Allowed

Canara Bank v. M/S Radha and Co.

DRT29 Jul 2026OA/416/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Canara Bank against M/s Radha & Co. for recovery of a defaulted loan. The defendant appeared ex parte. The decree includes principal, costs, and interest at 8% per annum, with liberty to enforce via hypothecated assets or attachment of personal property under the SARFAESI Act.

What did the court decide?

Awarding debt of Rs.21,45,577.69 with costs and interest at 8% p.a.; issuance of Recovery Certificate; liberty to recover via sale of hypothecated or personal assets.

Canara Bank versus M/S Radha and Co. — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 416/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 11.03.2026

¶5

DATE OF DECISION: 29.07.2026

¶6

CANARA BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Circle Office at Plot No. 1, C.O. Building, Sector 34A, Sector 34, Chandigarh-160022 and one of the Branch Offices known as Mohali SME Branch, SCF 13, Mohali Stadium Road, Phase 5, Sector 59, Sahibzada Ajit Singh Nagar, Punjab-160059 by duly Authorized Officers/Constituted Attorney holders of the Bank.

¶7

…..Applicant

¶8

M/s Radha & Co., Plot No. 60, Vikas Nagar, Street No. 1, Nayagaon, through its Proprietor Sh. Chirag Bansal, S/o Sh. Satpal Bansal, House No. 3259, Sector 15-D, Chandigarh-160015.

¶9

………. Defendant

¶10

Advocates:

¶11

Argued by Sh. Akhil Singh Arora, Advocate for Applicant (through VC) None for Defendant (Already ex parte vide order dated 27.07.2026)

¶12

FINAL ORDER

¶13

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendant for recovery of Rs.21,45,577.69 (Rupees Twenty One Lac Forty Five Thousand Five Hundred Seventy Seven and Paise Sixty Nine Only). The Original Application has been filed through Ms. Priyanka Pal, Branch Manager, of the applicant, who is competent to institute the Original Application vide Authorization Letter dated 25.09.2024, which is Annexure A1 to this OA.

¶14

The brief facts of the OA are that the defendant, through its Proprietor, approached the applicant for grant of CC Limit of Rs.5.00

¶15

¶16

OA/416/2026 CANARA BANK VS M/S RADHA AND CO.

¶17

Lacs vide Request for Loan to MSME Form dated 15.02.2021, which is Annexure A2 to this OA.

¶18

Thereafter, the defendant, through its Proprietor, approached the applicant for enhancement of CC Limit from Rs.5.00 Lacs to Rs.10.00
Lacs. Thereafter, the defendant, through its Proprietor, approached the applicant for enhancement of CC Limit from Rs.10.00 Lacs to Rs.20.00
Lacs.
3. The applicant sanctioned the CC Limit of Rs.5.00 Lacs vide
Sanction Memorandum dated 17.02.2021, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendant. Thereafter, the applicant sanctioned the enhancement of CC Limit from Rs.5.00 Lacs to Rs.10.00 Lacs vide Sanction Memorandum dated
15.09.2021, which isAnnexure A7to this OA.
Thereafter, the applicant sanctioned the GECL loan of
Rs.50,000.00 during period of COVID-19 pandemic vide Sanction
Memorandum dated 14.12.2021, which isAnnexure A13to this OA. Thereafter, the applicant sanctioned the enhancement of CC Limit from Rs.10.00 Lacs to Rs.20.00 Lacs vide Sanction Memorandum dated 26.07.2023, which isAnnexure A17to this OA.
4. Defendant, through its Proprietor, hypothecated its stock and book debts vide Cash Credit Agreement NF795 dated 17.02.2021, which is
Annexure A4to this OA; Supplemental Agreement dated 15.09.2021,
which is Annexure A12 to this OA; Agreement-cum-Debt
Hypothecation dated 14.12.2021, which isAnnexure A14to this OA;
Supplemental Agreement dated 26.07.2023, which isAnnexure A19to this OA;
Documents executed:Agreement relating to Collateral Security,
Machinery and Vehicle (NF723) dated 04.10.2021, which isAnnexure
A5to this OA; Pronote dated 17.02.2021, which isAnnexure A6to this
OA; Pronote dated 15.09.2021, which isAnnexure A8to this OA; Letter of Renewal dated 15.09.2021, which isAnnexure A9to this OA; Letter

¶19

¶20

OA/416/2026 CANARA BANK VS M/S RADHA AND CO.

