Allowed

Canara Bank v. Mr Ajay Kumar

DRT5 Jan 2026OA/908/2024

Case brief

AI extract

What is this about?

A DRT application filed by Canara Bank for recovery of loan dues against borrowers who failed to repay sanctioned credit facilities. The court upheld the bank's claim, allowing recovery of principal, interest, and costs via sale of mortgaged and personal assets.

What did the court decide?

Recovery certificate issued for Rs.31,24,606.47/- with future interest at 9% p.a.; defendants directed to pay dues within two months.

Canara Bank versus Mr Ajay Kumar — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Date of order or lroceeding	Order withsignatureofcourt		Officeaction takenwithdate
O.A.No.908/2024 05.01 .2026	Judgment is signed pronounced onseparate sheets. Separatelyattachedin07she Order be uploaded on Tribunal’swebsite. (PravasKumar PresidingOffi	and ets. the Singh) cer

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IN THE DEBTS RECOVERY TRIBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer

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Case No. Original Application No.908 of 2024

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Dated: 05.01.2026

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C'anara Bank, having Branch at Zaidpur, Distt. Barabanki, UP.

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. . . . . . .. Applicant Bank

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Versus

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Mr. Ajay Kumar, S/o Mr. Param Hansh, R/o Village- Darakkapurwa Mazre Meerapur, Post Addr% Tehsil Sirauli Gouspur, District Barabanki, UP.

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Mr. Paramhansh, S/o Mr. Rameshwer Prasad, R/o Village- Darakkapurwa Mazre Meerapur, Post Addra, Tehsil Sirauli Gouspur, District Barabanki, UP.

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Mrs. Geeta Devi, W/o Mr. Paramhansh, R/o Village- Darakkapurwa Mazre Meerapur, Post Addra, Tehsil Sirauli Gouspur, District Barabanki, UP.

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. . . .Defendants

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Ld. Counsel for applicant-bank: Mr. Yogesh Chandra Bhatt, Advocate. Ld. Counsel for defendants: None.

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JUDGMENT

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This Original Application has been filed by the applicant Bank under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.3 1,24,606.47/- (Rupees Thirty One Lac, Twenty Four Thousand, Six Hundred Six and Paisa Forty Seven Only) (Rs.16,91,303.11/- in KCCS Kisan Suvidha Sublim Loan Account)

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O.A. No.908 of 2024

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(Rs.14,33,303.36/- in Kisan Overdraft Loan Account) together with pendent-lite and future interest, costs and other reliefs etc. 2. The brief facts of case: -The defendant nos.1 to 3 are borrowers/mortgagors. The defendant nos.1 to 3vide loan application approached the applicant-bank for grant of KCCS limit of Rs.10.00 lac, which was duly considered and sanctioned by the applicant-bank vide sanction memorandum dated 05.4.2016 on certain terms and conditions (Annexure No. A-2 & Annexure No. A-3) to this original application.

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In orderto secure the aforesaidCredit facility, the defendant nos.1 to had executed and signed various security documents in favour of the applicant-bank on 05.4.2016 like Agreement and Deed of Hypothecation, Format A [i] Addendum to Application, Memorandum of Sanction, Letter Evidencing Execution of Documents, Certificate of Loan Papers, Nomination cum Authority Letter and Format B-Request cum Undertaking (Annexure No. A-4 to Annexure No. A- 10) to this original application.

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In order to secure the repayment of dues, the defendants had created equitable mortgage of property i.e. (i) Khata No.677, 462, 642, 378, 217, 676, 678, 815, 808, 463, 464, Khasra No.1714, 1764, 1324, 1793, 1803, 1744, 85, 1731, 1546, 1258, 1716 & 1743 Village Meerpur, Tehsil Sirauli Gouspur, Pargana Badosarai, District Barabanki, UP admeasuring area of 2.914 hectare & (ii) Khata No.461, 180 & 384 Khasra No.1715, 114 & 1742 Villae Adra, Tehsil Sirauli Gouspur, Pargana Dariyabad, District Barabanki, UP admeasuring area of 0.070 Hectare & 0.073

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hectare & 0.262 hectare in favour of the applicant-bank (Annexure No. A- 11 to Annexure No.A-13) to this original application.

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O.A. No.908 of 2024

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5 . Again, at the request of defendant, the applicant-bank had sanctioned another KCOD facility of Rs.7.50 lac, for which, the said defendant had executed and signed various security documents in favour of the applicantbank on 22.02.2018 and further extended creation of mortgage (Annexure No. A- 14 to Annexure No. A-23) to this original application.

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To avail the aforesaid credit facilities, the applicant-bank had opened two loan accounts in the name of defendant no.2 in order to maintain the credit facilities.

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The defendant had also executed and signed Acknowledgment of Debts dated 28.11.2020, 22.01.2021, 25.5.2021, 28.11.2023 (Annexure No. A-24 to Annexure No. A-28) to this original application.

