Allowed

Canara Bank v. Messrs Jaskirat Textiles and Others

DRT10 Jul 2025OA/420/2025

Case brief

AI extract

What is this about?

The DRT allowed Canara Bank's application for recovery of Rs. 47.34 lakhs arising from default in housing and term loans. The court prescribed uniform interest at 8% p.a. and directed issuance of a recovery certificate. Respondents appeared ex-parte.

What did the court decide?

Recovery certificate issued; respondents liable to pay Rs. 47.34 lakhs jointly and severally with costs and 8% simple interest.

Canara Bank versus Messrs Jaskirat Textiles and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.420/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2025

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DATE OF DECISION: 10.07.2025

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970 having its Head Office at J.C. Road, Bangalore-560 002 (Karnataka) and having one of its branches situated at Kailash Nagar, Ludhiana, Punjab through Shri Lovish Kumar posted as Manager.

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……..Applicant Versus

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1. M/s Jaskirat Textiles Through its Proprietor Having its Registered office at, New Shakti Nagar #7224, Near Dada Motors, Ludhiana, Punjab- 141007.

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2. Sh. Hardeep Singh S/o Sh. Amrik Singh Proprietor M/s Jaskirat Textiles R/o MC No. B-37-2147, Street no.2C, Village Gill, Near Singh Diary, Shaheed Karnail Singh Nagar, Near GNE College, Ludhiana, Punjab- 141006.

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3. Smt. Jasvir Kaur W/o Sh. Hardeep Singh R/o MC No. B-372147, Street no.2C, Village Gill, Near Singh Diary, Shaheed Karnail Singh Nagar, Near GNE College, Ludhiana, Punjab141006.

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….Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh Chaudhary, Advocate for 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 Rs.47,34,191.54p (Rupees Forty Seven Lacs Thirty Four Thousands One Hundred Ninety One and Paise Fifty Four Only). The Original

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2 OA NO.420-2025 CANARA BANK VS JASKIRAT TEXTILE AND OTHERS

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Application has been filed through Shri Lovish Kumar, Manager, who is competent to institute the Original Application vide GPA of Bank Official dated 21.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 2 and 3 had approached the applicant for grant of Housing Loan of Rs.21.64 Lacs vide Loan Application dated 29.08.2022, which is Annexure A3 to this OA and further for Housing Loan Top Up of Rs. 86,710.00 vide Loan Application dated 09.12.2022, which is Annexure A7 to this OA. Thereafter defendant no.1 through defendant no.2 approached the applicant for grant of Term Loan of Rs.14.00 Lacs and Overdraft Limit of Rs.7.00 Lacs vide Loan Application dated 13.02.2023, which is Annexure A13 to this OA.

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The applicant sanctioned Housing Loan of Rs.21.30 Lacs and further sanctioned Housing Loan Top up of Rs.86,710.00 vide Sanction Letters dated 20.12.2022, which are Annexures A4 and A8 to this OA. Thereafter applicant sanctioned the Term Loan of Rs.14.00 Lacs and Overdraft Limit of Rs.7.00 Lacs vide Sanction Letter dated 28.02.2023, which are Annexure A14 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged their immovable properties i.e. House bearing MC No. B-37-2147 measuring 120sq. Yards situated at village Gill-1, Hadbast No. 263, Locality known as Shaheed Karnail Singh Nagar, Tehsil and District Ludhiana vide Equitable Mortgage of title deed bearin g vasika no. 7008 dated 03.11.2017 a long with its translation, which is Annexure A25 to this OA. Documents executed:- Letter of Proprietorship firm dated 28.02.2023, which is Annexure A2 to this OA; Housing Loan Agreement and Guarantee Agreement both dated 16.12.2022, which are Annexures A5 and A6 to this OA; Take Delivery Letter to DPN, Pronote, Disbursement Request Letter and Undertaking Letter dated 20.12.2022, which are Annexures A9 to A12 to this OA; Letter of

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3 OA NO.420-2025 CANARA BANK VS JASKIRAT TEXTILE AND OTHERS

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Evidencing, Pronote, Deed of Hypothecation, Cash Credit Agreement, Request Letter, Letter of Undertaking all dated 28.02.2023, which are Annexures A15 to A20 to this OAs; Certificate of Loan paper obtained and Link Letters dated 01.03.2023, which are Annexures A21 to A24 to this OA; Letter Evidencing of deposit of Title Deed dated 24.01.2023, which is Annexure A26 to this OA; Notice U/s 13(2) dated 14.06.2024 and postal receipts, which is Annexure A27 to this OA; Statements of accounts with certificates, which are Annexures A28 to A31 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs. Rs.47,34,191.54p, which is 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.

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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 08.07.2025.

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In support of the OA, affidavit of Shri Lovish Kumar, Manager, Canara Bank, has been filed.

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Heard 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 A31 to this OA, it is proved that the defendants approached applicant 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 defendants failed to pay back the loans 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

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4 OA NO.420-2025 CANARA BANK VS JASKIRAT TEXTILE AND OTHERS

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that applicant is entitled to recover a sum of Rs.47,34,191.54p (Rupees Forty Seven Lacs Thirty Four Thousands One sHundred Ninety One Paise Fifty Four 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest detailed as:

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a. interest @9.30%p.a. in Housing Loan from 29.03.2025 till the realization. b. Interest @8.90%p.a. in Housing Loan Top Up from 29.03.2025 till the realization. c. Interest @12.05%p.a. in Term Loan from 29.03.2025 till the realization. d. Interest @11.25%p.a. in OD Limit from 29.03.2025 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,34,191.54p (Rupees Forty Seven Lacs Thirty Four Thousands One Hundred Ninety One Paise Fifty Four Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the

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OA NO.420-2025 CANARA BANK VS JASKIRAT TEXTILE AND OTHERS

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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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 10.07.2025

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

Canara Bank v. Messrs Jaskirat Textiles and Others

Case brief

What is this about?

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Canara Bank v. Messrs Jaskirat Textiles and Others

Case brief

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