Allowed

Canara Bank v. Sh. Lalit Pawar and Others

DRT5 Jun 2026OA/906/2024

Case brief

AI extract

What is this about?

DRT allowed Canara Bank's application for recovery of Rs. 24,99,523.03 outstanding housing loan dues from borrowers and guarantor. Court granted simple interest at 8% p.a. and ordered issuance of Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendants to pay Rs. 24,99,523.03 plus simple interest at 8% p.a. from date of filing; recovery via sale of mortgaged property or attachment of assets authorized.

Canara Bank versus Sh. Lalit Pawar and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 906/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.05.2024

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DATE OF DECISION: 05.06.2026

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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 Kharar II, Mohali, Punjab, through its Constituted Attorney and Branch Manager, Smt. Mamta.

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……..Applicant

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Versus

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Sh. Lalit Pawar son of Sh. Mohinder Singh Panwar resident of H.no B-918, Near Ashish Model, Distt Ferozpur, Punjab-152116.

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2nd address: House no. 63, Darpeen Green Kharar, Khanpur, District Mohali.

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Sh. Mohinder Singh Panwar S/o Sh. Deep Chand Panwar, resident of House no. 1804, Sector 45, Chandigarh-140001.

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2nd address: House no 63, Darpeen Green Kharar, Khanpur, District Mohali.

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Smt. Saroj Pawar W/o Sh. Mohinder Singh Panwar, resident of House no. 1804, Sector 45, Chandigarh-140001.

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2nd address: House no. 63, Darpeen Green Kharar, Khanpur,

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District Mohali.

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Sh. Narinder Singh S/o Sh. Bakshish Singh resident House no 4, Darpan City-2, Khanpur, Kharar, District Mohali.

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…….Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Sh. Sunil Kwatra, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 03.06.2026)

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OA/906/2024 CANARA BANK VS. SH. LALIT PAWAR AND OTHERS

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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.24,99,523.03 (Rupees Twenty Four Lac Ninety Nine Thousand Five Hundred Twenty Three and Paise Three Only). The Original Application has been filed through Smt. Mamta, Branch Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 to 3, approached the applicant for sanction of Housing Loan of Rs. 28.00 lac vide Loan Application Form dated 12.10.2016, which is Annexure A3 to this OA. Defendant no.4 stood as guarantor.

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The applicant sanctioned the Housing Loan of Rs. 24.00 lac, vide Sanction Letter dated 08.03.2017, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 3 mortgaged her property ie. Residential House measuring 0Bigha 2-⁹⁄₂₀Biswa (122.22 SqYds.) situated at House No. 63, Darpeen Green, Village Khanpur, Hadbast no. 183, Tehsil Kharar, District S.A.S. Nagar Mohali, Punjab, vide deposit of Original Title Deed bearing Wasika No. 10136 dated 15.03.2017, which is Annexure A8 to this OA; Letter Handing Over Title Deeds and Confirmation of Deposit of Title Deeds dated 16.03.2017, which are Annexure A9 and A9(i) to this OA.

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Documents executed: Amalgamation Scheme/Gazette Notification, which is Annexure A2 to this OA; Housing Loan Agreement dated 14.03.2017, which is Annexure A5 to this OA; Affidavit dated 14.03.2017, which is Annexure A6 to this OA; Guarantee Agreement dated 14.03.2017, which is Annexure A7 to this OA; Acknowledgment of Debt dated 18.02.2020, which is Annexure A10 to this OA; Acknowledgment of Debt dated 02.03.2022, which is Annexure A11 to this OA; Notice dated 07.12.2023, which is Annexure A12 to this OA; Statement of Account duly certified, which is Annexure A13 to this OA.

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OA/906/2024 CANARA BANK VS. SH. LALIT PAWAR AND OTHERS

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.24,99,523.03 (Rupees Twenty Four Lac Ninety Nine Thousand Five Hundred Twenty Three and Paise Three Only), 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 but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 03.06.2026.

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In support of the OA, affidavit of Smt. Mamta, Branch Manager, Canara B ank, has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 Annexures A1 to A13 to this OA, it is proved that the defendant nos.1 to 3, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.4 stood as guarantor. 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.24,99,523.03 (Rupees Twenty Four Lac Ninety Nine Thousand Five Hundred Twenty Three and Paise Three Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant has claimed interest @11.20% p.a. plus 2.00% p.a. penal interest with monthly rests from 19.03.2024 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

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OA/906/2024 CANARA BANK VS. SH. LALIT PAWAR AND OTHERS

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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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,99,523.03 (Rupees Twenty Four Lac Ninety Nine Thousand Five Hundred Twenty Three and Paise Three Only), jointly and severally, with costs, current and future simple interest @08.00% 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 defendant no. 3 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 29.06.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 05.06.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Canara Bank v. Sh. Lalit Pawar and Others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Lalit Pawar and Others

Case brief

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