Allowed

Punjab National Bank v. Smt. Sukhjinder Kaur and Another

DRT17 Aug 2026OA/707/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs.33,07,599. The defendants disputed signatures and interest rates; the Tribunal rejected these claims without external proof. The Tribunal reduced interest to 8% and ordered a Recovery Certificate and attachment proceedings.

What did the court decide?

Recovery of Rs.33,07,599.00 with 8% simple interest; Recovery Certificate issued; attachment of personal assets if surrender of mortgaged property proceeds fails.

Punjab National Bank versus Smt. Sukhjinder Kaur and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 707/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.05.2023

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DATE OF DECISION: 17.08.2026

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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 ADDA Daburji, Post Office Thathi Khara, District Tarn Taran (Punjab), Pin Code – 143022 through its recovery vertical i.e. Circle Sastra Centre, McLeod Road, Amritsar (Punjab) through Sh. Jaswinder Singh Chadha S/o Sh. Tarunbir Singh, Sr. Manager, Principal Officer and duly constituted Attorney of the Applicant Bank.

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……..Applicant

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Versus

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Smt. Sukhjinder Kaur W/o Sh. Karamjit Singh alias Kanwarjit Singh, H. No. 176, Village Johal Raju Singh, Tehsil and District Tarn Taran (Punjab) 143401.

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Sh. Manjinder Singh S/o Karamjit Singh, H. No. 176, Village Johal Raju Singh, Tehsil & District Tarn Taran (Punjab) 143401.

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…….Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, Advocate for Applicant.

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Ms. Lovedeep Kaur, Advocate for Defendants.

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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.33,07,599.00 (Rupees Thirty Three Lac Seven Thousand Five Hundred Ninety Nine Only). The Original Application has been filed through Sh. Jaswinder Singh Chadha, Sr. Manager, of the Applicant, who is competent to institute the Original Application vide

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2 OA/707/2023 PUNJAB NATIONAL BANK VS. SMT. SUKHJINDER KAUR AND ANOTHER

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General Power of Attorney dated 05.12.2005, 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 sanction of KCC Limit of Rs.20.00 lacs vide Loan Applications, which are Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.20.00 lacs vide Sanction Letter dated 25.02.2016, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged her property i.e. Agricultural land measuring 48Kanal-0Marla, situated at Village Johal Raju Singh, Tehsil and District Tarn Taran (Punjab) vide Mortgage Deed dated 11.03.2016 with translation, which is Annexure A4 & A4 “T” to this OA;

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Documents executed: Bank Letter for Mortgage/Mutation dated 11.03.2016, which is Annexure A5 to this OA; Affidavit dated 09.03.2016, which is Annexure A6 to this OA; Hypothecation Agreement dated 16.03.2016, which is Annexure A7 to this OA; Letter of Consent dated 16.03.2016, which is Annexure A8 to this OA; Letter of Undertaking dated 16.03.2016, which is Annexure A9 to this OA; Deed of Guarantee dated 16.03.2016, which is Annexure A10 to this OA; Balance Confirmation Letters dated 15.03.2019 and 04.03.2022, which are Annexure A11 to this OA; Recall Notice dated 01.05.2021, which is Annexure A12 to this OA; Statement of Account, which is Annexure A13 to this OA; Certificate under Bankers’ Books Evidence Act dated 11.05.2023, which is Annexure A14 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.33,07,599.00 (Rupees Thirty Three Lac Seven Thousand Five Hundred Ninety Nine 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/707/2023 PUNJAB NATIONAL BANK VS. SMT. SUKHJINDER KAUR AND ANOTHER

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The defendants were served summons to appear before this Tribunal and after the service of summons, Ms. Lovedeep Kaur, Advocate appeared on behalf of defendants and filed her Power of Attorney on 22.12.2023. Paperbook was supplied to counsel for defendants on 04.01.2024. WS was filed on 03.02.2024. The matter was listed for admission or denial of documents on 16.05.2025, Sh. Parminder Singh, Senior Manager of the applicant, produced the documents, which were seen by the defendants. The counsel for defendants admitted the signatures on the documents but denied their contents.

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The brief facts of WS of defendants are that the application is misconceived and is not maintainable in its form.

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It was further stated that interest is charged much higher than agreed rate of interest in terms and conditions of loan agreement.

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It was further stated that the bank official got signatures of the defendants on blank papers under duress and are false, fabricated and manipulated.

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In support of the OA, affidavit of Sh. Jaswinder Singh Chadha, Senior Manager , Punjab National Bank, has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel for applicant that in view of the documentary evidence brought on record, the applicant had proved its case.

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It was argued by learned counsel for defendants that applicant had obtained the signatures of defendants on the blank papers. It was further argued that rate of interest was charged higher than the agreed rate of interest. It was prayed that lenient view may be taken while granting interest. No other point was argued by the defendants.

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant no.1 approached the applicant for availing of the loan facility, which was granted to her. 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

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4 OA/707/2023 PUNJAB NATIONAL BANK VS. SMT. SUKHJINDER KAUR AND ANOTHER

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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.33,07,599.00 (Rupees Thirty Three Lac Seven Thousand Five Hundred Ninety Nine 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.

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The defendants in their written statement had stated that the applicant has obtained signatures of the defendants on blank papers. However, the defendants did not lodge any complaint before any Higher Forum of the Bank or Court of Law. Therefore, it is inferred that cock and bull story was prepared by the defendants before this Tribunal.

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Also, the defendants in their written statement had stated that the applicant has charged higher rate of interest than the agreed rate of interest. However, the rate of interest has been calculated as per terms and conditions in the sanction letter.

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At the time of arguments or before it, learned counsel for defendants has not produced any evidence which could create any doubt on the claim of the applicant. Contents of WS are vague and contradictory. Therefore, there is no reason to disbelieve the documentary evidence produced by the applicant from Annexures A1 to A14.

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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 @11.50% p.a. plus 2.00% p.a. penal interest with yearly rests from 22.04.2023 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 from

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5 OA/707/2023 PUNJAB NATIONAL BANK VS. SMT. SUKHJINDER KAUR AND ANOTHER

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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.33,07,599.00 (Rupees Thirty Three Lac Seven Thousand Five Hundred Ninety Nine 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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13. 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 01.09.2026

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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 . Dated: 17.08.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Sukhjinder Kaur and Another

Case brief

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Punjab National Bank v. Smt. Sukhjinder Kaur and Another

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