The Tribunal allowed an ex-parte application filed by Capital Small Finance Bank Ltd. for recovery of an agricultural loan. The defendants were declared liable to pay the principal sum along with reduced simple interest at 8% p.a.
Decree for recovery of Rs.27,73,400.49 with simple interest at 8% p.a. and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.496/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 27.03.2026
DATE OF DECISION: 29.07.2026
Capital Small Finance Bank Ltd., is a body corporate established under the Companies Act, 1956 and having its Registered Office at MIDAS, Corporate Park, 3rd Floor, 37 G.T. Road, Jalandhar, District Jalandhar, Punjab and Branch Office amongst other places at Nawanshahr, District Shaheed Bhagat Singh Nagar, Nawanshahr, Punjab through its General Power of Attorney Sh. Varun Khanna posted at Registered & Head office at Jalandhar.
Versus
…….. Defendants
Advocates:
Argued by Sh. Vikas Sharma, Advocate for the applicant
None for defendants (Already ex-parte vide order dated 27.07.2026).
FINAL ORDER
Twenty Seven Lacs Seventy Three Thousand Four Hundred and Paise
2 OA NO.496/2026 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANTAR RAM AND OTHERS
| Forty Nine Only). The Original Application has been filed through Sh. Varun Khanna, Attorney Holder of the applicant, who is competent to |
|---|
| institute the Original Application vide Power of Attorney dated |
| 17.07.2025, which isAnnexure A1to this OA. |
| 2. The brief facts of the OA are that the defendant nos. 1 to 3 |
| approached the applicant for grant of Kisan Credit Card Limit of |
| Rs.15,00,000.00 and Term Loan Facility of Rs.10,00,000.00 vide |
| Application for Agricultural Credit Short Term (KCC) / Term Loan dated |
| 20.07.2023, which isAnnexure A2to this OA. |
| 3. The applicant sanctioned the Kisan Credit Card Limit of |
| Rs.15,00,000.00 and Term Loan Facility of Rs.10,00,000.00 and the |
| terms and conditions were duly accepted by the defendants vide |
| Agreements of Hypothecation of Standing Crops and other Moveable |
| Assets, both dated 20.07.2023, which areAnnexures A3 & A4to this |
| OA. Defendant no. 4 stood as guarantor in both the loan accounts. |
| 4. Defendant nos.1 & 2 mortgaged their Immovable Properties i.e., |
| Total Agricultural Land measuring 48K 1M situated at Village Satiana, |
| Hadbast No. 6, Tehsil Ludhiana East, District Ludhiana, Punjab as per |
| Jamabandi for the year 2021-22, vide Declaration u/s 4(1) and |
| Request Letter for registering of charge in the revenue records, both |
| dated 18.07.2023, which isAnnexure A9to this OA. |
| Documents executed: Demand Promissory Notes, Guarantee Deeds, |
| all dated 20.07.2023, which areAnnexures A5 to A8to this OA; |
| Recall Notices dated 02.03.2026, along with postal receipts, which is |
| Annexure A10to this OA; Statement of Accounts along with |
| certificate, which areAnnexures A11 & A12to this OA. |
| 5. The loan accounts became irregular and were classified as NPA |
| and after adjusting debit and credit entries in the loan accounts there |
| was a debit of Rs.27,73,400.49, 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. |
3 OA NO.496/2026 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANTAR RAM AND OTHERS
| 6. | The defendants were served summons to appear before this |
|---|---|
| Trib | unal but no one appeared on behalf of defendants and they were |
| proc | eeded ex-parte vide order dated 27.07.2026. |
| 7. | In support of the OA, affidavit of Sh. Varun Khanna, Attorney |
| Hold | er, Capital Small Finance Bank Ltd. has been filed. |
| 8. | Heard ex-parte arguments and perused record. |
| 9. | It was argued by learned counsel for applicant that in view of |
| the | documentary evidence brought on record which had gone |
| unre | butted, the applicant had proved its case. |
From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendant nos. 1 to 3 approached applicant for availing of loan facilities which were granted to them, defendant no. 4 stood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.27,73,400.49 (Rupees Twenty Seven Lacs Seventy Three Thousand Four Hundred and Paise Forty 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.
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 properties, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while
4 OA NO.496/2026 CAPITAL SMALL FINANCE BANK LTD. VS SH. MANTAR RAM AND OTHERS
| 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. |
| 11. In the result, the application is allowed declaring that the |
| defendants are liable to pay to the applicant sum of Rs.27,73,400.49 |
| (Rupees Twenty Seven Lacs Seventy Three Thousand Four Hundred |
| and Paise Forty 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 mortgaged properties of defendant nos. 1 & 2 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 13.08.2026. |
| 15. 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. Dated: 29.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh |
3 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount from the defendants.
What rate of interest should be granted pending realization of the debt.
Whether a Recovery Certificate should be issued against the defendants.
2 provisions across 2 enactments
Capital Small Finance Bank Ltd.
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
