Debts Recovery Tribunal allowed ex-parte application by Punjab Gramin Bank for recovery of ₹32 lakhs. Court adjusted interest rate to 8% p.a. and directed issuance of recovery certificate and attachment proceedings.
Defendant declared liable to pay ₹32,17,640.11 plus 8% p.a. simple interest. Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 731/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 18.05.2026
DATE OF DECISION: 10.07.2026
Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act, 1976 having its Head Office at, Markfed Road, Kapurthala and amongst other branches, inter-alia a Branch Office at Kadupur, Tehsil and District Kapurthala, (Punjab) through its duly constituted attorney, Sh. Sandeep Singh, presently posted as Manager cum Constitute Attorney, at Kadupur, Tehsil and District Kapurthala, (Punjab).
.…..Applicant Versus
Sh. Harpreet Singh son of Sh. Jarnail Singh resident of Kadupur, Lakhan Kalan, Tehsil and District Kapurthala (Punjab).
………. Defendant
Advocates:
Argued by Sh. Narinder Kumar, Advocate for Applicant (through VC) None for Defendant (Already ex parte vide order dated 08.07.2026)
FINAL ORDER
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OA/731/2026 PUNJAB GRAMIN BANK VS SH. HARPREET SINGH
Thereafter, the defendant approached the applicant for grant of Term Loan of Rs. 1.00 Lac vide Loan Application for Term Loan dated 28.06.2017, which is Annexure A10 to this OA.
Thereafter, the applicant sanctioned the Term Loan of Rs. 1.00 Lac vide Sanction Letter for Term Loan dated 28.06.2017, which is Annexure A11 to this OA.
Documents executed : Declaration of Agricultural Land for KCC Limit dated 11.12.2015, which is Annexure A4 to this OA; Hypothecation Agreement for KCC Limit dated 11.12.2015, which is Annexure A5 to this OA; Enclosure-A for KCC Limit dated 25.11.2015, which is Annexure A6 to this OA; Rule Based Lending for KCC Limit dated 25.11.2015, which is Annexure A7 to this OA; Letter of Undertaking for KCC Limit dated 11.12.2015, which is Annexure A8 to this OA; Hypothecation Agreement for Term Loan dated 29.06.2017, which is Annexure A12 to this OA; Balance and Confirmation Letter in KCC Limit dated 09.11.2018, which is Annexure A13 to this OA; Balance and Confirmation Letter in KCC Limit dated 02.12.2020, which is Annexure
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OA/731/2026 PUNJAB GRAMIN BANK VS SH. HARPREET SINGH
A14 to this OA; Balance and Confirmation Letter in KCC Limit dated 12.06.2023, which is Annexure A15 to this OA; Balance and Confirmation Letter in Term Loan dated 26.06.2020, which is Annexure A16 to this OA; Balance and Confirmation Letter in Term Loan dated 03.02.2023, which is Annexure A17 to this OA; Balance and Confirmation Letter in Term Loan dated 06.09.2025, which is Annexure A18 to this OA; Legal Notice along with Postal Receipt of Legal Notice dated 15.03.2022, which are Annexures A19 & A20 to this OA; Another Legal Notice along with Postal Receipt of Legal Notice dated 16.12.2022, which are Annexures A21 & A22 to this OA; Certificate under the Bankers' Books Evidence Act dated 02.02.2026, which is Annexure A23 to this OA; Account Statement of KCC Limit dated 02.02.2026, which is Annexure A24 to this OA; Uncharged Interest of KCC Limit dated 02.02.2026, which is Annexure A25 to this OA; Account Statement of Term Loan dated 02.02.2026, which is Annexure A26 to this OA; Uncharged Interest of Term Loan dated 02.02.2026, which is Annexure A27 to this OA.
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OA/731/2026 PUNJAB GRAMIN BANK VS SH. HARPREET SINGH
From the perusal of all the Annexures A1 to A27 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,17,640.11 (Rupees Thirty Two Lac Seventeen Thousand Six Hundred Forty and Paise Eleven Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50% p.a. in KCC Limit and @11.00% p.a. in Term Loan along with 2%p.a. penal interest with half yearly rests from 03.02.2026 till the realization.
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 defendant, 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 both the loan accounts 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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OA/731/2026 PUNJAB GRAMIN BANK VS SH. HARPREET SINGH
12. Any other application pending stands disposed of.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount of Rs. 32,17,640.11 along with interest from the defendant.
What rate of interest should be granted by the Tribunal considering market conditions.
3 provisions across 3 enactments
Punjab Gramin Bank
Mridulesh Kumar Singh
As recorded by the court registry
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