Allowed

Punjab National Bank v. Sh. Sukhwinder Singh

DRT15 Jul 2026OA/853/2026

Case brief

AI extract

What is this about?

The DRT allowed an ex-parte Original Application filed by Punjab National Bank for recovery of Rs. 23,36,750 owed by a loan defaulter who mortgaged property and failed to repay the term loan. The Tribunal ordered issuance of a Recovery Certificate and fixed interest at 8% p.a.

What did the court decide?

Directed issuance of Recovery Certificate; declared Defendant liable to pay Rs. 23,36,750 plus simple interest at 8% p.a. from date of filing; permitted recovery via sale of mortgaged property or pers

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.853/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.06.2026

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DATE OF DECISION: 15.07.2026

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Punjab National Bank, is a Bank constituted under the Banking Companies (Acquisition and Transfer of Under takings) Act, 1970 having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi - 110075 and its Branch Offices throughout India along with a recovery Office at ARMB Ludhiana (P) through Sh. Neeraj Sharma, Manager/ Senior Manager, of the said office, who is also one of the Principal Officers and General Attorney of the Applicant bank.

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……..Applicant Versus

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Sh. Sukhwinder Singh S/o Sh. Chet Singh, R/o Village Bhamaddi, Tehsil Khanna, District Ludhiana – 141412 (Punjab).

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……..Defendant

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Advocates:

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Argued by Sh. Rajinder Kumar Joshi, Advocate for the applicant None for Defendant (Already ex-parte vide order dated 13.07.2026).

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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 defendant for recovery of Rs.23,36,750.00 (Rupees Twenty Three Lacs Thirty Six Thousand Seven Hundred and Fifty Only). The Original Application has been filed through Sh. Neeraj Sharma, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 26.12.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan Facility for purchase of plot and construction of House of Rs.37,60,000.00 .

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2 OA NO.853/2026 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH

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The applicant sanctioned the Term Loan Facility for purchase of plot and construction of House of Rs.37,60,000.00 vide Sanction Letter dated 18.11.2024, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his Immoveable Property i.e., Plot No. 9 measuring 200 Square Yards situated at Village Kotla Nihang, Hadbast No. 180, Ropar, Punjab vide Sale Deed No. 3123 dated 22.11.2024, along with its translation, copy of TDR page creating Equitable Mortgage dated 28.11.2024, copy of CERSAI vide Security ID No. 400085358102, Lien of the Bank noted in the revenue records vide rapat no. 124, which are Annexures A9 to A11(a) to this OA.

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Documents executed : Copy of Aadhar Card and Pan Card, which is Annexure A2 to this OA; Udyam Registration Certificate dated 08.008.2024, which is Annexure A3 to this OA; Agreement for Housing Loan (Composite Loan), Master Agreement, Undertaking in regarding of NPA concept (PNB 1270), Most Important Terms & Conditions, all dated 20.11.2024, which are Annexures A5 to A8 to this OA; Overdue Notices dated 09.06.2025, 17.06.2025 and Legal Notice dated 30.07.2025, along with postal receipt, which are Annexure A12(Colly) to this OA; Recall Notice dated 15.10.2025, along with postal receipt, which is Annexure A13 to this OA; Notice u/s 13(2) dated 15.10.2025, along with postal receipt, which is Annexure A14 to this OA; Possession Notice dated 03.02.2026, which is Annexure A15 to this OA; Copies of Publication of Possession Notice in Two News Papers, which is Annexure A16 to this OA; Statement of account along with memorandum account of Housing Loan Account, interest calculation sheet and certificate, which are Annexures A17 to A19 to this OA; NEC and Legal Opinion dated 12.11.2024, which is Annexure A20 to this OA; Valuation Report dated 09.02.2026, which is Annexure A21 to this OA.

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The loan account became irregular and was classified as NPA

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and after adjusting debit and credit entries in loan account, there was

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3 OA NO.853/2026 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH

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a debit of Rs.23,36,750.00, 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 the defendant and he was proceeded ex-parte vide order dated 13.07.2026.

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In support of the OA, affidavit of Sh. Neeraj Sharma, 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 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 A21 to this OA, it is proved that the defendant approached applicant for availing of the loan facility, which was 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 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.23,36,750.00 (Rupees Twenty Three Lacs Thirty Six Thousand Seven Hundred and Fifty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.40%p.a. with monthly rests with penal interest @2% from 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 loan and prevalent market rates of

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4 OA NO.853/2026 PUNJAB NATIONAL BANK VS SH. SUKHWINDER SINGH

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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 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 defendant is liable to pay to the applicant a total sum of Rs.23,36,750.00 (Rupees Twenty Three Lacs Thirty Six Thousand Seven Hundred and Fifty Only), with costs, current and future simple interest @08.00%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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.07.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 15.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Sukhwinder Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Sukhwinder Singh

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