Allowed

Canara Bank v. M/S Major Randev Filling Station

DRT22 May 2026OA/518/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of Rs. 82.90 lakhs granted to a firm and its proprietor with a guarantee. The respondents did not appear. The Tribunal granted a uniform interest rate of 7.50% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 82,90,192.20 with interest @7.50% p.a.; issuance of Recovery Certificate; liberty to enforce against collateral or personal assets.

Canara Bank versus M/S Major Randev Filling Station — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.518/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2024

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DATE OF DECISION: 22.05.2026

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Canara Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 as amended by the Banking Laws (amendment) Act, 1985 having its Head Office at 112, J.C. Road, Bangalore and amongst other Branches, one at Hadiabad, Phagwara, District Kapurthala, Punjab through its Authorized Officer, Sh. Satish Kumar, S/o Sh. Gian Chand

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… …..Applicant

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Versus

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M/S Major Randev Filling Station, a Proprietorship concern, Satnampura Nakodar Road, Hadiabad, Phagwara, District Kapurthala, Punjab- 144401 through its Proprietor

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Sh. Vikas Randev, S/o Sh. Om Parkash Randev, R/o House no. 133, Satnampura, Near Glory Sewing Machine, Phagwara, District Kapurthala, Punjab, Proprietor of M/S Major Randev Filling Station

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Smt. Rashmi Sharma, W/o Sh. Vikas Randev, R/o House no. 133, Satnampura, Near Glory Sewing Machine, Phagwara, District Kapurthala, Punjab

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…Defendants

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Advocates:

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Argued by Sh. Nand Ram Purohit, Advocate proxy for Sh. Sanjiv Gupta, Advocate for applicant

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None for defendants (already ex-parte vide order dated 20.05.2026)

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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. 82,90,192.20 (Rupees Eighty Two Lacs Ninety Thousand One Hundred Ninety Two and Paise Twenty Only). The Original Application has been filed through Sh. Satish Kumar, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 19.07.2007, which is Annexure A1 to this OA.

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2 OA/518/2024 CANARA BANK VS. M/S MAJOR RANDEV FILLING STATION AND OTHERS

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of OD Facility of Rs. 45.00 Lacs vide Loan Application dated 05.08.2016, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of OD Facility of Rs. 49.50 Lacs vide Letter dated 12.07.2017, which is Annexure A14 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan of Rs. 6.00 Lacs vide Loan Application dated 26.07.2018, which is Annexure A22 to this OA. Thereafter, defendant no. 1 through its Proprietor again approached the applicant for renewal of OD Facility of Rs. 49.00 Lacs vide Letter of Renewal dated 31.08.2018, which is Annexure A31 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for enhancement of OD Facility of Rs.49.50 Lacs vide Request Letter dated 13.09.2018, which is Annexure A32 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of OD Facility of Rs. 60.00 Lacs vide Letter of Renewal dated 06.11.2019, which is Annexure A41 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of WCTL of Rs.12.00 Lacs vide Loan Application dated 06.07.2020, which is Annexure A46 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of OD Facility of Rs. 60.00 Lacs vide Letter of Renewal dated 03.02.2021, which is Annexure A55 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECL Extension of Rs. 7.30 Lacs vide Loan Application dated 08.11.2021, which is Annexure A58 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for grant of OD Facility of Rs. 60.00 Lacs vide Letter of Renewal dated 18.05.2022, which is Annexure A68 to this OA. 3. The applicant sanctioned OD Facility of Rs. 45.00 Lacs vide Sanction Letter dated 05.08.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of OD Facility of Rs.45.00 Lacs vide Sanction Memorandum dated 24.08.2017, which is

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3 OA/518/2024 CANARA BANK VS. M/S MAJOR RANDEV FILLING STATION AND OTHERS

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Annexure A18 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs. 6.00 Lacs vide Sanction Memorandum dated 26.07.2018, which is Annexure A23 to this OA. Thereafter, the applicant sanctioned renewal of OD Facility of Rs. 45.00 Lacs vide Sanction Memorandum dated 31.08.2018, which is Annexure A29 to this OA. Thereafter, the applicant sanctioned enhancement of OD Facility of Rs.49.50 Lacs vide Sanction Letter dated 13.09.2018, which is Annexure A34 to this OA. Thereafter, the applicant sanctioned enhancement of OD Facility of Rs. 60.00 Lacs vide Sanction Letter dated 06.11.2019, which is Annexure A38 to this OA. Thereafter, the applicant sanctioned WCTL of Rs. 12.00 Lacs vide Sanction Memorandum dated 06.07.2020, which is Annexure A47 to this OA. Thereafter, the applicant sanctioned renewal of OD Facility of Rs.60.00 Lacs vide Sanction Letter, which is Annexure A53 to this OA. Thereafter, the applicant sanctioned GECL Extension of Rs. 7.30 Lacs vide Sanction Memorandum dated 11.11.2021, which is Annexure A59 to this OA. Thereafter, the applicant sanctioned renewal of OD Facility of Rs. 60.00 Lacs vide Sanction Letter dated 18.05.2022, which is Annexure A66 to this OA. Defendant no. 3 stood as guarantor in all the loan accounts.

