Allowed

Canara Bank v. Angel Aish Fashion Hub and Another

DRT17 Feb 2026OA/1209/2024

Case brief

AI extract

What is this about?

This Original Application was filed by Canara Bank under the RDB Act for recovery of over Rs. 2 crore. After SWR and WS were stuck off, the Tribunal noted uncontroverted evidence of default. It allowed the application, directing recovery of principal with reduced uniform interest at 8% p.a. and permitting enforcement through asset sale under SARFAESI/CPC if not paid.

What did the court decide?

Decls. defendants liable to pay Rs. 2,14,78,827.45 with 8% p.a. simple interest; liberty to enforce via sale of assets; issue Recovery Certificate.

Canara Bank versus Angel Aish Fashion Hub and Another — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1209/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.09.2024

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DATE OF DECISION: 17.02.2026

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) having its Head Office at J.C Road, Bangalore-560002 (Karnataka) and a Branch Office, amongst other places known as MSME Sulabh Branch, Bharat Nagar Chowk, Ludhiana-141001, Punjab, through Sh. Tarun Goyal, its Constituted Attorney and Principal Officer

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……..Applicant

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Versus

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Angle Aish Fashion Hub, a sole-proprietorship at its Regd. Office:227, Saroop Nagar, Salem Tabri, Ludhiana-141008, Punjab through its sole-proprietor, Sh. Jasvir Singh S/o Sh. Harbans Singh

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2^nd Address: Angel Aish Fashion Hub, B 32 962, Bharti Colony, Bahadur Ke Road, Ludhiana, Punjab

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3^rd Address: Angel Aish Fashion Hub, G-133, New Shivpuri, Ludhiana, Punjab

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Sh. Jasvir Singh S/o Sh. Harbans Singh, R/o H. No B25 F 5 446, Ward No. 25, Salem Tabri, Bhagwan Dass Colony, Mehboob Studio Wali Gali, Peeru Banda, Ludhiana-141008, Punjab

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2^nd Address: Sh. Jasvir Singh S/o Sh. Harbans Singh, MC No. 34 4455/B, Haibowal Kalan, Durgapuri-141001, Ludhiana, Punjab

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…….Defendants

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Advocates:

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Argued by Sh. G S Anand, Advocate for the applicant

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None for Defendants

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2 OA/1209/2024 CANARA BANK VS. ANGEL AISH FASHION HUB AND ANOTHER

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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.2,14,78,827.45 (Rupees Two Crore Fourteen Lacs Seventy Eight Thousand Eight Hundred Twenty Seven and Paise Forty Five Only). The Original Application has been filed through Sh. Tarun Goyal, Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 15.09.2022 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for the grant of Cash Credit limit of Rs.125.00 Lacs and Term Loan of Rs.75.00 vide loan application dated 26.10.2022, which is Annexures A2 to this OA. Thereafter, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Vehicle loan of Rs.18.00 Lacs vide loan application dated 08.12.2022 which is Annexure A3 to this OA.

¶22

The applicant sanctioned Cash Credit Limit of Rs.80.00 Lacs and Term Loan of Rs.115.00 Lacs vide Sanction letter dated 03.11.2022, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Vehicle Loan of Rs.18.00 Lacs vide sanction memorandum dated 08.12.2022, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

¶23

Defendant no. 1 through its proprietor hypothecated stock, book debts, machineries i.e. Ind. Sewing machine Jack A2(26 set), Ind. Overlock machine Pegasus M952 (26 set), Ind. Folding machine Pegasus W500 (26 set), Ind. Elastic machine Kansai DFB 1408 PMD (26 set), Ind. Double Boiler Steam Press with two table set (8 set),

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¶25

OA/1209/2024

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CANARA BANK VS. ANGEL AISH FASHION HUB AND ANOTHER

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Ind. Cutting machine (8 set) vide composite hypothecation agreement dated 03.11.2022, which is Annexure A15 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated Car i.e. HYUNDAI ALCAZAR 1.5 AT SIGNATURE (O) 6S, bearing Registration No. PB91S0503, Chassis No. MALPC813MNM616370, Engine No. D4FANM702291. Registration Certificate of vehicle, which is Annexure A25 to this OA.

