Tribunal allowed an original application by Punjab Gramin Bank for recovery of Rs. 26,98,972 from the legal heirs of a deceased borrower. The court designated 8% simple interest and authorized recovery from mortgaged and personal assets.
Recovery Certificate issued for Rs. 26,98,972 plus interest @8% p.a., recoverable from sale of mortgaged or personal assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 949/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.07.2025
DATE OF DECISION: 25.05.2026
Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its Head Office at Markfed Road, Kapurthala (Pb) and having its branches at different places, including one at Bholath, Tehsil Bholath, Kapurthala (PB) through its Constituted Attorney/Branch Head, Sh. Sandeep Singh.
……..Applicant
Versus
All the residents of Village Bhagwanpur, Tehsil Bholath, Distt. Kapurthala (PB).
…….Defendants
Advocates:
Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) None for Defendants (already ex-parte vide order dated 21.05.2026)
FINAL ORDER
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OA/949/2025 PUNJAB GRAMIN BANK VS. NARINDER KAUR THROUGH HER LEGAL HEIRS
Original Application has been filed through Sh. Sandeep Singh, Branch Head, of the Applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.01.2017, which is Annexure A1 to this OA.
Documents executed: Loan Agreement dated 27.11.2018, which is Annexure A4 to this OA; Notice dated 10.01.2024, which is Annexure A6 to this OA; BC Letters dated 10.08.2020, 01.10.2022 and 02.09.2023, which are Annexures A7, A7/1 & A7/2 respectively to this OA; Statement of Account with Certificate, which is Annexure A8 to this OA; Death Certificate dated 24.08.2022, which is Annexure A9 to this OA.
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OA/949/2025 PUNJAB GRAMIN BANK VS. NARINDER KAUR THROUGH HER LEGAL HEIRS
appeared on behalf of defendant nos. 1(a), 1(c) & 1(d) and filed his Power of Attorney on behalf of defendant nos. 1(a), 1(c) & 1(d) on 01.09.2025. WS on behalf of defendant nos. 1(a), 1(c) & 1(d), was filed on 26.09.2025. The matter was listed for admission and denial of documents on 18.05.2026. Sh. Ankit Chaudhary, Assistant Manager of the applicant, appeared with original documents, which were seen by the counsel for defendant nos. 1(a), 1(c) & 1(d). The counsel for defendant nos. 1(a), 1(c) & 1(d) admitted the signatures on documents produced but denied their contents. None was appeared on behalf of defendant no. 1(b) despite service of summons, therefore he was proceeded ex-parte and none was present o n behalf of defendant nos. 1(a), 1(c) & 1(d) after admission or denial of documents despite repeated calls, so they were proceeded ex-parte vide order dated 21.05.2026.
From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant no.1 (since deceased) approached the applicant for availing of the loan facility, which was granted to her. She had executed all the relevant documents in favour of the bank. Thereafter, she got expired on 24.08.2022. Legal Representatives of defendant no. 1 that are defendant nos. 1(a) to 1(d) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,98,972.00 (Rupees Twenty Six Lacs Ninety Eight Thousand Nine Hundred Seventy Two
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OA/949/2025 PUNJAB GRAMIN BANK VS. NARINDER KAUR THROUGH HER LEGAL HEIRS
Only), along with interest from the defendant nos. 1(a) to 1(d), jointly and severally, from the date of filing of the present Original Application till realization of the amount.
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 hypothecated assets/mortgaged property, undertaking of the defendants, 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 account 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 defendant nos. 1(a) to 1(d) are liable to pay to the applicant a total sum of Rs.26,98,972.00 (Rupees Twenty Six Lacs Ninety Eight Thousand Nine Hundred Seventy Two Only), jointly and severally, 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 properties of the defendants 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(a) to 1(d) up to the extent they inherited from the deceased defendant no.1. The applicant is at liberty to enforce the claim through due process of law.
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OA/949/2025 PUNJAB GRAMIN BANK VS. NARINDER KAUR THROUGH HER LEGAL HEIRS
12. Any other application pending stands disposed of.
on 16.06.2026
Pronounced by me in the open Tribunal .
Dated: 25.05.2026.
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to a Recovery Certificate declaring the legal heirs liable to pay the outstanding debt?
What interest rate should the Tribunal allow for the loan account until realization?
Colour shows how this judgement treated each authority
nullReferred
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3 provisions across 3 enactments
Punjab Gramin Bank
Smt. Narinder Kaur
Sh. Sukhjinder Singh
Sh. Amanpreet Singh
Sh. Davinderdeep Singh
Ms. Gurpreet Kaur
MRIDULESH KUMAR SINGH
As recorded by the court registry
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