Allowed

Canara Bank v. Smt. Narinderjit Kaur and Another

DRT12 Aug 2026OA/528/2026

Case brief

AI extract

What is this about?

Dr. Debts Recovery Tribunal allowed Original Application filed by Canara Bank against two respondents for recovery of outstanding loan dues. The court fixed simple interest at 8% p.a. and directed issuance of recovery certificate.

What did the court decide?

Declaratory that defendants are liable to pay Rs.32,13,940.27 with costs and simple interest at 8% p.a.; recovery certificate issued; liberty to enforce via sale of mortgaged or personal assets.

Canara Bank versus Smt. Narinderjit Kaur and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 528/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2026

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DATE OF DECISION: 12.08.2026

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Canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Head Office at J.C. Road, Bangalore-560 002 (Karnataka) and having one of its branches situated at Mandi Gobindgarh, located opposite the BSNL Office on Amloh Road, near Shyam Palace, District Fatehgarh Sahib, Punjab. The branch operates through Ms. Fairy Khurana, posted as Branch Manager.

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……..Applicant

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Versus

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Smt. Narinderjit Kaur W/o Sh. Kuldeep Singh, R/o Village Diwa Gandhuan, Bharpurgarh, Tehsil Amloh, District Fatehgarh Sahib, Punjab-147203.

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Sh. Jaswant Singh S/o Sh. Mahinder Singh, R/o Village Rurki, Post Office Machhral Kalan, Tehsil Amloh, District Fatehgarh Sahib, Punjab-147203.

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…….Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh Chaudhary, Advocate for Applicant. None for Defendants (already ex-parte vide order dated 10.08.2026)

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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.32,13,940.27 (Rupees Thirty Two Lac Thirteen Thousand Nine Hundred Forty and Paise Twenty Seven Only). The Original Application has been filed through Ms. Fairy Khurana, Branch Manager, of the Applicant, who is competent to institute the

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2 OA/528/2026 CANARA BANK VS. SMT. NARINDERJIT KAUR AND ANOTHER

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Original Application vide Power of Attorney dated 20.10.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 approached the applicant for sanction of KCC Limit of Rs.20.00 lacs vide Loan Application dated 19.05.2015, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor. Thereafter, Defendant no.1 approached the applicant for renewal of KCC Limit of Rs.20.00 lacs vide Loan Application dated 14.01.2022, which is Annexure A7 to this OA; Letter of Renewal dated 14.01.2022, which is Annexure A8 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 lacs and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of the KCC Limit of Rs.20.00 lacs vide Sanction Letter dated 14.01.2022, which is Annexure A9 to this OA. 4. Defendant no. 1 mortgaged her property that’s agricultural land measuring 43Kanal-4Marla, situated at Village Lang, Hadbast no. 336, Tehsil & District Patiala, Punjab, vide Declaration u/s 4(1) dated 15.05.2015, which is Annexure A11 to this OA; Documents executed: Agreement and Deed of Hypothecation dated 19.05.2015, which is Annexure A3 to this OA; Guarantee along with Guarantee Agreement (Colly) dated 19.05.2015, which is Annexure A4 to this OA; Acknowledgement of Debt dated 07.05.2018, which is Annexure A5 to this OA; Acknowledgement of Debt dated 20.05.2021, which is Annexure A6 to this OA; Letter to Tehsildar dated 15.05.2015, which is Annexure A10 to this OA; Acknowledgement of Debt dated 19.05.2023, which is Annexure A12 to this OA; Recall Notice dated 19.03.2026, which is Annexure A13 to this OA; Statement of Account and Certificate under Bankers Books of Evidence Act, which are Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.32,13,940.27 (Rupees Thirty Two Lac Thirteen Thousand Nine Hundred Forty and Paise Twenty Seven Only), which is recoverable

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3 OA/528/2026 CANARA BANK VS. SMT. NARINDERJIT KAUR AND ANOTHER

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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 and after the service of summons, Sh. Hardik Ahluwalia, Advocate appeared on behalf of defendants and filed his Memo of Appearance on 14.05.2026. Thereafter, no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 10.08.2026.

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In support of the OA, affidavit of Ms. Fairy Khurana, Branch Manager , Canara B ank, has been filed.

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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 A14 to this OA, it is proved that the defendant no.1 approached the applicant for availing of the loan facility, which was granted to her. Defendant no.2 stood as guarantor. The defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,13,940.27 (Rupees Thirty Two Lac Thirteen Thousand Nine Hundred Forty and Paise Twenty Seven 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.25% p.a. from 18.03.2026 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

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OA/528/2026 CANARA BANK VS. SMT. NARINDERJIT KAUR AND ANOTHER

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instant case including nature of the mortgaged property, undertaking of the defendants, 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 the loan account 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.32,13,940.27 (Rupees Thirty Two Lac Thirteen Thousand Nine Hundred Forty and Paise Twenty Seven Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 property of the defendant no.1 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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12. 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 28.08.2026

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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: 12.08.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. Smt. Narinderjit Kaur and Another

Case brief

What is this about?

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Canara Bank v. Smt. Narinderjit Kaur and Another

Case brief

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