Allowed

Punjab National Bank v. Sh. Sarabjit Atwal@ Sarabjit Singh

DRT24 Jul 2026OA/893/2026

Case brief

AI extract

What is this about?

Allowing an ex-parte OA under RD & BA, the DRT directed the defendant to repay Rs 33.38 Lakhs declaring him liable. The Tribunal modified the claimed interest rate to 8% p.a. simple interest from the filing date, permitting recovery via sale of mortgaged property under SARFAESI.

What did the court decide?

Recovery of Rs.33,38,154.33 with costs and simple interest at 8% p.a. from filing date until realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.893/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.06.2026

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DATE OF DECISION: 24.07.2026

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act of 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi – 110075 and its Branch Office at Punjab National Bank, BO- VPO Rahon, Tehsil Nawashahar, District SBS Nagar – 144517, through its Authorized Representative Sh. Anil Kumar, Senior Manager, Punjab National Bank, BO- VPO Rahon, Tehsil Nawashahar, District SBS Nagar - 144517.

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……..Applicant

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Versus

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Sh. Sarabjit Atwal @Sarabjit Singh S/o Sh. Teja Singh, R/o VPO Rahon, Tehsil Nawashahar, District SBS Nagar - 144517.

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…….. Defendant

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for the applicant (through VC)

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None for Defendant (Already ex-parte vide order dated 22.07.2026).

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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 defendant for recovery of Rs.33,38,154.33 (Rupees Thirty Three Lacs Thirty Eight Thousand One Hundred Fifty Four and Paise Thirty Three Only). The Original Application has been filed through Sh. Anil Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 29.06.2022, 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 Kisan Credit Card Limit of Rs.4,00,000.00 vide

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2 OA NO.893/2026 PUNJAB NATIONAL BANK VS SH. SARABJIT ATWAL @ SARABJIT SINGH

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Application Form for Agricultural Credit dated 01.12.2007, which is Annexure A2 to this OA.

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Thereafter, the defendant approached the applicant for enhancement of Kisan Credit Card Limit from Rs.4,00,000.00 to Rs.25,00,000.00 vide Application Form for Agricultural Credit dated 21.10.2015, which is Annexure A4 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.4,00,000.00 vide Memorandum for Sanction of Cash Credit/Short Term Loan dated 01.12.2007, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant.

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Thereafter, the applicant enhanced the Kisan Credit Card Limit from Rs.4,00,000.00 to Rs.25,00,000.00 vide Sanction Letter dated 07.11.2015, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendant.

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Defendant mortgaged his Immoveable Property i.e., Land measuring 21K 06M situated at Village Rahon, Hadbast No. 223, Tehsil Nawanshahar, District SBS Nagar as per Jamabandi for the year 2008-2009, vide Declaration u/s 4(1) and Request Letter for Registration of Bank’s Charge for mortgage of Agriculture Land, both dated 30.10.2015, which is Annexure A6 to this OA.

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Documents executed : Hypothecation Agreement dated 05.11.2015,

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which is Annexure A7 to this OA; Balance and Security Confirmation Letters dated 12.12.2017, 07.12.2020, 23.10.2023, which are Annexure A8(Colly) to this OA; Legal Notice dated 29.05.2026, along with postal receipt, which is Annexure A9 to this OA; Statement of account along with certificate, which is Annexure A10 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 the loan account, there was a debit of Rs.33,38,154.33, 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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3 OA NO.893/2026 PUNJAB NATIONAL BANK VS SH. SARABJIT ATWAL @ SARABJIT SINGH

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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 22.07.2026.

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In support of the OA, affidavit of Sh. Anil Kumar, Senior 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 through video conferencing 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 A10 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.33,38,154.33 (Rupees Thirty Three Lacs Thirty Eight Thousand One Hundred Fifty Four and Paise Thirty Three 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 @11.00%p.a. with yearly rests with penal interest @2%p.a. 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 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

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OA NO.893/2026 PUNJAB NATIONAL BANK VS SH. SARABJIT ATWAL @ SARABJIT SINGH

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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.33,38,154.33 (Rupees Thirty Three Lacs Thirty Eight Thousand One Hundred Fifty Four and Paise Thirty Three 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.

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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 10.08.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 24.07.2026

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

Punjab National Bank v. Sh. Sarabjit Atwal@ Sarabjit Singh

Case brief

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Punjab National Bank v. Sh. Sarabjit Atwal@ Sarabjit Singh

Case brief

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