Allowed

Canara Bank v. Sh. Inderjit Singh and Another

DRT9 Apr 2026OA/1728/2025

Case brief

AI extract

What is this about?

Drugs Tribunal allowed an application filed by Canara Bank for the recovery of a defaulted KCC loan against two defendants. The Court fixed interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.33,43,001.89 plus simple interest @8.00% p.a. from filing date till realization via sale of hypothecated or personal assets.

Canara Bank versus Sh. Inderjit Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1728/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2025

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DATE OF DECISION: 09.04.2026

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Canara Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970, with its Head Office at J C Road, Bangalore and amongst other a Branch Office at Rahon, District S.B.S Nagar (Nawanshahar) Punjab, through its Constituted Attorney and Officer Mrs. Swati Sidhu W/o Sh. Amit Sharma.

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……..Applicant

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Versus

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Sh. Inderjit Singh S/o Sh. Teja Singh R/o House No. 339, Ambedkar Basti, V.P.O. Rahon, Tehsil Nawanshahar, District S.B.S. Nagar, Punjab - 144517

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Sh. Talwinder Kumar Bahri S/o Sh. Shiv Kumar Bahri R/o Mohalla Pahar Singh, V.P.O. Rahon, Tehsil Nawanshahar, District S.B.S. Nagar, Punjab - 144517

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….……Defendants

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Advocates:

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Argued by, Ms. Parvinder Kaur, Advocate for Applicant

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None for Defendants (already ex parte vide order dated 24.03.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the Defendants for recovery of Rs.33,43,001.89 (Rupees Thirty-Three Lakhs Forty-Three Thousand One and Paise Eighty-Nine Only). The Original

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2 OA NO.1728/2025 CANARA BANK VS SH. INDERJIT SINGH AND ANOTHER

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Application has been filed through Mrs. Swati Sidhu, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no. 1 approached the applicant for grant of KCC Limit of Rs.26.00 Lacs vide Loan Application dated 14.09.2015, which is Annexure A2 to this OA. Defendant No. 2 stood as Guarantor. Thereafter, Defendant no. 1 approached for renewal of KCC Limit of Rs.26.00 Lacs vide Loan Application dated 02.11.2020, which is Annexure A7 to this OA.

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The applicant sanctioned the KCC Limit of Rs.26.00 Lacs vide Sanction Letter dated 14.09.2015, which is Annexure A3 to this OA and the terms and conditions of which were duly accepted by the Defendants. Thereafter, the applicant sanctioned the renewal of the KCC Limit of Rs.26.00 Lacs vide Sanction Letter dated 02.11.2020, which is Annexure A8 to this OA.

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Defendant No. 1 mortgaged his immovable properties i.e. total Land measuring 28 Kanal 17 Marla, situated at Village Rahon, Hadbast No. 223, Tehsil Nawanshahr, District S.B.S. Nagar, vide Declaration given by mortgager under section 4(1) dated 08.09.2015, which is Annexure A6 to this OA.

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Documents executed : Agreement and Deed of Hypothecation for KCC & Guarantee Agreement, both dated 14.09.2015 , which are Annexure A4 & A5 to this OA; Letter of Renewal & Letter for Guarantor, both dated 02.11.2020, which are Annexures A9 & A10 to this OA; Acknowledgement of Debt and Security dated 27.06.2018, 07.10.2020 & 05.10.2023, which are Annexure A11 to A13 to this OA; Legal Notice dated 18.01.2025, which is Annexure A14 to this OA; Statement of Account with certificate, which is Annexure A15 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.33,43,001.89 (Rupees Thirty-Three Lakhs Forty-Three

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3 OA NO.1728/2025 CANARA BANK VS SH. INDERJIT SINGH AND ANOTHER

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Thousand One and Paise Eighty-Nine Only), which is recoverable and the defendants were 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.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of the defendants and they were proceeded ex-parte on 24.03.2026.

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In support of the OA, affidavit of Mrs. Swati Sidhu, Authorized Representative, Canara Bank, has been filed.

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Heard ex-parte arguments and perused record.

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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 A15 to this OA, it is proved that the defendants approached applicant for availing of the KCC Limit, 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 loan 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.33,43,001.89 (Rupees Thirty-Three Lakhs Forty-Three Thousand One and Paise Eighty-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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.50% p.a. with half yearly rests from 01.10.2025 to till the realization.

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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 hypothecated assets/mortgaged property, undertaking of the account, quantum of loan and prevalent

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4 OA NO.1728/2025 CANARA BANK VS SH. INDERJIT SINGH AND ANOTHER

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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 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.33,43,001.89 (Rupees Thirty-Three Lakhs Forty-Three Thousand One and Paise Eighty-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 properties 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 29.04.2026.
15. Copy of this order be given dasti to the applicant and be sent to
the 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: 09.04.2026 (MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Sh. Inderjit Singh and Another

Case brief

What is this about?

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Canara Bank v. Sh. Inderjit Singh and Another

Case brief

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