Allowed

Canara Bank v. Sh. Nishan Singh

DRT1 Aug 2026OA/597/2026

Case brief

AI extract

What is this about?

An ex-parte hearing where the Tribunal allowed a Recovery Application filed by Canara Bank against Sh. Nishan Singh for recovery of a loan facility (Kisan Credit Card) along with interest, costs, and future interest.

What did the court decide?

Order declaring liability to pay principal sum, costs, and simple interest @08%/p.a.; Recovery Certificate issued; liberty to enforce claim via sale of mortgaged assets or attachment of personal asset

Canara Bank versus Sh. Nishan Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT DISTRICT TARN TARAN, PUNJAB

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ORIGINAL APPLICATION NO.597/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.04.2026

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DATE OF DECISION: 01.08.2026

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Canara Bank, a body corporate and Nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at JC Road, Bangalore and amongst other a Branch Office at Bhura Kohna, Tehsil Patti, District Tarn Taran through its Branch Manager, Principal Officer and Constituted Attorney Sh. Surinder @ Sh. Surinder Kumar Arora.

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……..Applicant

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Versus

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Sh. Nishan Singh S/o Sh. Gurdial Singh @ Dial Singh, R/o Patti Karme Ki, VPO Bhure Kohma, Tehsil Patti, District Tarn Taran.

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…….. Defendant

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Advocates:

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Argued by Sh. Ashutosh Bajpai, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant (through VC)

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None for Defendant (Already ex-parte vide order dated 13.07.2026)

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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 defendant for recovery of Rs.22,86,038.74 (Rupees Twenty Two Lacs Eighty Six Thousand Thirty Eight and Paise Seventy Four Only). The Original Application has been filed through Sh. Surinder @ Sh. Surinder Kumar Arora, Branch Manager of the applicant , who is competent to institute the Original Application vide Power of Attorney dated 03.08.2001, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for grant of Kisan Credit Card Limit of Rs.1,99,000.00 vide Application cum Appraisal Form for Revised Kisan Credit Card Scheme dated 26.09.2006, which is Annexure A2 to this OA.

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2 OA NO.597/2026 CANARA BANK VS SH. NISHAN SINGH

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Thereafter, the defendant approached the applicant for renewal and enhancement of Kisan Credit Card Limit from Rs.1,99,000.00 to Rs.2,25,000.00 vide Application cum Sanction for Renewal and / or Enhancement under Kisan Credit Card Scheme and Letter of Renewal, both dated 12.11.2009, which are Annexures A6 & A9 to this OA. Thereafter, the defendant approached the applicant for renewal and enhancement of Kisan Credit Card Limit from Rs.2,25,000.00 to Rs.6,00,000.00 vide Application cum Sanction for Renewal and / or Enhancement under Kisan Credit Card Scheme and Letter of Renewal, both dated 01.12.2012, which are Annexures A10 & A13 to this OA. Thereafter, the defendant approached the applicant for renewal of Kisan Credit Card Limit of Rs.6,00,000.00 vide Application cum Sanction for Renewal and / or Enhancement under Kisan Credit Card Scheme and Letter of Renewal, both dated 17.11.2015, which are Annexures A16 & A18 to this OA.

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Thereafter, the defendant approached the applicant for renewal and enhancement of Kisan Credit Card Limit from Rs.6,00,000.00 to Rs.13,00,000.00 vide Application cum Sanction for Renewal and / or Enhancement under Kisan Credit Card Scheme and Letter of Renewal, both dated 28.06.2016, which are Annexures A19 & A22 to this OA. Thereafter, the defendant approached the applicant for renewal of Kisan Credit Card Limit of Rs.12,87,000.00 vide Application cum Sanction for Renewal and / or Enhancement under Kisan Credit Card Scheme and Letter of Renewal, both dated 22.11.2021, which are Annexures A25 & A27 to this OA. 3. The applicant sanctioned the Kisan Credit Card Limit of Rs.1,99,000.00 vide Sanction Memorandum dated 26.09.2006, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant.

