This application was allowed by the DRT, Chandigarh, permitting the recovery of dues and issuance of a recovery certificate against the defaulting borrowers and guarantors.
Recovery of ₹56,05,791.45p with interest at 13% p.a. from 31.07.2025, costs, and issuance of recovery certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
OA No: 1347 of 2025 Date of Institution: 31.07.2025 Date of Decision: 24.08.2026
Capital Small Finance Bank Ltd. having its branches all over India and a branch at Chabbewal, District Hoshiarpur, Punjab.
……..Applicant
Vs.
……….Defendants
Advocates
Sh. Vikas Sharma, Counsel for the applicant bank. None for the Defendants.
OA for the Recovery of ₹56,05,791.45p with interest @13% per annum with half-yearly rests from 31.07.2025.
ORDER
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vide deed dated 29.01.2016 and 11.01.2017. The loan was chargeable to interest @13% per annum with half-yearly rests. The Account of the Defendant was declared Non-Performing Assets on 30.06.2022. As per the terms of the loan agreement, Bank initiated proceedings under the Arbitration Act on 12.01.2023. However, the Sole Arbitrator recused himself from the Arbitration proceedings vide letter dated 07.02.2025. On 31.03.2025, a sum of ₹56,05,791.45p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.
| 6. Accordingly, the application of the bank for the recovery of |
|---|
| ₹56,05,791.45p (Rupees Fifty Six Lacs Five Thousand Seven Hundred |
| Ninety One and Forty Five Paise Only) with interest @13% per annum |
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with half-yearly rests from 31.07.2025, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.5x of the application as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 25.09.2026. 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 24.08.2026 Presiding Officer DRT-1, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover dues under Section 19 of the RDB Act given the default and failure of defendants to appear.
Whether the mortgage deed and loan documents were sufficient to prove the admissibility of the recovery claim.
1 provisions across 1 enactments
Capital Small Finance Bank Ltd.
Smt. Jaswant Kaur W/o Harpal Singh
Sh. Gurmukh Singh S/o Sh. Harpal Singh
Sh. Dalvir Singh S/o Sh. Harbhajan Singh
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
