Allowed

Canara Bank v. Karnail Singh (Since Died)

DRT29 Apr 2026OA/281/2023

Case brief

AI extract

What is this about?

The DRT allowed Canara Bank's application under Section 19 RDB Act for recovery of dues of ₹25,14,680.50p with interest against the legal heirs of a deceased mortgagor, directing sale of mortgaged land.

What did the court decide?

Application allowed with costs; Recovery Certificate issued; Liability of heirs limited to inherited property; Recovery Officer directed to distribute sale proceeds.

Canara Bank versus Karnail Singh (Since Died) — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 281/2023 Date of Institution: 19.01.2023 Date of Decision: 29.04.2026

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Canara Bank having its branches all over India and a branch at Jodhpur Romana, District Bathinda, Punjab.

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……..Applicant Vs.

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Karnail Singh (since died) s/o Sh. Baghel Singh, r/o VPO Naruana, Tehsil and District Bathinda, Punjab, through his legal heirs:

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(i) Buta Singh s/o Sh. Karnail Singh, r/o VPO Naruana, Tehsil and District Bathinda, Punjab.

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(ii) Gurchet Singh s/o Sh. Karnail Singh, r/o VPO Naruana, Tehsil and District Bathinda, Punjab.

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……….Defendants

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Advocates

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Sh. Lovish proxy counsel for Sh. Neeraj Madaan, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 05.02.2024 .

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OA for the Recovery of ₹25,14,680.50p with interest @8% per annum with half-yearly rests from 19.01.2023.

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ORDER

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Canara Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹25,14,680.50p with interest against Sh. Karnail Singh (since died) and others (defendants).

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Bank’s case is that on 24.02.2011, it had granted a loan of ₹3.00 Lacs to defendant (since deceased now survived through his legal heirs) in the form of K.C.C.S. Limit for agricultural purpose. On 31.01.2015, at the request of the defendant, bank renewed-cum-enhanced the existing limit to ₹6.00 Lacs. Again on 08.04.2016, at the request of the defendant,

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bank renewed-cum-enhanced the existing limit from ₹6.00 Lacs to ₹15.00 Lacs. To secure the loan, Defendant (now deceased) had mortgaged his agricultural land (fully detailed in para No.3A of the application). The loan was chargeable to interest @8% per annum with half-yearly rests. Defendants had duly acknowledged their liability towards the debt on 25.01.2014, 20.04.2016, 28.05.2018 and 28.04.2021. On 30.09.2022, a sum of ₹25,14,680.50p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 21.02.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 05.02.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Manoj Kumar Bansal, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-26. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹15.00 Lacs and on 30.09.2022, a sum of ₹25,14,680.50p was due. 6. Accordingly, the application of the bank for the recovery of ₹25,14,680.50p (Rupees Twenty Five Lacs Fourteen Thousand Six Hundred Eighty and Paise Fifty Only) with interest @8% per annum with half-yearly rests from 19.01.2023, till the date of payment is hereby allowed with costs. The liability of the legal heirs of Sh. Karnail Singh would be limited to clear the dues of the applicant bank upto the extent of the property(ies) inherited by them from Sh. Karnail Singh (now deceased). Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the movable

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and immovable property(ies) inherited by the legal heirs from Sh. Karnail Singh (now deceased). 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 03.06.2026, who is directed to distribute the sale proceeds of the mortgaged land and standing crops as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 29.04.2026 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

Canara Bank v. Karnail Singh (Since Died)

Case brief

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Canara Bank v. Karnail Singh (Since Died)

Case brief

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