Allowed

Punjab National Bank v. Sh. Gursewak Singh

DRT21 Apr 2026OA/863/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against a borrower for recovery of dues totaling Rs. 22,58,713.51. Following an ex parte hearing and verifying documentary evidence, the court declared the defendant liable and ordered interest at 8% p.a. It directed recovery through sale of hypothecated assets under SARFAESI or attachment of personal assets i

What did the court decide?

Declaration of liability to pay Rs. 22,58,713.51 with 8% p.a. simple interest; Recovery via sale of mortgaged assets under SARFAESI or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.863/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2024

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DATE OF DECISION: 21.04.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and a Branch amongst others one at Punjab National Bank, Branch Lambi, Tehsil Malout, District Shri Muktsar Sahib through Sh. Ravinder Mohan Goyal, S/o Sh. Sat Parkash, now posted as Deputy Circle Sastra Head, Punjab National Bank, Circle Sastra, Fazilka and duly Constituted Attorney of the applicant bank

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……..Applicant

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Versus

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Sh. Gursewak Singh, S/o Sh. Ajaib Singh, R/o House no. 145, Exchange Wali Gali, Lambi, Tehsil Malout, District Shri Mukatsar Sahib

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….……Defendant

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Advocate:

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Argued by Sh. Kamal, Advocate for applicant (through VC)

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None for defendant (already ex parte vide order 17.04.2026)

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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. 22,58,713.51 (Rupees Twenty Two Lacs Fifty Eight Thousand Seven Hundred Thirteen and Paise Fifty One Only). The Original Application has been filed through Sh. Ravinder Mohan Goyal, Deputy Circle Sastra Head of the applicant, who is competent to institute the Original Application as per Power of Attorney dated 16.03.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant approached the applicant for the grant of KCC Limit of Rs. 16.00 Lacs vide Loan Application dated 13.11.2014, which is Annexure A2 to this OA. Thereafter, defendant applied for renewal of KCC Limit of Rs. 16.00 Lacs vide Renewal Application dated 31.12.2019, which is Annexure

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2 OA/863/2024 PUNJAB NATIONAL BANK VS. GURSEWAK SINGH

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A14 to this OA. Thereafter, defendant approached the applicant for the grant of Term Loan of Rs. 50,000.00.

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The applicant sanctioned the KCC Limit of Rs. 16.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. Thereafter, the applicant sanctioned the renewal of KCC Limit of Rs. 16.00 Lacs. Thereafter, the applicant sanctioned the Term Loan of Rs. 50,000.00 vide Loan Application cum Sanction Letter dated 01.05.2020, which is Annexure A18 to this OA.

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Defendant mortgaged his immovable property i.e. Land measuring 39K 19M situated at Village Lambi, Tehsil Malout, District Shri Mukatsar Sahib vide Declaration u/s 4 (1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 20.11.2014 along with its translation, which is Annexure A4 to this OA, Undertaking dated 21.11.2014 along with translation, which is Annexure A5 to this OA, Jamabandi for the year 2009-2010 and 2014-2015 along with its translation, which is Annexure A12 to this OA. Documents executed: Letter of Hypothecation, Letters of Undertaking, Letter of Consent, Letter Appendix 1 and Declaration Agricultural Land, all dated 28.11.2014, which are Annexure A6 to A10 to this OA; Request for issuing Debit Card, which is Annexure A11 to this OA; Letter of Authority, which is Annexure A13 to this OA; Balance and Confirmation Letters dated 25.05.2022, 27.12.2019 and 12.07.2017, which is Annexure A15 to this OA; Account Statement with certificate, which are Annexure A16 and A17 to this OA; Hypothecation Agreement and Master Agreement, both dated 01.05.2020, which are Annexure A19 and A20 to this OA; Balance and Confirmation Letter dated 13.04.2023, which is Annexure A21 to this OA; Account Statement, which is Annexure A22 to this OA and Demand Notice dated 14.02.2024 along with postal receipts, which is Annexure A23 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. 22,58,713.51 (Rupees Twenty Two Lacs Fifty Eight

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3 OA/863/2024 PUNJAB NATIONAL BANK VS. GURSEWAK SINGH

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Thousand Seven Hundred Thirteen and Paise Fifty One Only) which is recoverable and the defendant was served recall notice 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 on 17.04.2026.

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In support of the OA, affidavit of Sh. Ravinder Mohan Goyal, Deputy Circle Sastra Head, Punjab National Bank, h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to Annexure A23 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities 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 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. 22,58,713.51 (Rupees Twenty Two Lacs Fifty Eight Thousand Seven Hundred Thirteen and Paise Fifty One 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 in relief clause has claimed interest @14.25%p.a. with half yearly rests in KCC Limit Account from 29.11.2023 and @9.25% p.a. in Term Loan Account from 01.04.2023 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/hypothecated assets, undertaking of the defendant, quantum of loans and prevalent

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4 OA/863/2024 PUNJAB NATIONAL BANK VS. GURSEWAK SINGH

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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 uniform 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.

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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.22,58,713.51 (Rupees Twenty Two Lacs Fifty Eight Thousand Seven Hundred Thirteen and Paise Fifty One Only) with costs, current and future simple interest @08.00% 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/hypothecated assets 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 12.05.2026. 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: 21.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Gursewak Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Gursewak Singh

Case brief

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