Allowed

Canara Bank v. Mr Arun Prakash Singh

DRT5 Dec 2025OA/937/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, in an ex-parte order, allowed the bank's application for recovery of dues totaling Rs. 37.77 lakhs arising from Kisan Credit Card loans. The court directed the defendants to pay the principal, interest, and costs, permitting the sale of mortgaged assets if payment failed.

What did the court decide?

Recovery Certificate for Rs. 37,77,025.24 plus interest @ 10% p.a. allowed; defendants restrained from alienating properties.

Canara Bank versus Mr Arun Prakash Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Date of order or I Order with signature of court Office action
proceeding taken with
date
O.A. No.937/2024
08.09.2025 The Judgment is signed and
pronounced on separate sheets. Separately
attached in 08 sheets
Order be uploaded on the Tribunal’s
website
(Dictated)
(Pravas Kumar Singh)
Presiding Officer
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(MK)

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IN THE DEBTS RECOVERY TRIBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer

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Case No. Original Application No.937 of 2024

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.....Applicant-bank

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Versus

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Mr. Arun Prakash Singh, S/o Mr. Sukhram Singh R/o – Village Dhedia Majre Meerapur Tehsil Haidergarh, District Barabanki (U.P.)

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Mrs. Bittan Devi, W/o Mr. Arun Prakash Singh R/o – Village – Dhedia Majre Meerapur Tehsil Haidergarh, District Barabanki (U.P.) .....Defendants

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Ld. Counsel for Applicant-bank: Shri Yogesh Chandra Bhatt, Advocate Ld. Counsel for the Defendants: None.

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JUDGEMENT

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This Original Application has been filed by the Applicant-bank under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.37,77,025.24/- (Rupees Thirty Seven Lacs, Seventy Seven Thousand, Twenty Five and Paisa Twenty Four Only), (KCCS Kisan Suvidha Sublim-1 Rs.7,21,467.27), (KCCS – Kisan Suvidha Sublim – 2

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Rs.15,74,354.31) and (Kisan Overdraft Limit of Rs.14,81,203.66) together with pendent-lite and future interest, costs and other reliefs etc.

O.A. No.937 of 2024

The brief facts of case are that the defendants No.1 had approached the Applicant-bank for grant of Kisan Credit Card Scheme (KCCS) for Rs.4.97 Bacs vide its sanction letter dated 07.09.2016 on certain terms and conditions (Annexure No.A-2 to Annexure No. A-4) to this Original Application.

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To secure aforesaid credit facility, defendants had executed and signed various security documents in favour of the Applicant-bank on 07.09.2016 (Annexure No.A-5 to Annexure No.A-12) to this Original Application.

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In order to further secure the repayment of the bank dues, the defendant No.1 created equitable mortgage in respect of property i.e. Khata No.1272 Khasra No.62, 73, 71 & 691, Village – Meerpur, Tehsil Haidergarh, Pargana Sidhor, District Barabanki (U.P.) admeasuring area of 1.212 hectar owned by defendant No.1 in favour of the bank by deposit of title deed (Annexure No. A- 13 to Annexure No. A- 15) to this Original Application.

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That the defendant No.1 & 2 had approached the applicant bank for grant of Kisan Credit Card Scheme (KCCS) -2 for Rs.8.00 lacs vide its Sanction Letter dated 06.04.2017 (Annexure No. A- 16 to Annexure No. A- 18) to this Original Application.

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That upon sanctioning the aforesaid loan facility to the defendant Nos.1 & 2 has signed and executed the various security documents in favour of the applicant bank on 06.04.2017 (Annexure No. A-19 to Annexure No. A- 23) to this Original Application.

