The DRT allowed the bank's original application for recovery of a loan of Rs.60,81,771.89 with future simple interest at 8% per annum, granting a Recovery Certificate and permitting enforcement through sale of mortgaged assets.
Recovery of Rs.60,81,771.89 plus 8% simple interest; Recovery Certificate issued; parties directed to Recovery Officer.
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.73/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 08.01.2026
DATE OF DECISION: 20.03.2026
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 J C Road, Bangalore and amongst other a Branch Office at Malerkotla, Tehsil Malerkotla, District Sangrur, Punjab 148023, through its Branch Manager, Principal Officer and Constituted Attorney Sh. Mudasir Ahmed Shah.
……..Applicant Versus
Sh. Bahadur Singh son of Shri Bachan Singh, resident of Suadatpur, Tehsil Malerkotla, District Sangrur.
……….Defendant
Advocates:
Argued by Ms. Sonia Gupta, Advocate for the Applicant.
Defendant already ex-parte vide order dated 17.03.2026
FINAL ORDER
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OA NO. 73/2026 CANARA BANK VS BAHADUR SINGH
renewal of existing KCC Limit of Rs.3.00 Lacs vide Loan Application Form dated 15.01.2010, which is Annexure A6 to this OA. Letter of renewal dated 15.01.2010, which is Annexure A7 to this OA. Thereafter, the defendant approached applicant for enhancement of KCC Limit to Rs.49.78 Lacs, vide loan application form dated 06.12.2012, which is Annexure A8 to this OA. Letter of renewal dated 13.12.2012, which is Annexure A12 to this OA. Thereafter, the defendant approached the applicant for renewal of the limit vide loan application and letter of renewal dated 05.11.2016 and loan application form and letter of renewal dated 25.04.2020, which are Annexures A14, A15, A16 and A18 to this OA.
Documents executed: Agreement and Deed of Hypothecation for Kissan Credit Card dated 16.02.2007, which is Annexure A4 to this OA; Supplemental Agreement dated 13.12.2012, which is Annexure A10 to this OA; Link Letter in respect of Enhancement of Credit Facilities dated 13.12.2012, which is Annexure A11 to this OA; Letter
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OA NO. 73/2026 CANARA BANK VS BAHADUR SINGH
of Renewal dated 13.12.2012, which is Annexure A12 to this OA; Letters of Acknowledgement of debt and security dated 04.05.2009, 03.06.2011, 13.12.2012, 05.11.2015, 15.05.2017, 01.11.2018, 18.02.2020 & 02.02.2023, which are Annexure A19 (colly) to this OA; Legal notice dated 28.07.2025, which is Annexure A20 to this OA; and Statement of Account with certificate, which is Annexure A21 to this OA.
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OA NO. 73/2026 CANARA BANK VS BAHADUR SINGH
Paise Eighty Nine only) along with interest from the defendant, 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 property/hypothecated assets, 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 uniform 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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OA NO. 73/2026 CANARA BANK VS BAHADUR SINGH
10. Any other application pending stands disposed of. 11. Issue Recovery Certificate accordingly. 12. Parties to appear before Learned Recovery Officer of this Tribunal on 13.04.2026. 13. 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 . Dated:20.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the defendant.
Whether the Tribunal should grant uniform simple interest on the loan account.
2 provisions across 2 enactments
Canara Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
