Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery obligations against M/s Sharman Ji and Ms. Nidhi Jain for loans classified as NPA due to default on repayment.
Recovery of Rs. 40,25,943.00p with simple interest at 8.00%p.a. from the date of filing the Original Application until realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.699/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.05.2024
DATE OF DECISION: 01.11.2025
Canara Bank a body Corporate, constituted under, the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 and having its Head office at 112, JC Road Bangaluru-2 (herein after referred to as ("the Bank") with its Branches throughout India and one such branch at Canara Bank, Bharat Nagar Chowk, Ludhiana-141001, Punjab through its Principal Officer Sh. Parminder Singh Officer, at Canara Bank, Bharat Nagar Chowk, Ludhiana-141001, Punjab.
……..Applicant
Versus
………. Defendants
Advocates:
Argued by Ms. Anuradha Gupta, Advocate for the applicant Defendants already ex-parte
FINAL ORDER
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OA NO.699/2024 CANARA BANK VS M/S SHARMAN JI IMPO EXPO AND ANOTHER
CC Limit of Rs.24.00 Lacs & Term loan of Rs.9.00 Lacs vide loan application dated 21.01.2019, which is Annexure A2 to this OA. Thereafter, the defendant no.1 through its proprietor defendant no. 2 approached the applicant for renewal of the limit vide loan letters of renewal dated 19.04.2021 and 20.07.2022, which are Annexures A9 and A10 to this OA. The defendant no.1 through its proprietor defendant no. 2 also approached the applicant for grant of Working Capital Term Loan (WCTL) of Rs.4.80 Lacs under GECL vide loan application dated 12.06.2020. Thereafter, the defendant no.1 through its proprietor defendant no. 2 approached the applicant for grant of another Working Capital Term Loan (WCTL) of Rs. 3.50 Lacs under GECL 1.0. Thereafter, the defendant no.2 approached the applicant for grant of vehicle loan of Rs. 4.40 Lacs vide loan application dated 16.07.2020 and for issuance of Credit Card vide application dated 31.10.2019, which is Annexure A22 to this OA.
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OA NO.699/2024 CANARA BANK VS M/S SHARMAN JI IMPO EXPO AND ANOTHER
vide deed of hypothecation regarding machinery dated 21.01.2019, which is Annexure A6 to this OA and agreement cum deed of hypothecation dated 12.06.2020, which is Annexure A12 to this OA and agreement cum deed of hypothecation dated 08.12.2021, which is Annexure A17 to this OA.
Defendant no.2 also hypothecated vehicle namely Maruti Suzuki S-Presso VXI+ bearing registration no. PB91J9270, Chasis no. MA3RFL41SLA151612, Engine no. K10BN5102658. Registration certificate of vehicle is Annexure A21 to this OA.
Documents executed :- Cash credit agreement, Pronotes, Letter of undertaking, all dated 21.01.2019 , which are Annexures A3, A5, A7 and A8 to this OA; Take Delivery letter to DPN, Pronote, Term Loan agreement all dated 12.0.62020, which are Annexures A12 to A15 to this OA; Letter of undertaking dated 08.12.2021, which is Annexure A18 to this OA; Vehicle Loan Agreement dated 21.07.2020, which is Annexure A20 to this OA; Acknowledgement of debt & security, dated 23.12.2021, 23.05.2023 & 06.07.2023, which are Annexures A23 to A26 to this OA; Legal notice dated 26.09.2023, Postal receipts, which are Annexures A27 & A28 to this OA and Statements of accounts along with Banker’s Book Evidence, which are Annexure A29 to A33 to this OA and Credit card statement, which is Annexure A34 to this OA.
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OA NO.699/2024 CANARA BANK VS M/S SHARMAN JI IMPO EXPO AND ANOTHER
was filed by any of the advocate on behalf of defendants, they were proceeded ex-parte on 03.09.2025.
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OA NO.699/2024 CANARA BANK VS M/S SHARMAN JI IMPO EXPO AND ANOTHER
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.40,25,943.00p (Forty Lacs Twenty Five Thousand Nine Hundred Forty Three 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 assets 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 12.11.2025. 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. Pronounced by me in the open Tribunal . Dated: 01.11.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover outstanding dues from the non-performing loan accounts of the defendants.
What rate of interest should be granted considering the drastic fall in market rates.
Canara Bank
M/s Sharman Ji IMPO EXPO
Ms. Nidhi Jain
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