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In order to further secure the repayment of the bank dues, the defendant No.1 & 2 created equitable mortgage in respect of property i.e. (1) Khata No.556 Khasra No.1119A & 1112, Village – Thethiya, Tehsil

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O.A. No.937 of 2024

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Haidergarh, Pargana Sidhor, District Barabanki (U.P.) owned bY defendant No.1 & 2 and Property No. (2) Khata No.1175 Khasra No.62, 73, 71, 691, Village – Meerapur, Tehsil Haidergardh, Pargana Sidhor, District Barabanki (U.P.) Total measuring area 1.212 hectare in favour of the bank by deposit of title deed (Annexure No. A-24 to Annexure No. A-26) to this Original Application.

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Subsequently, at the request of the defendant No. 1 & 2 had again approached the applicant bank for grant of Cash Kisan Overdraft (CKOD) for Rs.7.50 lacs vide its Sanction letter dated 05.07.2018 (Annexure No.A-27 to Annexure No. A-29) to this Original Application.

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That upon sanctioning the aforesaid loan facility to the defendant Nos.1 & 2 has signed and executed the various security documents in favour of the applicant bank on 05.07.2018 (Annexure No. A-30 to Annexure No. A- 32) to this Original Application.

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In order to further secure the repayment of the bank dues, the defendant No.1 & 2 created equitable mortgage in respect of property i.e. (1) Khata No.1175 Khasra No.62, 73, 71, 691, Village Meerapur, Tehsil Haidergarh, Pargana Sidhor, District Barabanki (U.P.) and Property No.(2) Khata No.556 Khasra No.1119A & 1112MI, Village – Thethiya, Tehsil Haidergard, Pargana Sidhor, District Barabanki (U.P.) Total Agricultural Land (1) + (2) Mortgage(1 4.073 hectare in favour of the bank by deposit of title deed (Annexure No. A-33 to Annexure No. A-35) to this Original Application.

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That the Balance and Security Confirmation Letter executed by the defendants on various date on 21.12.2019 and lastly on 03.04.2023 (Annexure No. A-36 to Annexure No. A-40) to this Original Application.

O.A. No.937 of 2024

The Letters and Reminders dated 24.01.2019, 29.03.2019, 06.09.2019, 22.11.2019, 05.12.2022, 21.01.2023 & 08.05.2023 are enclosed as (Annexure No. A-41) to this Original Application.

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13 . To avail the aforesaid credit facility, the Applicant-bank had opened three loan accounts in the name of defendant No.1 in order to maintain the credit facilities.

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After availing the aforesaid credit facility, the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, consequently, the loan account of the defendant no.1/firm was classified as NPA on 22.12.2022 by the bark as per RBI guidelines (Annexure No. A-52), thereafter the Applicant-bank issued Registered Legal Notice dated 25.06.2024 to the defendants (Annexure No. A-43), but, the defendants stated no-response and they failed to repay the same and the loan accounts of the defendants are still un-liquidated, hence> this Original Application has been instituted.

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.37,77,025.24/- (Rupees Thirty Seven Lacs, Seventy Seven Thousand, Twenty Five and Paisa Twenty Four Only), (KCCS Kisan Suvidha Sublim-1 Rs.7,21,467.27), (KCCS – Kisan Suvidha Sublim – 2 Rs.15,74,354.31) and (Kisan Overdraft Limit of Rs.14,81,203.66) including interest upto 29.04.2024, were lying due for payment, for which the defendants are jointly and severally liable to repay the same, which they did not pay despite repeated requests and demand. The Applicant-bank filed the Statement of loan Accounts. (Annexure No.A-44 to Annexure No.A46) to this Original Application.

b \I

O.A. No.937 of 2024

The cause of action for filing the present application arose firstly on 07.09.2016 when the aforesaid credit facility were sanctioned by the Applicant-bank and the same were availed by the defendants and necessary documents were executed by the defendants on 07.09.2016 and 06.04.2017 & 05.07.2018. The cause of action further arose on when Registered Legal Notice dated 25.06.2024 was sent to the defendants, recalling the entire outstanding dues and they failed to pay the same.

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The summons were served (as per the tracking report) upon the defendants through registered post, but the defendants did not appear before the Tribunal to contest their case, hence the matter proceeded exparte against the defendants.

