Debts Recovery Tribunal allowed the bank's original application for recovery of Rs.65.45 lacs. The court granted simple interest at 8% p.a. and directed issuance of a Recovery Certificate for enforcement under SARFAESI provisions.
Recovery certificate issued; repayment Rs.65,45,239.00 plus simple interest at 8% p.a. jointly and severally.
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.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 1521/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.08.2022
DATE OF DECISION: 21.04.2026
Canara Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970, having its Head Office at 112, J.C. Road, Bangalore, and inter-alia, Branch Office at 3, The Mall, Kapurthala, Punjab.
……..Applicant
Advocates:
Argued by, Sh. Satish Jaiswal, Advocate for Applicant
None for Defendants (already ex parte vide order dated 17.04.2026)
FINAL ORDER
2 OA/1521/2022 CANARA BANK VS SH. BALDEV SINGH AND OTHERS
to institute the Original Application vide General Power of Attorney dated 02.08.2022, which is Annexure A1 to this OA.
3 OA/1521/2022 CANARA BANK VS SH. BALDEV SINGH AND OTHERS
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. 6. 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 17.04.2026. 7. In support of the OA, affidavit of Smt. Pallavi Jandial , Manager, Canara Bank, h as been filed. 8. Heard arguments and 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. From the perusal of all the Annexures A1 to A21 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 favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, the 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.65,45,239.00 (Rupees Sixty Five Lacs Forty Five Thousand Two Hundred Thirty Nine 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75% p.a. with half yearly rests from 19.05.2022 to 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 loan and prevalent market rates of interest which have gone drastically downhill in yester
4 OA/1521/2022 CANARA BANK VS SH. BALDEV SINGH AND OTHERS
years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00% 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.65,45,239.00 (Rupees Sixty Five Lacs Forty Five Thousand Two Hundred Thirty Nine Only), jointly and severally, with costs, current and future simple interest @8.00% 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/mortgaged property 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. 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 12.05.2026 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: 21.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover dues of Rs.65,45,239.00 along with interest from the loan account declared as NPA.
What rate of interest shall be granted by the Tribunal considering market rates and circumstances of the case.
2 provisions across 2 enactments
Canara Bank
Sh Baldev Singh
Sh. Sukhmail Singh
Sh. Gurinderjit Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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