Allowed

Canara Bank v. M/S Malik Industries

DRT28 Jan 2026OA/1470/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery of Rs. 20,98,535.32p with interest against defendants who failed to appear after receiving summonses in an ex parte proceeding involving agricultural and term loans secured by property.

What did the court decide?

Recovery of Rs. 20,98,535.32p with interest at 9.25% p.a. with monthly rests; issuance of recovery certificate; sale of mortgaged and personal assets.

Canara Bank versus M/S Malik Industries — Company and Corporate | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

OA No: 1470/2022 Date of Institution: 04.08.2022 Date of Decision: 28.01.2026

¶4

Canara Bank at Baroat, Railway Road, Near Gyandeep School, Ganaur, Sonipat, Haryana

¶5

……..Applicant

¶6

Vs.

¶7

M/s Malik Industries having its Registered Office at Arjunpur, Ward No. 03, Garhi Kesri, Ganaur, Sonipat, Haryana-131101

¶8

Sh. Naresh S/o Sh. Tara Chand resident of House No. 102, Village Lalheri Kalan, Lalheri, Ganaur, Sonipat, Haryana-131101

¶9

Bimla Devi W/o Sh. Naresh, r/o House No. 102, Village Lalheri Kalan, Lalheri, Ganaur, Sonipat, Haryana-131101

¶10

Sh. Ajay S/o Sh. Ashok Kumar, r/o House No. 155/203, Village Arjunpur, Sonipat, Haryana-131101 …….Defendants

¶11

Advocates Sh. Parveen Kumar, Counsel for the applicant bank Defendants- ex parte

¶12

OA for the Recovery of Rs.20,98,535.32p with interest @9.25% per annum with monthly rests from 04.08.2022. ORDER

¶13

Canara Bank (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB

¶14

¶15

Act) for the recovery of Rs.20,98,535.32p with interest against M/s Malik Industries and Others (defendants).

¶16

Defendant No. 1 is a Proprietorship firm of defendant No. 2. Bank’s case is that on 19.09.2019, it had granted loans of Rs.10.00 Lacs in the form of Cash Credit Facility, Rs.5.00 Lacs in the form of Term Loan Facility and on 01.06.2020, Rs.2.00 Lacs in the form of GECL/WCTL Facility to defendant Nos. 1 and 2 for business purpose. Defendant Nos. 2, 3 and 4 stood as guarantors. To secure the loans, the defendant No. 3 had mortgaged his property (fully detailed in para No.3A of the application). The loans were chargeable to interest @9.85% per annum with monthly rests in Cash Credit Facility, @10.10% per annum with monthly rests in Term Loan Facility and @9.25% per annum with monthly rests in WCTL Facility. On 30.07.2022, a sum of Rs.20,98,535.32p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

¶17

On 17.09.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 20.05.2024, they were proceeded ex parte .

¶18

In order to prove its case, the Bank has placed on record the affidavit of Sh. Vinod Kumar, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-22. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.17.00 Lacs and on 30.07.2022, a sum of Rs.20,98,535.32p was due.

¶19

¶20

Accordingly, the application of the bank for the recovery of Rs.20,98,535.32p (Rupees Twenty Lacs Ninety Eight Thousand Five Hundred Thirty Five and Thirty Two Paisa Only) with interest @9.25% per annum with monthly rests from 04.08.2022, 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 property(ies) fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

¶21

Pending IAs, if any, stand disposed of.

¶22

Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 19.03.2026 , who is directed to distribute the sale proceeds of the mortgage property(ies) as per the provisions of Section 19(20-AB) of the Act .

¶23

A copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

¶24

Pronounced in the open Court	(A S Narang)
Dated: 28.01.2026	Presiding Officer
	DRT-2, Chandigarh
	(Additional charge)

Canara Bank v. M/S Malik Industries

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Malik Industries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus M/S First Engineer

Bank of Maharashtra versus Ram Sidhari

Icici Bank Limited versus Shaikh Ayub

Jitendra Singh versus Punjab National Bank

Icici Bank Limited versus Sucha Singh

Canara Bank versus Manga Singh Aulakh