Allowed

Canara Bank v. M/S S R Impex and Others

DRT29 May 2025OA/825/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of outstanding dues. The tribunal established liability of the defendants to pay the principal amount along with reduced simple interest, authorized recovery from mortgaged properties, and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 2,45,33,453.35 with 8% p.a. interest; issuance of Recovery Certificate; liability to pay from mortgaged and personal assets.

Canara Bank versus M/S S R Impex and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.825/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.06.2023

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DATE OF DECISION: 29.05.2025

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Canara Bank, (Erstwhile Syndicate Bank), a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at JC Road, Bangalore, and inter alia a Branch Office at MSME Sulabh, BNC, Ludhiana, Punjab represented through its duly authorized signatory/ Power of Attorney Sh. Tarun Goyal, Manager.

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……..Applicant

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Versus

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M/s S R Impex, Through its proprietor Sh. Aman Chandla, B-II1931-48-1408, H1, Gandhi Nagar, Ludhiana- 141008.

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Sh. Aman Chandla S/o Sh. Varinder Kumar, Proprietor M/s S R Impex, R/o House No. B-2-2157, Street No.4, Basant Nagar, Shiv Puri, Ludhiana, Punjab- 141008.

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Sh. Khushal Chandla S/o Sh. Varinder Kumar, House No.2252/1, A, Street No.6, Ward-33, Basant Nagar, Ludhiana, Punjab141008.

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….……Defendants

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Advocates:

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Present: Sh. Nitin Gupta, 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.2,45,33,453.35p (Rupees Two Crore Forty Five Lacs Thirty Three Thousand Four Hundred Fifty Three And Paisa Thirty Five only). The Original Application has been filed through Sh. Tarun Goyal, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 15.09.2019, which is Annexure A1 to this OA.

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2 OA NO.825-2023 CANARA BANK VS M/S S.R. IMPEX AND OTHERS

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The brief facts of the OA are that the defendants had approached the applicant for the grant of OCC Limit of Rs.99.75 Lacs vide Loan application dated 26.09.2019, which is Annexure A2 to this OA and further for GECL of Rs.9.50 Lacs vide Offer Letter dated 04.07.2020, which is Annexure A9 to this OA. Thereafter defendants again approached the applicant for enhancement of OCC Limit to Rs.180.00 Lacs vide Loan application dated 15.10.2010. Later defendants approached the applicant for GECL II of Rs.45.90 Lacs vide Loan application dated 09.11.2020, which is Annexure A29 to this OA and further for renewal of CC Limit of Rs.180.00 Lacs.

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The applicant sanctioned the CC Limit of Rs.99.75 Lacs, vide Sanction letter dated 26.09.2019, which is Annexure A3 to this OA and further sanctioned GECL of Rs.9.50 Lacs vide Sanction Memorandum dated 04.07.2020, which is Annexure A11 to this OA. Thereafter applicant again sanctioned the enhancement of OCC Limit to Rs.180.00 Lacs vide Sanction Letter dated 09.11.2020, which is Annexure A17(colly) to this OA. Later applicant sanctioned GECL II of Rs.45.90 Lacs and further applicant sanctioned the renewal of CC Limit of Rs.180.00 Lacs vide Sanction Letter dated 24.02.2022, which is Annexure A37 to this OA and the terms and conditions were duly accepted by the defendants.

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4. Defendant no.3 had mortgaged his immovable properties i.e..
a. shop measuring 9.77 sq. yards, situated at Village Mahal Bhagat
locality known as Sohan Singh Nagar, Hadbast no.164, Ludhiana vide
Equitable Mortgage of Sale Deed bearing vasika no.2019-
20/106/1/10356 dated 26.07.2019 and Letter regarding handing over
Title Deeds of property, which isAnnexures A7(colly)to this OA
b. Shop measuring 10-2/3 Sq. yards situated at village Mahal
Bhagat, locality known as Sohan Singh Nagar, Hadbast no.164,
Ludhiana vide Equitable Mortgage of Sale Deed no. 2019-
20/106/1/10364 dated 26.07.2019 and Letter regarding handing over

