Allowed

Punjab National Bank v. Sh. Darshan Singh and Another

DRT9 Jun 2026OA/630/2026

Case brief

AI extract

What is this about?

In this ex-parte recovery application, the Tribunal allowed the bank's claim for outstanding dues totaling Rs. 36,09,557. The Court fixed simple interest at 8.00 p.a. and directed issuance of a recovery certificate and enforcement of the claim against mortgaged property.

What did the court decide?

Permission to recover sum of Rs. 36,09,557 from sale of mortgaged property with interest at 8% p.a. Recovery certificate issued.

Punjab National 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. 630/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.04.2026

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DATE OF DECISION: 09.06.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and a Branch amongst others at Ropar through Recovery Vertical at ARMB, Ludhiana, Punjab through Sh. Neeraj Sharma, Senior Manager, Principal Officer and duly Constituted Attorney

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……..Applicant

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Versus

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Sh. Darshan Singh, S/o Sh. Surjan Singh, R/o #3B, Village Chotta Phul, Tehsil and District Rupnagar, Punjab- 140001

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Sh. Vipin Pal, S/o Sh. Jaidev Singh, R/o Chamkaur Sahib, District Ropar, Punjab- 140112

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….……Defendants

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Advocates:

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Argued by Sh. Gaurav Thakur, Advocate proxy for Ms. Preeti Kalia, Advocate for applicant

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None for defendants (already ex-parte vide order dated 06.06.2026)

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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 defendants for recovery of Rs. 36,09,557.00 (Rupees Thirty Six Lacs Nine Thousand Five Hundred Fifty Seven Only). The Original Application has been filed through Sh. Neeraj Sharma, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.12.2019, which is Annexure A1 to this OA.

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2 OA NO.630/2026

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PUNJAB NATIONAL BANK VS. DARSHAN SINGH AND ANOTHER

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of KCC Limit of Rs. 3.00 Lacs vide Application Form dated 12.10.2009, which is Annexure A2 to this OA. Thereafter, defendant no. 1 approached the applicant for enhancement of KCC Limit to Rs. 20.00 Lacs vide Application Form dated 24.09.2015, which is Annexure A8 to this OA. Thereafter, defendant no. 1 again approached the applicant for fresh KCC Limit of Rs. 5.00 Lacs.

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The applicant sanctioned KCC Limit of Rs. 3.00 Lacs vide Sanction Letter dated 12.10.2009, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of KCC Limit to Rs.20.00 Lacs vide Sanction Letter dated 30.09.2015, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned fresh KCC Limit of Rs. 5.00 Lacs vide Application cum Sanction Letter dated 11.04.2017, which is Annexure A14 to this OA. Defendant no. 2 stood as guarantor in fresh KCC Limit Account.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 04 Bigha 16 Biswa situated at Village Gurdaspura, Hadbast no. 75, Tehsil and District Rupnagar, Punjab bearing vasika no. 1729 dated 29.09.2009 and Declaration dated 29.09.2015, which are Annexure A7 and A13 to this OA.

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Documents executed: Hypothecation Agreement, Letter of Consent and Letter of Undertaking, all dated 14.10.2009, which are Annexure A4 to A6 to this OA; Hypothecation Agreement, Letter of Consent and Letter of Undertaking, all dated 30.09.2015, which are Annexure A10 to A12 to this OA; Hypothecation Agreement and Guarantee Agreement, both dated 11.04.2017, which are Annexure A15 and A16 to this OA; Balance Confirmation Letters dated 29.05.2012, 21.11.2014, 16.11.2017, 02.07.2018, 02.05.2022, 31.07.2019 and 17.04.2025, which is Annexure A17 to this OA; Legal Notice dated 06.03.2026, which is Annexure A18 to this OA and Statement of

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3 OA NO.630/2026 PUNJAB NATIONAL BANK VS. DARSHAN SINGH AND ANOTHER

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Accounts with certificate, which are Annexure A19 and A20 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 the loan accounts there was a debit of Rs. 36,09,557.00, which is recoverable and the defendants were served recall notice 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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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 06.06.2026.

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In support of the OA, affidavit of Sh. Neeraj Sharma, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 Annexure A1 to A20 to this OA, it is proved that defendant no. 1 approached applicant for availing of the loan facilities which were granted to him. Defendant no. 2 stood as guarantor in fresh KCC Limit Account. Defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.28,97,462.00 (Rupees Twenty Eight Lacs Ninety Seven Thousand Four Hundred Sixty Two Only) from defendant no. 1 and Rs.7,12,095.00 (Rupees Seven Lacs Twelve Thousand Ninety Five Only) from defendants, along with interest, jointly and severally, from

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4 OA NO.630/2026 PUNJAB NATIONAL BANK VS. DARSHAN SINGH AND ANOTHER

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the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.30%p.a. from the date of application 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 hypothecated assets/mortgaged property, undertaking of the defendants, 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 simple interest @8.00% p.a. in both the loan accounts 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 no. 1 is liable to pay to the applicant a total sum of Rs.28,97,462.00 (Rupees Twenty Eight Lacs Ninety Seven Thousand Four Hundred Sixty Two Only) and defendants are liable to pay to the applicant a total sum of Rs. 7,12,095.00 (Rupees Seven Lacs Twelve Thousand Ninety Five Only) jointly and severally, with costs, current and future simple interest @8.00% 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 mortgaged property of defendant no. 1 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.

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5 OA NO.630/2026

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PUNJAB NATIONAL BANK VS. DARSHAN SINGH AND ANOTHER

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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 23.06.2026.

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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: 09.06.2026

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

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Presiding Officer,

Punjab National Bank v. Sh. Darshan Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Darshan Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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