Allowed

Canara Bank v. Sh. Deepak Kumar Bhatia and Another

DRT27 Mar 2026OA/381/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Canara Bank for recovery of a housing loan default. The tribunal modified the interest rate to 8% p.a. and directed the recovery of the principal along with costs from the mortgaged property.

What did the court decide?

Recovery of Rs. 24,48,147.06 jointly and severally with costs and simple interest at 8% p.a. from date of filing until realization; issue of Recovery Certificate.

Canara Bank versus Sh. Deepak Kumar Bhatia and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.381/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2025

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DATE OF DECISION: 27.03.2026

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Canara Bank, body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at Plot no. 112, JC Road, Town Hall Junction, Bangalore, Karnataka and one of its Branch Office at Bharat Nagar Chowk, GT Road, Ludhiana, Punjab- 141001 through its Officer, Sh. Parminder Singh, duly Authorized Signatory being Principal Officer and duly constituted Attorney of Applicant

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……..Applicant Versus

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Sh. Deepak Kumar Bhatia, S/o Sh. Vijay Kumar, R/o Village Bathol, Dharampur, Tehsil Kasauli, District Solan, Himachal Pradesh- 173209

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Smt. Kalpana Devi, W/o Deepak Kumar Bhatia, R/o Village Bathol, Dharampur, Tehsil Kasauli, District Solan, Himachal Pradesh- 173209

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………. Defendants

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Advocate:

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Argued by Sh. Randeep Singh, Advocate for Applicant (through VC) Defendants already ex parte vide order dated 12.03.2026

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.24,48,147.06 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred Forty Seven and Paise Six Only). The Original Application has been filed through Sh. Parminder Singh, Principal Officer, who is competent to institute the Original Application vide Authorization Letter dated 10.10.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Housing Loan of Rs.30.00 Lacs vide Housing Loan Application dated 09.10.2020, which is Annexure A2 to this OA.

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2 OA NO. 381/2025 CANARA BANK VS. DEEPAK KUMAR BHATIA AND ANOTHER

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The applicant sanctioned Housing Loan vide Sanction Memorandum dated 27.10.2020, which is Annexure A4 to this OA.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 160 sq. yards situated at Village Akalgarh, Hadbast no. 292, Abadi Akalgarh, Tehsil and District Ludhiana through Equitable Mortgage of Sale Deed bearing vasika no. 2020-2021/103/1/6908 dated 23.11.2020, along with its translation, which is Annexure A8/T to this OA; Jamabandi for the year 2015-16 along with its translation, which is Annexure A9/T to this OA; Letter depositing Title Deeds dated 17.12.2020 which is Annexure A10 to this OA. Documents executed : Housing Loan Agreement, Delivery letter on DP Note, Mandate for Loan Installment and Disbursement Request Form, all dated 29.10.2020, which are Annexure A3, A5 to A7 to this OA; CERSAI Report dated 10.02.2025, which is Annexure A11 to this OA; Disbursement Request Form dated 17.09.2021, which is Annexure A12 to this OA; Notice dated 30.09.2022 along with postal receipts, which are Annexure A13 and A14 to this OA; Acknowledgement of Debt dated 21.04.2022, which is Annexure A15 to this OA; Possession Notice dated 02.06.2023, which is Annexure A16 to this OA and Statement of Accounts along with certificate, which is Annexure A17 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in Housing Loan Account there was a debit of Rs.24,48,147.06 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred Forty Seven and Paise Six 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. 4. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 12.03.2026. 5. In support of the OA, affidavit of Sh. Parminder Singh, Officer, Canara Bank h as been filed. 6. Heard ex-parte arguments and perused record.

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3 OA NO. 381/2025 CANARA BANK VS. DEEPAK KUMAR BHATIA AND ANOTHER

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It was argued by learned counsel through VC 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 Annexure A1 to Annexure A17 to this OA, it is proved that the defendants approached the applicant for availing of the Housing Loan which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, 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.24,48,147.06 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred Forty Seven and Paise Six Only), jointly and severally, along with interest from the defendants, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.50% p.a. including 2%p.a. penal interest with monthly rests from 01.03.2025 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 mortgaged property, undertaking of the defendants, quantum of loan 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 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.

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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.24,48,147.06 (Rupees Twenty Four Lacs Forty Eight Thousand One Hundred Forty Seven and Paisa Six only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the

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OA NO. 381/2025 CANARA BANK VS. DEEPAK KUMAR BHATIA AND ANOTHER

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amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of 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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10. 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 17.04.2026.

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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: 27.03.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Sh. Deepak Kumar Bhatia and Another

Case brief

What is this about?

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Canara Bank v. Sh. Deepak Kumar Bhatia and Another

Case brief

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