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After availing the aforesaid credit facilities,the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, thus, the applicant-bank sent various letters and reminders on different dates to the defendants (Annexure No. A- 29 Colly), but, they failed to make payment, consequently, the both loan accounts of the defendants wereclassified as NPA on 23.02.2023 by the applicant-bank as per RBI guidelines (Annexure No. A-30), therefore, the applicant-bank issuedLegal Notice dated 25.6.2024 (Annexure No. A-3 1), but, the defendants stated no-response and failed to repay the same and the loan accounts of the defendant no.2 are still un-liquidated, hence, this Original Application has been instituted.

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.3 1,24,606.47/- (Rupees Thirty One Lac, Twenty Four Thousand, Six Hundred Six and Paisa Forty Seven Only) (Rs. 16,91,303.11/- in KCCS Kisan Suvidha Sublim Loan Acw}nt)

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-/ -xf

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4 O.A. No.908 of 2024

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(Rs.149339303.36/- in Kisan Overdraft Loan Account) including interest upto 29.4.2024 were lying due for payment, which they did not pay despite repeated requests and demands. The applicant Bank has filed the copy of Statement of Accounts (Annexure No. A-32 &Annexure No. A-33) to this original application.

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The cause of action for filing the present application arose firstly on 05.4.2016 when the abovementioned credit facility was sanctioned by the applicant-bank and necessary documents were executed by the defendants. The cause of action further arose on 25.6.2024 when the applicant-bank had issued legal notice recalling the defendants to repay the dues of the applicant-bank, but, they failed to pay the same.

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The summons was served upon the defendants through registered post, but, the defendants(lid not appear before this Tribunal to contest the case, thus, the case proceeded ex-parte against the defendants on 03.12.2024.

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The only point of consideration before this Tribunal in as to whether the bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it?

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In support of the case Mr. Tej Prakash Tewari, Senior Manager of the applicant Bank has supported its caseon affidavit.

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On a careful scrutiny of the evidence on affidavit and Annexure marked as (Annexure No. A- 1 to Annexure No. A-33 to this original application), it stands proved that the defendants had availed the credit facilities from the applicant bank by executing loan and security documents detailed as above in favour of the applicant Bank. A perusal of the application, evidence and documents relied upon clearly establishes that

O.A. No.908 of 2024

defendants had utilized the above loan facilities as granted to them. The applicant bank has maintained the Books of accounts in the ordinary course of banking business showing disbursal of the loan amount. It further shows that bank had regularly credited the amount paid by the defendants in the books of accounts. The Bank had also charged interest from time to time and the entries is relevant u/s 4 of the Bankers Book Evidence Act. It is also proved that the applicant bank’s claim is within limitation against the defendants, therefore, the defendants are liable to pay the dues.

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Accordingly, the defendantsaredirected to pay the balance dues to the applicant bank within a period of two months from the date of judgment failing which the applicant bank will be entitled to sell the hypothecated assets as well as personal properties of the defendants.

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The applicant-bank has claimed interest @11.30% per annum in the KCCS Loan Account & interest @11.15% in Kisan Overdraft Loan Account together with pendent lite and future interesttill the actual date of its realization and costs. On the basis of the foregoing discussion, interest of justice will be served if pendent-lite and future interest is granted @9.00% per annum in the above loan accounts with monthly rest on reducing balance from the date of filing of the O. A. till the date of realization with costs.

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1 find that the bank has proved theexecution of loan documents and creation of mortgage in its favour. In the result, the Original Application succeeds ex-parte against the defendant with costs. The defendants are jointly and severally liable to pay the dues of the applicant-bank and the mortgage properties/hypothecated assets as well as the personal properties are liable to be sold

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6 O. A. No.908 of 2024

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18.It is, therefore, ordered

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(i) That the Original Application No.908 of 2024 of the applicant bank for issuance of Recovery Certificate to the tune of Rs.31,24,606.47/- (Rupees Thirty One Lac, Twenty Four Thousand, Six Hundred Six and Paisa Forty Seven Only)(Rs.16,91,303.11/- in KCCS Kisan Suvidha Sublim Loan Account) & (Rs.14,33,303.36/- in Kisan Overdraft Loan Account) together with future and pendent- lite interest @9.00% per annumin both the above loan accountsfrom the date of filing of the'Original Application i.e. 23.8.2024 till the loan is fully liquidated and costs succeeds and is hereby allowed ex-parte against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgment, failing which the applicant bank will be entitled to recover the same from the secured assets, personal movables and immovable assets of the defendants.

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(iii) The applicant-bank is entitled to recover aforesaid amount by sale of mortgage properties/hypothecated assets (if not sold earlier under the provisions of the S.A.R.F.A.E.S.I. Act 2002). The amount, if any, already recovered by sale of any mortgage properties/hypothecated assets or otherwise shall be adjusted towards the debt and only the balance amount shall be recoverable. If the dues of the applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable and immovable assets of the defendants.

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O.A. No.908 of 2024

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The applicant bank shall provide details of the statement of account.

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(iv) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the applicant bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 06.4.2026 before R.o., DRT, Lucknow.

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Judgment is pronounced in the open court.

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Dated: 05.01.2026

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r f (Pravas Kumar Singh) Presiding Officer

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(Veeresh)

Canara Bank v. Mr Ajay Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Ajay Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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