Allowed

Canara Bank v. M/S Deep Agro Industries and Another

DRT15 Feb 2025OA/589/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank against M/s Deep Agro Industries for recovery of a loan of Rs.24,94,694.86p plus interest. The court declined the applicant's claimed rates and instead awarded a uniform simple interest of 8% per annum.

What did the court decide?

Recovery of Rs.24,94,694.86p with costs and uniform simple interest @8.00%p.a. from date of filing till realization. Issuance of Recovery Certificate.

Canara Bank versus M/S Deep Agro Industries and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.589/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.04.2024

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DATE OF DECISION: 15.02.2025

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) having its Head Office at J.C. Road, Banglore-560002 (Karnataka) and a branch office amongst other places known as Qila Raipur, Ludhiana, Punjab through Sh. Ankush Bhatti, its Manager, Constituted Attorney and Principal Officer.

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……..Applicant

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Versus

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M/s Deep Agro Industries, a proprietorship firm having its business place at Raikot Ahmedgarh Road, village Bhaini Baringa, Ludhiana, Punjab-141203 through its Proprietor Smt. Lakhvir Karu D/o Sh. Harjit Singh.

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2. Smt. Lakhvir Karu D/o Sh. Harjit Singh R/o Bhaini Baringan Ludhiana, Punjab-141109 being the proprietor of M/s Deep Agro Industries

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………Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Himanshu Sharma, 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 Rs.24,94,694.86p (Rupees Twenty Four Lacs Ninety Four Thousand Six Hundred Ninety Four and Paisa Eighty Six only). The Original Application has been filed through Sh. Ankush Bhatti, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.04.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant for the grant of OCC Limit of Rs.9.30 Lacs and Term Loan of Rs.15.00 Lacs. The defendants again approached the applicant for renewal of OCC Limit of Rs.9.30 Lacs and Term Loan of Rs.15.00 Lacs vide Application Form for MSMEs dated 12.01.2023, which is Annexure A5 to this OA.

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The applicant sanctioned the OCC Limit of Rs.9.30 Lacs and Term Loan of Rs.15.00 Lacs. The applicant further sanctioned renewal of OCC Limit of Rs.9.30 Lacs and Term Loan of Rs.15.00 Lacs vide Loan Application along with Sanction Memorandum dated 16.09.2019 and 23.12.2020, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 2 had mortgaged her immovable properties i.e. Total Land measuring 2K-01M-06Sarsahi situated at Village Bhaini Baringa, Hadbast No. 195, Tehsil Raikot, Ludhiana vide Registered Sale deed bearing vasika no. 2423 dated 09.01.2017 along with its English Translations, which is Annexure A16 to this OA.

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Documents executed:- Valuation Report dated 03.02.2004, which is Annexure A1 to this OA; Agreement cum Deed of Hypothecation, Cash Credit Agreement, Letter of Undertaking RE: Loans/ Advances, Deed of Hypothecation regarding machinery, Pronote all dated 26.09.2019, which are Annexures A6 to A10 to this OA; Letter evidencing execution of documents, Certificate of loan papers obtained, letter of Renewal, Request for overdraft facilities all dated 23.12.2020, which are Annexures, A11 to A14 to this OA; Letter of Renewal dated 12.01.2023, , which is Annexure A15 to this OA; Notice u/s 13 (2) of SARGEAESI Act dated 18.04.2023 along with postal receipts, which is Annexure A17 to this OA and Statement of Accounts along with Certificate of Banker’s book of evidencing act,

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which are Annexures A18 & A19 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 both the loan accounts there was a debit of Rs.24,94,694.86p, which is recoverable and the

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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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 23.01.2025.

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In support of the OA, affidavit of S Sh. Ankush Bhatti, Manager, Canara Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A19 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, both the 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.24,94,694.86p (Rupees Twenty Four Lacs Ninety Four Thousand Six Hundred Ninety Four and Paisa Eighty Six only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.25%p.a. in OCC and @11.30%p.a. in Term Loan plus Penal interest @2.00%p.a. with monthly rests in both from 16.03.2024 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

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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 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.24,94,694.86p (Rupees Twenty Four Lacs Ninety Four Thousand Six Hundred Ninety Four and Paisa Eighty Six 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.03.2025. 15. 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: 15.02.2025
	(MRIDULESH KUMAR SINGH) Presiding Officer,
	DRT-III, Chandigarh

Canara Bank v. M/S Deep Agro Industries and Another

Case brief

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Canara Bank v. M/S Deep Agro Industries and Another

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