Allowed

Punjab National Bank v. Sh. Kulwinder Singh and Others

DRT8 Jun 2026OA/970/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Punjab National Bank for recovery of a non-performing asset debt of Rs. 20,79,658.78 from borrowers. The court adjusted the rate of default interest to 8% p.a. and granted the recovery certificate for enforcement against mortgaged property.

What did the court decide?

Recovery Certificate issued; Defendants declared liable to pay Rs. 20,79,658.78 plus 8% simple interest; Applicant entitled to recover from sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Kulwinder Singh… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 970/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.06.2022

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DATE OF DECISION: 08.06.2026

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Punjab National Bank, a Body Corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and amongst others, a branch at NGM, Sri Muktsar Sahib, through Sh. Rakesh Valecha, Deputy Manager and Attorney holder presently posted at Circle SASTRA Centre, Fazilka.

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……..Applicant

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Versus

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Sh. Kulwinder Singh son of Sh. Sadhu Singh, resident of Village Khudde Halal, Tehsil and District Sri Muktsar Sahib.

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Late Sh. Jagdish Singh son of Sh. Sadhu Singh, resident of Village Khudde Halal, Tehsil and District Sri Muktsar Sahib. (since deceased) represented through following legal heirs:

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2.1 Sh. Anupreet Singh, Son of Late Sh. Jagdish Singh, Resident of Village Khudde Halal Tehsil and District Sri Muktsar Sahib, Punjab. (Legal Heir of Defendant No. 2)

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Late Smt. Ranjit Kaur widow of Late Sh. Sadhu Singh, resident of Village Khudde Halal, Tehsil and District Sri Muktsar Sahib. (since deceased) represented through following legal heirs:

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3.1 Sh. Kulwinder Singh son of Sh. Sadhu Singh (Also arrayed as defendant No. 1)

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…….Defendants

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Advocates:

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Argued by Ms. Ashmita Goel, Advocate proxy for Sh. Manish Singla, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 05.06.2026)

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OA/970/2022 PUNJAB NATIONAL BANK VS. SH. KULWINDER SINGH AND OTHERS

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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.20,79,658.78 (Rupees Twenty Lacs Seventy Nine Thousand Six Hundred Fifty Eight and Paise Seventy Eight Only). The Original Application has been filed through Sh. Rakesh Valecha, Deputy 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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The brief facts of the OA are that the Defendant no.1 with defendant nos. 2 & 3 (since deceased) approached the applicant for grant of KCC Limit of Rs.10.00 lacs vide Loan Application Form, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 lacs, vide Sanction Letter, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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During the pendency of OA, Defendant nos. 2 & 3 have been died and their legal heirs have been impleaded as defendants. 4. Defendants mortgaged their property ie. Agricultural land measuring 35Kanal-5Marala situated at Village Khudde Halal, Tehsil and District Sri Muktsar Sahib, Punjab vide Declaration under Section 4(1) of Act 1978 accompanied by letter to the revenue authorities requesting to note down lien dated 05.10.2015, which is Annexure A7 to this OA.

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Documents executed: Hypothecation Agreement dated 09.10.2015, which is Annexure A4 to this OA; Letter of Undertaking dated 09.10.2015, which is Annexure A5 to this OA; Letter of Consent (Revised) dated 09.10.2015, which is Annexure A6 to this OA; Balance and Security Confirmation Letter dated 26.09.2018, which is Annexure A8 to this OA; Notice dated 05.11.2019, which is Annexure A9 to this OA; Statement of Account duly certified (KCC) dated 20.05.2022, which is Annexure A10 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.20,79,658.78 (Rupees Twenty Lacs Seventy Nine Thousand Six Hundred Fifty Eight and Paise Seventy Eight Only), which is

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OA/970/2022 PUNJAB NATIONAL BANK VS. SH. KULWINDER SINGH AND OTHERS

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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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 05.06.2026.

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In support of the OA, affidavit of Sh. Rakesh Valecha, Deputy Manage r, Punjab National B ank, has been filed. 8. Heard 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 Annexures A1 to A10 to this OA, it is proved that the Defendant no.1 with defendant nos. 2 & 3 (since deceased), approached the applicant for availing of the loan facility, which was granted to them. They had executed all the relevant documents in favour of the bank. 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.20,79,658.78 (Rupees Twenty Lacs Seventy Nine Thousand Six Hundred Fifty Eight and Paise Seventy Eight 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50% p.a. plus 2.00% p.a. penal interest with yearly rests from 01.05.2022 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, undertaking of the defendants, quantum of loan and prevalent market rates of interest

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OA/970/2022 PUNJAB NATIONAL BANK VS. SH. KULWINDER SINGH AND OTHERS

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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 defendants are liable to pay to the applicant a total sum of Rs.20,79,658.78 (Rupees Twenty Lacs Seventy Nine Thousand Six Hundred Fifty Eight and Paise Seventy Eight 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 property 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 no. 1 and personal assets of the legal heirs of deceased defendant nos. 2 & 3 up to the extent, they inherited from the deceased 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2026

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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 .

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Dated: 08.06.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Kulwinder Singh and Others

Case brief

What is this about?

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Punjab National Bank v. Sh. Kulwinder Singh and Others

Case brief

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