Allowed

Punjab Gramin Bank v. Sh. Rampal Singh

DRT20 Mar 2026OA/575/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab Gramin Bank against Rampal Singh for recovery of outstanding loan dues. The Court exercised discretion to grant uniform simple interest at 8% per annum instead of the claimed rates and directed recovery via sale of mortgaged or personal assets.

What did the court decide?

Ordered recovery of Rs.39,59,733.00 plus costs at 8% p.a. simple interest; Recovery Certificate issued; liberty to enforce via sale of assets under SARFAESI Act.

Punjab Gramin Bank versus Sh. Rampal Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.575/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2025

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DATE OF DECISION: 20.03.2026

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Punjab Gramin Bank, a body corporate constituted under the provisions of the Regional Rural Bank Act 1976 (Act No.21 of 1976) having its Head Office at Markfed Road, Kapurthala and amongst others a Branch Office at Andana, Tehsil Moonak, District Sangrur through Rohit Jindal, Branch Manager, General Attorney of Applicant.

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……..Applicant

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Versus

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Sh. Rampal Singh S/o Sh. Lakh Ram @ Lekh Ram R/o Village Karoda, Tehsil Moonak, District Sangrur - 148033.

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…….Defendant

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Advocates:

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Argued by Sh. Ajay Singla, Advocate for Applicant (through VC)

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Defendant already ex-parte vide order dated 23.01.2026.

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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.39,59,733.00 (Rupees Thirty Nine Lacs Fifty Nine Thousand Seven Hundred Thirty Three Only). The Original Application has been filed through Sh. Rohit Jindal, Branch Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs. 10.00 Lacs vide Loan Application dated 27.11.2014, which is Annexure A2 to this OA and for grant of Agriculture Term Loan of Rs.9.00 Lacs under KGC vide loan application dated 27.11.2014, which is Annexure A7 to this OA.

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2 OA NO. 575/2025 PUNJAB GRAMIN BANK VS. RAMPAL SINGH

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs & Agriculture Term Loan of Rs.9.00 Lacs under KGC vide letters of arrangement dated 02.12.2014, which are Annexures A3 & A8 to this OA and terms and conditions were duly accepted by defendant. 4. Defendant mortgaged his immovable property i.e. land measuring 32K-00M situated at Village Karoda, Tehsil Moonak, District Sangrur, Punjab vide declaration dated 04.12.2014 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A12 to this OA.

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Documents executed : Loan Agreements, Demand Promissory Notes, Letters of Undertaking, all dated 17.12.2014, which are Annexures A4 to A6, A9 to A11 to this OA; Revival letters dated 16.12.2017, which is Annexures A13 and A17 to this OA; Balance Confirmation letters dated 19.06.2020, 06.01.2023, which are Annexures A14, A15, A17 and A18 to this OA; Legal Notice dated 25.10.2023, along with its translation, which is Annexure A19 to this OA and Statements of Accounts with certificate, which are Annexures A20 & A21 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.39,59,733.00, which is recoverable and the defendant was served recall notice 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 notices to appear before this Tribunal. Sh. Tejinder Singh, Advocate proxy for Sh. Ashdeep Singh, Advocate appeared on behalf of defendant on 05.06.2025 and filed memo of appearance and was directed to file Power of Attorney. However, no Power of Attorney was filed and also no one appeared on behalf of defendant after 05.06.2025, therefore the defendant was proceeded ex-parte vide order dated 23.01.2026.

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3 OA NO. 575/2025 PUNJAB GRAMIN BANK VS. RAMPAL SINGH

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In support of the OA, affidavit of Sh. Rohit Jindal, Branch Manager, Punjab Gramin Bank has been filed.

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Heard ex-parte arguments and perused record.

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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 A21 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he 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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.39,59,733.00 (Rupees Thirty Nine Lacs Fifty Nine Thousand Seven Hundred Thirty Three Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.00%p.a. with penal interest and half yearly rests in KCC Limit & interest @12.50%p.a. with penal interest and half yearly rests in Term Loan from 18.03.2025 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/hypothecated assets, undertaking of the defendant, quantum of loans 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 uniform simple interest @08.00%p.a. in both the loan accounts from the date of filing of the

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4 OA NO. 575/2025 PUNJAB GRAMIN BANK VS. RAMPAL SINGH

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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.39,59,733.00 (Rupees Thirty Nine Lacs Fifty Nine Thousand Seven Hundred Thirty Three Only), with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 hypothecated assets/mortgaged properties 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.

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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 13.04.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 20.03.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Rampal Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Rampal Singh

Case brief

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