Allowed

Karnataka Bank Limited v. M/S C. R. International and Others

DRT24 Feb 2026OA/453/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's original application filed under Section 19 RDB Act for recovery of Rs. 2.22 crores against genuinelodefendants sued jointly and severally, granted recovery certificate and uniform interest rate.

What did the court decide?

Recovery certificate issued declaring defendants liable to pay Rs. 2,22,27,516.00 with interest at 08% p.a. Recovery to be enforced through execution proceedings including sale of secured assets.

Karnataka Bank Limited versus M/S C. R. International and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.453/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.03.2025

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DATE OF DECISION: 24.02.2026

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Karnataka Bank Limited, a Banking Company registered under the Companies Act, 1913 having its Registered Office at Post Box No.599, Mahaveera Circle, Kankanady, Mangaluru-575002, and a branch office among others at Ludhiana at Sona Complex, B-15/179, 1^st Floor, Nirankari Kucha No. 4, GT Road, Miller Ganj, Ludhiana, Punjab-141003 through its Authorized Officer and duly Constituted Attorney Holder Sh. Parminder Kumar, presently Posted as Branch Manager at Ludhiana Branch.

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Versus

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M/S CR International, through its Proprietor Sh. Ravindra Thapar, Plot No.236, Industrial Area-A, Cheema Chowk, Ludhiana-141003, Punjab.

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Sh. Ravinder Thapar S/o Sh. Mohinder Thapar, R/o H. No. 46, Sant Nagar, Civil Lines, Ludhiana-141003.

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Sh. Chand Thapar S/o Sh. Ravinder Thapar, R/o H. No. 46, Sant Nagar, Civil Lines, Ludhiana-141003.

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Smt. Upneet Thapar W/o Sh. Ravinder Thapar, R/o H. No.46, Sant Nagar, Civil Lines, Ludhiana-141003.

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….……Defendants

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Advocates:

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Argued by Sh. Chirag Bhagat Advocate Proxy for Sh. S.K. Dhir, Advocate for applicant

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Defendants is ex-parte vide order Dated 12.01.2026

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FINAL ORDER

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Present Original Application was instituted by the applicant bank

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under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993,

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against the defendant for recovery of Rs. 2,22,27,516.00 (Rupees Two

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2 OA/453/2025 KARNATAKA BANK LIMITED VS M/S CR INTERNATIONAL AND OTHERS.

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Crore Twenty Two Lacs Twenty Seven Thousand Five Hundred and Sixteen only). The Original Application has been filed through Sh. Parminder Kumar, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 30.07.2010, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant Overdraft Limit of Rs.80.00 Lacs for Working Capital and Term Loan of Rs.40.00 Lacs for purchase of machineries vide Loan Application dated 07.06. 2017. Defendant nos. 3 and 4 stood as guarantors. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for Term Loan-II of Rs.22.00 Lacs, Term Loan-III of Rs.32.00 Lacs and Term Loan-IV of Rs.90.00 Lacs and for restructuring of existing Term Loan-I of Rs.40.00 Lacs to Rs.28.89 Lacs.

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The applicant sanctioned Overdraft Limit of Rs.80.00 Lacs for Working Capital and Term Loan of Rs.40.00 Lacs for purchase of machineries vide Sanction Letter dated 07.07.2017, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan-II of Rs.22.00 Lacs vide Credit Sanction Intimation dated 15.06.2020, which is Annexure A5 to this OA. Thereafter, the applicant sanctioned Term Loan-III of Rs.32.00 Lacs and Term Loan-IV of Rs.90.00 Lacs with restructuring of Term Loan-I to Rs.28.89 Lacs vide Credit Sanction Intimation dated 28.06.2021, which is Annexure A8 to this OA. 4. Defendant no. 1 through its proprietor hypothecated 5 fancy yarn manufacturing auto spindle machine and 72 spindle eaxch machine, stock, book debts etc. vide hypothecation agreement dated 26.09.2017, which is Annexure A4 to this OA; Hypothecation agreement dated 20.06.2020, which is Annexure A7 to this OA;

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3 OA/453/2025 KARNATAKA BANK LIMITED VS M/S CR INTERNATIONAL AND OTHERS.

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Hypothecation agreements 01.07.2021, which are Annexures A12 and A13 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. Plot No. 42, Measuring 504.80 Sq. Yards, situated at Village Dhandra-2, Hadbast no. 274, New Sarabha Nagar Extension, Pakhowal Road, Basant Avenue, Ludhiana Punjab through equitable mortgage of title deed no. 5400 dated 21.07.2016, which is Annexure A14 to this OA; Memorandum of Deposits of Title Deed dated 17.07.2017, which is Annexure A15 to this OA.

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Documents Executed: Term Loan Agreement dated 17.07.2017, which is Annexure A3 to this OA; Term Loan Agreement, dated 20.06.2020, which is Annexure A6 to this OA; Term Loan Agreements, dated 01.07.2021, which are Annexures A9 to A11 to this OA; Letter of Authority dated 20.06.2020,which is Annexure 16 to this OA; Letter of Authority dated 01.07.2021, which is Annexure A17 to this OA; Acknowledgment of Debt dated 05.06.2023 and 21.09.2023, which are Annexure A18 to this OA; Notice dated 21.02.2023 under Section 13(2) of SARFAESI Act, which is Annexure A19 to this OA; Statement of Accounts with certificate ,which are Annexures A20 to A23 to this OA.

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The Term Loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there were a debit of Rs.2,22,27,516.00 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 12.01.2026.

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4 OA/453/2025 KARNATAKA BANK LIMITED VS M/S CR INTERNATIONAL AND OTHERS.

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In support of the OA, affidavit of Sh. Parminder Kumar, Branch Manager, Karnataka Bank Limited, has been filed.

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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 which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the Term loans as per terms and conditions of the agreement between the parties. Subsequently, Term Loan 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.2,22,27,516.00 (Rupees Two Crore Twenty Two Lacs Twenty Seven Thousand Five Hundred and Sixteen 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75% p.a. from 18.01.2025 till its realization in full.

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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/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 @08.00%p.a. in all the loan accounts from the date of filing of the OA

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5 OA/453/2025 KARNATAKA BANK LIMITED VS M/S CR INTERNATIONAL AND OTHERS.

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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.2,22,27,516.00 (Rupees Two Crore Twenty Two Lacs Twenty Seven Thousand Five Hundred and Sixteen 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 realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.03.2026. 15. Copy of this order be given Dasti to the applicant bank 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: 24.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Karnataka Bank Limited v. M/S C. R. International and Others

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. M/S C. R. International and Others

Case brief

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What did the court decide?

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