Allowed

Punjab Gramin Bank v. Sh. Iqbal Singh and Another

DRT28 Jul 2026OA/856/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the original application for recovery of loan amounts advanced to the respondents under the RDB Act. It modified the claimed interest rate from 13% to 8% and granted a recovery certificate.

What did the court decide?

Recovery certificate issued; debt of Rs.38,67,732.77 declared payable with simple interest at 8% p.a.; liberty to enforce via sale of mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.856/2026

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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: 28.07.2026

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Punjab Gramin Bank, a body corporate constituted under the provisions of the Regional Rural Bank Act 1976 (Act No.21 of 1976) having its Head Office at Marked Road, Kapurthala and amongst others a Branch Office at Village Chural Kalan, Tehsil Lehragaga, District Sangrur through Sh. Venus Gupta, Branch Manager, General Attorney of Applicant Bank.

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……..Applicant

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Versus

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Sh. lqbal Singh S/o Sh. Man Singh, R/o Village Balran, Tehsil Moonak, District Sangrur - 148033.

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Sh. Amandeep Singh S/o Sh. Man Singh, R/o Village Balran, Tehsil Moonak, District Sangrur - 148033.

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…….. Defendants

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Advocates:

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Argued by Ms. Navita, Advocate proxy for Sh. Ajay Singla, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 24.07.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.38,67,732.77 (Rupees Thirty Eight Lacs Sixty Seven Thousand Seven Hundred Thirty Two and Paise Seventy Seven Only). The Original Application has been filed through Sh. Venus Gupta, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Kisan Credit Card Limit of Rs.8,00,000.00 vide

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2 OA NO.856/2026 PUNJAB GRAMIN BANK VS SH. IQBAL SINGH AND ANOTHER

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Application Form for Agricultural Credit dated 18.11.2015, which is Annexure A2 to this OA.

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Thereafter, the defendants approached the applicant for grant of Kisan Gold Card Limit of Rs.4,00,000.00 vide Application Form for Agricultural Credit dated 18.11.2015, which is Annexure A7 to this OA. 3. The applicant sanctioned the Kisan Credit Card Limit of Rs.8,00,000.00 vide Letter of Arrangement dated 18.11.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants . Thereafter, the applicant sanctioned the Kisan Gold Card Limit of Rs.4,00,000.00 vide Letter of Arrangement dated 18.11.2015, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants . 4. Defendants mortgaged their Immovable Property i.e., Total Land measuring 51K 06M situated in revenue estate of Village Balran, Tehsil Moonak, District Sangrur as per Jamabandi for the year 2013-14 along with its translation, vide Declaration u/s 4(1) dated 21.11.2015, registered with the office of Sub Registrar, Moonak, bearing Vasika No. 799 dated 27.11.2015, which are Annexures A12 & A13 to this OA. Documents executed: Loan Agreements, Demand Promissory Notes, Letter of Undertakings, all dated 07.12.2015, which are Annexures A4 to A6, A9 to A11 to this OA; Revival Letters - A, dated 03.04.2018, which are Annexures A14 & A17 to this OA; Balance and Security Confirmation Letters dated 11.12.2020, 06.06.2023, which are Annexures A15, A16, A18 & A19 to this OA; Legal Notice dated 21.01.2026, along with its translation and postal receipts, which is Annexure A20 to this OA; Statement of Accounts along with and certificates, which are Annexures A21 & A22 to this OA;. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.38,67,732.77, which is recoverable and the

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3 OA NO.856/2026 PUNJAB GRAMIN BANK VS SH. IQBAL SINGH AND ANOTHER

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defendants 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. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.07.2026. 7. In support of the OA, affidavit of Sh. Venus Gupta, Branch Manager, Punjab Gramin Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A22 to this OA, it is proved that the defendants approached applicant for availing of loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.38,67,732.77 (Rupees Thirty Eight Lacs Sixty Seven Thousand Seven Hundred Thirty Two and Paise Seventy Seven 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with half yearly rests with penal interest @2%p.a. in both the loan accounts 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 loans and prevalent market rates of

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OA NO.856/2026 PUNJAB GRAMIN BANK VS SH. IQBAL SINGH AND ANOTHER

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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 @8.00%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.38,67,732.77 (Rupees Thirty Eight Lacs Sixty Seven Thousand Seven Hundred Thirty Two and Paise Seventy Seven Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 defendants 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 12.08.2026.

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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 .

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Dated: 28.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Iqbal Singh and Another

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Iqbal Singh and Another

Case brief

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What did the court decide?

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