Allowed

Punjab Gramin Bank v. Sh. Gurcharan Singh through His Legal Heirs and Another

DRT2 Jul 2026OA/930/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Punjab Gramin Bank against legal heirs of the deceased borrower. It declared the defendants liable to pay the outstanding principal amount of Rs. 69.41 lakhs with simple interest at 8% per annum from the date of filing until realization, authorizing recovery via sale of mortgaged property or personal assets.

What did the court decide?

Defendants declared liable to pay Rs. 69,41,153.12 with costs and future simple interest at 8% p.a. from filing date till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 930/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2025

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DATE OF DECISION: 02.07.2026

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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) has its Head Office at Markfed Road, Kapurthala and amongst others a Branch Office at Village Badalgarh, Tehsil Moonak, District Sangrur, Punjab through Sh. Deepak Kumar, S/o Sh. Sohan Lal, Branch Manager and General Attorney

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……..Applicant

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Versus

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Sh. Gurcharan Singh, S/o Sh. Santokh Singh, R/o Village Badalgarh, PO Dudian, Tehsil Moonak, District Sangrur, Punjab148033 since deceased survived by the following Legal Heirs:

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1.1. Smt. Darshan Kaur (Wife)

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1.2. Sh. Manpreet Singh (Son)

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Both residents of Village Badalgarh, PO Dudian, Tehsil Moonak, District Sangrur, Punjab- 148033

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Sh. Mohan Singh, S/o Sh. Santokh Singh, R/o Village Badalgarh, PO Dudian, Tehsil Moonak, District Sangrur, Punjab- 148033

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………Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Manish Singla, Advocate for applicant (through VC)

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None for defendants (already ex-parte vide order dated 29.06.2026)

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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. 69,41,153.12 (Rupees Sixty Nine Lacs Forty One Thousand One Hundred Fifty Three and Paise Twelve Only). The Original Application has been filed through Sh. Deepak Kumar, Branch Manager of the applicant, who is competent to

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2 OA NO. 930/2025 PUNJAB GRAMIN BANK VS. GURCHARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 defendant no. 1 (since deceased) and defendant no. 2 approached the applicant for grant of KCC Limit of Rs. 14.50 Lacs, KGC Limit of Rs. 7.90 Lacs and Debt Swap Loan of Rs. 1.00 Lac vide Loan Application Forms, all dated 19.11.2015, which are Annexure A2, A7 and A12 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 14.50 Lacs, KGC Limit of Rs. 7.90 Lacs and Debt Swap Loan of Rs. 1.00 Lac vide Sanction Letters, all dated 21.11.2015, which are Annexure A3, A8 and A13 to this OA and the terms and conditions were duly accepted by the defendant no. 1 (since deceased) and defendant no. 2.

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Defendant no. 1 (since deceased) and defendant no. 2 mortgaged their immovable property i.e. Land measuring 48K 00M situated at Badalgarh, Hadbast no. 96, Tehsil Moonak, District Sangrur, Punjab vide Declaration u/s 4 (1) of the Punjab Agriculture Credit Operations and Miscellaneous Provision (Banks) Act, 1978, which is Annexure A17 to this OA.

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Documents executed: DP Notes, Letters of Undertaking and Loan Agreements, all dated 24.11.2015, which are Annexure A4 to A6, A9 to A11 and A14 to A16 to this OA; Revival Letter dated 01.11.2018, which is Annexure A18 to this OA; Balance and Security Confirmation Letters dated 11.01.2021 and 07.02.2023, which is Annexure A19 to this OA; Death Certificate dated 02.05.2017, which is Annexure A20 to this OA; Recall Notices dated 23.10.2018, 26.10.2022, 06.09.2023 and 05.08.2024, which is Annexure A21 to this OA and Statement of Accounts, which are Annexure A22 to A24 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. 69,41,153.12 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.

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3 OA NO. 930/2025 PUNJAB GRAMIN BANK VS. GURCHARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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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 29.06.2026.

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In support of the OA, affidavit of Sh. Deepak Kumar, 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 (through VC) 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 Annexure A1 to A24 to this OA, it is proved that defendant no. 1 (since deceased) and defendant no. 2 approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, 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. 69,41,153.12 (Rupees Sixty Nine Lacs Forty One Thousand One Hundred Fifty Three and Paise Twelve Only) along with interest from all 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 has claimed interest @13.75%p.a. including @2% penal interest with half yearly rests from 13.06.2025 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 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 all the

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4 OA NO. 930/2025 PUNJAB GRAMIN BANK VS. GURCHARAN SINGH THROUGH HIS LEGAL HEIRS AND ANOTHER

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loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.69,41,153.12 (Rupees Sixty Nine Lacs Forty One Thousand One Hundred Fifty Three and Paise Twelve Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in all 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 defendant no. 1 (since deceased) and defendant no. 2 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 defendant no. 2 and also of defendant nos. 1.1. and 1.2. 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.07.2026. 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. Pronounced by me in the open Tribunal . Dated: 02.07.2026

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

Punjab Gramin Bank v. Sh. Gurcharan Singh through His Legal Heirs and Another

Case brief

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Punjab Gramin Bank v. Sh. Gurcharan Singh through His Legal Heirs and Another

Case brief

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