.03.2026)

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OA/442/2022 PUNJAB NATIONAL BANK VS SH. JASVIR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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.55,66,132.00 (Rupees Fifty Five Lacs Sixty Six Thousand One Hundred Thirty Two Only). The Original Application has been filed through Sh. Sonu, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 15.10.2014, which is Annexure P/A to this OA. 2. The brief facts of the OA are that defendant no. 2 with defendant no. 1 & 3 (since deceased) approached the applicant for KCC Limit of Rs.23.00 Lacs vide Loan Application dated 27.04.2011, which is Annexure A1 to this OA. 3. The applicant sanctioned KCC Limit of Rs.23.00 Lacs vide Sanction Letter dated 02.05.2011, which is Annexure A2 to this OA and terms and conditions were duly accepted by defendants. 4. Defendant no. 2 with Defendant no. 1 & 3 (since deceased) mortgaged their immovable property i.e. Land measuring 48K-09M, situated at Village Indergarh, Tehsil and District Moga, vide Mortgaged Deed bearing Vasika no. 478 dated 02.05.2011 along with English Translation, which is Annexure A4 to this OA. Documents executed : Hypothecation Agreement, dated 12.05.2011 which is Annexure A3 to this OA; Legal Notice dated 27.01.2020, which is Annexure A5 to this OA; Balance Confirmation Letter dated 20.06.2018, which is Annexure A6 to this OA; Statement of Account, which is Annexure A7 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 the loan account, there was a debit of Rs.55,66,132.00, which is recoverable and the defendants were served recall notices 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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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants. Defendant nos. 1 & 3 were reported dead and their legal representatives were impleaded in the OA. Legal Representatives were also not turned up despite service. All defendants were proceeded ex-parte vide order dated 27.03.2026.

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OA/442/2022 PUNJAB NATIONAL BANK VS SH. JASVIR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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In support of the OA, affidavit of Sh. Sonu, Chief Manager, Punjab National 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 proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexure P/A & Annexures A1 to A7 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 bank is entitled to recover a sum of Rs.55,66,132.00 (Rupees Fifty Five Lacs Sixty Six Thousand One Hundred Thirty Two 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.80% p.a. plus 2.00% penal interest with half yearly rests from 20.10.2021 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 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 Tribunal deems it just and appropriate to grant simple interest @8.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.55,66,132.00 (Rupees Fifty Five Lacs Sixty Six Thousand One

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OA/442/2022 PUNJAB NATIONAL BANK VS SH. JASVIR SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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Hundred Thirty Two 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 property of 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 05.05.2026

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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: 15.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Jasvir Singh through His Legal Heirs and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Jasvir Singh through His Legal Heirs and Others

Case brief

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What did the court decide?

What the court decided

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