Allowed

Punjab National Bank v. Sh. Sarwan Dass Alias Sarban Singh through Legal Heirs and Others

DRT11 Aug 2026OA/450/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.23.18 lakh advanced as a KCC loan. The principal was held due by the mortgagor and guarantor. The court awarded simple interest at 8% p.a. and directed issuance of a Recovery Certificate and initiation of execution proceedings.

What did the court decide?

Allowed allowing recovery of Rs.23,18,678 with costs and simple interest @8% p.a. from filing till realization; Recovery Certificate issued; Execution proceedings directed.

Punjab National Bank versus Sh. Sarwan Dass Alias Sarban… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 450/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.03.2026

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DATE OF DECISION: 11.08.2026

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its head office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and having its Branch Offices at different places throughout India, inter-alia one Branch Office at Village Rehana Jattan, Tehsil & District Kapurthala, Punjab, through its Principal Officer Sh. Narinder Jeet, Senior Manager, duly constituted Attorney by Punjab National Bank.

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……..Applicant

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Versus

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Sh. Sarwan Dass @ Sarban Singh (since deceased) S/o Sh. Balram

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Dass, through his legal heirs namely:

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(i) Sh. Balvir Singh (son),

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(ii) Sh. Buta Singh (son),

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(iii) Sh. Karnail Singh (son) and

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(iv) Smt. Naranjan Kaur (wife),

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all residents of Village Bhabiana, Tehsil & District Kapurthala144407.

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Sh. Balvir Singh S/o Sh. Sarwan Dass R/o Village Bhabiana, Tehsil & District Kapurthala-144407.

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Sh. Dalwinder Singh S/o Sh. Jarnail Singh R/o Village Bhabiana, Tehsil & District Kapurthala-144407.

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…….Defendants

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Advocates:

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Argued by Sh. Jaswinder Singh Bagga, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 07.08.2026)

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2 OA/450/2026 PUNJAB NATIONAL BANK VS. SH. SARWAN DASS ALIAS SARBAN 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.23,18,678.00 (Rupees Twenty Three Lac Eighteen Thousand Six Hundred Seventy Eight Only). The Original Application has been filed through Sh. Narinder Jeet, Senior Manager, of the Applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 (since deceased) and defendant no.2, approached the applicant for grant of KCC Limit of Rs.9.00 lacs vide Application for Loan dated 30.01.2015, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.9.00 lacs vide Sanction Letter dated 06.02.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no.1 (since deceased) mortgaged his property that’s agricultural land measuring 15Kanal-7½Marla, situated at Village Bhabiana, Tehsil & District Kapurthala, Punjab, vide Mortgage Deed Declaration dated 10.02.2015 under Section 4(1) of the Punjab Agriculture Credit Operation and Miscellaneous Provisions (Banks) Act, 1978 & Translation, which is Annexure A7 to this OA; Documents executed: Hypothecation Agreement dated 24.02.2015, which is Annexure A4 to this OA; Letter of Undertaking dated 24.02.2015, which is Annexure A5 to this OA; Guarantee Deed dated 24.02.2025, which is Annexure A6 to this OA; Revenue Fard, which is Annexure A8 to this OA; Death Certificate of Sarwan Dass dated 14.04.2020, which is Annexure A9 to this OA; A/C Statement dated 06.03.2022, which is Annexure A10 to this OA; Certificate dated 12.03.2026, which is Annexure A11 to this OA; Acknowledgement of Debt dated 13.11.2017, 07.07.2019, 04.07.2022 & 24.06.2025, which are Annexures A12 to A15 to this OA; Legal Notice dated 20.09.2021, which is Annexure A16 to this OA; Legal Notice dated 22.12.2025, which is Annexure A17 to this OA; and Valuation, which is Annexure A18 to this OA.

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3 OA/450/2026 PUNJAB NATIONAL BANK VS. SH. SARWAN DASS ALIAS SARBAN SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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.23,18,678.00 (Rupees Twenty Three Lac Eighteen Thousand Six Hundred Seventy Eight Only), 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. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.08.2026. 7. In support of the OA, affidavit of Sh. Narinder Jeet, Senior Manage r, Punjab National Bank , has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. Defendants 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 is entitled to recover a sum of Rs.23,18,678.00 (Rupees Twenty Three Lac Eighteen Thousand Six Hundred Seventy Eight 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.25% p.a. plus 2.00% penal interest with half yearly rests from 25.02.2026 till the realization. The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the

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OA/450/2026 PUNJAB NATIONAL BANK VS. SH. SARWAN DASS ALIAS SARBAN SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the 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.

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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.23,18,678.00 (Rupees Twenty Three Lac Eighteen Thousand Six Hundred Seventy Eight Only), jointly and severally, 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 mortgaged property of the deceased defendant no.1 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 nos. 2 & 3 and sale of personal assets of the defendant nos. 1(i) to 1(iv) up 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 27.08.2026

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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 .

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Dated: 11.08.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Sarwan Dass Alias Sarban Singh through Legal Heirs and Others

Case brief

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Punjab National Bank v. Sh. Sarwan Dass Alias Sarban Singh through Legal Heirs and Others

Case brief

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