Allowed

Canara Bank v. M/S Shree Mahavir Ji Creation and another

DRT1 Jul 2025OA/301/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Canara Bank for recovery of Rs.64,63,205.13p from the respondents. The Tribunal granted uniform simple interest at 8% per annum instead of the claimed rates and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovered sum of Rs.64,63,205.13p jointly and severally; uniform simple interest granted @8% per annum; Recovery Certificate issued.

Canara Bank versus M/S Shree Mahavir Ji Creation and another — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.301/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2025

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DATE OF DECISION: 01.07.2025

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Canara Bank, a body corporate and nationalized under the provisions of The Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 with Head Office at J C Road, Bangalore and amongst other a Branch Office at MSME Sulabh, Bharat Nagar Chowk, Ludhiana, District Ludhiana, Punjab through its Constituted Attorney and Manager Sh. Tarun Goyal.

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……..Applicant Versus

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M/s Shree Mahavir Ji Creation, a proprietorship concern having its registered office at Plot no. 110, Dashmesh Colony, Near K.P. High School, Noorwala Road, Ludhiana, District Ludhiana, Punjab, through its Proprietor Smt. Mamta Jain- 141007.

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Smt. Mamta Jain W/o Sh. Harish Jain, Proprietor M/s Shree Mahavir Ji Creation, registered office at Plot no. 110, Dashmesh Colony, Near K.P. High School, Noorwala Road, Ludhiana, District Ludhiana, Punjab.

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2^nd Address House No. S-172, Street No. 4, Noorwala Road, Basant Vihar, Basti Jodhewal, Ludhiana, District Ludhiana, Punjab-141007

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………. Defendants

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Advocates:

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Present Sh. Gaurav Thakur, Advocate proxy for Sh. Aseem Kataria, Advocate for the applicant Defendants are ex-parte

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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 to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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2 OA NO.301-2025

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CANARA BANK VS M/S SHREE MAHAVIR JI CREATION AND ANOTHER Rs.64,63,205.13p (Rupees Sixty Four Lacs Sixty Three Thousand Two Hundred Five And Paise Thirteen Only). The Original Application has been filed through Sh. Tarun Goyal, Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 15.09.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of Cash Credit Limit of Rs.15.00 Lacs and Term Loan of Rs. 07.00 Lacs and further for Term Loan II of Rs 72.00 Lacs vide Loan Application dated 12.06.2023 which is Annexure A7 to this OA

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The applicant sanctioned Cash Credit Limit of Rs.15.00 Lacs and Term Loan of Rs. 07.00 Lacs vide Sanction Memorandum dated 09.09.2022, which is Annexure A2 to this OA and further sanctioned Term Loan of Rs 65.96 Lacs vide Sanction Memorandum dated 31.07.2023, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had Hypothecation its movable properties/assets i.e. All type of Raw Material, Work in process, finished goods as well as book Debts and Plant and Machinery etc. vide Hypothecation Deed dated 09.09.2022 and 31.07.2023, which are Annexures A4 and A9 to this OA. Documents executed:- Letter of proprietorship, Take Delivery Letter to DPN and Pronote all dated 03.09.2022, which are Annexures A3, A5 and A6 to this OA; Take Delivery Letter to DPN, Pronote and Letter of Undertaking all dated 31.07.2023, which are Annexures A10 to A12 to this OA; Legal Notice dated 11.12.2024, which is Annexure A13 to this OA and Statements of Accounts with certificate, which are Annexures A14 and A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.64,63,205.13p, which is recoverable and the

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3 OA NO.301-2025

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CANARA BANK VS M/S SHREE MAHAVIR JI CREATION AND ANOTHER

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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.

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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 27.06.2025.

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In support of the OA, affidavit of Sh. Tarun Goyal, Manager, Canara Bank h as been filed. 8. Ld. proxy counsel for applicant present has not advanced any arguments. Perused record.

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In view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to them and for that 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.64,63,205.13p (Rupees Sixty Four Lacs Sixty Three Thousand Two Hundred Five And Paise Thirteen 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.55%p.a. in Term loan I and interest @13.95%p.a. in Term Loan II with monthly rests from 04.03.2025 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

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4 OA NO.301-2025

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CANARA BANK VS M/S SHREE MAHAVIR JI CREATION AND ANOTHER 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 @08.00%p.a. in all the loan accounts 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.64,63,205.13p (Rupees Sixty Four Lacs Sixty Three Thousand Two Hundred Five And Paise Thirteen Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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 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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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 19.07.2025.

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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 . Dated: 01.07.2025

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

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OA NO.301-2025 CANARA BANK VS M/S SHREE MAHAVIR JI CREATION AND ANOTHER

Canara Bank v. M/S Shree Mahavir Ji Creation and another

Case brief

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Canara Bank v. M/S Shree Mahavir Ji Creation and another

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