Allowed

Canara Bank v. Iqbal Singh

DRT22 Dec 2025OA/872/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's application for recovery of Rs.57,54,480/- plus interest against Iqbal Singh and others, who stood mortgagors and guarantors of an agricultural loan. The court held defendants jointly and severally liable and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.57,54,480/- with interest at 11% per annum; direction to issue Recovery Certificate; joint and several liability enforced.

Canara Bank versus Iqbal Singh — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 872/2023 Date of Institution: 13.01.2023 Date of Decision: 22.12.2025

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Canara Bank having its branches all over India and a branch at V.V.R.I. Sadhu Ashram, Hoshiarpur, Punjab.

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……..Applicant

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Vs.

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Iqbal Singh s/o Sh. Makhan Singh, r/o Una Road, Bajwara Kalan, Bajwara, Distt. Hoshiarpur, Punjab.

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Guriqbal Singh s/o Sh. Iqbal Singh, r/o Una Road, Bajwara Kalan, Bajwara, Distt. Hoshiarpur, Punjab.

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Shiv Dev Singh Bajwa s/o Sh. Amar Singh, r/o Village Bassi Kikran, Tehsil and District Hoshiarpur, Punjab.

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……….Defendants

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Advocates

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Sh. Mohan Prasad proxy counsel for Sh. S.K. Dhir, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 08.11.2024 .

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OA for the Recovery of Rs.57,54,480/- with interest @11% per annum with half-yearly rests from 13.01.2023.

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ORDER

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Canara Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.57,54,480/- with interest against Sh. Iqbal Singh and others (defendants).

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Bank’s case is that on 09.10.2018, it had granted a loan of Rs.30.00 Lacs to defendant Nos.1 and 2 in the form of K.C.C Limit for agricultural purpose. Again on 29.12.2018, at the request of the defendants, applicant bank renewed and enhanced the existing limit from Rs.30.00 Lacs to Rs.40.00 Lacs. To secure the loan, Defendant No.1 had mortgaged his land

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(fully detailed in para No.3A of the application). Defendant No.3 stood as guarantor vide guarantee agreement dated 29.12.2018. The loan was chargeable to interest @11% per annum with half-yearly rests. Defendants had duly acknowledged their liability towards the debt on 02.03.2021. On 16.09.2022, a sum of Rs.57,54,480/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 03.05.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 08.11.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Ms. Komalpreet Kaur, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-19.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.40.00 Lacs and on 16.09.2022, a sum of Rs.57,54,480/- was due.

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Accordingly, the application of the bank for the recovery of Rs.57,54,480/- (Rupees Fifty Seven Lacs Fifty Four Thousand Four Hundred Eighty Only) with interest @11% per annum with half-yearly rests from 13.01.2023, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 27.01.2026, who is directed to distribute the sale proceeds of the mortgaged land and standing crops as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 22.12.2025 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Canara Bank v. Iqbal Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Iqbal Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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