Allowed

Canara Bank v. M/s Nirmal Sagar Enterprises and others

DRT27 Aug 2026OA/177/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank for recovery of an outstanding loan amount of Rs.8.11 crore. The tribunal fixed interest at 8% per annum and directed the issuance of a recovery certificate for execution against hypothecated and mortgaged assets.

What did the court decide?

Recovery of Rs.8,11,49,084.67 with costs and simple interest @8.00% p.a.; Recovery Certificate issued; Asset sale directed.

Canara Bank versus M/s Nirmal Sagar Enterprises… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 177/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.02.2025

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DATE OF DECISION: 27.08.2026

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CANARA BANK, a body corporate, constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at 112, J.C. Road, Bangalore, and inter alia having a branch office at Dholewal Chowk Branch Ludhiana (PB) through its Principal Officer Sh. Himanshu Sood, Manager.

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……..Applicant

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Versus

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M/s Nirmal Sagar Enterprises, a Partnership firm having its place of business at 172 Industrial Area, Ludhiana (PB)-141010, through its Partners.

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Sh. Shushant Jhamb S/o Sh. Vinay Bhushan Jhamb, Partner M/s Nirmal Sagar Enterprises, R/o House No. 51, Sukhmani Enclave, Barewal, Ludhiana (PB) 144001.

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Sh. Piyush Jhamb S/o Sh. Vinay Bhushan Jhamb, Partner M/s Nirmal Sagar Enterprises, R/o House No. 51, Sukhmani Enclave, Barewal, Ludhiana (PB) 144001.

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Smt. Sunila Jhamb W/o Sh. Adarsh Jhamb, Partner M/s Nirmal Sagar Enterprises, R/o House No. 1, Shakti Nagar, Fazilka (PB) 152123.

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Smt. Sunita Jhamb W/o Sh. Navtej Kumar Jhamb, Partner M/s Nirmal Sagar Enterprises, R/o House No. 1, Shakti Nagar, Fazilka (PB) 152123.

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Sh. Navtej Kumar Jhamb S/o Sh. Prem Sagar, R/o House No. 1, Shakti Nagar, Fazilka (PB) 152123.

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.……Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate for applicant

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None for Defendant nos. 1 to 3, 5 & 6 (already ex parte vide order dated 06.12.2025)

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None for Defendant no. 4 (already ex parte vide order dated 18.08.2026)

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2 OA/ 177/2025 CANARA BANK VS M/S NIRMAL SAGAR ENTERPRISES AND OTHERS

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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 and Bankruptcy Act 1993, against the defendants for recovery of Rs.8,11,49,084.67 (Rupees Eight Crore Eleven Lac Forty Nine Thousand Eighty Four and Paise Sixty Seven Only). The Original Application has been filed through Sh. Himanshu Sood, Manager , of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.03.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for grant of CC Limit of Rs.4.00 crore and Term Loan of Rs.4.00 crore. Defendant no.6 stood as guarantor. Thereafter, the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for enhancement of CC Limit from Rs.4.00 crore to Rs.5.00 crore and FLC of Rs.1.00 crore.

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Thereafter, the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for enhancement of CC Limit from Rs.5.00 crore to Rs.7.00 crore.

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Thereafter, the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for renewal of CC Limit vide Letter of Renewal dated 26.04.2013, which is Annexure A13 to this OA; Letter of Renewal dated 04.04.2014, which is Annexure A18 to this OA; Letter of Renewal dated 03.02.2016, which is Annexure A21 to this OA. Thereafter, the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for enhancement of CC Limit from Rs.7.00 crore to Rs.7.85 crore. Thereafter, the defendant no. 1, through its partners defendant nos. 2 to 5, approached the applicant for renewal of CC Limit vide Letter of Renewal dated 14.11.2018, which is Annexure A29 to this OA; Letter of Renewal dated 04.03.2020, which is Annexure A32 to this OA; Letter of Renewal dated 14.07.2021, which is Annexure A35 to this OA; Letter of Renewal dated 19.10.2022, which is Annexure A38 to this OA.

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3 OA/ 177/2025 CANARA BANK VS M/S NIRMAL SAGAR ENTERPRISES AND OTHERS

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The applicant sanctioned the CC Limit of Rs.4.00 crore and Term Loan of Rs.4.00 crore vide Sanction Letter dated 24.08.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Thereafter, the applicant sanctioned enhancement of CC Limit from Rs.4.00 crore to Rs.5.00 crore and FLC of Rs.1.00 crore vide Sanction Letter dated 23.01.2013, which is Annexure A9 to this OA.

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Thereafter, the applicant sanctioned enhancement of CC Limit from Rs.5.00 crore to Rs.7.00 crore.

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Thereafter, the applicant sanctioned enhancement of CC Limit from Rs.7.00 crore to Rs.7.85 crore vide Sanction Letter dated 16.10.2018, which is Annexure A28 to this OA.

