Allowed

Punjab National Bank v. Sh. Gurcharan Singh

DRT29 Jul 2026OA/608/2024

Case brief

AI extract

What is this about?

The DRT allowed a debt recovery application filed by Punjab National Bank against Gurcharan Singh for Rs. 20.70 lakhs. The court set the interest rate at 8% per annum and ordered the recovery of funds from mortgaged or hypothecated assets in execution proceedings.

What did the court decide?

Recovery of Rs. 20,70,368.74 with simple interest at 8% p.a. from the mortgaged property and hypothecated assets via execution proceedings and issuance of Recovery Certificate.

Punjab National Bank versus Sh. Gurcharan Singh — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 608/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.05.2024

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DATE OF DECISION: 29.07.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi110075 (hereinafter referred to as ‘the Bank’) and having Branches throughout India amongst others, one Branch Office at Chappar, District Patiala, Punjab through Sh. Gurcharan Singh, S/o Sh. Niranjan Singh, Authorized Representative, Circle Sastra Center, Punjab National Bank, Patiala, being the Principal Officer ……..Applicant Versus Sh. Gurcharan Singh, S/o Sh. Hazur Singh, R/o House no. 29, Village Budhanpur, District Patiala, Punjab- 147001 …..Defendant

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Argued by:

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Ms. Richa, Nodal Officer of applicant

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None for defendant (already ex-parte vide order dated 01.07.2026)

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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. 20,70,368.74 (Rupees Twenty Lacs Seventy Thousand Three Hundred Sixty Eight and Paise Seventy Four Only). The Original Application has been filed through Sh. Gurcharan Singh, Authorized Representative o f the applicant who is competent to institute the Original Application vide General Power of Attorney dated 11.10.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant approached the applicant for grant of OGC Limit of Rs. 18.50 Lacs vide Loan Application Form dated 16.04.2016, which is Annexure A2 to this OA.

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2 OA NO. 608/2024 PUNJAB NATIONAL BANK VS. GURCHARAN SINGH

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The applicant sanctioned OGC Limit of Rs. 18.50 Lacs vide Sanction Letter dated 07.05.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. Land measuring 32K 00M situated at Village Budhanpur, Tehsil and District Patiala, Punjab vide Declaration u/s 4 (1) of the Punjab Agriculture Credit Operation's and Miscellaneous Provisions of Banks Act, 1978 dated 07.05.2016 and Jamabandi for the year 2011-2012, which are Annexure A7 and A8 to this OA.

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Defendant hypothecated his standing and future crops vide Hypothecation Agreement dated 16.05.2016, which is Annexure A4 to this OA. Documents executed: Affidavit dated 06.06.2016, which is Annexure A5 to this OA; Master Agreement dated 20.05.2016, which is Annexure A6 to this OA; Balance and Confirmation Letters dated 13.05.2019 and 05.05.2022, which are Annexure A9 and A10 to this OA; Legal Notice dated 06.04.2024 along with postal receipts, which are Annexure A11 and A12 to this OA and Statement of Account, which is Annexure A13 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 loan account there was a debit of Rs. 20,70,368.74, 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. 6. The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 20.01.2025. Thereafter, OA was dismissed for default on 22.01.2025. Again the OA was restored on its original no. vide order dated 01.07.2025 passed in MA/7/2025. Thereafter, notice of restoration of OA was sent to defendant. Notice was served upon defendant but none appeared. Therefore again defendant was proceeded ex-parte vide order dated 01.07.2026. 7. In support of the OA, affidavit of Sh. Gurcharan Singh, Authorized Representative, Punjab National Bank h as been filed.

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3 OA NO. 608/2024 PUNJAB NATIONAL BANK VS. GURCHARAN SINGH

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Heard ex-parte arguments and perused record.

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It was argued by Nodal Officer of applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A13 to this OA, it is proved that 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 favor of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 20,70,368.74 (Rupees Twenty Lacs Seventy Thousand Three Hundred Sixty Eight and Paise Seventy Four Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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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 @9.6%p.a. along with 2% penal interest with half yearly rests from 06.04.2024 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 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 defendant is liable to pay to the applicant a total sum of Rs.20,70,368.74 (Rupees Twenty Lacs Seventy Thousand Three Hundred Sixty Eight and Paise Seventy Four Only) with costs, current

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OA NO. 608/2024 PUNJAB NATIONAL BANK VS. GURCHARAN SINGH

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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 and hypothecated assets of 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.08.2026. 15. 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 . Dated: 29.07.2026

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

Punjab National Bank v. Sh. Gurcharan Singh

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Punjab National Bank v. Sh. Gurcharan Singh

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