Allowed

Canara Bank v. Smt. Uma Sharma through Her Legal Heirs and Another

DRT11 May 2026OA/125/2026

Case brief

AI extract

What is this about?

DRT allowed a recovery application filed by Canara Bank against the legal representatives of a deceased debtor and a co-debtor. The Tribunal directed payment of the principal amount plus interest at 8% p.a. with costs, authorizing recovery through sale of mortgaged or personal assets.

What did the court decide?

Directed respondent No. 1's legal representatives and respondent No. 2 to pay Rs. 46,91,598.21 with interest @8% p.a. and costs; directed issue of Recovery Certificate.

Canara Bank versus Smt. Uma Sharma through Her Legal Heirs and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 125/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.01.2026

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DATE OF DECISION: 11.05.2026

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Canara Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at 112, J.C Road Banglore inter-alia Branch at Bharat Nagar Chowk Tehsil and District Ludhiana through Shri Rohit Garg, Manager and Power of Attorney Holder posted at Branch Office Bharat Nagar Chowk, Ludhiana Punjab.

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..……..Applicant

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Versus

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Smt. Uma Sharma (Since deceased), wife of Sh. Anand Sharma, through her Legal Representatives:

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1.1 Sh. Anand Sharma son of Sh. Suresh Kumar being LR of Smt. Uma Sharma wife of Sh. Anand Sharma resident of House no. 138, Street no 5 near Maan Palace, Green Valley Haibowal, Ludhiana- 141001.

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1.2 Sh. Vaibhav Sharma son of Sh. Anand Sharma being LR of Smt. Uma Sharma wife of Sh. Anand Sharma resident of House no. 138, Street no 5 near Maan Palace, Green Valley Haibowal, Ludhiana- 141001.

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1.3 Sh. Lakhan Sharma son of Sh. Anand Sharma being LR of Smt. Uma Sharma wife of Sh. Anand Sharma resident of House no. 138, Street no 5 near Maan Palace, Green Valley Haibowal, Ludhiana- 141001.

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Sh. Anand Sharma son of Sh. Suresh Kumar resident of House no. 138, Street no 5 near Maan Palace, Green Valley Haibowal, Ludhiana- 141001.

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……....Defendants

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2 OA/125/2026 CANARA BANK VS UMA SHARMA THROUGH HER LEGAL HEIRS AND ANOTHER

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Advocates:

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Argued by Sh. Gulshan Mehta, Advocate for applicant None for Defendants (already ex parte vide order dated 06.05.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993, against the defendants for recovery of Rs.46,91,598.21 (Rupees Forty Six Lacs Ninety One Thousand Five Hundred Ninety Eight and Paise Twenty One Only). The Original Application has been filed through Sh. Rohit Garg, Branch Manager, o f the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 30.05.2025, which is Annexure A1 to this OA. 2. The brief facts of the OA that the Defendant no.1 (since deceased) & defendant no.2 approached the applicant for grant of Housing Loan of Rs.42.70 Lacs vide Loan Application dated 17.08.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the Housing Loan of Rs.42.70 Lacs vide Sanction Letter dated 28.09.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 (since deceased) mortgaged her residential property i.e. Total Land measuring 213.88 Sq.Yds., situated at Plot No. 138, Village Chuharpur, abadi Green Velly, Tehsil & District Ludhiana, vide Sale Deed with Vasika No. 3886 dated 26.06.2013, with English Translation, which is Annexure A8 to this OA. Documents executed: Agreement of Housing Loan, Guarantee Agreement, Guarantee Covering Letter, all dated 14.10.2013, which are Annexures A4 to A6 to this OA; Letter evidencing Deposit of Title Deed dated 14.10.2013, which is Annexure A7 to this OA; Acknowledgement

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3 OA/125/2026 CANARA BANK VS UMA SHARMA THROUGH HER LEGAL HEIRS AND ANOTHER

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of Debt dated 08.10.2024, which is Annexure A9 to this OA; Legal Notice dated 04.01.2026 with Postal Receipts, which is Annexure A10 to this OA; Statement of Account with Certificate, which is Annexure A11 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.46,91,598.21 (Rupees Forty Six Lacs Ninety One Thousand Five Hundred Ninety Eight and Paise Twenty One Only), which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant no. 1 was deceased. Hence, defendant no.2 and Legal Representatives of deceased defendant no. 1, 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 06.05.2026. 7. In support of the OA, affidavit of Sh. Rohit Garg, Branch Manager, Indian Bank, h as been filed. 8. Heard arguments of learned counsel for applicant. None appeared for defendants. Perused record. 9. 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.

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From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant no. 1 (since deceased) and defendant no. 2 approached applicant for availing of the loan facility, which was 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 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

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4 OA/125/2026 CANARA BANK VS UMA SHARMA THROUGH HER LEGAL HEIRS AND ANOTHER

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is entitled to recover a sum of Rs.46,91,598.21 (Rupees Forty Six Lacs Ninety One Thousand Five Hundred Ninety Eight and Paise Twenty 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 amount.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.50% p.a. with monthly rests, from 10.12.2025 till realization of the amount.

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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 mortgaged property, 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 just and appropriate to grant 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.

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In the result, the application is allowed declaring that the defendant no.2 and Legal Representatives of deceased defendant no. 1, are liable to pay to the applicant a total sum of Rs.46,91,598.21 (Rupees Forty Six Lacs Ninety One Thousand Five Hundred Ninety Eight and Paise Twenty One 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 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 still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant no.2 and Legal

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5 OA/125/2026 CANARA BANK VS UMA SHARMA THROUGH HER LEGAL HEIRS AND ANOTHER

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Representatives of deceased defendant no. 1, up to the extent, they inherited form the deceased defendant. The applicant is at liberty to enforce the claim through due process of law.

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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 02.06.2026.

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Copy of this order be given Dasti to the applicant bank 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 .

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Dated: 11.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Smt. Uma Sharma through Her Legal Heirs and Another

Case brief

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Canara Bank v. Smt. Uma Sharma through Her Legal Heirs and Another

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