The Tribunal allowed the bank’s original application under RDB Act, Section 19 for recovery of dues against legal heirs of a deceased borrower who executed a loan and mortgage agreement. The court reduced the claimed interest rate from 10.50% to 8% per annum.
Recovery certificate issued and awarded Rs. 58,12,074 with interest at 8% per annum.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 449/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.02.2022
DATE OF DECISION: 26.05.2026
Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi - 110075 and a Branch amongst at SBS Nagar, Ludhiana, through General Power of Attorney Holder Sh. Vineet Dhingra, Branch Manager and Constituted Attorney.
……..Applicant
Versus
……..Defendants
Advocate:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 02.03.2026).
FINAL ORDER
2 OA/449/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH AND ANOTHER
institute the Original Application vide Power of attorney dated 05.12.2005, which is Annexure A1 to this OA.
Documents executed : Voter ID proof of defendant no. 1, which is Annexure A3 to this OA; Agreement for Hypothecation of existing and future crops/moveable assets/live stock to secure a Cash Credit Account of Oriental Green Card dated 20.08.2011, which is Annexure A5 to this OA; Death Certificate dated 31.03.2012 along with its translation, which are Annexures A7 & A7T to this OA; Balance and Security Confirmations, dated 08.08.2014, 12.05.2016, 31.03.2019, which are Annexures A8 to A10 to this OA; Undertaking to pay the Debt to be obtained from the Legal Heirs/Guarantors of the deceased Borrowers dated 31.03.2020, which is Annexure A11 to this OA; Legal Notice dated 11.12.2014, along with postal receipt, which is Annexure A12 to this OA; Recall Notice dated 02.04.2015, along with postal receipt, which is Annexure A13 to this OA; Statement of Account along with certificate, which is Annexure A14 to this OA.
3 OA/449/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH AND ANOTHER
From the perusal of all the Annexures A1 to A14 to this OA, it is proved that Sh. Jarnail Singh (since deceased and father of defendants) and defendant no. 1 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.58,12,074.00 (Rupees Fifty Eight Lacs Twelve Thousand and Seventy 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.
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
4 OA/449/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH AND ANOTHER
instant case including nature of the hypothecated assets/mortgaged property, 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 @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.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal .
Dated: 26.05.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the firm and deceased borrower admit the firm and deceased borrower failed to repay the loan and are liable for recovery
Whether the interest rate claimed is appropriate for the case
1 provisions across 1 enactments
Punjab National Bank
Sh. Harwinder Singh
Sh. Parminder Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
