Allowed

Canara Bank v. M/S Shani Kirpa Enterprises and Another

DRT19 Mar 2026OA/1169/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 20.27 lakhs outstanding from the borrowers. The court, exercising discretion due to market rates, granted uniform simple interest at 8% p.a. and ordered the issuance of a recovery certificate.

What did the court decide?

Order for recovery of Rs.20,27,232.51 jointly and severally with interest at 8% p.a. and issuance of Recovery Certificate.

Canara Bank versus M/S Shani Kirpa Enterprises and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1169/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.08.2025

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DATE OF DECISION: 19.03.2026

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Canara Bank a body Corporate, constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head office at 112, J.C. Road, Bangalore and inter-alia, Branch Office at Dholewal, Ludhiana (Punjab)-141003, through Sh. Rajiv Kumar, Authorized Officer and General Power of Attorney.

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……..Applicant

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Versus

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M/S Shani Kirpa Enterprises, at Plot No.72, Mahavir Enclave, Bhamian Khurd, Ludhiana, through its proprietor Sh. Karunesh Thakur S/O Sh. Harihar Partap Singh.

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Sh. Karunesh Thakur S/O Sh. Harihar Partap Singh R/O H. No. 110, First Floor, Vardhman Park, Chandigarh Road, Mundian Khurd, Ludhiana-141123.

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……….Defendants

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Advocates:

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Argued by Sh. Gulshan Mehta, Advocate for the applicant. None for defendants

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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.20,27,232.51 (Rupees Twenty Lacs Twenty Seven Thousand Two Hundred Thirty Two and Paise Fifty One Only). The Original Application has been filed through Sh. Rajiv Kumar, Authorized Officer, who is competent to institute the Original Application vide Power of attorney dated 03.01.2025, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that defendant No. 1 through its proprietor Defendant No. 2 approached the applicant for grant of Cash

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OA NO.1169/2025 CANARA BANK VS. M/S SHANI KIRPA ENTERPRISES & ANOTHER

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Credit Limit of Rs.9.00 Lacs vide Loan Application dated 01.12.2021, which is Annexure A2 to this OA. Thereafter, the defendant No. 1 through its proprietor 2 approached the applicant for grant of Term Loan of Rs.15.80 Lacs vide Loan Application dated 23.03.2022, which is Annexure A18 to this OA. Thereafter, the defendant No. 1 through its proprietor 2 approached the applicant for renewal of Cash Credit Limit of Rs. 9.00 Lacs vide Loan Application and Letter of Renewal of Cash Credit Limit, both dated 20.03.2023, which are Annexures A8 & A9 to this OA. Thereafter, the defendant No. 1 through its proprietor 2 again approached the applicant for renewal of existing Cash Credit Limit of Rs.9.00 Lacs vide Loan Application and Letter of Renewal of Cash Credit Limit, both dated 18.06.2024, which are Annexures A13 & A14 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.9.00 Lacs vide Sanction Letter dated 01.12.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the Term Loan of Rs.15.80 Lacs vide Sanction Letter dated 21.03.2022, which is Annexure A19 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the renewal of Cash Credit Limit of Rs 9.00 Lacs vide Sanction Letter dated 20.03.2023, which is Annexure A10 to this OA. Thereafter, the applicant sanctioned the renewal of Cash Credit Limit of Rs 9.00 Lacs vide Sanction Letter dated 18.06.2024, which is Annexure A15 to this OA. 4. Defandant No. 1 through its proprietor Defendant No. 2 hypothecated stock, book debts, 2 Knitting Circular Machines, etc. vide Agreement cum Deed of Hypothecation and Deed of Hypothecation dated 23.03.2022 which are Annexure A21 & A22 to this OA. Documents executed : Letter of Proprietorship, DP Note, Cash Credit Agreement, Letter of Undertaking, all dated 01.12.2021, which are

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OA NO.1169/2025 CANARA BANK VS. M/S SHANI KIRPA ENTERPRISES & ANOTHER

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Annexures A4 to A7 to this OA; Letter of Proprietorship, Letter of Undertaking, Both dated 20.03.2023, which are Annexures A11 & A12 to this OA; Letter of Proprietorship, Letter of Undertaking, both dated 18.06.2024, which are Annexures A16 & A17 to this OA; Letter of Proprietorship, Letter of Undertaking, both dated 23.03.2022, which are Annexure A20 & A23 (Colly) to this OA; Letter of Acknowledgment of Debt dated 18.06.2024, which is Annexure A24 to this OA; Legal Notice dated 05.05.2025, which is Annexure A25 to this OA; Statement of Cash Credit Account and Term Loan with certificate, which are Annexures A26 & A27 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.20,27,232.51, 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. Sh. Sachin Rana, Advocate proxy for Sh. Deepak Kumar, Advocate appeared on behalf of defendants on 03.10.2025 and filed Power of Attorney of Sh. Deepak Kumar, Advocate on behalf of defendants. Since no WS was filed by defendants, therefore, their opportunity to file WS was closed and their defense was struck off on vide order dated 18.02.2026.

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In support of the OA, affidavit of Sh. Rajiv Kumar, Authorized Officer, Canara Bank, has been filed.

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Heard arguments and perused record. No one appeared on behalf of defendants for arguments.

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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 A1 to A27 to this OA, it is proved that the defendants

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OA NO.1169/2025 CANARA BANK VS. M/S SHANI KIRPA ENTERPRISES & ANOTHER

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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 bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, the 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.20,27,232.51 (Rupees Twenty Lacs Twenty Seven Thousand Two Hundred Thirty Two and Paise Fifty One Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest in CC limit @12.50%p.a. in CC Limit and @11.10%p.a. in Term Loan, including 2% penal interest and monthly rests in both accounts from 01.08.2025 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 hypothecated assets, 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 @08.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,27,232.51 (Rupees Twenty Lacs Twenty Seven Thousand Two Hundred Thirty Two and Paise Fifty One Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the

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OA NO.1169/2025 CANARA BANK VS. M/S SHANI KIRPA ENTERPRISES & ANOTHER

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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 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2026.

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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: 19.03.2026.

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

Canara Bank v. M/S Shani Kirpa Enterprises and Another

Case brief

What is this about?

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Canara Bank v. M/S Shani Kirpa Enterprises and Another

Case brief

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