Allowed

Canara Bank v. M/S Parveen Collections and Another

DRT22 May 2026OA/1167/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDB Act for recovery of loans granted to respondents. The court modified the claimed interest rates to 8% p.a. and directed recovery from mortgaged/hypothecated assets.

What did the court decide?

Liquidation of loans declared; recovery to be made from sale of mortgaged/hypothecated assets; appeal hearing date fixed and issue of Recovery Certificate directed.

Canara Bank versus M/S Parveen Collections and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1167/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.09.2024

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DATE OF DECISION: 22.05.2026

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Canara Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at 112, J.C. Road, Bengaluru, Karnataka- 560002 and a Branch amongst at Bharat Nagar Chowk, District Ludhiana, Punjab through Sh. Parminder Singh, Officer, Canara Bank authorized by applicant

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… …..Applicant

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Versus

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M/S Parveen Collections situated at #6145/1, Street no. 10-1/2, Hargobind Nagar, Ludhiana, Punjab- 141008 through its Proprietor, Sh. Deepak Aneja, S/o Sh. Kamal Aneja

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Sh. Deepak Aneja, S/o Sh. Kamal Aneja, R/o #5948/1, Street no. 10-1/2, Hargobind Nagar, Ludhiana, Punjab- 141008

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2^nd Address: #6129/1, Street no. 10-1/2, Hargobind Nagar, Ludhiana, Punjab- 141008

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3^rd Address: Sukhdev Nagar, near Football Ground, Bhamian Road, Ludhiana, Punjab- 141008

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…Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 20.05.2026)

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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 defendants for recovery of Rs. 44,13,760.48 (Rupees Forty Four Lacs Thirteen Thousand Seven Hundred Sixty and Paise Forty

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2 OA/1167/2024 CANARA BANK VS. M/S PARVEEN COLLECTIONS AND ANOTHER

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Eight Only). The Original Application has been filed through Sh. Parminder Singh, Officer of the applicant, who is competent to institute the Original Application vide Authority Letter dated 10.10.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 2 approached the applicant for grant of Housing Loan of Rs. 30.00 Lacs vide Loan Application dated 09.11.2021, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 12.00 Lacs vide Loan Application dated 03.02.2022, which is Annexure A7 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for reducing CC Limit to Rs. 10.00 Lacs vide Application dated 04.05.2023, which is Annexure A14 to this OA.

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The applicant sanctioned Housing Loan of Rs. 30.00 Lacs vide Sanction Letter dated 18.11.2021, which is Annexure A3 to this OA. Thereafter, the applicant sanctioned CC Limit of Rs. 12.00 Lacs vide Sanction Memorandum dated 07.02.2022, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned reduced CC Limit of Rs. 10.00 Lacs vide Sanction Memorandum dated 04.05.2023, which is Annexure A15 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. Land measuring 100 Sq. Yards situated at Village Kuliyewal, Hadbast no. 178, Abadi Sukhdev Nagar, Tehsil and District Ludhiana, Punjab vide Title Deed dated 16.12.2021 along with its translation, which are Annexure A5 and A5/T to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stock, raw material and book debts etc. Documents executed: Housing Loan Agreement dated 20.11.2021, which is Annexure A4 to this OA; Confirmation Letter dated 20.12.2021, which is Annexure A6 to this OA; Letter of Proprietorship, Letter of Undertaking, Cash Credit Agreement and

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3 OA/1167/2024

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CANARA BANK VS. M/S PARVEEN COLLECTIONS AND ANOTHER

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Agreement, all dated 07.02.2022, which are Annexure A9, A11 to A13 to this OA; Pronote, which is Annexure A10 to this OA; Letter of Renewal dated 04.05.2023, which is Annexure A16 to this OA, Statement of Account, which are Annexure A17 and A18 to this OA and Demand Notice dated 14.06.2024, which is Annexure A19 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 loan accounts there was a debit of Rs. 44,13,760.48 which is recoverable and the defendants were served recall notice 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on vide order dated 20.05.2026.

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In support of the OA, affidavit of Sh. Parminder Singh, Officer, Canara Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A19 to this OA, it is proved that defendant no. 2 approached the applicant for grant of Housing Loan, which was granted to him and defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit, which was granted to them. Defendants had executed all the relevant documents in favour to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, the loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 32,29,230.86 (Rupees Thirty Two Lacs Twenty Nine Thousand Two Hundred Thirty and Paise Eighty Six Only) from

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4 OA/1167/2024

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CANARA BANK VS. M/S PARVEEN COLLECTIONS AND ANOTHER

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defendant no. 2 and Rs. 10,51,081.62 (Rupees Ten Lacs Fifty One Thousand Eighty One and Paise Sixty Two Only) from defendants along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @9.45%p.a. in Housing Loan Account and @11.25% p.a. in CC Limit Account with @2% penal interest from 16.09.2024 till 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 hypothecated assets/mortgaged property, undertaking of the defendants, quantum of loans 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 both 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.

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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.10,51,081.62 (Rupees Ten Lacs Fifty One Thousand Eighty One and Paise Sixty Two Only) jointly and severally and defendant no. 2 is liable to pay to the applicant a total sum of Rs. 32,29,230.86 (Rupees Thirty Two Lacs Twenty Nine Thousand Two Hundred Thirty and Paise Eighty Six Only), with costs, current and future simple interest @8.00% p.a. in both 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 assets/mortgaged property 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

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OA/1167/2024 CANARA BANK VS. M/S PARVEEN COLLECTIONS AND ANOTHER

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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 15.06.2026. 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: 22.05.2026

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

Canara Bank v. M/S Parveen Collections and Another

Case brief

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Canara Bank v. M/S Parveen Collections and Another

Case brief

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