Allowed

Canara Bank v. Sh. Jagjit Singh

DRT25 Sept 2025OA/346/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of outstanding dues of Rs. 28,29,345.93 along with interest. The Tribunal exercised discretion to grant uniform simple interest at 8% p.a. and ordered issuance of a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs. 28,29,345.93 with interest at 8% p.a.; issuance of Recovery Certificate; liberty to recover from sale of mortgaged or personal assets.

Canara Bank versus Sh. Jagjit Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.346/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.02.2025

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DATE OF DECISION: 25.09.2025

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Canara Bank, a body corporate with perpetual succession constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at 112, J.C. Road, Bangalore and branch office at various places in India including a branch at VPO Salana, District Fatehgarh Sahib, Punjab through its Senior Managercum-General Power of Attorney Sh. Ashish Singh.

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……..Applicant Versus

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Sh. Jagjit Singh S/o Late Sh. Mohinder Singh R/o H. No. 175, Village Goh, Tehsil Khanna, District Ludhiana (Pb) -141417.

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……….Defendant

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Advocates:

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Argued by Sh. P. K. Arora, Advocate for Applicant Defendant already 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 and Bankruptcy Act, 1993, against the defendant for recovery of Rs.28,29,345.93p (Rupees Twenty Eight Lacs Twenty Nine Thousand Three Hundred Forty Five and Ninety Three Paise Only). The Original Application has been filed through Sh. Ashish Singh , Senior Manager-cum-General Power of Attorney, who is competent to institute the Original Application vide General Power of Attorney dated 08.02.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.8.00 Lacs. Thereafter, the

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OA NO. 346/2025 CANARA BANK VS SH. JAGJIT SINGH

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defendant approached the applicant for enhancement of KCC Limit from Rs.8.00 Lacs to Rs. 16.00 Lacs.

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The applicant sanctioned KCC Limit of Rs.8.00 Lacs vide Sanction Memorandum dated 22.11.2014, which is Annexure A2 to this OA. Further, the applicant sanctioned enhancement of KCC Limit to Rs.16.00 Lacs vide Sanction Memorandum dated 27.01.2020, which is Annexure A5 to this OA. The terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. Agricultural land measuring 29K-00M bearing Hadbast No. 172 situated at Village Goh, Tehsil Khanna, District Ludhiana, Punjab vide Declarations dated 18.11.2014 & 03.02.2020, which are Annexures A7 & A8 to this OA. Documents executed :-Agreement and Deed of Hypothecation, dated 22.11.2014, which is Annexure A3 to this OA; Revival Letters dated 16.11.2017 & 12.01.2023 which are Annexures A4, A9 & A10 to this OA; Supplemental Agreement dated 13.02.2020, which is Annexure A6 to this OA; Legal Notice dated 27.12.2023 along with translation, which is Annexure A11 to this OA and Statement of Account, which is Annexure A12 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.28,29,345.93p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 19.09.2025. 7. In support of the OA, affidavit of Sh. Ashish Singh , Senior Manager-cum-General Power of Attorney, Canara Bank h as been filed.

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OA NO. 346/2025 CANARA BANK VS SH. JAGJIT SINGH

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel that 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 A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,29,345.93p (Rupees Twenty Eight Lacs Twenty Nine Thousand Three Hundred Forty Five and Paise Ninety Three Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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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 @13.40% p.a. with penal interest @2% p.a. with half yearly rests from 01.10.2024 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 defendant, 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 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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OA NO. 346/2025 CANARA BANK VS SH. JAGJIT SINGH

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,29,345.93p (Rupees Twenty Eight Lacs Twenty Nine Thousand Three Hundred Forty Five and Paise Ninety Three Only) 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 hypothecated/mortgaged properties of the defendant 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. 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 17.10.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 25.09.2025

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

Canara Bank v. Sh. Jagjit Singh

Case brief

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Canara Bank v. Sh. Jagjit Singh

Case brief

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