Allowed

Canara Bank v. M/S Exso situated at Friends Mobile StORE and Another

DRT7 May 2026OA/457/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an application for recovery of Rs. 24,46,735.59 advanced as loans to the defendants. The Tribunal deemed it appropriate to grant simple interest at 8% p.a., ordered a Recovery Certificate, and directed attachment of assets if dues remained unsatisfied.

What did the court decide?

Recovery of Rs. 24,46,735.59 with costs and simple interest at 8% p.a. from filing date; Recovery Certificate issued; liberty to enforce via execution proceedings.

Canara Bank versus M/S Exso situated at Friends Mobile StORE… — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 457/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2026

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DATE OF DECISION: 07.05.2026

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CANARA BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) having its Head Office at J.C. Road, Bangalore-560 002 and amongst other a Branch Office at Court Road Main, Ludhiana, B-19, 399, C1/2, Rani Jhansi Road, Ludhiana – 141001, District Ludhiana, Punjab through its Constituted Attorney and Manager Sh. Ravi Goyal.

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……..Applicant

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Versus

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M/s EXSO situated at Friends Mobile Store, First Floor. 276-A, Ishmeet Singh Chownk, Model Town Extension, Ludhiana - 141002, through its Proprietor Sh. Japnish Singh.

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2nd Address: M/s EXSO, BLOCK 88-1, GROUND FLOOR, SARABHA NAGAR, LUDHIANA -141001.

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Sh. Japnish Singh s/o Sh. Devinder Pal Singh, R/o B-68/69, Guru Teg Bahadur Hospital, Shastri Nagar, Ludhiana – 141002, Punjab.

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….……Defendants

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Advocates:

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Argued by, Ms. Sanjivni Gupta, Advocate for Applicant

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None for Defendants (already ex parte vide order dated 30.04.2026)

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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 Due to Banks and Financial Institutions Act 1993, against the defendants for recovery of

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2 OA/457/2026 CANARA BANK VS M/S EXSO SITUATED AT FRIENDS MOBILE STORE AND ANOTHER

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Rs.24,46,735.59 (Rupees Twenty Four Lacs Forty Six Thousand Seven Hundred Thirty Five and Paise Fifty Nine Only). The Original Application has been filed through Sh. Ravi Goyal, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.03.2018, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the Defendant No. 1, through its proprietor Defendant No 2, approached the applicant for grant of Cash Credit Limit of Rs.20.00 Lacs and Term Loan of Rs. 2.00 Lacs vide Loan Application dated 10.02.2023, which is Annexure A4 to this OA. Thereafter, Defendant No. 1, through its proprietor Defendant No 2, approached the applicant for renewal of Cash Credit Limit of Rs.20.00 Lacs vide Loan Application dated 26.07.2024, which is Annexure A12 to this OA. 3. The applicant sanctioned Cash Credit Limit of Rs.20.00 Lacs and Term Loan of Rs. 2.00 Lacs vide Sanction Letter dated 17.02.2023, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of Cash Credit Limit of Rs.20.00 Lacs vide Sanction Letter dated 29.07.2024, which is Annexure A13 to this OA 4. Defendant No. 1, through its proprietor Defendant No. 2, hypothecated its Stocks & Book Debts and Machinery purchased out of Term Loan vide Deed of Hypothecation dated 20.02.2023, which is Annexure A10 to this OA. Documents executed : GST Registration Certificate, Udyam Registration Certificate, which are Annexures A2 & A3 to this OA; Request for OD Facilities, D.P. Note, Cash Credit Agreement, Letter of Undertaking, all dated 20.02.2023, which are Annexures A6 to A9 to this OA; Agreement Re. Collateral Security, dated 20.02.2023, which is Annexure A11 to this OA; Letter of Renewal, Acknowledgement of Debit & Security, both dated 29.07.2024, which are Annexures A14 & A15 to this OA; Legal Notice dated 02.12.2025, which is Annexure A16 to this OA; Statement of Accounts with certificate, which are Annexures A17 to A19 to this OA.

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3 OA/457/2026 CANARA BANK VS M/S EXSO SITUATED AT FRIENDS MOBILE STORE AND ANOTHER

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there were a debit of Rs.24,46,735.59 (Rupees Twenty Four Lacs Forty Six Thousand Seven Hundred Thirty Five and Paise Fifty Nine 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.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 30.04.2026.

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In support of the OA, affidavit of Sh. Ravi Goyal, Manager, Canara Bank, h as been filed. 8. Heard arguments and perused record.

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

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From the perusal of all the Annexures A1 to A19 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 applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both 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.24,46,735.59 (Rupees Twenty Four Lacs Forty Six Thousand Seven Hundred Thirty Five and Paise Fifty Nine Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @10.50% p.a. plus 2.00% p.a. penal interest, in both the loan accounts, with monthly rests from 01.01.2026 to 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

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4 OA/457/2026 CANARA BANK VS M/S EXSO SITUATED AT FRIENDS MOBILE STORE AND ANOTHER

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the 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 simple interest @8.00% 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.

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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.24,46,735.59 (Rupees Twenty Four Lacs Forty Six Thousand Seven Hundred Thirty Five and Paise Fifty Nine Only), jointly and severally, with costs, current and future simple interest @8.00% 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 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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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 29.05.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 07.05.2026

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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 Exso situated at Friends Mobile StORE and Another

Case brief

What is this about?

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Canara Bank v. M/S Exso situated at Friends Mobile StORE and Another

Case brief

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