The DRT allowed the bank auction's original application against borrowers and guarantor for recovery of an unpaid term loan of approximately Rs. 23.17 lacs. The court issued a recovery certificate and awarded interest at 8% p.a.
Issuance of recovery certificate and declaration that defendants are liable to pay Rs. 23,17,441.00 with interest at 8% p.a.
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. 792/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 21.06.2025
DATE OF DECISION: 10.08.2026
Punjab National Bank, a Body Corporate and Nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and amongst other, a Branch Office at Village Fatehgarh Panjtoor, District Moga, Punjab through its Constituted Attorney and Branch Manager, Sh. Rajesh Sachdeva, S/o Sh. Jagdish Chander
……..Applicant
Versus
Advocates:
Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Kanwar Harbir Singh Bath, Advocate for applicant
None for defendants (already ex-parte vide order dated 06.08.2026)
FINAL ORDER
2 OA/792/2025 PUNJAB NATIONAL BANK VS. KASHMIR SINGH AND ANOTHER
3 OA/792/2025
PUNJAB NATIONAL BANK VS. KASHMIR SINGH AND ANOTHER
From the perusal of all the Annexure A1 to A16 to this OA, it is proved that defendant no. 1 approached applicant for availing of the loan facility which was granted to him. Defendant no. 2 stood as guarantor. Defendants had executed all the relevant documents in favour of the applicant. 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. 23,17,441.00 (Rupees Twenty Three Lacs Seventeen Thousand Four Hundred Forty One 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.
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 hypothecated assets/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 @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.
4
OA/792/2025
PUNJAB NATIONAL BANK VS. KASHMIR SINGH AND ANOTHER
from the sale of hypothecated assets and mortgaged property 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.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal .
Dated: 10.08.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the respondents were liable to repay the outstanding loan amount of Rs. 23,17,441.00.
Whether interest at 8.00% p.a. should be granted in the loan account.
1 provisions across 1 enactments
Punjab National Bank
Sh. Kashmir Singh
Sh. Nirmal Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
