Allowed

Canara Bank v. Sh. Avtar Singh

DRT8 Sept 2026OA/1067/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applicant Bank's application to recover a loan of Rs. 33,50,972.83 from the respondent borrower, who failed to repay a sanctioned Kisan Credit Card facility secured by landed property. The Tribunal granted recovery of the principal with simple interest at 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Decree for recovery of Rs. 33,50,972.83 with simple interest at 8% p.a. and issuance of Recovery Certificate.

Canara Bank versus Sh. Avtar Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1067/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.07.2026

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DATE OF DECISION: 08.09.2026

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Canara Bank a body corporate, constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act of 1970, having its Head Office at 112, J.C. Road, Banglore – 560002 and its Branch Office at Canara Bank, Branch Office - Agri Fin Branch, Jalandhar, Pathankot Road, District Jalandhar – 144001 through its Authorized Representative Sh. Shiv Kumar, Manager, Canara Bank, Branch Office - Agri Fin Branch, Jalandhar Pathankot Road, District Jalandhar - 144001.

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……..Applicant

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Versus

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Sh. Avtar Singh S/o Sh. Swarn Singh, R/o Village Boparai, Tehsil Bhulath, District Kapurthala - 144622.

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…….. Defendant

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for the applicant (through VC) None for Defendant (Already ex-parte vide order dated 02.09.2026)

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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 defendant for recovery of Rs.33,50,972.83 (Rupees Thirty Three Lacs Fifty Thousand Nine Hundred Seventy Two and Paise Eighty Three Only). The Original Application has been filed through Sh. Shiv Kumar, Manager of the applicant , who is competent to institute the Original Application vide Power of Attorney, dated 17.05.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of Kisan Credit Card Limit of Rs.25,00,000.00 vide

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2 OA NO.1067/2026 CANARA BANK VS SH. AVTAR SINGH

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Application cum appraisal form for revised kisan credit card scheme, dated 08.07.2020, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Credit Card Limit of Rs.25,00,000.00 vide Sanction Letter, dated 18.01.2020, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his Immoveable Property i.e., Land measuring 23 Kanal 07 Marlas situated at Village Boparai, Tehsil Bholath, District Kapurthala, vide Request Letter for creation of charge on land in revenue records in favour of bank and Declaration u/s 4(1), dated 15.01.2020, which is Annexure A5 to this OA. Documents executed : Agreement and Deed of Hypothecation for Kisan Credit Card, dated 18.01.2020, which is Annexure A4 to this OA; Acknowledgements of Debt and Security, dated 19.12.2022, 16.12.2025, which is Annexure A6 to this OA; Legal Notice, dated 23.06.2026, along with postal receipt, which is Annexure A7 to this OA; Statement of account along with certificate, which is Annexure A8 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 the loan account, there was a debit of Rs.33,50,972.83, which is recoverable and the defendant was served recall notices but he 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 defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 02.09.2026.

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In support of the OA, affidavit of Sh. Shiv Kumar, Manager, Canara Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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3 OA NO.1067/2026 CANARA BANK VS SH. AVTAR SINGH

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From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facility, which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,50,972.83 (Rupees Thirty Three Lacs Fifty Thousand Nine Hundred Seventy Two and Paise Eighty Three Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.05%p.a. with yearly rests, with penal interest @2%p.a., 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 defendant, 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 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 defendant is liable to pay to the applicant a total sum of Rs.33,50,972.83 (Rupees Thirty Three Lacs Fifty Thousand Nine Hundred Seventy Two and Paise Eighty Three Only), 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

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4 OA NO.1067/2026 CANARA BANK VS SH. AVTAR SINGH

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from the sale of mortgaged property of the defendant 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 defendant. 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 19.09.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 08.09.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Sh. Avtar Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Avtar Singh

Case brief

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What did the court decide?

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