The Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 27,82,906.61 and adjusted interest to 8% p.a. against borrowers who failed to repay sanctioned loans despite NPA classification.
Recovery of Rs. 27,82,906.61 plus costs and current/future simple interest at 8% p.a. from filing date until realization.
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. 2065/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 15.12.2022
DATE OF DECISION: 10.04.2026
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 amongst other places SME Branch, Cheema Chowk, Ludhiana, through its Senior Manager of the Branch, namely Sh. Vinod Kumar, vide Power of Attorney dated 07.05.2004.
……..Applicant
Versus
Advocates:
Argued by, Sh. Sandesh Arora, Advocate for Applicant (through VC)
None for Defendants (already ex parte vide order dated 06.04.2026)
FINAL ORDER
2 OA/2065/2022 CANARA BANK VS M/S INDERDEEP SINGH AND SONS AND ANOTHER
been filed through Sh. Vinod Kumar , Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.05.2004, which is Annexure A1 to this OA.
Documents executed : Specimen Signature Card, Request for Overdraft Facility, D.P. Note, Take Delivery Note to DPN, all dated 07.02.2021, which are Annexures A4 to A7 to this OA; Cash Credit Agreement dated 07.02.2021, which is Annexures A9 to this OA; Udayam Registration dated 23.11.2020, which is Annexure A10 to this OA; Electricity Bill of PSPCL dated 12.09.2020, which is Annexure A11 to this OA; GST Registration Certificate, which is Annexure A12 to this OA; Balance Sheet as on dated 31.03.2018, 31.03.2019, 31.03.2020, 31.01.2021, which is Annexure A13(colly) to this OA; PAN Card &
3 OA/2065/2022 CANARA BANK VS M/S INDERDEEP SINGH AND SONS AND ANOTHER
Aadhar Card of Defendant No.2, which are Annexures A14 & A15 to this OA; Letter Evidencing Execution of Documents, Certificate of Loan Papers Obtained and Certificate of Compliance of Terms and Conditions, dated 17.02.2021, which is Annexure A16(colly) to this OA; Specimen Signature Card dated 29.12.2021, which is Annexure A18 to this OA; DP Note, Undertaking Letter form Borrower, Disbursement Request for Loan, all dated 29.12.2021, which are Annexures A20 to A22 to this OA; Letter Evidencing Execution of Documents, Certificate of Loan Papers Obtained and Certificate of Compliance of Terms and Conditions, dated 29.12.2021, which is Annexure A24(colly) to this OA; Debit Balance Confirmation Letter, dated 29.12.2021, which is Annexure A25 to this OA; Copies of Request Letters regarding Renew of CC limit, which is Annexure A26 (colly) to this OA; Recall Notices, which is Annexures A27 (colly) to this OA; Legal Notice dated 26.08.2022 with Postal Receipts, which is Annexure A28 to this OA; Statement of Accounts with certificate, which are Annexures A29 to A31 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there were a debit of Rs.27,82,906.61, 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. 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 06.04.2026. 7. In support of the OA, affidavit of Sh. Vinod Kumar , Senior Manager, Canara Bank, h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through Video Conferencing 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
4 OA/2065/2022 CANARA BANK VS M/S INDERDEEP SINGH AND SONS AND ANOTHER
the Annexures A1 to A31 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities, which were 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, both 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.27,82,906.61 (Rupees Twenty Seven Lacs Eighty Two Thousand Nine Hundred Six and Paise Sixty One Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.
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, 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 uniform 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 a total sum of Rs.27,82,906.61 (Rupees Twenty Seven Lacs Eighty Two Thousand Nine Hundred Six and Paise Sixty One 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
5 OA/2065/2022 CANARA BANK VS M/S INDERDEEP SINGH AND SONS AND ANOTHER
amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets 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.
on 30.04.2026
Pronounced by me in the open Tribunal .
Dated: 10.04.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the Original Application under the RDT Act for recovery of dues is maintainable in view of documentary evidence remaining unrebutted.
Whether the relief of recovery should include penal interest or simply uniform simple interest.
Canara Bank
M/s Inderdeep Singh & Sons
Sh. Jaswinder Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
