Allowed

Punjab National Bank v. Sh. Harjinder Singh and Another

DRT8 Jan 2026OA/965/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against two defendants for recovery of a loan of Rs. 27,03,587. The Tribunal deemed 8% p.a. simple interest appropriate considering market rates and granted a Recovery Certificate.

What did the court decide?

Declaratory of liability to pay Rs. 27,03,587 jointly and severally with interest @8% p.a. and costs; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.965/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.04.2022

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DATE OF DECISION: 08.01.2026

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Punjab National Bank, a Body Corporate and nationalized bank under provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector10, Dwarka, New Delhi-110075 and amongst others branch at Nihal Singh Wala, District Moga, Punjab through its constituted attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Sastra, Moga.

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……..Applicant

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Versus

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Sh. Harjinder Singh Son of Sh. Karnail Singh, R/o House No. 2325-B, Shahid Bhagat Singh Nagar, Opposite I.T.I., Moga, Tehsil and District Moga, Punjab.

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Sh. Surinder Singh Son of Sh. Gurbachan Singh, R/o Village Rode, Tehsil Baghapurana, District Moga, Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Pankaj Beri, Advocate for applicant (through VC)

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Defendants already ex parte vide order dated 20.02.2025.

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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 Due and Bankruptcy Act, 1993, against the defendants for recovery of Rs.27,03,587.00 (Rupees Twenty Seven Lacs Three Thousand Five Hundred Eighty Seven only). The Original Application has been filed through Sh. Sandeep kumar, Senior manager of the applicant, who is competent to institute the Original Application vide Power of Attorney 04.11.2016, which is Annexure A1 to this OA.

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2 OA/965/2022

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PUNJAB NATIONAL BANK VS. HARJINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendant No. 1 had approached the applicant for the grant of KCC Limit of Rs.24.00 Lacs vide Loan Application dated 01.05.2014, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs.24.00 Lacs vide Sanction Letter dated 02.05.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 45K-01M situated at Village Roda-I, District Moga, Punjab vide mortgage deed bearing vasika no. 229 dated 06.05.2014, along with its translation, which is Annexure A4 to this OA. Documents executed: Amalgamation notification dated 04.03.2020, which is Annexure A to this OA; Agreement for hypothecation, Agreement of guarantee, both dated 21.05.2014, which are Annexures A5 & A6 to this OA; Legal notice dated 07.02.2022, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 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.27,03,587.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 20.02.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager , Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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OA/965/2022

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PUNJAB NATIONAL BANK VS. HARJINDER SINGH AND ANOTHER

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From the perusal of all the Annexures A to A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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, 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.27,03,587.00 (Rupees Twenty Seven Lacs Three Thousand Five Hundred Eighty Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @10.80%p.a. with half yearly rests from 26.03.2022 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 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 uniform 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.27,03,587.00 (Rupees Twenty Seven Lacs Three Thousand Five Hundred Eighty Seven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the

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OA/965/2022 PUNJAB NATIONAL BANK VS. HARJINDER SINGH AND ANOTHER

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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 hypothecated/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 defendants. 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 22.01.2026. 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: 08.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Harjinder Singh and Another

Case brief

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Punjab National Bank v. Sh. Harjinder Singh and Another

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