Allowed

Punjab National Bank v. Sh. Narinder Pal Singh

DRT20 Jun 2026OA/959/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 23.27 lakhs against a defaulting borrower. After noting the defendant's absence and the evidence of loan default, the tribunal awarded principal plus 8% simple interest and authorized recovery through mortgaged collateral or attachment of other assets under SARFAESI.

What did the court decide?

Recovery of Rs. 23,27,664.53 with costs and simple interest at 8% p.a. from the date of filing. Recovery to be effected via sale of mortgaged property or attachment of personal assets. Recovery Certif

Punjab National Bank versus Sh. Narinder Pal Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.959/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.07.2025

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DATE OF DECISION: 20.06.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi and having one of its Branch situated at Punjab National Bank, Old Court Road, Nawanshahr, District SBS Nagar, Punjab through its General Power of Attorney Holder, Sh. Ajay Sharma who is presently working as Manager, Punjab National Bank, Old Court Road, Nawanshahr, District SBS Nagar, Punjab who is duly authorized and Principal Officer

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……..Applicant

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Versus

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Sh. Narinder Pal Singh, S/o Sh. Hazara Singh

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Addresses:

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i. VPO Barwa, Tehsil Nawanshahr, District SBS Nagar, Punjab

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ii. House no. 4, Lajpat Nagar, Chandigarh Road, Tehsil Nawanshahr, District SBS Nagar, Punjab

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….……Defendant

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Advocates:

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Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for applicant

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None for defendant (already ex-parte vide order dated 16.06.2026)

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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 defendant for recovery of Rs. 23,27,664.53 (Rupees Twenty Three Lacs Twenty Seven Thousand Six Hundred Sixty Four and Paise Fifty Three Only). The Original Application has been filed through Sh. Ajay Sharma , Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2019, which is Annexure A1 to this OA.

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2 OA NO. 959/2025 PUNJAB NATIONAL BANK VS. NARINDER PAL SINGH

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The brief facts of the OA are that the defendant approached the applicant for grant of KCC Limit of Rs. 20.00 Lacs vide Loan Application dated 05.03.2016, which is Annexure A2 to this OA. Thereafter, the defendant approached the applicant for renewal of KCC Limit of Rs.20.00 Lacs vide Loan Renewal Application dated 07.04.2021, which is Annexure A10 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 20.00 Lacs vide Loan Sanction Letter dated 05.03.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. Thereafter, the applicant sanctioned renewal of KCC Limit of Rs. 20.00 Lacs. 4. The defendant mortgaged his immovable property i.e. Land measuring 21K 19M situated at VPO Barwa, Nawanshahr, Punjab vide Declaration u/s 4 (1) of the Punjab Agriculture and Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 and Letter to Sub Registrar, both dated 09.03.2016, which are Annexure A4 and A5 to this OA. Documents executed: Hypothecation Agreement, Letter of Undertaking and Letter of Consent, all dated 25.03.2016, which are Annexure A6 to A8 to this OA; Balance and Security Confirmation Letters dated 31.01.2019 and 09.04.2022, which are Annexure A9 and A12 to this OA; Master Agreement dated 09.04.2021, which is Annexure A11 to this OA; Notice of Recall dated 03.05.2025, which is Annexure A13 to this OA and Statement of Account, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs. 23,27,664.53, 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. 6. 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 on 16.06.2026.

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3 OA NO. 959/2025 PUNJAB NATIONAL BANK VS. NARINDER PAL SINGH

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In support of the OA, affidavit of Sh. Ajay Sharm a, Manager, Punjab National Bank h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 A14 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, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,27,664.53 (Rupees Twenty Three Lacs Twenty Seven Thousand Six Hundred Sixty Four and Paise Fifty 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. plus 2% penal interest with yearly rests from 25.03.2025 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/hypothecated assets, 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 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

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4 OA NO. 959/2025 PUNJAB NATIONAL BANK VS. NARINDER PAL SINGH

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Rs.23,27,664.53 (Rupees Twenty Three Lacs Twenty Seven Thousand Six Hundred Sixty Four and Paise Fifty 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. 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 06.07.2026. 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. Pronounced by me in the open Tribunal . Dated: 20.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Narinder Pal Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Narinder Pal Singh

Case brief

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