Allowed

Canara Bank v. M/S Kyra Creations and Another

DRT9 Jul 2026OA/1231/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-parte original application filed by Canara Bank against a sole proprietorship and its owner for recovery of a defaulted loan, declaring liability and directing issuance of a Recovery Certificate with a modified interest rate.

What did the court decide?

Direction to pay Rs. 89,49,716.60 with costs and uniform simple interest at 8% p.a. Issuance of Recovery Certificate. Liberty to recover from sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1231/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.10.2024

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DATE OF DECISION: 09.07.2026

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Canara Bank, a Body Corporate and Nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at JC Road, Banagalore and amongst other a Branch Office at MSME Sulabh, Ludhiana, Punjab through its Authorized Signatory and Manager, Sh. Tarun Goyal

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……..Applicant

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Versus

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M/S Kyra Creations, a sole Proprietorship concern through its sole Proprietor, Sh. Saurav Sharma, S/o Sh. Jatinder Kumar having Place of Business at House no. 539/136, Street no. 7, Santokh Nagar, New Shivpuri, Ludhiana, Punjab- 141008

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Sh. Saurav Sharma, S/o Sh. Jatinder Kumar, R/o House no. 539/136, Street no. 9/1/2, Ganesh Puri, New Shivpuri, Ludhiana, Punjab- 141008

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2^nd Address: Plot no. 99 at Amrit Colony, Village Barewal Awana, Panj Peer Road, Humbran Road, Ludhiana, Punjab141008

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…..Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 07.07.2026)

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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. 89,49,716.60 (Rupees Eighty Nine Lacs Forty Nine Thousand Seven Hundred Sixteen and Paise Sixty Only). The Original Application has been filed through Sh. Tarun Goyal, Manager of the applicant, who is competent to institute the Original

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2 OA NO. 1231/2024 CANARA BANK VS. M/S KYRA CREATIONS AND ANOTHER

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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 defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 30.00 Lacs and Term Loan of Rs. 52.00 Lacs vide Loan Application Form dated 05.04.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs. 30.00 Lacs and Term Loan of Rs. 52.00 Lacs vide Sanction Letter dated 28.04.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 mortgaged his immovable property i.e. Plot measuring 200 Sq. Yards situated at Village Barewal Awana, Hadbast no. 157, Abadi Amrit Colony, Tehsil and District Ludhiana, Punjab vide Sale Deed dated 03.03.2023 along with its translation, Letter of Deposit of Title Deeds and No Objection for Mortgage, both dated 28.04.2023, which are Annexure A10 to A12 to this OA. Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their plant and machinery purchased out of bank finance and entire stock of raw materials, finished goods, stock in process and book debts vide Hypothecation Agreement dated 28.04.2023, which is Annexure A5 to this OA. Documents executed: Letter of Proprietorship, Undertaking and DP Notes, all dated 28.04.2023, which are Annexure A4 and A7 to A9 to this OA; Letter of Particulars dated 16.05.2023, which is Annexure A6 to this OA; Notice dated 06.09.2024, which is Annexure A13 to this OA and Statement of Accounts, which are Annexure A14 and A15 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 the loan accounts there was a debit of Rs. 89,49,716.60, 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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3 OA NO. 1231/2024 CANARA BANK VS. M/S KYRA CREATIONS AND ANOTHER

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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 vide order dated 07.07.2026. 7. In support of the OA, affidavit of Sh. Tarun Goyal, Manager, Canara Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexure A1 to A15 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 89,49,716.60 (Rupees Eighty Nine Lacs Forty Nine Thousand Seven Hundred Sixteen and Paise Sixty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.86%p.a. in CC Limit Account and @14.71% p.a. in Term Loan Account with monthly rests from 30.08.2024 till the realization. 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

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4 OA NO. 1231/2024 CANARA BANK VS. M/S KYRA CREATIONS AND ANOTHER

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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.89,49,716.60 (Rupees Eighty Nine Lacs Forty Nine Thousand Seven Hundred Sixteen and Paise Sixty Only) jointly and severally, 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 of defendant nos. 1 and 2 and mortgaged property of defendant no. 2 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. 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 24.07.2026. 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: 09.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. M/S Kyra Creations and Another

Case brief

What is this about?

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Canara Bank v. M/S Kyra Creations and Another

Case brief

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