Allowed

Punjab National Bank v. Late Sh. Jarnail Singh through His Legal Heirs

DRT5 Feb 2026OA/700/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a bank's application for recovery of a loan of Rs. 34 Lakhs against the legal representatives of a deceased borrower. The Tribunal issued a recovery certificate and directed that simple interest be granted at 8% p.a. instead of the claimed rate.

What did the court decide?

Recovery Certificate issued; debt of Rs.34,01,475.50 declared payable with 8% simple interest; sale of property authorized if dues not satisfied.

Punjab National Bank versus Late Sh. Jarnail Singh through His… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.700/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.05.2024

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DATE OF DECISION: 05.02.2026

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Punjab National Bank, a Body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075, and having one of its branch situated at Punjab National Bank, B.O. Kotkapura Road, Moga, Punjab through its General Power of Attorney Holder Sh. Rajesh Sachdeva, Manager, Punjab National Bank, Circle Sastra, 1^st Floor, Pratap Road Branch, Pratap Road, Moga, Punjab who is duly Authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Jarnail Singh (Deceased) S/o Sh. Bachan Singh, through his LRs:

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(i) Smt. Harbans Kaur W/o Late Sh. Jarnail Singh

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(ii) Sh. Inderjeet Singh S/o Late Sh. Jarnail Singh (iii) Sh. Charanjeet Singh S/o Late Sh. Jarnail Singh

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(iv) Ms. Sarabjit Kaur D/o Late Sh. Jarnail Singh

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Village Mehron, Tehsil and District Moga, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for the applicant

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Defendants already ex-parte vide order dated 24.11.2025

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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, against the defendants for recovery of Rs.34,01,475.50 (Rupees Thirty Four Lacs One Thousand Four Hundred Seventy Five and Paise Fifty Only). The Original Application has been filed through Sh. Rajesh Sachdeva, Manager of the applicant who is competent to institute the Original

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OA/700/2024 PUNJAB NATIONAL BANK VS. JARNAIL SINGH THROUGH HIS LRs
Application vide Power of Attorney dated 09.06.2017, which is
Annexure A1to this OA.
2. The brief facts of the OA are that the defendant (since deceased) approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 13.02.2015, which isAnnexure A2to this OA.
3. The applicant Sanctioned the KCC Limit of Rs.20.00 Lacs vide
Sanction letter dated 13.02.2015, which isAnnexure A3to this OA the terms and conditions are acceptable by defendant (since deceased).
4. Defendant (since deceased) mortgaged his immovable property
i.e. Land Measuring 47Kanals-19Marlas (5 Acres 7Kanal-19Marla) situated Village Mehron, Hadbast No.51, Tehsil and District Moga, vide
Declaration dated 13.02.2015 u/s 4(1) of Punjab Agricultural Credit
Operation and Miscellaneous Provisions (Banks) Act, 1978, along its
Translation, which areAnnexure A6 & A6Tto this OA; Advocate Report on Title dated 13.02.2015, which isAnnexure A4to this OA; Affidavit
by the borrower dated 12.02.2015, which isAnnexure A5to this OA;
Letter dated 13.02.2015 to Sub-Registrar for creation of charge, which
isAnnexure A7to this OA; Declaration regarding Agricultural Land
dated 17.02.2015 which isAnnexure A11to this O;
Documents executed: Hypothecation Agreement, Letter of
Undertaking, Letter of Consent, Letter by Borrower to the Bank declaring
acceptance of loan terms and conditions, all dated 17.02.2015, which areAnnexures A9, A10 and A12to this OA; Balance and Security
Confirmation Letter dated 03.10.2017, which isAnnexure A13to this
OA; Balance and Security Confirmation Letter dated 23.12.2019, which
isAnnexure A14to this OA; Death Certificate of Sh. Jarnail Singh dated
13.01.2020, which isAnnexure A15to this OA; Balance and Security
Confirmation Letter dated 17.06.2021, which isAnnexure A16to this
OA; Notice of recall dated 26.04.2024, which is Annexure A17 to this OA
and Statement of Account which isAnnexure A18to this OA.
5. 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.34,01,475.50 (Rupees Thirty Four Lacs One Thousand Four

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OA/700/2024

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PUNJAB NATIONAL BANK VS. JARNAIL SINGH THROUGH HIS LRs

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Hundred Seventy Five and Paise Fifty Only) which is recoverable and the legal representative of the deceased defendant 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.11.2025 7. In support of the OA, affidavit of Sh. Rajesh Sachdeva, Manager, Punjab National Bank h as 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 Annexures A1 to A18 to this OA, it is proved that the defendant (since deceased) approached applicant for availing of the loans facility which was granted to him and for that he 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 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.34,01,475.50 (Rupees Thirty Four Lacs One Thousand Four Hundred Seventy Five and Paise Fifty 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed future interest @10.05%p.a. with 2% penal interest and yearly rests from 18.02.2024 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

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OA/700/2024

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PUNJAB NATIONAL BANK VS. JARNAIL SINGH THROUGH HIS LRs

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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 @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 a total sum of Rs.34,01,475.50 (Rupees Thirty Four Lacs One Thousand Four Hundred Seventy Five and Paise Fifty Only) 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.02.2026. 15. 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 . Dated: 05.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Late Sh. Jarnail Singh through His Legal Heirs

Case brief

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Punjab National Bank v. Late Sh. Jarnail Singh through His Legal Heirs

Case brief

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