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3 OA NO.825-2023 CANARA BANK VS M/S S.R. IMPEX AND OTHERS

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Title Deeds of property dated 12.09.2019, which is Annexures A8(colly) to this OA

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b. Shop measuring 75 sq. yards bearing property no. B-21931/48/H/1, Main Road, Gandhi Nagar, Ludhiana Wakia Taraf Karabara, Hadbast No. 161, vide Equitable Mortgage of Sale deed bearing vasika no. 4538 dated 01.10.2020 with its translation, which is Annexure A26(colly) this OA.

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Documents executed: - Merger Notification dated 04.03.2020, which is Annexure A/A to this OA Composite Hypothecation agreement dated 20.09.2019, which is Annexure A4 to this OA; Power of Attorney for collection of bills, Books debts etc. dated 27.09.2019, which is Annexure A5 to this OA; Undertaking Letters dated 25.09.2019, which is Annexure A6(colly) to this OA; Undertaking acceptance letter from borrowers, Common Hypothecation agreement, Pronote, Letter of Proprietorship; Take delivery letter of DPN; Letter evidencing Deposit of Title Deeds along with Schedule A & B all dated 04.07.2020, which is Annexures A10, A12 to A16 to this OA; Loan Application for enhancement of OD Limit & Sanction Letter and Common Hypothecation agreement both dated 15.10.2020, which is Annexure A17 to A18 to this OA; Pronote; Letter of renewal; Take delivery letter to DPN; Letter of undertaking; Request for OD facilities; Letter of Proprietorship; Guarantee Agreement of defendant; Letter evidencing Deposit of Title Deeds along with Schedule A&B regarding sale deed no. 10364 & 10356; Letter evidencing Deposit of Title Deed no. 4538; AOD; Loan Application for GCEL all dated 09.11.2020, which is Annexure A19 to A25, A27 and A28 to this OA; Common Hypothecation Agreement and Pronote and Take delivery letter to DPN and Letter of undertaking and Letter of proprietorship and Letter evidencing Deposit pf Title Deeds along with Schedule A&B all dated 07.12.2021, which is Annexure A30 to A36 to this OA; Letter of proprietorship and Letter of renewal and letter of undertaking all dated 24.02.2022, which is Annexure A38 to A40 to this OA; Copy of

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4 OA NO.825-2023 CANARA BANK VS M/S S.R. IMPEX AND OTHERS

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notices ( colly ) dated 16.11.2022, which is Annexure A41 to this OA; Statement of Loan account and Certificate under the Bankers Books Evidence Act dated 15.11.2022, which is Annexure A42 to A45 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 the loan accounts there was a debit of Rs. 2,45,33,453.35p, 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 27.05.2025.

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In support of the OA, affidavit of Sh. Tarun Goyal, Manager authorized Officer, Canara Bank, h as been filed. 8. 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 A/A, A1 to A45 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, 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. 2,45,33,453.35p (Rupees Two Crore Forty Five Lacs Thirty Three Thousand Four Hundred Fifty Three And Paisa Thirty Five only) rest 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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5 OA NO.825-2023 CANARA BANK VS M/S S.R. IMPEX AND OTHERS

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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 @11.50%p.a. in CC Limit and interest @11.25%p.a. in GECL Term Loans from 01.06.2023 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 @8.00%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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. 2,45,33,453.35p (Rupees Two Crore Forty Five Lacs Thirty Three Thousand Four Hundred Fifty Three And Paisa Thirty Five only) jointly and severally, with costs, current and future simple interest @8.00%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/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 16.06.2025.

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6 OA NO.825-2023 CANARA BANK VS M/S S.R. IMPEX AND OTHERS

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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. Pronounced by me in the open Tribunal . Dated: 29.05.2025.

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

Canara Bank v. M/S S R Impex and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S S R Impex and Others

Case brief

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What did the court decide?

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