Allowed

Punjab National Bank v. Smt. Jagir Kaur @Jagiro through Her Legal Heirs

DRT16 Jun 2026OA/961/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an ex-parte application by Punjab National Bank for recovery of a loan of Rs. 23,59,468.66. The bank proved that the principal borrower passed away and failed to repay. The Tribunal decreed the claim against legal heirs, allowing simple interest at 8% p.a., and authorized recovery via mortgaged property sale or attachment of assets.

What did the court decide?

Decree for recovery of Rs. 23,59,468.66 with interest @ 8% p.a. from filed date; Recovery Certificate issued; Parties directed to execute officer.

Punjab National Bank versus Smt. Jagir Kaur @Jagiro… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 961/2025

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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: 16.06.2026

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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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Smt. Jagir Kaur @Smt. Jagiro (deceased), W/o Late Sh. Dilbag

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Ram through her Legal Heirs:

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i. Sh. Kuldip Ram, S/o Late Sh. Dilbag Ram

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ii. Sh. Jaspal Singh, S/o Late Sh. Dilbag Ram

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Address: Village Mandhala, Tehsil and District SBS Nagar, Punjab

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…Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 12.06.2026)

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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. 23,59,468.66 (Rupees Twenty Three Lacs Fifty Nine Thousand Four Hundred Sixty Eight and Paise Sixty Six Only). The Original Application has been filed through Sh. Ajay Sharma, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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2 OA/961/2025 PUNJAB NATIONAL BANK VS. JAGIR KAUR @JAGIRO THROUGH HER LEGAL HEIRS

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The brief facts of the OA are that defendant no. 1 (since deceased) approached the applicant for grant of KCC Limit of Rs. 12.00 Lacs vide Loan Application dated 10.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs. 12.00 Lacs vide Loan Sanction Letter dated 21.12.2014, which is Annexure A3 to this OA. 4. Defendant no. 1 (since deceased) mortgaged her immovable property i.e. Land measuring 17K situated at Village Mandhala, Tehsil and District Nawanshahr Punjab vide Declaration u/s 4 (1) of the Punjab Agriculture Credit Operations and Miscellaneous Provisions (Bank) Act, 1978 and Letter to Sub Registrar, both dated 27.12.2014 along with its translation and Report on Title dated 04.08.2014, which are Annexure A5 to A7/T to this OA.

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Documents executed: Affidavit dated 01.08.2014, which is Annexure A4 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent and Letter by Borrower, all dated 31.12.2014, which are Annexure A8 to A11 to this OA; Balance and Security Confirmation Letters dated 10.08.2016, 01.08.2019, 31.03.2022 and 28.03.2025, which are Annexure A12, A13, A16 and A18 to this OA; Death Certificate dated 16.03.2021, which is Annexure A14 to this OA; Letter of Forbearance dated 31.03.2022 and 28.03.2025, which are Annexure A15 and A17 to this OA; Notice of Recall dated 24.04.2025, which is Annexure A19 to this OA and Statement of Account, which is Annexure A20 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. 23,59,468.66, which is recoverable and the defendants were served recall notice 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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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 12.06.2026. 7. In support of the OA, affidavit of Sh. Ajay Sharma, Manager, Punjab National Bank h as been filed.

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3 OA/961/2025 PUNJAB NATIONAL BANK VS. JAGIR KAUR @JAGIRO THROUGH HER LEGAL HEIRS

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Heard ex-parte arguments and perused record. 9. 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 A20 to this OA, it is proved that defendant no. 1 (since deceased) approached applicant for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 23,59,468.66 (Rupees Twenty Three Lacs Fifty Nine Thousand Four Hundred Sixty Eight and Paise Sixty Six 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 in relief clause has claimed interest @10.30%p.a. plus @2% penal interest from 01.01.2025 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 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 @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 a total sum of Rs.23,59,468.66 (Rupees Twenty Three Lacs Fifty Nine Thousand Four

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4 OA/961/2025 PUNJAB NATIONAL BANK VS. JAGIR KAUR @JAGIRO THROUGH HER LEGAL HEIRS

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Hundred Sixty Eight and Paise Sixty Six 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 property of defendant no. 1 (since deceased) 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 nos. 1 (i) and 1 (ii) 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 30.06.2026. 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: 16.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Jagir Kaur @Jagiro through Her Legal Heirs

Case brief

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Punjab National Bank v. Smt. Jagir Kaur @Jagiro through Her Legal Heirs

Case brief

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