Allowed

Punjab National Bank v. Sh. Bachan Ram Alias Bachna Ram and Another

DRT18 Aug 2026OA/679/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application by Punjab National Bank seeking recovery of Rs.27.69 lakhs plus interest granted to Sh. Ravinder Kumar as General Power of Attorney. The defendants were deemed to have defaulted on an OGC Loan. The Order declares the defendants liable to pay the principal amount jointly and severally and grants simple interest at 8% p.a. instead of the cla

What did the court decide?

Declaration for payment of Rs.27,69,206.81 jointly and severally; simple interest @08.00% p.a.; Recovery via sale of mortgaged property; Issuance of Recovery Certificate.

Punjab National Bank versus Sh. Bachan Ram Alias Bachna Ram… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 679/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.06.2024

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DATE OF DECISION: 18.08.2026

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Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and Branch Office Machhiwara, District Ludhiana, Punjab, through its General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Bachan Ram alias Bachna Ram S/o Sh. Mehnga Ram R/o Village Khera, Tehsil Samrala, District Ludhiana, Punjab.

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Sh. Sanjeev Malhotra S/o Sh. Dalip Kumar R/o MRM Road, Street No. 2, H.S. 121, Machhiwara, Tehsil Samrala, Ludhiana, Punjab.

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…….Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Pancham Sharma, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 11.08.2026)

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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.27,69,206.81 (Rupees Twenty Seven Lac Sixty Nine Thousand Two Hundred Six and Paise Eighty One Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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2 OA/679/2024 PUNJAB NATIONAL BANK VS. SH. BACHAN RAM ALIAS BACHNA RAM AND ANOTHER

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The brief facts of the OA are that the Defendant no.1approached the applicant for sanction of OGC Limit of Rs.20.00 lacs vide Application Form-cum-Process Note dated 13.05.2013, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant sanctioned the OGC Limit of Rs.20.00 lacs vide Sanction Letter dated 13.05.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Thereafter, the applicant renewed the OGC Limit of Rs.20.00 lacs as per request vide Renewal Application along with Sanction Letter dated 19.11.2018, which is Annexure A6 to this OA;

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Defendant no. 1 mortgaged his property ie. Agricultural land measuring 32Kanal-16Marla, situated at o Village Khera, Hadbast No.16, Tehsil Samrala, District Ludhiana, Punjab, vide Mortgaged Deed No. 303 dated 13.05.2013, which is Annexure A7 to this OA; Documents executed: Agreement for Hypothecation of Existing and Future Crops, Moveable Assets/Live Stock to secure a Cash Credit Account of Oriental Green Card dated 23.05.2013, which is Annexure A4 to this OA; Agreement of Guarantee dated 24.05.2013, which is Annexure A5 to this OA; Balance and Security Confirmation Letter dated 19.11.2018 and 05.08.2021, which is Annexure A8 to this OA; Legal Notice dated 28.03.2024, which is Annexure A9 to this OA; Statement of Account dated 21.09.2023 along with Certificate under Bankers’ Books of Evidence Act dated 04.04.2024, which is Annexure A10 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 the loan account, there was a debit of Rs.27,69,206.81 (Rupees Twenty Seven Lac Sixty Nine Thousand Two Hundred Six and Paise Eighty One Only), 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.

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3 OA/679/2024 PUNJAB NATIONAL BANK VS. SH. BACHAN RAM ALIAS BACHNA RAM AND ANOTHER

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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 11.08.2026.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manage r, Punjab National Bank, has been filed.

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Heard arguments and perused record.

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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.

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From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant no.1 approached the applicant for availing of the loan facility, which was granted to him. Defendant no.2 stood as guarantor. 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 of Rs.27,69,206.81 (Rupees Twenty Seven Lac Sixty Nine Thousand Two Hundred Six and Paise Eighty One Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.10% p.a. with half yearly rests from 07.06.2023 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, 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 simple interest @08.00% p.a. in the loan account

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OA/679/2024 PUNJAB NATIONAL BANK VS. SH. BACHAN RAM ALIAS BACHNA RAM AND ANOTHER

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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 defendants are liable to pay to the applicant a total sum of Rs.27,69,206.81 (Rupees Twenty Seven Lac Sixty Nine Thousand Two Hundred Six and Paise Eighty One 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 mortgaged property of the 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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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 02.09.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 18.08.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Bachan Ram Alias Bachna Ram and Another

Case brief

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Punjab National Bank v. Sh. Bachan Ram Alias Bachna Ram and Another

Case brief

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