Allowed

Punjab National Bank v. Smt. Daljit Kaur and Another

DRT9 Jan 2026OA/680/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's application for recovery of Rs.28,96,709.40 from respondents jointly and severally. The court exercised discretion to fix interest at 8% p.a. instead of the claimed 10.80% p.a. and ordered issuance of Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Respondents directed to pay Rs.28,96,709.40 plus 8% p.a. interest from filing date.

Punjab National Bank versus Smt. Daljit Kaur and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.680/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.05.2024

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DATE OF DECISION: 09.01.2026

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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 Offices, amongst others at Branch Office: VPO Kohara, District Ludhiana, Punjab through its General Power of Attorney Holder Shri Ravinder Kumar, Sr. Manager of the Applicant.

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……..Applicant

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Versus

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Smt. Daljit Kaur W/o Shri Kamaljit Singh, R/o VPO Pakowal,

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Tehsil Raikot, Ludhiana, Punjab.

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Shri Baldev Singh S/o Shri Hardial Singh, R/o Village Mawagarh, PO Kohara, District Ludhiana, Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Pancham Sharma, Advocate for Applicant

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Defendants already ex-parte vide order dated 09.10.2025

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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,

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against the defendants for recovery of Rs.28,96,709.40 (Rupees Twenty Eight Lacs Ninety Six Thousand Seven Hundred Nine and Paise Forty Only). The Original Application has been filed through Shri Ravinder Kumar, Senior Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated, which is Annexure A1 to this OA.

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OA/680/2024 PUNJAB NATIONAL BANK Vs. DALJIT KAUR AND ANOTHER

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The brief facts of the OA are that the defendant no.1 approached the applicant for grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 29.08.2011, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Sanction letter dated 06.09.2011, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable property i.e. Agriculture Land measuring 19Bigha-4½Biswa situated at Village Payal-I, H.B. No.235, Sub Tehsil Payal, District Ludhiana, Punjab vide Mortgaged Deed bearing vasika no.1911 dated 08.09.2011, along with its translation, which is Annexures A6 to this OA.

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Documents executed : Agreement for hypothecation and Agreement of guarantee, both dated 21.09.2011, which are Annexures A4 & A5 to this OA; Balance & Security Confirmation Letter dated 27.05.2014 14.03.2017, which is Annexure A7 to this OA; Legal Notice dated 28.03.2024, which is Annexure A8 to this OA and Statement of account, which is Annexure A9 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.28,96,709.40, 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 09.10.2025. 7. In support of the OA, affidavit of Shri Ravinder Kumar, Senior Manager, Punjab National Bank, has been filed. 8. Heard ex-parte arguments and perused record.

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OA/680/2024 PUNJAB NATIONAL BANK Vs. DALJIT KAUR AND ANOTHER

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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. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendants approached 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 of Rs.28,96,709.40 (Rupees Twenty Eight Lacs Ninety Six Thousand Seven Hundred Nine and Paise Forty 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.

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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 @10.80% p.a. with half yearly rests from 22.09.2023 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/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 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

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OA/680/2024 PUNJAB NATIONAL BANK Vs. DALJIT KAUR AND ANOTHER

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Rs.28,96,709.40 (Rupees Twenty Eight Lacs Ninety Six Thousand Seven Hundred Nine and Paise Forty 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/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.

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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

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Tribunal on 23.01.2026.

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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: 09.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Daljit Kaur and Another

Case brief

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Punjab National Bank v. Smt. Daljit Kaur and Another

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