Allowed

Canara Bank v. Avninder Singh

DRT20 May 2026OA/758/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of ₹1,00,91,829.93 along with interest and costs against the borrowers and guarantor, permitting recovery via sale of mortgaged/hypothecated assets and personal property.

What did the court decide?

Recovery of ₹1,00,91,829.93 with interest @12% p.a., costs, and order for issuance of Recovery Certificate for sale of mortgaged/liable assets.

Canara Bank versus Avninder Singh — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 758/2023 Date of Institution: 06.04.2023 Date of Decision: 20.05.2026

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Canara Bank having its branches all over India and a branch at Jandiala Manjki, Goraya Road, Tehsil Phillaur, District Jalandhar, Punjab.

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……..Applicant

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Vs.

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Avninder Singh s/o Sh. Kehar Singh, r/o Village and Post Office Raipur Parhola, District Jalandhar, Punjab.

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Jasdev Singh s/o Sh. Ujjagar Singh, r/o Village and Post Office Shankar, Tehsil Nakodar, District Jalandhar, Punjab.

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……….Defendants

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Advocates

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Sh. Randeep Singh through VC, Counsel for the applicant bank. Defendants- ex parte vide order dated 10.01.2025 . OA for the Recovery of ₹1,00,91,829.93p with interest @12% per annum with half-yearly rests from 06.04.2023.

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ORDER

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Canara Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹1,00,91,829.93p with interest against Sh. Avninder Singh and another (defendants).

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Bank’s case is that on 07.01.2012, it had granted a loan of ₹35.00 Lacs to defendant No.1 in the form of K.C.C Limit for agricultural purpose. The above said limit was renewed on 12.01.2015 at ₹35.00Lacs. Again on 23.09.2016, at the request of he defendants, bank enhanced the existing limit from ₹35.00 Lacs to ₹75 Lacs. Defendant No.2 stood as guarantor. To secure the loan, Defendant No.1 had mortgaged his agricultural land and hypothecated vehicle (fully detailed in para No.3A and para no.5.28 of the application). Again on 30.12.2016, at the request

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of the defendants, bank granted Term Loan of ₹6.42 Lacs under Canara Vehicle Scheme to defendant No.1 for Vehicle purpose. Defendant No.2 stood as guarantor for the Vehicle loan also. The loans were chargeable to interest @12% per annum with half-yearly rests. Defendants had duly acknowledged their liability towards the debt on 2.01.2015 and 30.08.2017. On 28.02.2022, a sum of ₹1,0,91,829.93p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 16.05.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 10.01.2025, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Gaurav Sharma, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-41.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced total loan of ₹81.42 Lacs (₹75.00 Lacs in K.C.C. Limit; ₹6.42 Lacs in Vehicle Loan) and on 28.02.2022, a sum of ₹1,0,91,829.93p was due. 6. Accordingly, the application of the bank for the recovery of ₹1,00,91,829.93p (Rupees One Crore Ninety One Thousand Eight Hundred Twenty Nine and Paise Ninety Three Only) with interest @12% per annum with half-yearly rests from 06.04.2023, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land and hypothecated vehicle fully detailed in para No.3A and para no.5.28 of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 24.06.2026, who is directed to distribute the sale proceeds of the mortgaged land, standing crops and hypothecated vehicle as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 20.05.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Canara Bank v. Avninder Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Avninder Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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