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Defendant no. 3 mortgaged her immovable property i.e. Land measuring 01K situated at Village Phagwara Garbi, Hadbast no. 74, District Kapurthala, Punjab vide Letter evidencing Deposit of Title Deed dated 16.08.2016, Sale Deed bearing vasika No. 1728 dated 16.08.2010, Amended Sale Deed dated 10.11.2010, Fard Jamabandi for the year 2015-16, Valuation Report dated 21.10.2020 and Letters from Mortgagor confirming the Mortgage dated 06.07.2020 and 08.11.2021, which are Annexure A8 to A12, A52 and A64 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their machinery, computer system and other equipments vide Deeds of Hypothecation dated 05.08.2016 and 26.07.2018, Agreements cum Deeds of Hypothecation dated 06.07.2020 and 11.11.2021 and Common Hypothecation Agreement dated 23.11.2021, which are Annexure A5, A25, A48, A60 and A65 to this OA. Documents executed: Cash Credit Agreement, Pronote and

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Guarantee Covering Letter, all dated 05.08.2016, which are Annexure

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4 OA/518/2024 CANARA BANK VS. M/S MAJOR RANDEV FILLING STATION AND OTHERS

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A4, A6 and A7 to this OA; Request Letter dated 17.07.2017, which is Annexure A13 to this OA; Supplemental Agreement, Pronote and Guarantee Covering Letter, all dated 12.07.2017, which are Annexures A15 to A17 to this OA; Letter of Proprietorship and Guarantee Covering Letter, both dated 24.08.2017, which are Annexure A19 and A21 to this OA; Letter of Renewal dated 28.08.2017, which is Annexure A20 to this OA; Acknowledgement of Debt, Particulars of Machinery, Agreement regarding Collateral Security and Letter of Undertaking, all dated 26.07.2018, which are Annexure A24 and A26 to A28 to this OA; Letter of Proprietorship dated 31.08.2018, which is Annexure A30 to this OA; Letter of Proprietorship, Supplemental Agreement, Pronote and Guarantee Covering Letter, all dated 13.09.2018, which are Annexure A33 and A35 to A37 to this OA; Acknowledgment of Debt, Letter of Proprietorship, Link Letter, Supplemental Agreement, Pronote and Guarantee Covering Letter, all dated 06.11.2019, which are Annexure A39, A40 and A42 to A45 to this OA; Take Delivery Letter, Offer Letter and Letter of Undertaking, all dated 06.07.2020, which are Annexures A49 to A51 to this OA; Letter of Proprietorship and Letter from Guarantor, both dated 03.02.2021, which are Annexures A54 and A56 to this OA; Acknowledgement dated 19.06.2021, which is Annexure A57 to this OA; Take Delivery Letter, Letter of Undertaking and Link Letter, all dated 11.11.2021, which are Annexures A61 to A63 to this OA; Letter of Proprietorship dated 18.05.2022, which is Annexure A67 to this OA; Guarantee Covering Letter and Link Letter, both dated 04.06.2022, which are Annexure A69 and A70 to this OA; Acknowledgement dated 04.01.2023, which is Annexure A71 to this OA; Statement of Accounts, which are Annexures A72 to A75 to this OA and Legal Notice dated 20.02.2024, which is Annexure A76 to 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. 82,90,192.20 which is recoverable and the defendants were served recall notice 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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5 OA/518/2024 CANARA BANK VS. M/S MAJOR RANDEV FILLING STATION AND OTHERS

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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 on vide order dated 20.05.2026. 7. In support of the OA, affidavit of Sh. Satish Kumar, Senior Manager, Canara Bank, has been filed. 8. 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.

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From the perusal of all the Annexure A1 to A76 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities, which were granted to them. Defendant no. 3 stood as guarantor. Defendants 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, 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. 82,90,192.20 (Rupees Eighty Two Lacs Ninety Thousand One Hundred Ninety Two and Paise Twenty 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in clause 5 para vii has claimed interest @9.55% p.a. in OD Facility Account, @10.90% p.a. in Term Loan Account, @7.90% p.a. in WCTL Account and @7.50% p.a. in GECL Extension Loan Account plus 2% p.a. penal interest with monthly rests from 12.01.2024 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 hypothecated assets/mortgaged property, 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 @7.50% p.a. in all the loan accounts from the date of filing of

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6 OA/518/2024 CANARA BANK VS. M/S MAJOR RANDEV FILLING STATION AND OTHERS

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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 a total sum of Rs.82,90,192.20 (Rupees Eighty Two Lacs Ninety Thousand One Hundred Ninety Two and Paise Twenty Only) jointly and severally, with costs, current and future simple interest @7.50% 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 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. 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 15.06.2026. 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: 22.05.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. M/S Major Randev Filling Station

Case brief

What is this about?

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Canara Bank v. M/S Major Randev Filling Station

Case brief

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