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From the perusal of the record, it is evident that the defendants were provided with fair opportunities to contest the claim of the bank. As the defendants opted not to contest the case, so only point of consideration before this Tribunal is as to whether bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it.

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In support of the case Shri Tej Prakash Tewari, Senior Manager of the Applicant-bank has filed an affidavit.

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On a careful scrutiny of the evidence on affidavit and Annexures marked as Annexure No.A-1 to Annexure No.A-46, it is proved that defendants had availed the credit facilities from the Applicant-bank by executing loan and security documents detailed as above in favour of the Applicant-bank. A perusal of the application, evidence and documents relied

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O.A. No.937 of 2024

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upon clearly show that defendant had utilized the above loan facilities as granted to them. The Applicant-bank had maintained the Books of account in the ordinary course of banking business showing disbursal of the loan amount. The Bank had also charged interest from time to time and the entries are relevant u/s 4 of the Banker Books of Evidence Act. It is also proved that the Applicant-bank’s claim is within limitation against defendants, therefore, the defendants are jointly and severally liable to pay the dues.

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Accordingly, the defendant are directed to pay the balance dues to the Applicant-bank within a period of 2 months from the date of judgement failing which the Applicant-bank will be entitled to sell the mortgaged property and personal assets/ properties of the defendants

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The Applicant-bank has claimed [email protected]% per annum with monthly rest w.e.f. 30.04.2024 till the date of realization and costs. On the basis of foregoing discussion, I find that cause for interest of justice will be served if pendent- lite and future interest is granted @10% per annum with monthly rest reducing balance from the date of filing of the O.A. till the date of realization with costs.

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1 find that the bank has proved the execution of loan documents and creation of mortgage in its favour. In the result, the Original Application succeeds as ex-parte against the defendants with costs. The bank has proved the loan execution of loan documents in favour of the bank and availment of credit facility. The liability of the defendant Nos.I & 2 are joint

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7 O.A. No.937 of 2024

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and several and mortgaged property as well as the personal properties are to be sold.

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It is, therefore , ordered

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(i) That the Original Application No.937 of 2024 of the Applicant bank e

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for issuance of Recovery Certificate to the tune of Rs.37,77,025.24/(Rupees Thirty Seven Lacs, Seventy Seven Thousand, Twenty Five and Paisa Twenty Four Only), (KCCS Kisan Suvidha Sublim-1 Rs.7,21,467.27), (KCCS – Kisan Suvidha Sublim – 2 Rs.15,74,354.31) and (Kisan Overdraft Limit of Rs.14,81,203.66) along with the interest @10% per annum with monthly rest from the date of filing of the Original Application i.e. 23.08.2024 till the loan is fully liquidated and costs succeeds ex-parte against the defendants.

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(ii) The defendant Nos.I & 2 are directed to pay the dues within a period of two months from the date of judgement, failing which the Applicant-bank will be entitled to recover the same from the secured assets, personal movables and immovable assets of the defendants.

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(iii) The Applicant–bank is entitled to recover aforesaid amount by sale of mortgage property (if not sold earlier under the provision of the S.A.R.F.A.E.S.I. Act 2002). The amount, if any already recovered by sale or otherwise shall be recoverable, if the dues of the Applicantbank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable assets of the defendant jointly and severally.

O.A. No.937 of 2024

:::

(iV) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the Applicant-bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 12.12.2025 before R.O., DRT, Lucknow.

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(vi) The Applicant-bank is directed to file a memo of cost for preparing Recovery Certificate u/s 19(22) of the Recovery of Debts & Bankruptcy Act, 1993 .

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Judgment is pronounced in the open court.

Dated: 08.09.2025

(Pravas Kumar Singh) Presiding Officer

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(MK)

Canara Bank v. Mr Arun Prakash Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Arun Prakash Singh

Case brief

What is this about?

What did the court decide?

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