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Thereafter, the applicant renewed and enhanced the Kisan Credit Card Limit from Rs.1,99,000.00 to Rs.2,25,000.00 vide Sanction Memorandum dated 12.11.2009, which is Annexure A7 to this OA and terms and conditions were duly accepted by the defendant.

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3 OA NO.597/2026 CANARA BANK VS SH. NISHAN SINGH

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Thereafter, the applicant renewed and enhanced the Kisan Credit Card Limit from Rs.2,25,000.00 to Rs.6,00,000.00 vide Sanction Letter dated 01.12.2012, which is Annexure A11 to this OA and terms and conditions were duly accepted by the defendant.

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Thereafter, the applicant renewed the Kisan Credit Card Limit of Rs.6,00,000.00 vide Sanction Memorandum dated 17.11.2015, which is Annexure A17 to this OA and terms and conditions were duly accepted by the defendant.

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Thereafter, the applicant renewed and enhanced the Kisan Credit Card Limit from Rs.6,00,000.00 to Rs.12,87,000.00 vide Sanction Letter dated 28.06.2016, which is Annexure A20 to this OA and terms and conditions were duly accepted by the defendant.

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Thereafter, the applicant renewed the Kisan Credit Card Limit of Rs.12,87,000.00 vide Sanction Memorandum dated 22.11.2021, which is Annexure A26 to this OA and terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his Immoveable Properties i.e., Total Land measuring 80 Kanal 00 Marlas situated at Village Bhura Kohna, Hadbast No. 81 Tehsil Patti as per Jamabandi for the year 2002-2003, vide Registered Mortgage Deed No.1074 dated 20.09.2006, Registered Mortgage Deed No.1144 dated 30.11.2012 and Declaration u/s 4(1) dated 21.06.2016, which are Annexures A5, A15 & A24 to this OA. Documents executed : Agreement of Hypothecation for Agricultural Loans, dated 26.09.2006, which is Annexure A4 to this OA; Supplemental Agreements, dated 12.11.2009, 01.12.2012, 28.06.2016, which are Annexures A8, A12 & A21 to this OA; Link Letters in respect of Enhancement of Credit Facilities, dated 01.12.2012, 28.06.2016, which are Annexures A14 & A23 to this OA; Letters of Acknowledgement of Debt and Security dated 18.09.2009, 04.12.2017, 18.05.2020, 20.06.2022, 13.02.2025, which is Annexure A28 to this OA; Legal Notice dated 31.01.2026 along with postal receipt, which is Annexure A29 to this OA; Statement of account along with certificate, which is Annexure A30 to this OA.

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4 OA NO.597/2026 CANARA BANK VS SH. NISHAN SINGH

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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.22,86,038.74, which is recoverable and the defendant was served recall notices but he 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 defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 13.07.2026.

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In support of the OA, affidavit of Sh. Surinder @ Sh. Surinder Kumar Arora, Branch Manager, Canara Bank 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 for applicant through Video Conferencing 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 A30 to this OA, it is proved that the defendant approached applicant for availing of the loan facility, which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,86,038.74 (Rupees Twenty Two Lacs Eighty Six Thousand Thirty Eight and Paise Seventy Four Only), along with interest from the defendant, 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 relief clause has claimed interest @12.20%p.a. with half yearly rests with penal interest @2%p.a. from 11.03.2026 till the realization. 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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5 OA NO.597/2026 CANARA BANK VS SH. NISHAN SINGH

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instant case including nature of the mortgaged properties, undertaking of the defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.22,86,038.74 (Rupees Twenty Two Lacs Eighty Six Thousand Thirty Eight and Paise Seventy Four Only), 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 properties of the defendant 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 defendant. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.08.2026. 15. Copy of this order be given dasti to the applicant 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 at Camp Court District Tarn Taran, Punjab . Dated: 01.08.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Sh. Nishan Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Nishan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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