Allowed

Punjab and Sind Bank v. Sh. Inderjit Singh and Another

DRT2 Jun 2026OA/679/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Punjab & Sind Bank against two respondents for recovery of a loan amount of Rs.23,90,091.04. The bank proved the loan, default, and security documents via ex-parte hearing. The court granted a recovery certificate and fixed interest at 8.00% p.a.

What did the court decide?

The respondents are liable to pay Rs.23,90,091.04 along with simple interest at 8.00% p.a. from the date of filing of the OA till realization.

Punjab and Sind Bank versus Sh. Inderjit Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.679/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2025

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DATE OF DECISION: 02.06.2026

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Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Bank House, 21, Rajendra Place, New Delhi – 110008 and amongst other places a Branch Office at Jagraon, Tehsil Jagraon, District Ludhiana through its Chief Manager & Duly constituted Attorney Sh. Jaswinder Singh.

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……..Applicant

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Versus

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Sh. Inderjit Singh S/o Sh. S. Mehar Singh, R/o Village Cheema, Tehsil Jagraon, District Ludhiana.

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Sh. Dhanna Singh S/o Sh. S. Bishan Singh, R/o Village Deharka, Tehsil Jagraon, District Ludhiana.

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……. .Defendants

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Advocates:

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Argued by Sh. Rajan Arora, Advocate for the applicant (through VC) None for defendants (Already ex-parte vide order dated 30.05.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.23,90,091.04 (Rupees Twenty Three Lacs Ninety Thousand Ninety One and Paise Four Only). The Original Application has been filed through Sh. Jaswinder Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Kisan Credit Card Limit of Rs.3,00,000.00. Thereafter, the defendant no. 1 approached the applicant for enhancement of Kisan Credit Card Limit from Rs.3,00,000.00 to Rs.15,00,000.00 vide Application form for

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2 OA NO.679/2025 PUNJAB AND SIND BANK VS SH. INDERJIT SINGH AND ANOTHER

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Agricultural Credit under PSB Kisan Credit Card Scheme dated 21.07.2016, which is Annexure A4 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.3,00,000.00 vide Sanction Letter dated 10.12.2009, which is Annexure A2 to this OA. Thereafter, the applicant enhanced the Kisan Credit Card Limit from Rs.3,00,000.00 to Rs.15,00,000.00 vide Sanction Letter dated 21.07.2016, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his Immovable Properties i.e.,

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Total Agriculture Land measuring 25 Kanal 19 Marla detailed as

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under:

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(i) Agriculture Land measuring 16 Kanal 0 Marla situated at Village Cheema, Tehsil Jagraon vide Registered Mortgage Deed bearing Vasika no. 2682, dated 25.09.2009, Rapat no. 83 dated 15.10.2009, which is Annexure A3 to this OA.

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(ii) Agriculture Land measuring 9 Kanal 19 Marla situated at Village Cheema, Tehsil Jagraon vide Request for creation of charge in favour of Bank on Land dated 21.07.2016 and Jamabandi for the year 20122013 along with translation, which are Annexures A7 & A8 to this OA.

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Documents executed: Valuation Report dated 08.08.2016, which is Annexure AA to this OA; Agreement of Guarantee, Demand Promissory Note, Hypothecation of Goods to secure a Demand Cash Credit, Revised clauses pertaining to Rate of Interest, Form No. 106, Form No. 199, Form No. 201, Consent clause to be executed by Borrowers, Consent clause to be executed by Guarantor, all dated 08.08.2016, which are Annexures A6 & A9 to A16 to this OA; Legal Notice dated 16.05.2025 along with postal receipts, which are Annexures A17 to A19 to this OA; Statement of Account along with certificate, which are Annexures A20 & A21 to this OA; Revival Letters dated 14.08.2012, 25.05.2015, 04.01.2019, 22.06.2021 and 05.06.2024, which are Annexures A22 to A26 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

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3 OA NO.679/2025 PUNJAB AND SIND BANK VS SH. INDERJIT SINGH AND ANOTHER

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was a debit of Rs.23,90,091.04, 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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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 30.05.2026.

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In support of the OA, affidavit of Sh. Jaswinder Singh, Chief Manage r, Punjab & Sind Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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From the perusal of all the Annexures AA & A1 to A26 to this OA, it is proved that the defendant no.1 approached applicant for availing of loan facility which was granted to him, defendant no. 2 stood as guarantor 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.23,90,091.04 (Rupees Twenty Three Lacs Ninety Thousand Ninety One and Paise Four 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 @11.65%p.a. with penal interest @2% with half yearly rests from 01.04.2025 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 properties, undertaking

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4 OA NO.679/2025 PUNJAB AND SIND BANK VS SH. INDERJIT SINGH AND ANOTHER

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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 @8.00%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 defendants are liable to pay to the applicant sum of Rs.23,90,091.04 (Rupees Twenty Three Lacs Ninety Thousand Ninety One and Paise Four Only), along with interest, jointly and severally, with costs, current and future simple interest @8.00%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 properties 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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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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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 .

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Dated: 02.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Inderjit Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Sh. Inderjit Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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