Allowed

Canara Bank v. M/S Hanumat Processors and Others

DRT23 Apr 2026OA/832/2025

Case brief

AI extract

What is this about?

DT-III, Chandigarh allowed an Original Application filed by Canara Bank against borrowers and guarantors for recovery of Rs. 70,84,655.00. The court awarded the claim with simple interest at 8% p.a. instead of claimed 14.1% p.a. Orders recovery certificate issuance and enforcement via sale of secured assets.

What did the court decide?

Recovery of Rs. 70,84,655.00 with simple interest at 8% p.a. from filing date; issuance of Recovery Certificate; liberty to enforce sale of hypothecated/mortgaged personal assets.

Canara Bank versus M/S Hanumat Processors and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.832/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.06.2025

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DATE OF DECISION: 23.04.2026

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Canara Bank, a Body Corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 112, J.C. Road, Bengaluru- 560002 and Branches all over India and amongst other places at Canara Bank, Rajpura Road, Tagore Nagar, Ludhiana, through its Branch Head and Constituted Attorney, Sh. Parminder Singh

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……..Applicant

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Versus

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M/S Hanumat Processors, Address Hadbast no. 131, Ganpati Enclave, Village Ghaunspur, Ludhiana, Punjab- 141008, through is Partner, Sh. Karan Mahajan

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Sh. Karan Mahajan, S/o Sh. Gautam Mahajan, R/o H. no. 403, Bassera Heights, Ludhiana, Punjab- 142027

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Sh. Dishant Garg, S/o Sh. Sambodh Garg, R/o B34, H. no. 6868, Street No. 1, Ward no. 27, Naveen Nagar, Jassian Road, Ludhiana, Punjab- 141001

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Sh. Gautam Mahajan, C/o Sh. Des Raj Mahajan, R/o A1 Richville, Barewal Awana, Near Palm Court Hotel, Preet Nagar, Rajguru Nagar, Ludhiana, Punjab

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….……Defendants

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Advocates:

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Argued by Ms. Jasleen Kaur, Advocate for applicant

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None for defendants (already ex-parte vide order dated 21.04.2026)

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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 defendants for recovery of Rs. 70,84,655.00 (Rupees

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2 OA/832/2025 CANARA BANK VS. M/S HANUMAT PROCESSORS AND OTHERS

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Seventy Lacs Eighty Four Thousand Six Hundred Fifty Five Only). The Original Application has been filed through Sh. Parminder Singh, Branch Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.09.2006, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for availing CC Limit of Rs. 28.00 Lacs and Term Loan of Rs. 27.00 Lacs vide Application dated 30.06.2021, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit of Rs. 48.00 Lacs vide application dated 15.10.2022, which is Annexure A11 to this OA.

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The applicant sanctioned the CC Limit of Rs. 26.00 Lacs and Term Loan of Rs. 27.00 Lacs vide Sanction Letter dated 09.08.2021, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant enhanced the CC Limit of Rs. 48.00 Lacs vide Sanction Letter dated 15.10.2022, which is Annexure A12 to this OA. Defendant nos. 2 to 4 stood as guarantors. 4. Defendant no. 2 mortgaged his immovable property i.e. Plot measuring 509-1/3 Sq. Ft. situated at Village Giyaspur, Hadbast No. 131, Ganpati Enclave, Tehsil Ludhiana West, District Ludhiana, Punjab vide Sale Deed dated 11.06.2020 along with its translation and List which are Annexure A5 and A6 to this OA and Lien Marking Report dated 02.04.2025, which is Annexure A17 to this OA. Documents executed: Hypothecation Agreement dated 13.08.2021, which is Annexure A4 to this OA; Guarantee dated 13.08.2021, which is Annexure A7 to this OA; Partnership Deeds dated 28.03.2022 and 01.10.2022, which are Annexure A8 and A9 to this OA; Acknowledgment of Debt, Guarantees and Letter for Additional Security, all dated 15.10.2022, which are Annexure A10 and A13 to A16 to this OA; Acknowledgment of Debt dated 09.08.2024, which is

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3 OA/832/2025 CANARA BANK VS. M/S HANUMAT PROCESSORS AND OTHERS

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Annexure A18 to this OA; Demand Notice dated 13.01.2025, which is Annexure A19 to this OA; Possession Notice dated 19.03.2025, which is Annexure A20 to this OA; Statement of Accounts with certificate, which are Annexure A21 and A22 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 70,84,655.00, 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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The defendants were served summons to appear before this Tribunal. Sh. Karan Mahajan (defendant no. 2) and Sh. Gautam Mahajan (defendant no. 4) appeared in person on 08.08.2025 and sought time to hire a counsel in the matter. Sh. Bharat Kanwal, Advocate appeared on 20.12.2025 and filed his Memo of Appearance on behalf of defendant nos. 2 and 4 and he was directed to file his Power of Attorney but since then neither anyone appeared on behalf of defendants nor any Power of Attorney was filed. Hence, they were proceeded ex-parte vide order dated 21.04.2026.

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In support of the OA, affidavit of Sh. Parminder Singh, Branch Manager, Canara Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel 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 Annexure A1 to A22 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence

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4 OA/832/2025

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CANARA BANK VS. M/S HANUMAT PROCESSORS AND OTHERS

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brought on record, it is proved that applicant is entitled to recover a sum of Rs. 70,84,655.00 (Rupees Seventy Lacs Eighty Four Thousand Six Hundred Fifty Five Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @14.1%p.a. with monthly rests from 07.04.2025 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/hypothecated assets, undertaking of the defendants, quantum of loans 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 both the loan accounts 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.70,84,655.00 (Rupees Seventy Lacs Eighty Four Thousand Six Hundred Fifty Five Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 assets/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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5 OA/832/2025

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CANARA BANK VS. M/S HANUMAT PROCESSORS AND OTHERS

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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 14.05.2026.

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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: 23.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Canara Bank v. M/S Hanumat Processors and Others

Case brief

What is this about?

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Canara Bank v. M/S Hanumat Processors and Others

Case brief

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