Allowed

Punjab Gramin Bank v. Sh. Lakhwinder Singh and Others

DRT31 Jul 2026OA/837/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab Gramin Bank for recovery of a loan of Rs. 22.40 lakhs. The court adjudicated the debt based on documentary evidence when respondents failed to appear. The tribunal granted interest at 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 22,40,849.00 with simple interest @8.00% p.a.; Issuance of Recovery Certificate; Enforcement via sale of mortgaged or personal assets.

Punjab Gramin Bank versus Sh. Lakhwinder Singh and Others — Consumer Protection | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT DISTRICT TARN TARAN, PUNJAB

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ORIGINAL APPLICATION NO. 837/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.06.2025

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DATE OF DECISION: 31.07.2026

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Punjab Gramin Bank, a Body Corporate constituted under the Regional Rural Bank Act, 1976, Act no. 21 of 1976 having its Head Office at Markfed Road, Kapurthala, Punjab and having its Branches at different places including one at Nurdi Chowk, Tehsil and District, Tarn Taran, Punjab through its Constituted Attorney/Manager, Sh. Dalbir Singh

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… …..Applicant

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Versus

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Sh. Lakhwinder Singh, S/o Sh. Veer Singh, R/o Gali no. 2, Near Ranjit Dairy, Goindwal Bye-pass, Tehsil and District Tarn Taran, Punjab

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Smt. Prabhjit Kaur, W/o Sh. Lakhwinder Singh, R/o Gali no. 2, Near Ranjit Dairy, Goindwal Bye-pass, Tehsil and District Tarn Taran, Punjab

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Sh. Mukhwinder Pal Singh, S/o Sh. Chain Singh, R/o Village Piddi Bye-pass, Tehsil and District, Tarn Taran, Punjab

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…Defendants

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Advocates:

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Argued by Sh. Ashutosh Bajpai, Advocate proxy for Sh. Bhushan Bhatia, Advocate for applicant (through VC) None 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. 22,40,849.00 (Rupees Twenty Two Lacs Forty Thousand Eight Hundred Forty Nine Only). The Original Application has been filed through Sh. Sh. Dalbir Singh, Manager o f the applicant, who is competent to institute the Original

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2 OA/837/2025

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PUNJAB GRAMIN BANK VS. LAKHWINDER SINGH AND OTHERS

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Application vide General Power of Attorney dated 09.01.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant nos. 1 and 2 approached the applicant for grant of OD Limit of Rs. 12.00 Lacs vide Application dated 17.06.2016, which is Annexure A2 to this OA.

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The applicant sanctioned OD Limit of Rs. 12.00 Lacs vide Sanction dated 17.06.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 08M 20 Sq. Ft. situated at Muradpur, Tehsil Tarn Taran, Punjab vide Mortgage Deed dated 25.01.2000, which is Annexure A5 to this OA.

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Documents executed: Loan Agreement and Agreement of Guarantee, both dated 17.06.2016, which are Annexure A4 and A4/1 to this OA; Notices dated 26.05.2021 and 01.08.2022, which are Annexure A6 and A6/1 to this OA; BC Letters dated 03.03.2017, 04.12.2018, 24.08.2021, 05.07.2022 and 29.01.2025, which are Annexure A7 to A7/4 to this OA and Statement of Account, which is Annexure A8 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. 22,40,849.00 which is recoverable and the defendants were served recall notice 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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The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Rahi Mehra, Advocate appeared on behalf of the defendant no. 1 on 08.08.2025 and filed Memo of Appearance. Paper book was supplied to him but no WS was filed even after stipulated period. Therefore, opportunity to file WS by defendant no. 1 was closed and defence was struck off vide order dated 29.06.2026. No one appeared on behalf of defendant nos. 2 and 3 after service of summons. Therefore, they were proceeded ex-parte vide order dated 29.06.2026.

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3 OA/837/2025

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PUNJAB GRAMIN BANK VS. LAKHWINDER SINGH AND OTHERS

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7. In support of the	OA, affidavit of Sh. Dalbir Singh,Manager
Punjab Gramin Bank,has	been filed.

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Heard arguments and perused record. 9. It was argued by learned proxy counsel for applicant, who appeared through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. None appeared on behalf of defendants to advance arguments.

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From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendant nos. 1 and 2 approached applicant for availing of the loan facility, which was granted to them. Defendant no. 3 stood as guarantor. Defendants 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, the 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. 22,40,849.00 (Rupees Twenty Two Lacs Forty Thousand Eight Hundred Forty 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50%p.a. plus penal interest @2% with monthly rests from 01.06.2025 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 @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.

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OA/837/2025 PUNJAB GRAMIN BANK VS. LAKHWINDER SINGH AND OTHERS

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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.22,40,849.00 (Rupees Twenty Two Lacs Forty Thousand Eight Hundred Forty 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 17.08.2026.

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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 at Camp Court District Tarn Taran, Punjab.

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Dated: 31.07.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Lakhwinder Singh and Others

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Lakhwinder Singh and Others

Case brief

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