Allowed

Canara Bank v. Chanan Singh

DRT18 Jan 2023OA/85/2022

Case brief

AI extract

What is this about?

The DRT-I, Chandigarh allowed the applicant bank's OA for recovery of Rs. 1,35,91,825/- with interest against two defendants who defaulted on an enhanced agricultural KCC loan secured by mortgaged land, proceeding ex parte as defendants failed to appear.

What did the court decide?

Recovery of Rs. 1,35,91,825/- with interest from mortgaged lands and personal property of respondents; Recovery Certificate issued; partition of sale proceeds directed.

Canara Bank versus Chanan Singh — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 85/2022 Date of Institution: 11.01.2022 Date of Decision: 18.01.2023

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Canara Bank, Branch Office Shankar, Jalandhar.

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……..Applicant

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Vs.

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Chanan Singh S/o Sh. Amar Singh, R/o Village Karhal Nau Abad, Tehsil and District Kapurthala (Pb)- 144601.

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Jaswant Singh S/o Sh. Chanan Singh, R/o Villae Karhal Nau Abad, Tehsil and District Kapurthala (Pb)- 144601.

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……….Defendants

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Advocates

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Sh. Arvind Rajotia, Counsel for the applicant bank. None for defendants.

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OA for the Recovery of Rs.1,35,91,825/- with interest @11.60% per annum with yearly rests from 06.11.2020.

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ORDER

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Canara Bank, (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.1,35,91,825/- with interest against Sh. Chanan Singh and another (defendants).

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Bank’s case is that on it had granted a KCC limit of Rs.45,00,000/- to defendant Nos.1 and 2 for agricultural purpose. To secure the loan, Defendant No.1 had mortgaged his agricultural land (fully detailed in para No.5(f) of the application). Further, the limit was enhanced from Rs.45,00,000/- to Rs.68,00,000/-. To further secure the loan defendant No.1 had mortgaged his agricultural land (fully detailed in para No.5(e) of the application). Defendant No.2 also stood guarantor. The loan was chargeable to interest @11.60% per annum with yearly

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rests. On 06.11.2020, a sum of Rs.1,35,91,825/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 10.03.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 24.08.2022, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Vikash Kumar, Manager along with the loan and security documents and marked them as Exhibit A-1 to A-18.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.68,00,000/- and on 06.11.2020, a sum of Rs.1,35,91,825/- was due.

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Accordingly, the application of the bank for the recovery of Rs.1,35,91,825/- (Rupees One Crore Thirty Five Lacs Ninety One Thousand Eight Hundred and Twenty Five Only) with interest @11.60% per annum with yearly rests from 06.11.2020, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged lands fully detailed in para No.5(f) and 5(e) of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 09.02.2023 , who is directed to distribute the sale proceeds of the

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mortgage lands and standing crops as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 18.01.2023 Presiding Officer DRT-1, Chandigarh Pankaj

Canara Bank v. Chanan Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Chanan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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