Allowed

Punjab National Bank v. Sh. Gurmit Singh and Another

DRT22 Jun 2026OA/819/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Debt Recovery application filed by Punjab National Bank for recovery of Rs. 54.76 lakh from two borrowers/guarantors. The court declared the amounts recoverable, ordered a recovery certificate, and adjudicated interest at 8% p.a., noting that encashment of mortgaged property could be ordered under SARFAESI provisions.

What did the court decide?

Recovery Certificate issued. Defendants liable to pay Rs.54,76,929 with interest @8% p.a. Recovery enforceable via sale of mortgaged property or attachment of personal assets.

Punjab National Bank versus Sh. Gurmit Singh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.819/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.06.2024

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DATE OF DECISION: 22.06.2026

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Punjab National Bank, a body corporate under Banking Companies (Acquisition & Transfer of Undertakings), Act 1970 having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi - 110075 and having its Branch Office at different places including one at Nihal Singh Wala District Moga through its Attorney Holder & Officer Sh. Rajesh Sachdeva, Manager, Circle Sastra, Moga Circle.

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……..Applicant

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Versus

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Sh. Gurmit Singh S/o Sh. Bharpoor Singh, R/o Uggor Patti, Village Dina, Tehsil Nihal Singh Wala, District Moga, Punjab.

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Sh. Devinder Singh S/o Labh Singh, R/o Village Dina, Tehsil Nihal Singh Wala, District Moga, Punjab.

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……. .Defendants

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Advocates:

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Argued by Sh. Tarlok Singh, Advocate proxy for Sh. Raghav Sharma, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 17.06.2026).

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.54,76,929.00 (Rupees Fifty Four Lacs Seventy Six Thousand Nine Hundred and Twenty Nine Only). The Original Application has been filed through Sh. Rajesh Sachdeva, Manager of the applicant bank , who is competent to institute the Original Application vide Power of Attorney dated 09.06.2017, 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 grant of Oriental Green Card Facility of

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2 OA NO.819/2024 PUNJAB NATIONAL BANK VS SH. GURMIT SINGH AND ANOTHER

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Rs.40,00,000.00 vide Application Form for OGC Facility dated 25.06.2015, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 approached the applicant for renewal of Oriental Green Card Facility of Rs.40,00,000.00 vide Renewal Application dated 13.07.2020, which is Annexure A7 to this OA.

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The applicant sanctioned the Oriental Green Card Facility of Rs.40,00,000.00 vide Sanction Letter dated 27.06.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

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Defendant no. 1 mortgaged his Immovable Property i.e., Total Land measuring 73 Kanal 9 Marla situated at Village Dina, Tehsil Nihal Singh Wala, District Moha as per Jamabandi for the year 2011212 vide Declaration Under Section 4(1) dated 03.07.2015 along with Rapat and Mortgaged Deed, which are Annexure A6(Colly) to this OA.

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Documents executed : Agreement for Hypothecation of Existing and Future Crops/Moveable Assets/Live Stock to Secure a Cash Credit Account of Oriental Green Card, Agreement of Guarantee, both dated 08.07.2015, which are Annexures A4 & A5 to this OA; Master Agreement dated 14.07.2020, which is Annexure A8 to this OA; Balance and Security Confirmation Letters dated 18.04.2018, 12.04.2021, 30.03.2024, which are Annexure A9(Colly) to this OA; Statement of account along with certificate, which is Annexure A10 to this OA; Legal Notices dated 27.03.2024, 22.05.2024, along with

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postal receipts, which is Annexure A11(Colly) 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.54,76,929.00, which is recoverable and the defendants

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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 NO.819/2024

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PUNJAB NATIONAL BANK VS SH. GURMIT SINGH AND ANOTHER

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The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 17.06.2026.

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In support of the OA, affidavit of Sh. Rajesh Sachdeva, Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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

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From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facility, which was granted to him, defendant no. 2 stood as guarantor 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.54,76,929.00 (Rupees Fifty Four Lacs Seventy Six Thousand Nine Hundred and Twenty 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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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.65%p.a. with half yearly rests with penal interest @2% 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

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OA NO.819/2024

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PUNJAB NATIONAL BANK VS SH. GURMIT SINGH AND ANOTHER

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just and appropriate to grant 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 Rs.54,76,929.00 (Rupees Fifty Four Lacs Seventy Six Thousand Nine Hundred and Twenty Nine 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 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.

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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 Tribunal on 07.07.2026.

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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 .

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Dated: 22.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Gurmit Singh and Another

Case brief

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Punjab National Bank v. Sh. Gurmit Singh and Another

Case brief

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