Allowed

Punjab Gramin Bank v. Sh. Dharam Singh through His Legal Heirs

DRT19 Aug 2026OA/909/2026

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Punjab Gramin Bank against legal heirs of a deceased borrower for recovery of ₹39.87 lakhs. The court approved the claim and modified future interest from penal rates to a uniform simple interest of 8% p.a.

What did the court decide?

Relief granted to restore the claim for principal debt with adjustments on future interest to 8% per annum. Recovery certificate issued and execution proceedings authorized.

Punjab Gramin Bank versus Sh. Dharam Singh through His Legal… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 909/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2026

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DATE OF DECISION: 19.08.2026

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Punjab Gramin Bank, a corporate body constituted under the provisions of the Regional Rural Bank Act, 1976 (Act No. 21 of 1976), having its Head Office at Markfed Road, Kapurthala, and, inter alia, a Branch Office at Cheema, Tehsil Sunam, District Sangrur, Punjab, through its General Power of Attorney Holder Sh. Pankaj Bansal son of Sh. Sunil Bansal, Branch Manager, General Attorney and Authorised Officer of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Dharam Singh son of Sh. Chand Singh, resident of Village Togawal, Tehsil Sunam, District Sangrur, Punjab-148029 (since deceased survived by following legal heirs):

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1.1. Smt. Jagdeep Kaur wife of Late Sh. Dharam Singh

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1.2. Sh. Jashanpreet Singh son of Late Sh. Dharam Singh

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1.3. Sh. Arshpreet Singh son of Late Sh. Dharam Singh

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All residents of Village Togawal, Tehsil Sunam, District Sangrur, Punjab-148029.

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.……Defendants

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Advocates:

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Argued by Sh. Puru Gupta, Advocate proxy for Sh. Manish Singla, Advocate for applicant

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None for Defendants (already ex parte vide order dated 17.08.2026)

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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 defendants for recovery of Rs.39,87,262.00 (Rupees Thirty Nine Lac Eighty Seven Thousand Two Hundred Sixty Two Only). The Original Application

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2 OA/ 909/2026 PUNJAB GRAMIN BANK VS LATE SH. DHARAM SINGH THROUGH HIS LEGAL HEIRS

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has been filed through Sh. Pankaj Bansal, Branch Manage r, of the applicant , who is competent to institute the Original Application vide Power of Attorney dated 04.04.2026, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs.12.00 lacs and Term Loan of Rs.10.00 lacs vide Loan Application for KCC Limit dated 26.12.2014, which is Annexure A2 to this OA; Loan Application for TL dated 26.12.2014, which is Annexure A6 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.12.00 lacs and Term Loan of Rs.10.00 lacs vide Letter of Arrangement for KCC dated 03.01.2015, which is Annexure A3 to this OA; Letter of Arrangement for TL dated 03.01.2015, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendant. As the defendant no.1 got expired and his legal heirs were impleaded by the applicant as defendant nos. 1.1 to 1.3 in this OA. 4. Defendant no. 1 (since deceased) mortgaged his agricultural land measuring 48Kanal-0Marla with details given as under: i. land measuring 13Kanal-19Marla, situated at Village Togawal, Sub Tehsil Longowal, Tehsil Sunam, District Sangrur, Punjab-148029; ii. land measuring 34Kanal-11Marla, situated at Village Dhadriyan, Sub Tehsil Longowal, Tehsil Sunam, District Sangrur, Punjab-148029. vide Declaration u/s 4(1) Punjab Agriculture dated 05.01.2015, which is Annexure A10 to this OA; Documents executed: Hypothecation Agreement dated 07.01.2015, which is Annexure A4 to this OA; Letter of Undertaking dated 07.01.2015, which is Annexure A5 to this OA; Hypothecation Agreement dated 07.01.2015, which is Annexure A8 to this OA; Letter of Undertaking dated 07.01.2015, which is Annexure A9 to this OA; Death Certificate dated 03.11.2018, which is Annexure A11 to this OA; Balance Confirmation Letters dated 18.05.2017, 28.10.2019, 26.04.2022, 03.03.2025 and 18.05.2017, 28.10.2019, which are Annexure A12 to this OA; Recall Notices dated 04.03.2025, which are Annexures A13 & A14 to this OA; Statement of Account, under the Bankers’ Books Evidence Act dated 04.05.2026, which is Annexure A15 to this OA; Statement of Account,

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3 OA/ 909/2026 PUNJAB GRAMIN BANK VS LATE SH. DHARAM SINGH THROUGH HIS LEGAL HEIRS

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duly certified under the Bankers’ Books Evidence Act dated 04.05.2026, which is Annexure A16 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.39,87,262.00 (Rupees Thirty Nine Lac Eighty Seven Thousand Two Hundred Sixty Two Only), which is recoverable and the 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 exparte vide order dated 17.08.2026.

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In support of the OA, affidavit of Sh. Pankaj Bansal, Branch Manager , Punjab Gramin Bank, h as 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 A16 to this OA, it is proved that the Defendant no. 1 (since deceased) approached applicant for availing of the loan facilities, which were granted to them. Defendants had executed all the relevant documents in favour of the applicant. Thereafter, the defendant no.1 got expired and his legal heirs were impleaded by the applicant as defendant nos. 1.1 to 1.3 in this OA. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.39,87,262.00 (Rupees Thirty Nine Lac Eighty Seven Thousand Two Hundred Sixty Two 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @11.50%p.a. plus penal interest @2.00% p.a. with half yearly rests from 05.05.2026 till the realization.

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4 OA/ 909/2026

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PUNJAB GRAMIN BANK VS LATE SH. DHARAM SINGH THROUGH HIS LEGAL HEIRS

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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 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 @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 a total sum of Rs.39,87,262.00 (Rupees Thirty Nine Lac Eighty Seven Thousand Two Hundred Sixty Two 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 the deceased defendant no. 1 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 nos. 1.1 to 1.3 up to the extent, they inherited the property of deceased defendant no.1. 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

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on 03.09.2026

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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: 19.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Dharam Singh through His Legal Heirs

Case brief

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Punjab Gramin Bank v. Sh. Dharam Singh through His Legal Heirs

Case brief

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