Allowed

Punjab National Bank v. Sh. Pargat Singh and Another

DRT24 Jul 2026OA/896/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's application under Section 19 of the RDB Act for recovery of an outstanding loan of Rs.23.12 Lakhs plus interest against borrowers who failed to repay a sanctioned agrarian credit. The order granted recovery of the principal with simple interest.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay Rs.23,12,504.00 plus simple interest at 8% p.a.; claim enforceable via sale of mortgaged properties.

Punjab National Bank versus Sh. Pargat Singh and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.896/2026

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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- Chowk Chelan, Sultanpur Lodhi, District Kapurthala – 144626 through its Authorized Representative Sh. Kanwarpal Singh Randhawa, Senior Manager, Punjab National Bank, BO - Chowk Chelan, Sultanpur Lodhi, District Kapurthala - 144626.

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……..Applicant

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Versus

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Sh. Pargat Singh S/o Sh. Sajjan Singh, R/o Village Aahli Kalan, Tehsil Sultanpur Lodhi, District Kapurthala – 144626.

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Sh. Sajjan Singh S/o Sh. Teja Singh, R/o Village Aahli Kalan, Tehsil Sultanpur Lodhi, District Kapurthala - 144626.

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…….. Defendants

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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 Defendants (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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.23,12,504.00 (Rupees Twenty Three Lacs Twelve Thousand Five Hundred and Four Only). The Original Application has been filed through Sh. Kanwarpal Singh Randhawa, Senior Manager of the applicant, who is competent to

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2 OA NO.896/2026 PUNJAB NATIONAL BANK VS SH. PARGAT SINGH AND ANOTHER

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institute the Original Application vide Power of Attorney dated 25.09.2019, 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.10,00,000.00 vide Application Form for Agricultural Credit dated 21.09.2010, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.10,00,000.00 vide Memorandum for Sanction of Cash Credit/Short Term Loan and Sanction Letter dated 15.10.2010, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendants mortgaged their Immovable Properties i.e.,

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Total Agriculture Land measuring 72K 3M detailed as under:

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(i) Land measuring 44K 16M situated in Village Gudha, Hadbast No. 201, Tehsil Sultanpur Lodhi, District Kapurthala as per Jamabandi for the year 2003-04.

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(ii) Land measuring 27K 7M situated in Village Ahli Kalan, Hadbast No. 177, Tehsil Sultanpur Lodhi, District Kapurthala as per Jamabandi for the year 2006-07.

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Vide Mortgage Deed bearing Vasika No. 1924 dated 15.10.2010, along with its translation, which is Annexure A4 to this OA.

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Documents executed: Hypothecation Agreement, dated 04.11.2010, which is Annexure A5 to this OA; Balance and Security Confirmation Letters dated 02.04.2013, 13.10.2015, 27.07.2018, 19.07.2021, 07.05.2024, which are Annexure A6(Colly) to this OA; Legal Notice dated 16.05.2026, along with postal receipts, which is Annexure A7 to this OA; Statement of Account along with certificate, 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 the loan account there was a debit of Rs.23,12,504.00, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.896/2026 PUNJAB NATIONAL BANK VS SH. PARGAT SINGH AND ANOTHER

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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 but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 22.07.2026.

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In support of the OA, affidavit of Sh. Kanwarpal Singh Randhawa, Senior Manager, Punjab National Bank has been filed. 8. 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 A8 to this OA, it is proved that the defendants approached applicant for availing of loan facility which was 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 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.23,12,504.00 (Rupees Twenty Three Lacs Twelve Thousand Five Hundred and Four 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 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% 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 properties, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.896/2026

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PUNJAB NATIONAL BANK VS SH. PARGAT 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 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 defendants are liable to pay to the applicant sum of Rs.23,12,504.00 (Rupees Twenty Three Lacs Twelve Thousand Five Hundred and Four 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 properties of defendants i n 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 . 13. Issue Recovery Certificate accordingly. 14. 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 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 . Dated: 24.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Pargat Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Sh. Pargat Singh and Another

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