Allowed

Canara Bank v. Sh. Ashwani Jindal and Others

DRT24 Apr 2026OA/641/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Canara Bank for recovery of Rs. 24.63 lakhs as a housing loan arrears from three respondents with a guarantee. The court granted simple interest at 8% p.a. instead of claimed compound/penal rates, ordered issuance of a recovery certificate, and listed parties before the Recovery Officer.

What did the court decide?

decreted recovery of Rs. 24,63,762.79 with simple interest at 8% p.a. from the date of application, granted Recovery Certificate, and ordered auction of mortgaged property or attachment of personal as

Canara Bank versus Sh. Ashwani Jindal and Others — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.641/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.04.2023

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DATE OF DECISION: 24.04.2026

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Canara Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970, having its Registered Head Office at J.C. Road, Bangalore and having its Branches all over India and inter alia a Branch Office at Canara Bank, Focal Point, Ludhiana, Punjab through its duly constituted Attorney Holder, Sh. Arvind Kumar Mandal, Branch Manager posted at Canara Bank, Majestic Auto, Ludhiana, Punjab

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……..Applicant

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Versus

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Sh. Ashwani Jindal, S/o Sh. Hari Chand, R/o House no. 148C, Phase I, Urban Estate, Jamalpur, Ludhiana, Punjab

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Smt. Neha Jindal, W/o Sh. Ashwani Jindal, R/o House no. 148C, Phase I, Urban Estate, Jamalpur, Ludhiana, Punjab

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Sh. Naresh Gupta, S/o Sh. Padam Pal, R/o House no. 148, Phase I, Urban Estate, Ludhiana, Punjab

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…….Defendants

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Advocates:

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Argued by Sh. K.P.S. Dhillon, Advocate for applicant Sh. Karan Dev Ray, Advocate for defendants

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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. 24,63,762.79 (Rupees Twenty Four Lacs Sixty Three Thousand Seven Hundred Sixty Two and Paise Seventy Nine Only). The Original Application has been filed through Sh. Arvind Kumar Mandal, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2023, which is Annexure P/A to this OA.

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2 OA/641/2023 CANARA BANK VS. ASHWANI JINDAL AND OTHERS

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The brief facts of the OA are that defendant nos. 1 and 2 approached the applicant for grant of Housing Loan of Rs. 23.00 Lacs vide Loan Application dated 24.01.2018 which is Annexure A1 to this OA.

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The applicant sanctioned the Housing Loan of Rs. 23.00 Lacs vide Sanction Letter dated 16.03.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor.

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Defendant no. 1 mortgaged his immovable property i.e. Plot measuring 125 Sq. Yards situated at Plot no. 422, Village and Abadi Ramgarh, Tehsil and District Ludhiana, Punjab vide Title Deed bearing no. 4315 dated 27.03.2018 and Memorandum dated 12.04.2018, which are Annexure A7 and A8 to this OA.

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Documents executed: Undertaking, Irrevocable Mandate for Deduction of Loan Installments, Housing Loan Agreement and Guarantee Agreement, all dated 16.03.2018, which are Annexure A3 to A6 to this OA; Statement of Account, which is Annexure A9 to this OA; Demand Notice dated 01.11.2022, which is Annexure A10 to this OA; Legal Notice dated 12.10.2022, which is Annexure A11 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 24,63,762.79 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. 6. The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Karan Dev Ray, Advocate appeared on behalf of defendant nos. 1 and 2 on 28.04.2025 and filed his Power of Attorney on behalf of defendant nos. 1 and 2 on 22.09.2025. None appeared on behalf of defendant no. 3 despite service. Paper book was supplied to learned counsel for defendant nos. 1 and 2 on 22.09.2025, but no WS was filed by defendant nos. 1 and

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3 OA/641/2023 CANARA BANK VS. ASHWANI JINDAL AND OTHERS

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Therefore, opportunity to file WS on behalf of defendants was closed and defence was struck off on 07.04.2026. 7. In support of the OA, affidavit of Sh. Arvind Kumar Mandal, Branch Manager, Canara Bank, has been filed. 8. Heard 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 unrebutted, the applicant had proved its case. Sh. Karan Dev Ray, Advocate for defendants submitted that lenient view may be taken at the time of decree and prayed for granting simple rate of interest.

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From the perusal of all the Annexure P/A and A1 to A11 to this OA, it is proved that the defendant nos. 1 and 2 approached applicant for availing of the loan facility which was granted to them. Defendant no. 3 stood as guarantor. 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. 24,63,762.79 (Rupees Twenty Four Lacs Sixty Three Thousand Seven Hundred Sixty Two and Paise Seventy 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 account. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.40% p.a. plus @2% p.a. penal interest with monthly rests w.e.f. 09.03.2023 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 mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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OA/641/2023

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CANARA BANK VS. ASHWANI JINDAL AND OTHERS

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%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.24,63,762.79 (Rupees Twenty Four Lacs Sixty Three Thousand Seven Hundred Sixty Two and Paise Seventy Nine Only) jointly and severally with costs, current and future simple interest @8.00%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 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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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.05.2026.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 24.04.2026

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

Canara Bank v. Sh. Ashwani Jindal and Others

Case brief

What is this about?

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Canara Bank v. Sh. Ashwani Jindal and Others

Case brief

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