Allowed

Canara Bank v. Messrs Euro Tree and Others

DRT2 Jun 2025OA/1150/2023

Case brief

AI extract

What is this about?

The DRT allowed Canara Bank's Original Application for recovery of Rs 52,22,480 from M/s Euro Tree and partners. The court ex-parte rejected defenses and granted recovery with modified interest of 8% p.a. subject to enforcement via asset sale.

What did the court decide?

Order allowing application, directing defendants to pay Rs 52,22,480 with simple interest at 8% p.a. Recovery through sale of mortgaged or hypothecated properties or personal assets authorized under S

Canara Bank versus Messrs Euro Tree and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1150/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 06.10.2023

¶5

DATE OF DECISION: 02.06.2025.

¶6

Canara Bank, having its head office at 112, J.C. Road, Bangalore - 560002 Karnataka Having its branch office at Canara Bank, SCO-27, Sector-11, Panchkula, Haryana-134109 Through its attorney holder: Sh. Ravi Prakash Srivastava, Chief manager at SCO-27, Scetor-11, Panchkula, Haryana-134109.

¶7

……..Applicant

¶8

Versus

¶9

M/s Euro Tree, through its partners Sh. Mitanshu Garg, and Sh. Harpreet Singh situated at 203, 2^nd floor, Unicity Business Park, Zirakpur, District SAS Nagar, Mohali, Punjab-160102.

¶10

Shri Mitanshu Garg Son of Sh. Sandeep Garg, Partner of Euro Tree, R/o House No.176, Hill view colony, Dhakoli, Sub tehsil zirakpur, District SAS Nagar Mohali Punjab.

¶11

Sh. Harpreet Singh Ghuman S/o Sh. Amarjeet Singh Partner of M/s Euro Tree R/o House No.8, Ground floor, Kishanpura, Dhakoli, Sub Tehsil Zirakpur, District SAS Nagar, Mohali, Punjab-160104.

¶12

….……Defendants

¶13

Advocates: Argued by Sh. Ravinder Kumar, Advocate for the applicant (through VC) Defendants are ex parte

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.52,22,480.00 (Rupees Fifty Two Lacs Twenty Two Thousand Four Hundred Eighty Only). The Original Application has been filed through Sh. Ravi Prakash Srivastava, Chief manager o f the applicant bank, who

¶16

2 OA NO.1150-2023 CANARA BANK VS M/S EURO TREE AND OTHERS

¶17

is competent to institute the Original Application vide True copy of General Power of Attorney dated 08.09.2006, which is Annexure A1 to this OA.

¶18

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of CC Limit of Rs.40.00 Lacs & Term Loan of Rs.10.00 Lacs vide Application for advances dated 02.08.2021, which is Annexure A2 to this OA and further for renewal of CC Limit of Rs.40.00 Lacs & Term Loan of Rs.10.00 Lacs vide application for renewal dated 09.11.2022, which is Annexure A11 to this OA. 3. The applicant Bank sanctioned the CC Limit of Rs.40.00 Lacs & Term Loan of Rs.10.00 Lacs vide True Copy of Sanctioned letter dated 08.09.2021, which is Annexure A3 to this OA and further, sanctioned the renewal of CC Limit of Rs.40.00 Lacs & Term Loan of Rs.10.00 Lacs vide True copy of sanctioned of renewal dated 09.11.2022, which is Annexure A12 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had Mortgaged his immovable property i.e. Commercial Space at Office unit no.203, 2^nd Floor, Super Area 1316 Sq. feet situated at Unicity Business Park, Near Hotel Marc Royale, Share in Land 20 Sq. Yards mauja Dhakoli, Hadbast No.48, Tehsil Derabassi district SAS Nagar Mohali, Punjab vide Equitable Mortgage of Title Deed bearing vasika no.3537 dated 05.07.2021 with its translation, which is Annexure A13 to this OA. Documents executed:- Composite hypothecation agreement, Pronote, Letter Undertaking, Undertaking not avail facility elsewhere, Partnership letter, Guarantee agreement defendant no.1, Guarantee agreement defendant no.2, True copy of equitable mortgage all dated 08.09.2021, which are Annexures A4 to A10 & A16 to this OA; True copy of valuation dated 15.07.2021, which is Annexure A14 to this

¶19

3 OA NO.1150-2023 CANARA BANK VS M/S EURO TREE AND OTHERS

¶20

OA; True copy of title search report dated 05.08.2021, which is Annexure A15 to this OA; True copy of the CERSAI qua the property, True copy of the CERSAI qua the hypothecated stocks both dated 13.01.2022, which are Annexures A17 & A19 to this OA; True copy of the supplementary title search report dated 13.02.2023, which is Annexure A18 to this OA; True copy of the demand notice u/s13(2) dated 07.04.2023, which is Annexure A20 to this OA; True cop of the legal notice dated 01.06.2023 along with copy of the postal receipts, which is Annexure A21 to this OA and Statement of account along with memoranda supported by certificate under Banker Books Evidence, which is Annexure A22 to this OA.

¶21

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.52,22,480.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

¶22

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 30.05.2025.

¶23

In support of the OA, affidavit of Sh. Ravi Prakash Srivastava, Chief Manager, Canara Bank, h as been filed.

¶24

Heard ex-parte arguments and perused record.

¶25

It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A22 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The

¶26

4 OA NO.1150-2023 CANARA BANK VS M/S EURO TREE AND OTHERS

¶27

defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.52,22,480.00 (Rupees Fifty Two Lacs Twenty Two Thousand Four Hundred Eighty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶28

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.05%p.a. in OCC Limit & interest @9.40%p.a. in Term Loan along with penal interest @2.00%p.a. with monthly rests from 01.09.2023 till the realization.

¶29

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 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 both the loan accounts from the date of filing of the OA till realization of the amounts ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.52,22,480.00p (Rupees Fifty Two Lacs Twenty Two Thousand Four Hundred Eighty Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid

¶30

¶31

OA NO.1150-2023 CANARA BANK VS M/S EURO TREE AND OTHERS

¶32

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 bank 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.

¶33

Any other application pending stands disposed of .

¶34

Issue Recovery Certificate accordingly.

¶35

Parties to appear before Learned Recovery Officer of this Tribunal on 18.06.2025.

¶36

Copy of this order be given dasti to the applicant bank 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.

¶37

Pronounced by me in the open Tribunal.

¶38

Dated: 02.06.2025.

¶39

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Messrs Euro Tree and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Messrs Euro Tree and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Limited versus M/S v R Steel Enterprises and Another

Edelweiss Asset Reconstruction Company Limited versus M/S Sethi Hosiery Works and Others

Icici Bank Limited versus Sh. Malkeet Singh and Another

Icici Bank Limited versus Messrs Nrc Traders

Bank of India versus M/S Meetesh Trading Company and Another

Punjab Gramin Bank versus Avtar Singh