¶31

Defendant no. 1, through its partners defendant nos. 2 to 5, hypothecated its stock & book debts and plant & machinery vide Deed of Hypothecation in respect of machinery dated 21.09.2011, which is Annexure A5 to this OA; Common Hypothecation Agreement dated 21.09.2011, which is Annexure A6 to this OA;

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Defendant no. 1, through its partners defendant nos. 2 to 5, mortgaged its property measuring 12281½ SqYds, situated at Village Maangarh, near Kohara, Hadbast No. 223, Tehsil & District Ludhiana, Punjab vide deposit of Sale Deed bearing Vasika no. 2253 dated 03.09.2011 with translation, which is Annexure A41 to this OA; Defendant no. 6 mortgaged his property that’s residential plot measuring 14 Marla, situated at Shakti Nagar, Fazilka, Punjab, vide deposit of Sale Deed bearing Vasika no. 3440 dated 14.11.2005 with translation, which is Annexure A43 to this OA;

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Documents executed: Partnership Deed dated 11.08.2012, which is Annexure A2 to this OA; DP Note dated 21.09.2011, which is Annexure A4 to this OA; Guarantee Agreement dated 21.09.2011, which is Annexure A7 to this OA; Letter of Partnership dated 21.09.2011, which is Annexure A8 to this OA; DP Note dated 26.04.2013, which is Annexure A10 to this OA; Supplemental Common Hypothecation Agreement dated 26.04.2013, which is Annexure A11 to this OA; Guarantee Agreement dated 26.04.2013, which is Annexure A12 to this OA; Partnership Letter dated 26.04.2013, which is

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4 OA/ 177/2025 CANARA BANK VS M/S NIRMAL SAGAR ENTERPRISES AND OTHERS

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Annexure A14 to this OA; DP Note dated 04.04.2014, which is Annexure A15 to this OA; Supplemental Common Hypothecation Agreement dated 04.04.2014, which is Annexure A16 to this OA; Guarantee Agreement dated 04.04.2014, which is Annexure A17 to this OA; Letter of Partnership dated 04.04.2014, which is Annexure A19 to this OA; Link Letter dated 04.04.2014, which is Annexure A20 to this OA; Letter of Guarantee dated 03.02.2016, which is Annexure A22 to this OA; Letter of Partnership dated 03.02.2016, which is Annexure A23 to this OA; DP Note dated 22.03.2017, which is Annexure A24 to this OA; Supplemental Common Hypothecation Agreement dated 22.03.2017, which is Annexure A25 to this OA; Guarantee Agreement dated 22.03.2017, which is Annexure A26 to this OA; Letter of Partnership dated 22.03.2017, which is Annexure A27 to this OA; Letter of Guarantee dated 14.11.2018, which is Annexure A30 to this OA; Letter of Partnership dated 14.11.2018, which is Annexure A31 to this OA; Letter of Guarantee dated 04.03.2020, which is Annexure A33 to this OA; Letter of Partnership dated 04.03.2020, which is Annexure A34 to this OA; Letter of Guarantee dated 14.07.2021, which is Annexure A36 to this OA; Letter of Partnership dated 14.07.2021, which is Annexure A37 to this OA; Guarantee Agreement dated 19.10.2022, which is Annexure A39 to this OA; Letter of Partnership dated 19.10.2022, which is Annexure A40 to this OA; Confirmation Letter dated 27.11.2011, which is Annexure A42 to this OA; Confirmation Letter dated 11.01.2014, which is Annexure A44 to this OA; CERSAI, which is Annexure A45 to this OA; 13(2) dated 30.10.2024, which is Annexure A46 to this OA; Statement of Accounts, which is Annexure A47 to this OA; Valuation Report dated 15.05.2024, which is Annexure A48 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.8,11,49,084.67 (Rupees Eight Crore Eleven Lac Forty Nine Thousand Eighty Four and Paise Sixty Seven 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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5 OA/ 177/2025 CANARA BANK VS M/S NIRMAL SAGAR ENTERPRISES AND OTHERS

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The defendants were served summons to appear before this Tribunal and after the service of summons, Sh. Nishant Kaushik, Advocate appeared on behalf of defendants and filed his Memo of Appearance on 02.06.2025. Sh. Navdeep Kalair, Advocate appeared on behalf of defendant nos. 4 to 6 and filed his Memo of Appearance on 08.07.2025. Thereafter, no one appeared on behalf of defendants, nor any Power of Attorney was filed on behalf of defendants. The defendant nos. 1 to 3 & 5 were proceeded ex-parte vide order dated 06.12.2025 and defendant no. 4 was proceeded ex-parte vide order dated 18.08.2026.

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7.	In support of the OA, affidavit of Sh. Himanshu Sood, Manager,
Can	ara Bank,has been filed.
8.	Heard ex-parte arguments and perused record.
9.	It was argued by learned counsel for applicant that in view of the
docu	mentary evidence brought on record which had gone unrebutted,
the	applicant had proved its case.

¶39

From the perusal of all the Annexures A1 to A48 to this OA, it is proved that the Defendant no. 1, through its partners defendant nos. 2 to 5, approached applicant for availing of the loan facilities, which were granted to them. Defendant no. 6 stood as guarantor. The defendants 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, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.8,11,49,084.67 (Rupees Eight Crore Eleven Lac Forty Nine Thousand Eighty Four and Paise Sixty Seven Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @12.85%p.a. with monthly rests from 01.01.2025 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

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6 OA/ 177/2025 CANARA BANK VS M/S NIRMAL SAGAR ENTERPRISES AND OTHERS

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instant case including nature of the hypothecated assets and mortgaged property, undertaking 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 all 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.8,11,49,084.67 (Rupees Eight Crore Eleven Lac Forty Nine Thousand Eighty Four and Paise Sixty Seven Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in all 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 hypothecated assets of the defendant no. 1 and mortgaged properties of defendant nos. 1 & 6 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.09.2026

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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: 27.08.2026

¶47

(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. M/s Nirmal Sagar Enterprises and others

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Nirmal Sagar Enterprises and others

Case brief

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What did the court decide?

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