Allowed

Canara Bank v. M/S Jiwan Enterprises and Another

DRT17 Apr 2026OA/207/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Canara Bank's application for recovery of Rs. 1,41,53,099.91 from M/S Jiwan Enterprises and Proprietor Sh. Ankush Arora who failed to repay sanctioned loans, orders interest at 8% p.a., and issued recovery certificate.

What did the court decide?

Declaration of liability to pay Rs. 1,41,53,099.91 with 8% per annum interest; issuance of Recovery Certificate.

Canara Bank versus M/S Jiwan Enterprises and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.207/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.02.2023

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DATE OF DECISION: 17.04.2026

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Canara Bank, a Body Corporate, constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at J.C. Road, Bangalore and inter alia a Branch Office at Gill Road, Miller Ganj, Ludhiana, Punjab, through its duly Authorized Signatory, Sh. Kushal Dhawan, Officer

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……..Applicant

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Versus

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M/S Jiwan Enterprises, through its Proprietor, Sh. Ankush Arora,

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Sharma Market, Attari Bazaar, Jalandhar, Punjab- 144001

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2^nd Address: Plot no. 2/4- 469, Street no. 8, New Shivpuri, Ludhiana, Punjab- 141008

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Sh. Ankush Arora, S/o Sh. Pawan Kumar Arora, Proprietor M/S Jiwan Enterprises, 411, Mota Singh Nagar, Jalandhar, Punjab144001

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…. Defendants

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Advocate:

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Argued by Ms. Samo Devi, Advocate proxy for Sh. Nitin Gupta, Advocate for applicant

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None for defendants (already ex-parte vide order dated 18.02.2026)

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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 and Bankruptcy Act 1993, against the defendants for recovery of Rs. 1,41,53,099.91 (Rupees One Crore Forty One Lacs Fifty Three Thousand Ninety Nine and Paise Ninety One Only). The Original Application has been filed through Sh. Kushal Dhawan, Officer of the applicant, who is competent to institute

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2 OA NO. 207/2023 CANARA BANK VS. M/S JIWAN ENTERPRISES AND ANOTHER

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the Original Application vide GPA dated 03.08.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 100.00 Lacs and Term Loan of Rs. 49.00 Lacs vide Loan Application dated 28.01.2020, which is Annexure A2 to this OA . Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECL of Rs. 9.50 Lacs vide Offer Letter dated 14.07.2020, which is Annexure A8 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of CC Limit of Rs. 100.00 Lacs vide Letter of Renewal dated 05.03.2021, which is Annexure A15 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for restructure of Term Loan of Rs.49.00 Lacs and GECL of Rs. 9.50 Lacs vide Application for Restructuring dated 21.06.2021, which is Annexure A17 to this OA.

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The applicant sanctioned CC Limit of Rs. 100.00 Lacs and Term Loan of Rs. 49.00 Lacs vide Sanction Memo dated 03.02.2020, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned GECL of Rs. 9.50 Lacs vide Sanction Letter dated 14.07.2020, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 100.00 Lacs vide Sanction Memorandum dated 05.03.2021, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned the restructure of Term Loan of Rs. 49.00 Lacs and GECL of Rs. 9.50 Lacs vide Sanction Letter dated 21.06.2021, which is Annexure A18 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. Plot measuring 814-1/2 Sq. Yards situated at Village Jainpur, Hadbast no. 148, Tehsil and District Ludhiana, Punjab vide Letter evidencing Deposit of Title Deeds dated 01.10.2019, which is Annexure A7 to this OA.

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3 OA NO. 207/2023 CANARA BANK VS. M/S JIWAN ENTERPRISES AND ANOTHER

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Documents executed: Common Hypothecation Agreement, Pronote and Request for OD Facilities, all dated 04.02.2020, which are Annexure A4 to A6 to this OA; Supplemental Common Hypothecation Agreement, Take Delivery Letter to DPN, Pronote and LEDTD Letter, all dated 14.07.2020, which are Annexure A10 to A13 to this OA; Letter of Undertaking dated 05.03.2021, which is Annexure A16 to this OA; Undertaking Letter, Debt Restructuring Agreement and Debtor creditor Agreement, all dated 21.06.2021, which are Annexure A19 to A21 to this OA; Acknowledgement of Debts and Security Letters, all dated 28.06.2022, which are Annexure A22 to A24 to this OA; Notice dated 03.11.2022, which is Annexure A25 to this OA and Statements of Accounts with certificate, which are Annexure A26 to A28 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 1,41,53,099.91, 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 and after service upon defendants, Sh. Vivek Arora filed his Power of Attorney on 17.04.2022. WS was filed on behalf of defendants on 03.07.2023. Rejoinder to WS was filed on behalf of applicant on 29.08.2024. No one ever appeared on behalf of the defendants since filing of the OA. Defendants were proceeded ex-parte on 18.02.2026.

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In support of the OA, affidavit of Sh. Kushal Dhawan, Officer, Canara Bank, h as been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record, the applicant had proved its case.

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4 OA NO. 207/2023 CANARA BANK VS. M/S JIWAN ENTERPRISES AND ANOTHER

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From the perusal of all the Annexure A1 to A28 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 bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, 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. 1,41,53,099.91 (Rupees One Crore Forty One Lacs Fifty Three Thousand Ninety Nine and Paise Ninety 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant has claimed interest @12.55% p.a. (including penal interest) in CC Limit Account, @14.40% p.a. (including penal interest) in Term Loan Account and @11.40% p.a. (including penal interest) in GECL Account from the date of institution of application 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 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 @08.00% 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.1,41,53,099.91 (Rupees One Crore Forty One Lacs Fifty Three Thousand Ninety Nine and Paise Ninety One Only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in all the loan accounts from the date of filing of OA till the date of

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OA NO. 207/2023 CANARA BANK VS. M/S JIWAN ENTERPRISES AND ANOTHER

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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.

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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 07.05.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 17.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. M/S Jiwan Enterprises and Another

Case brief

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Canara Bank v. M/S Jiwan Enterprises and Another

Case brief

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