Allowed

Punjab National Bank v. Sh. Satpreet Singh and Another

DRT14 May 2026OA/499/2026

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of Rs.37.53 Lacs. The court awarded simple interest at 8% p.a. instead of the claimed rate, directing recovery from mortgaged or personal assets via SARFAESI Act.

What did the court decide?

Order to pay Rs.37,53,610.89 with costs and simple interest @08.00%p.a.; liberty to enforce via SARFAESI Act; Recovery Certificate issued.

Punjab National Bank versus Sh. Satpreet Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.499/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.03.2026

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DATE OF DECISION: 14.05.2026

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Punjab National Bank, a body corporate and Nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot No. 4, Sector10, Dwarka, New Delhi-110075 and amongst other a Branch Office at S.B.S. Nagar, District Ludhiana (Punjab) through its Constituted Attorney and Managèr Sh. Sukhjeet Singh posted at Punjab National Bank, ARM Branch, Ludhiana situated at First Floor, Site No.5, Ferozepur Road, Ludhiana, Punjab.

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........A pplicant

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Versus

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Sh. Satpreet Singh S/o Sh. Karam Singh, R/O H. No. 158, V.P.O. Talwandi Rai, District Ludhiana (Punjab) – 141109.

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Sh. Gurpreet Singh S/o Sh. Karam Singh, R/O H. No. 158, V.P.O. Talwandi Rai, District Ludhiana (Punjab) – 141109.

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........Defendants

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Advocates:

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Argued Ms. Parvinder Kaur, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 07.05.2026)

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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 defendants for recovery of Rs.37,53,610.89 (Rupees Thirty Seven Lacs Fifty Three Thousand Six Hundred Ten and Paise Eighty Nine Only). The Original Application has been filed through Sh. Sukhjeet Singh, Manager, who is competent to institute the Original Application vide Power of attorney dated 08.03.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of Oriental Green Card Limit of

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OA NO.499/2026 PUNJAB NATIONAL BANK VS SH. SATPREET SINGH AND ANOTHER

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Rs.21.00 Lacs vide loan application dated 06.01.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the Oriental Green Card Limit of Rs.21.00 Lacs vide sanction letter dated 06.01.2012, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendants mortgaged their immoveable property i.e. total Land Measuring 32K-00M situated at Village Talwandi Rai-I, Tehsil Raikot, District Ludhiana, Punjab vide registered mortgaged deed bearing vasika no. 5170 dated 18.01.2012 along with translation copy, which is Annexure A5 to this OA.

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Documents executed : Agreement for Hypothecation of existing and future crops/moveable assets/live stock to secure a cash credit account of Oriental Green Card dated 21.01.2012, which is Annexure A4 to this OA; Balance and Security Confirmation Letter all dated 31.12.2014, 01.06.2017, 16.04.2019, 20.03.2021, 31.08.2023, which are Annexures A6 to A10 to this OA; Legal notice dated 27.01.2023 along with postal receipt, which is Annexure A11 to this OA; Statement of account along with certificate, which is Annexure A12 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.37,53,610.89, 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 and they were proceeded ex-parte on 07.05.2026.

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In support of the OA, affidavit of Sh. Sukhjeet Singh, Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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OA NO.499/2026 PUNJAB NATIONAL BANK VS SH. SATPREET SINGH AND ANOTHER

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It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A12 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, 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.37,53,610.89 (Rupees Thirty Seven Lacs Fifty Three Thousand Six Hundred Ten and Paise Eighty Nine 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.

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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 @10.30%p.a. with penal interest @2%p.a. with half yearly rests from 14.03.2026 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 @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

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OA NO.499/2026 PUNJAB NATIONAL BANK VS SH. SATPREET SINGH AND ANOTHER

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Rs.37,53,610.89 (Rupees Thirty Seven Lacs Fifty Three Thousand Six Hundred Ten and Paise Eighty Nine 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 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.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 05.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 14.05.2026

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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. Satpreet Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Satpreet Singh and Another

Case brief

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What did the court decide?

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