Debt Recovery Tribunal allowed an application by Punjab National Bank for recovery of a loan. The court approved the claim for the principal amount and awarded simple interest at 8% per annum from the filing date, exceeding the pendente lite rate claimed.
Recovery of Rs. 41,55,380.67 with interest at 8% p.a.; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.583/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.04.2026
DATE OF DECISION: 27.07.2026
Punjab National Bank, a body corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Fatehgarh Panjtoor, Tehsil Dharamkot, District Moga through Sh. Rajesh Sachdeva, Branch Managar, Principal Officer and Constituted Attorney.
……..Applicant
Versus
Sh. Gurcharan Singh S/o Sh. Mukhtiar Singh, R/o Village MelakKanga, PO Fatehgarh Panjtoor, Tehsil Dharamkot, District Moga, 142043.
……. .Defendant
Advocates:
Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant
None for Defendant (Already ex-parte vide order dated 23.07.2026).
FINAL ORDER
2 OA NO.583/2026 PUNJAB NATIONAL BANK VS SH. GURCHARAN SINGH
Loan Application Form for Agricultural Credit dated 19.12.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned the Kisan Gold Card Limit of Rs.30,00,000.00 vide Sanction Letter dated 17.01.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his Immoveable Property i.e., Land measuring 93 Kanal 04 Marlas situated at Village Takhtu Wala, Tehsil Dharamkot, District Moga, as per Jamabandi for the year 20172018, vide Declaration u/s 4(1) and Request Letter for Registration of Bank’s Charge for mortgage of Agriculture Land, both dated 18.01.2023, which is Annexure A6 to this OA. Documents executed : Hypothecation Agreement, Letter of Undertaking, both dated 18.01.2023, which are Annexures A4 & A5 to this OA; Balance and Security Confirmation Letter dated 28.01.2025, which is Annexure A7 to this OA; Legal Notice dated 14.06.2025, along with postal receipt, which is Annexure A8 to this OA; Statement of account along with certificate, which is Annexure A9 to this OA. 5. 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.41,55,380.67, 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. 6. The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 23.07.2026. 7. In support of the OA, affidavit of Sh. Rajesh Sachdeva, Branch Managar , Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.
3 OA NO.583/2026 PUNJAB NATIONAL BANK VS SH. GURCHARAN SINGH
From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant approached applicant for availing of the loan facility, which was 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, 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.41,55,380.67 (Rupees Forty One Lacs Fifty Five Thousand Three Hundred Eighty and Paise Sixty Seven Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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.
4
OA NO.583/2026 PUNJAB NATIONAL BANK VS SH. GURCHARAN SINGH
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 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.
Pronounced by me in the open Tribunal .
Dated: 27.07.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant was entitled to recover the outstanding loan amount.
What rate of interest should be granted in the loan account.
2 provisions across 2 enactments
Punjab National Bank
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
