Debts Recovery Tribunal allowed an ex-parte application by Canara Bank for recovery of Rs. 27,49,103.00 from defaulting borrowers and a guarantor, adjusting interest to 8% p.a. and ordering issuance of a Recovery Certificate.
Recovery of Rs. 27,49,103.00 plus costs and simple interest @ 8.00% p.a. from date of filing; issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1652/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 29.08.2022
DATE OF DECISION: 04.08.2026
Canara Bank, A body corporate constituted under the Banking companies (Acquisition and 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 through its Power Attorney Holder Smt. Pallavi Jandial, Manager, Canara Bank, Kapurthala.
……..Applicant
…….. Defendants
Advocates:
Argued by Sh. Satish Jaiswal, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 29.07.2026).
FINAL ORDER
2 OA NO.1652/2022 CANARA BANK VS SH. RAJINDER SINGH AND OTHERS
vide Loan Application dated 26.06.2015, which is Annexure A2 to this OA.
Thereafter, the defendant nos. 1 & 2 approached the applicant for grant of Additional Housing Loan of Rs.8,35,000.00 vide Loan Application dated 18.08.2015, which is Annexure A9 to this OA. 3. The applicant sanctioned the Housing Loan of Rs.11,03,000.00 and terms and conditions were duly accepted by the defendants vide Housing Loan Agreement dated 26.06.2015, which is Annexure A3 to this OA. Defendant no. 3 stood as guarantor. Thereafter, The applicant sanctioned the Additional Housing Loan of Rs.8,35,000.00 vide Sanction Memorandum dated 18.08.2015, which is Annexure A10 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 mortgaged his Immovable Property i.e., Land and Building measuring 3.5 Marlas situated at Village Seenpur, Tehsil & District Kapurthala vide Sale Deed No. 4829 dated 22.02.2005, along with its translation and Letter evidencing deposit of Title Deeds executed for depositing the Sale Deed with the Bank, which are Annexures A6 to A8 to this OA. Letter of Continuity executed for Additional Housing Loan Limit, which is Annexure A13 to this OA. Documents executed: Irrevocable Mandate for deduction from OD/CA/SB Account, Guarantee Agreement, both dated 26.06.2015, which are Annexures A4 & A5 to this OA; Housing Loan Agreement, Irrevocable Mandate for deduction from OD/CA/SB Account, Guarantee Covering Letter, Guarantee Agreement, all dated 18.08.2015, which are Annexures A11, A12, A14 & A15 to this OA; Legal Notices dated 16.08.2016, along with postal receipts, which are Annexures A16 & A17 to this OA; Notice u/s 13(2) dated 29.12.2016, along with postal receipts, which is Annexure A18 to this OA; Acknowledgements of Debt and Security, dated 30.04.2018, 04.07.2018, 02.02.2021,, 17.05.2021, which are Annexures A19 to A22 to this OA; Statement of Accounts along with certificates, which are Annexures A23 & A24 to this OA.
3 OA NO.1652/2022 CANARA BANK VS SH. RAJINDER SINGH AND OTHERS
4 OA NO.1652/2022 CANARA BANK VS SH. RAJINDER SINGH AND OTHERS
of the defendants, quantum of loans 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 @8.00%p.a. in both the loan accounts 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 sum of Rs.27,49,103.00 (Rupees Twenty Seven Lacs Forty Nine Thousand One Hundred and Three Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 property of defendant no. 1 i n 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 19.08.2026. 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: 04.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount along with interest?
Whether the applicable rate of interest should be modified to 8.00% per annum?
2 provisions across 2 enactments
Canara Bank
Sh. Rajinder Singh
Smt. Daljit Kaur
Sh. Parmider Singh Oberai
Mridulesh Kumar Singh
As recorded by the court registry
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