Allowed

Punjab and Sind Bank v. Sh. Gurlal Singh and Another

DRT25 Aug 2026OA/50/2026

Case brief

AI extract

What is this about?

The Registered Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act by Punjab & Sind Bank against two defendants. The Tribunal issued a Recovery Certificate for Rs. 24,14,514.52 along with 8% simple interest, directing execution against mortgaged or personal assets if not satisfied.

What did the court decide?

Issued Recovery Certificate for Rs. 24,14,514.52 with 8% simple interest; authorized recovery from mortgaged personal assets.

Punjab and Sind Bank versus Sh. Gurlal Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 50/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.01.2026

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DATE OF DECISION: 25.08.2026

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PUNJAB & SIND BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (Act No. 40 of 1980) with its Head Office at 21, Rajindera Place, New Delhi and branches amongst other places, one at Bhikhiwind, Tehsil Patti, District Tarn Taran through its Authorized Attorney Sh. Mahaveer Meena, Senior Manager.

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……..Applicant

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Versus

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Sh. Gurlal Singh S/o Sh. Didar Singh R/o Pahuwind Road, VPO Bhikhiwind, Tehsil Patti, District Tarn Taran.

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Smt. Manjit Kaur W/o Didar Singh R/o Pahuwind Road, VPO Bhikhiwind, Tehsil Patti, District Tarn Taran.

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…….Defendants

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Advocates:

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Argued by Sh. A.B.S. Sidhu, Advocate for Applicant (through VC)

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None for Defendants (already ex-parte vide order dated 18.08.2026)

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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.24,14,514.52 (Rupees Twenty Four Lac Fourteen Thousand Five Hundred Fourteen and Paise Fifty Two Only). The Original Application has been filed through Sh. Mahaveer Meena, Senior Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.12.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendants approached the applicant for grant of Term Loan of Rs.25,00,000.00 vide Loan Application dated 17.01.2023, which is Annexure A2 to this OA.

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2 OA/50/2026 PUNJAB AND SIND BANK VS. SH. GURLAL SINGH AND ANOTHER

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The applicant sanctioned the Term Loan of Rs.25,00,000.00 vide Sanction Letter dated 28.02.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendants mortgaged their property ie. Residential House measuring 10-Marla, situated at Village Bhikhiwind, Tehsil Patti, District Tarn Taran, Punjab vide deposit of Sale Deed bearing Vasika no. 2351 dated 07.03.2008, which is Annexure A5 to this OA; Documents executed: Term Loan Agreement dated 06.03.2023, which is Annexure A4 to this OA; Form No. 84A dated 06.03.2023, which is Annexure A6 to this OA; Legal Notice dated 09.12.2025, which is Annexure A7 to this OA; Statement of Account dated 30.11.2025, which is Annexure A8 to this OA; Certificate dated 22.12.2025, which is Annexure A9 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.24,14,514.52 (Rupees Twenty Four Lac Fourteen Thousand Five Hundred Fourteen and Paise Fifty Two 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 18.08.2026. 7. In support of the OA, affidavit of Sh. Mahaveer Meena, Senior Manage r, Punjab & Sind Bank , has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel, through video conferencing 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 A9 to this OA, it is proved that the defendants approached the applicant for availing of the loan facility, which was granted to them. Defendants had executed all the relevant documents in favour of the bank. The defendants failed to

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3 OA/50/2026

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PUNJAB AND SIND BANK VS. SH. GURLAL SINGH AND ANOTHER

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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.24,14,514.52 (Rupees Twenty Four Lac Fourteen Thousand Five Hundred Fourteen and Paise Fifty 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 amount.

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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 @11.30% p.a. plus 2.00% p.a. penal interest with monthly rests from 01.12.2025 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, 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.24,14,514.52 (Rupees Twenty Four Lac Fourteen Thousand Five Hundred Fourteen and Paise Fifty Two 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

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OA/50/2026 PUNJAB AND SIND BANK VS. SH. GURLAL SINGH AND ANOTHER

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.09.2026 15. 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: 25.08.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Gurlal Singh and Another

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Punjab and Sind Bank v. Sh. Gurlal Singh and Another

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