Allowed

Canara Bank v. Messrs Sampanna Creations and Another

DRT20 Jan 2026OA/1236/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under Section 19 RDB Act filed by Canara Bank for recovery of Rs. 21 lakhs. The court, in exercise of discretion, reduced the claimed rate to 8% per annum and ordered issuance of a Recovery Certificate.

What did the court decide?

The application is allowed. Defendants are ordered to pay Rs. 21,27,980 with costs and simple interest at 8% p.a. from filing until realization. Recovery Certificate is issued.

Canara Bank versus Messrs Sampanna Creations and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1236/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.10.2024

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DATE OF DECISION: 20.01.2026

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Canara Bank a body Corporate, constituted under, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at J.C. Road, Bengaluru (Karnataka State), and being the successor to erstwhile Syndicate Bank under the “Scheme of Amalgamation of Syndicate Bank into Canara Bank Scheme, 2020” passed by Central Government under Section 9 of the Banking Companies Act (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), published by Vide Notification No. G.S.R. No. 155(E) dated 04.03.2020, whereby as per Clause 3 “ the Undertaking of Transferor Bank Stands vested into Transferee Bank w.e.f. 01.04.2020’’. Canara Bank (e-Syndicate Bank) has been carrying on business of banking at its branch offices, amongst others at Main Road, Kailash Nagar, Basti Jodhewal, Kailash Nagar, Ludhiana (Punjab) through its Manager Sh. Lovish Kumar.

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……..Applicant Versus

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M/S Sampanna Creations, B-34/3413/B/1, Street No.19, Near Madhopuri, Adjoining Mahavir Jain Colony, Ludhiana (Punjab) through its Proprietor Smt. Priya.

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Smt. Priya W/o Sh. Jitendra Mahnot, House No.603, First Floor, Sector-33, Chandigarh Proprietor of M/S Sampanna Creations.

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…….Defendants

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Advocates:

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Argued by Sh. P.K. Khurana, Advocate for the applicant

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Defendants already ex-parte vide order date 22.09.2025

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OA NO.1236/2024 CANARA BANK VS. M/S SAMPANNA CREATIONS 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.21,27,980.00 (Rupees Twenty One Lakh Twenty Seven Thousand Nine Hundred Eighty Only). The Original Application has been filed through Sh. Lovish Kumar, Manager of the applicant who is competent to institute the Original Application vide Authorization letter dated 11.09.2024, 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 grant of Cash Credit Limit Rs.20.00 Lacs under the CGTMSE vide Application form dated 28.12.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit Rs.20.00 Lacs vide Sanction letter dated 05.01.2023, which is Annexure A3 this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 through its proprietor defendant no. 2 hypothecated stocks.

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Documents executed: Letter Evidencing Execution of Documents dated 05.01.2023 which is Annexure A4 to this OA; Cash Credit Agreement, Letter of Undertaking, Request for Overdraft Facilities, all dated 05.01.2023, which are Annexures A5 to A7 to this OA; Statement of Account with certificate, which is Annexure A8 (Colly) 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 loan account there was a debit of Rs.21,27,980.00, 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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OA NO.1236/2024 CANARA BANK VS. M/S SAMPANNA CREATIONS AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 22.09.2025

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In support of the OA, affidavit of Sh. Lovish Kumar, Manager Canara Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel of applicant 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 A9 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favor of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,27,980.00 (Rupees Twenty One Lakh Twenty Seven Thousand Nine Hundred Eighty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @11.25%p.a. with monthly rests from 06.10.2024 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 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

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OA NO.1236/2024 CANARA BANK VS. M/S SAMPANNA CREATIONS AND ANOTHER

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just and appropriate to grant uniform 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,27,980.00 (Rupees Twenty One Lakh Twenty Seven Thousand Nine Hundred Eighty Only) jointly and severally, 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.02.2026. 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: 20.01.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. Messrs Sampanna Creations and Another

Case brief

What is this about?

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Canara Bank v. Messrs Sampanna Creations and Another

Case brief

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