Allowed

Canara Bank v. Smt. Amandeep Kaur and Others

DRT26 Dec 2025OA/728/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Canara Bank for recovery of a housing loan of Rs. 42.86 lakhs. The court noted ex-parte participation by defendants due to non-appearance and directed recovery from property sale, adjusting future interest to 8% per annum.

What did the court decide?

Recovery of Rs. 42,86,286.09 jointly and severally with interest at 8% p.a. and costs; issuance of Recovery Certificate; liberty to enforce sale of properties.

Canara Bank versus Smt. Amandeep Kaur and Others — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.728/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.06.2024

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DATE OF DECISION: 26.12.2025.

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Canara Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at J C Road, Bangalore and amongst other a Branch Office at Sarabha Nagar, Ludhiana, Punjab through its Principal Officer, General Attorney and Branch Manager Sh. Srinivas Behera son of Sh. Surendra Behera.

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……..Applicant

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Versus

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Smt. Amandeep Kaur wife of Sh. Jaspal Singh, resident of House No.310, Near Gurudwara Baba Deep Singh City Enclave, Dandran Road, Tehsil and District Ludhiana, Punjab.

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Sh. Jaspal Singh son of Sh. Nonihal Singh, resident of House No.310, Near Gurudwara Baba Deep Singh City Enclave, Dandran Road, Tehsil and District Ludhiana, Punjab

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Sh. Charanjeet Singh son of Sh. Amrik Singh, resident of House No.7237, Durga Puri, Near Shiv Mandir, Habowal Kalan, Ludhiana, Punjab.

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……….Defendants

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Advocates:

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Argued by Sh. Anil Johar, Advocate for the applicant

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Defendants 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 defendants for recovery of Rs.42,86,286.09 (Rupees Forty Two Lacs Eighty Six Thousand Two Hundred Eighty Six & Paise Nine Only). The Original Application has been filed through Sh. Srinivas Behera, Branch Manager of the applicant, who is competent to institute

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the Original Application Vide General Power of Attorney dated 11.08.2023, which is Annexure A1 to this OA.

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OA NO.728/2024 CANARA BANK VS. AMANDEEP KAUR AND OTHERS

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The brief facts of the OA are that the defendant nos.1 & 2 approached the applicant for the grant of Housing Loan of Rs.39.00 Lacs vide loan application dated 29.01.2020, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned the Housing Loan of Rs.39.00 Lacs (Rs. 36.00 Lacs for purchase of house and Rs. 3.00 Lacs for renovation) vide Sanction memorandum dated 13.02.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 mortgaged her immovable property i.e. House bearing MC no. B-XXI-5657/6A, measuring 140 sq. yards situated at Village Gill No.2, Hadbast No.263, Daba Road, Shimlapuri Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing no. 2019-20/103/1/13386 dated 14.02.2020, which is Annexure A6 to this ОА; Letter Evidencing Deposit of Title Deeds dated 17.02.2020, which is Annexure A7 to this OA; Valuation report dated 28.01.2020, which is Annexure A8 to this OA.

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Documents executed: Housing loan agreement, guarantee covering letter accompanied by guarantee agreement executed by defendant no.3, both dated 13.02.2020, which are Annexures A4 & A5 to this OA; Letter of acknowledgment of debt and security dated 22.01.2023, which is Annexure A9 to this OA; Notice dated 01.03.024, which is Annexure A10 to this OA; Notice dated 04.08.2023 u/s 13(2) of SARFAESI Act, which is Annexure A11 to this OA and Statement of account, which is Annexure A12 to this OA.

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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.42,86,286.09, 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. Sh. Hitesh Pandit, Advocate appeared on behalf of

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OA NO.728/2024 CANARA BANK VS. AMANDEEP KAUR AND OTHERS

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defendants on 07.04.2025 and filed his memo of appearance on behalf of all the defendants and was directed to file Power of Attorney. However, neither the Power of Attorney was filed nor anyone appeared on behalf of defendants after 16.10.2025, therefore the defendants were proceeded ex-parte on 16.10.2025.

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In support of the OA, affidavit of Sh. Srinivas Behera, Branch Manager, Canara Bank, has been filed.

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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 defendants approached applicant for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.42,86,286.09 (Rupees Forty Two Lacs Eighty Six Thousand Two Hundred Eighty Six & Paise Nine Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @9.30%p.a. plus 2% penal interest with monthly rests from 30.05.2024 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/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester

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OA NO.728/2024 CANARA BANK VS. AMANDEEP KAUR AND OTHERS

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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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.42,86,286.09 (Rupees Forty Two Lacs Eighty Six Thousand Two Hundred Eighty Six & Paise Nine Only) jointly and severally, 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 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 09.01.2026. 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: 26.12.2025.

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

Canara Bank v. Smt. Amandeep Kaur and Others

Case brief

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Canara Bank v. Smt. Amandeep Kaur and Others

Case brief

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