Allowed

Punjab Gramin Bank v. Sh. Mohan Singh

DRT27 Jul 2026OA/826/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Punjab Gramin Bank against Mohan Singh for recovery of Rs. 30.04 lakhs. The Tribunal reduced the claimed interest rate from 13.75% to 8% per annum and directed recovery from mortgaged property.

What did the court decide?

Recovery of Rs. 30.04 lakhs with simple interest @ 8% p.a. from the date of filing till realization, enforceable against mortgaged property.

Punjab Gramin Bank versus Sh. Mohan Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 826/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.06.2026

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DATE OF DECISION: 27.07.2026

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Punjab Gramin Bank, a Body Corporate constituted under the provisions of Regional Rural Bank Act, 1976 (Act no. 21 of 1976) having its Head Office at Markfed Road, Kapurthala, Punjab and amongst others, a Branch Office at Bo Bamal, District Sangrur, Punjab through Sh. Narinder Singh, S/o Sh. Darshan Singh, Authorized Signatory/General Attorney

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……..Applicant

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Versus

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Sh. Mohan Singh, S/o Sh. Gurdev Singh, R/o Village Kakarwal, Tehsil Dhuri, District Sangrur, Punjab

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………. Defendant

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Manish Singla, Advocate for applicant

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None for defendant (already ex-parte vide order dated 23.07.2026)

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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. 30,04,028.00 (Rupees Thirty Lacs Four Thousand Twenty Eight Only). The Original Application has been filed through Sh. Narinder Singh, Authorized Signatory of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant approached the applicant for grant of KCC Limit of Rs. 10.00 Lacs and KGC Limit of

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2 OA NO. 826/2026 PUNJAB GRAMIN BANK VS. MOHAN SINGH

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Rs.5.00 Lacs vide Loan Applications, both dated 23.02.2015 along with

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its translation, which are Annexure A2 and A6 to this OA.

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The applicant sanctioned KCC Limit of Rs. 10.00 Lacs and KGC Limit of Rs. 5.00 Lacs vide Letters of Arrangement, both dated 26.02.2015, which are Annexure A3 and A7 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his immovable property i.e. Land measuring 20 Bigha 02 Biswa situated at Kakarwal, Hadbast no. 60, Dhuri, Sangrur, Punjab vide Declaration u/s 4 (1) of the Punjab Agricultural Credit Operations and Miscellaneous Provision (Banks) Act, 1978 dated 03.03.2015, which is Annexure A10 to this OA. Documents executed: DP Notes and Loan Agreements, all dated 11.03.2015, which are Annexure A4, A5, A8 and A9 to this OA; Revival Letters, both dated 13.12.2017, which are Annexure A11 and A12 to this OA; Balance Confirmation Letters dated 31.05.2019, 04.05.2021, 11.05.2022 and 09.09.2024, which are Annexure A13 and A14 to this OA; Notice dated 04.03.2022, which is Annexure A15 to this OA and Statement of Accounts, which are Annexure A16 and A17 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 30,04,028.00, which is recoverable and the defendant was served recall notices but he 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 defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 23.07.2026.

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In support of the OA, affidavit of Sh. Narinder Singh, Authorized Signatory, Punjab Gramin Bank has been filed.

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Heard ex-parte arguments and perused record.

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3 OA NO. 826/2026 PUNJAB GRAMIN BANK VS. MOHAN SINGH

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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.

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From the perusal of all the Annexure A1 to A17 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, 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.30,04,028.00 (Rupees Thirty Lacs Four Thousand Twenty Eight Only) along with interest from the defendant, 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 has claimed interest @11.75%p.a. plus @2% penal interest with half yearly rests from 15.05.2026 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 defendant, quantum of loans 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.30,04,028.00 (Rupees Thirty Lacs Four Thousand Twenty Eight Only) with costs, current and future simple interest @08.00% p.a. in

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4 OA NO. 826/2026 PUNJAB GRAMIN BANK VS. MOHAN SINGH

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both the loan accounts 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 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 defendant. 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 11.08.2026.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 27.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Mohan Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Mohan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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