Allowed

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

DRT28 Aug 2026OA/566/2025

Case brief

AI extract

What is this about?

The DRT allowed the Bank's application under Section 19 RDB Act for recovery of Rs. 22.36 lakhs. The Tribunal fixed interest at 8% p.a. and directed recovery from mortgaged property or personal assets via execution.

What did the court decide?

Declaration of liability to pay Rs. 22,36,400.72 with 8% p.a. interest. Issuance of Recovery Certificate. Direction for enforcement via sale of mortgaged property or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.566/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.05.2025

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DATE OF DECISION: 28.08.2026

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Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Bank House, 21, Rajendra Place, New Delhi - 110008 and amongst other places a Branch Office at Jagraon, Tehsil Jagraon, District Ludhiana through its Chief Manager & duly constituted Attorney Sh. Jaswinder Singh.

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……..Applicant

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Versus

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Sh. Darshan Singh S/o Sh. Naginder Singh, R/o VPO Sidhwan Kalan, Tehsil Jagraon, District Ludhiana.

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Sh. Surinderpal Singh S/o Sh. Naranjan Singh, R/o Village Jassowal, Tehsil Jagraon, District Ludhiana.

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…….. Defendants

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Advocates:

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Argued by Sh. Rajan Arora, Advocate for the applicant (through VC) None for defendants (Already ex-parte vide order dated 24.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.22,36,400.72 (Rupees Twenty Two Lacs Thirty Six Thousand Four Hundred and Paise Seventy Two Only). The Original Application has been filed through Sh. Jaswinder Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, dated 27.03.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of

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2 OA NO.566/2025 PUNJAB AND SIND BANK VS SH. DARSHAN SINGH AND ANOTHER

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Rs.9,00,000.00 vide Application form for Agricultural Credit, dated 05.01.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.9,00,000.00 vide Sanction Letter, dated 05.01.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his Immo vable Property i.e., Total Land measuring 11 Kanal 6 Marla, situated at Village Sidhwan Kalan, Tehsil Jagraon, District Ludhiana, vide Declaration u/s 4(1) along with Request Letter for creation of bank’s charge for mortgage of agriculture land, dated 26.12.2014, vide serial no. 702 and Jamabandi for the year 2012-2013, along with its translations, which are Annexures A5 & A6 to this OA.

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Documents executed: Valuation Report, dated 05.01.2015, which is Annexure AA to this OA; Deed of Guarantee, Demand Promissory Note, Demand Promissory Note Delivery Letter, Hypothecation of goods to secure a demand cash credit, Revised clauses pertaining to rate of interest, Form No. 106, Form No. 201, Consent clause to be executed by borrower, Consent clause to be executed by guarantor, Undertaking, all dated 05.01.2015, which are Annexures A4, A7 to A15 to this OA; Legal Notice, dated 18.04.205, along with postal receipts, which are Annexures A16 to A18 to this OA; Statement of Account along with certificate, which are Annexures A19 & A20 to this OA; Revival Letter, dated 07.09.2017, which is Annexure A21 to this OA; Balance and Security Confirmation Letters, dated 09.07.2020, 27.06.2023, which are Annexures A22 & A23 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.22,36,400.72, 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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3 OA NO.566/2025

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PUNJAB AND SIND BANK VS SH. DARSHAN SINGH AND ANOTHER

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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 vide order dated 24.08.2026.

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In support of the OA, affidavit of Sh. Jaswinder Singh, Chief Manager, Punjab and Sind Bank has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 AA, A1 to A23 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facility which was granted to him, defendant no. 2 stood as guarantor 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.22,36,400.72 (Rupees Twenty Two Lacs Thirty Six Thousand Four Hundred and Paise Seventy 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.60%p.a. with half yearly rests, with penal interest @2%p.a., from 01.04.2025 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

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4 OA NO.566/2025 PUNJAB AND SIND BANK VS SH. DARSHAN SINGH AND ANOTHER

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%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 sum Rs.22,36,400.72 (Rupees Twenty Two Lacs Thirty Six Thousand Four Hundred and Paise Seventy Two Only), jointly and severally, with costs, current and future simple interest @8.00%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 defendant no. 1 i n 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 28.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

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

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