Allowed

Punjab Gramin Bank v. Smt. Balbir Kaur

DRT1 Aug 2026OA/470/2025

Case brief

AI extract

What is this about?

The DRT allowed an application by Punjab Gramin Bank for recovery of a loan of Rs. 26.66 lakhs treated as NPA. The court granted a recovery certificate and awarded simple interest at 8% p.a., permitting recovery via sale of mortgaged property or attachment of personal assets under SARFAESI and RDBA.

What did the court decide?

Recovery Certificate issued for Rs. 26,66,209.83 plus interest at 8% p.a.; enforcement via sale of mortgaged property or attachment of personal assets permitted.

Punjab Gramin Bank versus Smt. Balbir Kaur — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT DISTRICT TARN TARAN, PUNJAB

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ORIGINAL APPLICATION NO. 470/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2025

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DATE OF DECISION: 01.08.2026

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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 Branch Office at Kot Budha, Tehsil Patti, District Tarn Taran, Punjab through its Authorized Representative, Sh. Rajan Koral

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……..Applicant

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Versus

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Smt. Balbir Kaur, W/o Sh. Surjit Singh, R/o House no. 57, Village Muthia Wala, P.O. Bhangala, Tehsil Patti, District Tarn Taran, Punjab

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….……Defendant

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Advocates:

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Argued by Sh. Ashutosh Bajapi, Advocate proxy for Sh. Ankit Kaushal, Advocate for applicant (through VC)

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None for defendant (already ex-parte vide order dated 13.07.2026)

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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 defendant for recovery of Rs. 26,66,209.83p (Rupees Twenty Six Lacs Sixty Six Thousand Two Hundred Nine and Paise Eighty Three Only). The Original Application has been filed through Sh. Rajan Koral, Authorized Representative o f the applicant who is competent to institute the Original Application General Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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2 OA/470/2025 PUNJAB GRAMIN BANK VS. BALBIR KAUR

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The brief facts of the OA are that the defendant approached the applicant for the grant of KCC Limit of Rs. 15.00 Lacs vide Loan Application dated 29.05.2013, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs. 15.00 Lacs vide Sanction Letter dated 29.05.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged her immovable property i.e. Land measuring 31K 06M situated at Village Muthia Wala, Tehsil Patti, District Tarn Taran, Punjab vide Mortgage Deed bearing vasika no. 535 dated 10.07.2013, which is Annexure A5 to this OA.

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Documents executed: Hypothecation Agreement dated 31.08.2013, which is Annexure A4 to this OA; Statement of Account with certificate, which are Annexure A6 and A7 to this OA; Security Confirmation Letters dated 11.05.2016, 07.12.2017, 16.06.2020 and 03.03.2023, which are Annexure A8 to A11 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. 26,66,209.83p, which is recoverable and the defendant was served recall notices 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 vide order dated 13.07.2026. 7. In support of the OA, affidavit of Sh. Rajan Koral, Authorized Representative, Punjab Gramin Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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3 OA/470/2025 PUNJAB GRAMIN BANK VS. BALBIR KAUR

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From the perusal of all the Annexure A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in 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 applicant is entitled to recover a sum of Rs. 26,66,209.83p (Rupees Twenty Six Lacs Sixty Six Thousand Two Hundred Nine and Paise Eighty Three 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.35%p.a. including @2% penal interest from the date of filing of the application till 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, 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.26,66,209.83p (Rupees Twenty Six Lacs Sixty Six Thousand Two Hundred Nine and Paise Eighty Three Only) with costs, current and future simple interest @08.00% p.a. in the loan account from the date

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4 OA/470/2025 PUNJAB GRAMIN BANK VS. BALBIR KAUR

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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 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. 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 18.08.2026 15. 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. Pronounced by me in the open Tribunal at Camp Court District Tarn Taran, Punjab . Dated: 01.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Smt. Balbir Kaur

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Smt. Balbir Kaur

Case brief

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What did the court decide?

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