Allowed

Punjab National Bank v. Sh. Jagdev Singh and Another

DRT24 Feb 2026OA/606/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an outstanding loan of approximately Rs.29.94 lakhs. The defendants, who were absent, failed to repay despite offering security. The Tribunal allowed the principal claim but moderated the interest rate to 8% per annum from the filing date.

What did the court decide?

Recovery of Rs.28,94,597.00 with costs and simple interest @8% p.a. from date of OA till realization; recovery certificate issued.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.606/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 21.02.2022

¶5

DATE OF DECISION: 24.02.2026

¶6

Punjab National Bank, erstwhile Oriental Bank of Commerce, a body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act having its Head Office at Sector 10, Dwarka, New Delhi and one of its Branch Office amongst other at Daudhar, District Moga, Punjab, through its General Power of Attorney Holder.

¶7

… ..Applicant

¶8

Versus

¶9

Sh. Jagdev Singh S/o Sh. Gurdayal Singh, R/o H. No. 349, Village Daudhar, Patti Gurian, Tehsil and District Moga, Punjab.

¶10

Sh. Niranjan Singh S/o Sh. Nathu Singh, R/o H. No. 349, Village Daudhar, Patti Gurian, Tehsil and District Moga, Punjab.

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Kamal, Advocate for the applicant

¶14

Defendants already ex-parte vide order dated 20.12.2025

¶15

FINAL ORDER

¶16

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.28,94,597.00 (Rupees Twenty Eight Lacs Ninety Four Thousand Five Hundred Ninety Seven Only). The Original Application has been filed through Sh. Sandeep Kumar, Power of Attorney Holder of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A12 to this OA.

¶17

2 OA 606/2022

¶18

PUNJAB NATIONAL BANK VS. JAGDEV SINGH AND ANOTHER

¶19

The brief facts of the OA that the defendant no. 1 approached the applicant for grant KCC Limit of Rs.15.00 Lacs vide Loan Application dated 14.01.2013, which is Annexure A1 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 14.01.2013, which is Annexure A2 to this OA and terms and conditions were duly accepted by the applicant. 4. Defendant no. 1 mortgaged his immovable property i.e., Land Measuring 26 Kanal-02Marla situated in Village Daudhar Sharki-2, Tehsil and District Moga, Punjab vide Mortgage Deed bearing vasika no. 7714 dated 24.01.2013, which is Annexure A4 to this OA. Documents executed: Affidavit dated 23.01.2013, which is Annexure A3 to this OA; Agreement of Hypothecation dated 05.02.2013, which is Annexure A5 to this OA; Agreement of Guarantee, which is Annexure A6 to this OA; Balance of Security Confirmation Letter dated 03.02.2016, which is Annexure A7 to this OA; Balance of Security Confirmation dated 02.01.2019,which is Annexure A8 to this OA; Statement Of Account with Computation Chart and Certificate, which are Annexures A9 to A11 to this OA; ID Proof of Defendant no. 1, which is Annexure A13 to this OA; Notice dated 01.12.2021, which is Annexure A14 to this OA. 5. 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.28,94,597.00 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 20.12.2025.

¶20

3 OA 606/2022 PUNJAB NATIONAL BANK VS. JAGDEV SINGH AND ANOTHER

¶21

In support of the OA, affidavit of Sh. Sandeep Kumar, Power of Attorney Holder, Punjab National Bank h as been filed.

¶22

Heard ex-parte arguments and perused record.

¶23

It was argued by learned counsel 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 A14 to this OA, it is proved that the defendants approached the 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, 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 Rs.28,94,597.00 (Rupees Twenty Eight Lacs Ninety Four Thousand Five Hundred Ninety Seven 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.

¶24

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest and half yearly rests from 01.12.2021 till the realization.

¶25

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 uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till

¶26

¶27

OA 606/2022

¶28

PUNJAB NATIONAL BANK VS. JAGDEV SINGH AND ANOTHER

¶29

realization of the amount ordered vide this final order. It is ordered accordingly.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,94,597.00 (Rupees Twenty Eight Lacs Ninety Four Thousand Five Hundred Ninety Seven 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 hypothecated assets/mortgaged properties 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. 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 11.03.2026. 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.

¶31

Pronounced by me in the open Tribunal . Dated: 24.02.2026

¶32

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

Punjab National Bank v. Sh. Jagdev Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Jagdev Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Sh. Shabnampreet Singh

Bank of India versus Sh. Nirmal Singh and Others

Kotak Mahindra Bank Limited versus Sh. Tripat Singh and Others

Sanjeev Rattan and Another versus Au Small Finance Bank Limited and Another

Ms R K Subh and Others versus Punjab and Sind Bank

Uday Pal Singh versus Canara Bank and Another