¶21

in respect of Enhancement dated 25.09.2021, which is Annexure A10 to this OA; Agreement relating to Advances against Book Debts and Prime Security dated 15.09.2021, which is Annexure A11 to this OA; Sanction Memorandum dated 15.09.2022, which is Annexure A15 to this OA; Letter of Renewal dated 15.09.2022, which is Annexure A16 to this OA; Letter of Renewal dated 26.07.2023, which is Annexure A18 to this OA; Link Letter in respect of Enhancement of Credit Facilities dated 26.07.2023, which is Annexure A20 to this OA; Pronote dated 26.07.2023, which is Annexure A21 to this OA; Acknowledgement of Debt and Security dated 20.07.2023, which is Annexure A22 to this OA; Letter of Renewal dated 23.10.2024, which is Annexure A23 to this OA; Request for Overdraft Facility dated 24.10.2024, which is Annexure A24 to this OA; Acknowledgement of Debt and Security dated 03.12.2024, which is Annexure A25 to this OA; Statement of Account of GECL Facility, duly certified under the Bankers' Books Evidence Act (Account No. 17002795741), which is Annexure A26 to this OA; Statement of Account of Cash Credit Facility, duly certified under the Bankers' Books Evidence Act (Account No. 2400261006327), which is Annexure A27 to this OA; Recall Notice dated 02.01.2026, which is Annexure A28 to this OA; Legal Notice dated 24.02.2026, which is Annexure A29 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.21,45,577.69 (Rupees Twenty One Lac Forty Five Thousand Five Hundred Seventy Seven and Paise Sixty Nine Only), which is recoverable and the defendant was served recall notices but defendant did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶22

The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and defendant was proceeded ex-parte on 27.07.2026

¶23

¶24

OA/416/2026 CANARA BANK VS M/S RADHA AND CO.

¶25

In support of the OA, affidavit of Ms. Priyanka Pal, Branch Manager, Canara Bank, has been filed.

¶26

Heard ex-parte arguments and perused record.

¶27

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.

¶28

From the perusal of all the Annexures A1 to A29 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities, which were granted to the defendant and for that defendant had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement

¶29

between the parties. Subsequently, both the accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,45,577.69 (Rupees Twenty One Lac Forty Five Thousand Five Hundred Seventy Seven and Paise Sixty Nine Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.

¶30

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.40% p.a. along with 2%p.a. penal interest with monthly rests from 31.01.2026 till the realization.

¶31

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 defendant, 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 simple interest @08.00%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.

¶32

¶33

OA/416/2026 CANARA BANK VS M/S RADHA AND CO.

¶34

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,45,577.69 (Rupees Twenty One Lac Forty Five Thousand Five Hundred Seventy Seven and Paise Sixty Nine Only) with costs, current and future simple interest @08.00%p.a. in both 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 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

¶35

12. Any other application pending stands disposed of.

¶36

Issue Recovery Certificate accordingly.

¶37

Parties to appear before Learned Recovery Officer of this Tribunal on 13.08.2026

¶38

Copy of this order be given dasti to the applicant and be sent to defendant 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:29.07.2026

¶39

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. M/S Radha and Co.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Radha and Co.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Sh. Davinder Singh and Others

Axis Bank Limited versus Sh. Malkeet Singh and Another

Hdfc Bank Limited versus M/S Shiv Om Knit Fabs and Others

Yes Bank Ltd. versus Sh. Ramandeep Singh and Another

Punjab Gramin Bank versus Sh. Satnam Singh

Capital Small Finance Bank Limited versus Sh. Mantar Ram and Others