Allowed

Canara Bank v. Sh. Vishal Soni And Another

DRT10 Feb 2026OA/749/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of an outstanding vehicle loan of Rs. 25.52 Lakhs against two defendants who failed to repay the sanctioned amount and did not appear in the proceedings. The court granted a recovery certificate and adjusted the interest rate to 8% per annum.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 25,52,441 plus simple interest at 8% p.a. from filing date until realization.

Canara Bank versus Sh. Vishal Soni And Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.749/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2023

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DATE OF DECISION: 10.02.2026

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Canara Bank a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 112, J.C. Road, Bengaluru-2 with its Branches throughout India and one such branch at Sec-70 Mohali, SAS Nagar (Punjab) through its Principle Officer and Power of Attorney Holder Smt. Ritu, Branch Manager.

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… …..Applicant

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Versus

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Sh. Vishal Soni S/o Sh. Amir Chand, R/o #205 Nirvana Greens 4,

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Kharar, SAS Nagar Mohali-140301

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2^nd Address: H No. 71, New Dashmesh Nagar Rama Mandi Jalandhar, Punjab-144007

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3^rd Address: Flat No. 4144, GBP CAMELLIA, Kharar, SAS Nagar, Punjab-140301

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Smt. Rekha Kumara W/o Vishal Soni, R/o # 205 Nirvana Greens 4, Kharar SAS Nagar, Mohali-140301.

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2^nd Address: H No. 71, New Dashmesh Nagar, Rama Mandi Jalandhar, Punjab-144007

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3^rd Address: Flat No. 4144, GBP CAMELLIA, Kharar, SAS Nagar, Punjab-140301

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….……Defendants

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Advocates:

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Argued by Sh. Rakesh Gupta, Advocate proxy for Ms. Anuradha Gupta, Advocate for Applicant

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Defendants already ex-parte vide order dated 14.11.2025

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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.25,52,441.00 (Rupees

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2 OA/749/2023 CANARA BANK VS. VISHAL SONI AND ANOTHER

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Twenty Five Lacs Fifty Two Thousand Four Hundred and Forty One only). The Original Application has been filed through Sh. Ritu, Branch Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 19.01.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the applicant for grant of Vehicles Loan of Rs.25.00 Lacs vide Loan Application dated 07.07.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the Vehicles Laon Rs.25.00 Lacs vide Sanction memorandum dated 08.07.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 hypothecated Vehicle Namely ‘’Toyota Innova Crysta 2.4Z (AT)’’ bearing Registration no. PB65BC7722, Engine No. 2GDA654103 and Chassis No. MBJAB3EM002573909~0622. Particulars of Vehicle hypothecated dated 13.07.2022, which is Annexure A5 to this OA; Certificate of Registration of vehicle, which is Annexure A6 to this OA.

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Documents executed: Canara Vehicle Laon Agreement dated 08.07.2022, which is Annexure A4 to this OA; Legal Notice dated 25.04.2023, with Postal Receipts, which is Annexure A7 to this OA; Legal Notice dated 28.04.2023, with Postal Receipts, which are Annexures A8 to A9 to this OA; Statement of Account, which is Annexure A10 to this OA.

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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.25,52,441.00, 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.

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3 OA/749/2023 CANARA BANK VS. VISHAL SONI AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex- parte vide order dated 14.11.2025. 7. In support of the OA, affidavit of Sh. Ritu, Branch Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they 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.25,52,441.00 (Rupees Twenty Five Lacs Fifty Two Thousand Four Hundred and Forty One 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.85%p.a. with 2% penal interest with monthly rests from 09.04.2023 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 hypothecated assets, 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 uniform simple interest @08.00%p.a. in

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OA/749/2023 CANARA BANK VS. VISHAL SONI AND ANOTHER

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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.25,52,441.00 (Rupees Twenty Five Lacs Fifty Two Thousand Four Hundred and Forty One 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 hypothecated vehicle 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.02.2026.

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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 . Dated: 10.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Canara Bank v. Sh. Vishal Soni And Another

Case brief

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Canara Bank v. Sh. Vishal Soni And Another

Case brief

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