¶29

Defendant no. 2 mortgaged immovable property i.e. House No. B-34-4455/B measuring 200 sq.yards, situated at Haibowal Kalan, Hadbast no.102, Locality known as Durgapuri, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale deed no. 202223/101/1/6537 dated 22.09.2022 along with its translation, which is Annexure A26 to this OA; Letter dated 03.11.2022 evidencing deposit of Title deeds, which is Annexure A27 to this OA; CERSAI documents which is Annexure A28 to this OA.

¶30

Documents executed: Request for Overdraft Facilities, Pronote, Undertaking letter, declaration regarding value of investment on plant and machinery, Letter regarding Working Capital calculation using MPBF method, Take Delivery letter to DPN, Request for disbursement, all dated 03.11.2022 which are Annexures A6 to A9, A10, A12 and 13 to this OA; Pronote, which is Annexure A11 to this OA; Link letter obtained when disbursement is done on a subsequent day dated 04.11.2022 which is Annexure A14 to this OA; Undertaking for OD/OCC/Term Loan, Letter regarding disclosure of information of defaulters in the event of default, Letter regarding consent for disclosure of information to CIBIL in the event of default, Letter of undertaking/consent regarding coverage of loan under CGTMSE Scheme, Letter of Proprietorship, all dated 03.11.2022 which are Annexures A15 to A20 to this OA; Vehicle loan agreement, Request for disbursement, Letter of undertaking, Letter regarding deduction of

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4 OA/1209/2024 CANARA BANK VS. ANGEL AISH FASHION HUB AND ANOTHER

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loan installment and mandatory charges from SB Account of the borrower, all dated 08.12.2022 which are Annexures A21 to A24 to this OA; Legal notice dated 07.05.2024, along with postal receipts, which is Annexure A29 to this OA; Notice dated 06.05.2024 u/s 13(2) of SARFAESI Act, which is Annexure A30 to this OA; Statement of account, which is Annexure A31 to A33 to this OA.

¶33

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.2,14,78,827.45 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.

¶34

The defendants were served notices to appear before this Tribunal. Sh. Gurnam Singh, Advocate appeared on behalf of defendants on 15.02.2025. Power of Attorney of Sh. Japinder Singh Jagpal, Advocate and Sh. Gurnam Singh, Advocate was filed on behalf of defendants on 12.02.2025. Since, WS was not filed by defendants, there opportunity to file WS was closed and their defense was stuck off vide order dated 24.10.2025.

¶35

In support of the OA, affidavit of Sh. Tarun Goyal, Manager, Canara Bank has been filed.

¶36

Heard arguments and perused record.

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No one appeared on behalf of defendants for arguments. 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 A33 to this OA, it is proved that the defendants 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

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¶39

OA/1209/2024

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CANARA BANK VS. ANGEL AISH FASHION HUB AND ANOTHER

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conditions of the agreement between the parties. Subsequently, 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.2,14,78,827.45 (Rupees Two Crore Fourteen Lacs Seventy Eight Thousand Eight Hundred Twenty Seven and Paise Forty Five 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.

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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 @14.01% p.a. in CC Limit with monthly rests from 01.09.2024 till the realization, @14.96% p.a. in Term Loan with monthly rests from 05.09.2024 till the realization and @12.06% p.a. in Vehicle Loan with monthly rests from 13.09.2024 till the realization.

¶43

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/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 @8.00%p.a. in all 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.

¶44

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,14,78,827.45 (Rupees Two Crore Fourteen Lacs Seventy Eight Thousand Eight Hundred Twenty Seven and Paise Forty Five Only) with costs, current and future simple interest @8.00%p.a. in all the loan

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¶46

OA/1209/2024

¶47

CANARA BANK VS. ANGEL AISH FASHION HUB AND ANOTHER

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accounts from the date of filing of OA till the date of realization of the amounts. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties 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 05.03.2026.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 17.02.2026.

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

Canara Bank v. Angel Aish Fashion Hub and Another

Case brief

What is this about?

What did the court decide?

Canara Bank v. Angel Aish Fashion Hub and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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