Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs M/S NIKHA ORNAMENTS on 10 June 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 224/2023
Date of Institution: 04.03.2016
Date of Decision: 10.06.2026
Canara Bank having its branches all over India and a branch at Budshah Chowk, Srinagar, Jammu and Kashmir.
……..Applicant
Vs.
1. M/s Nikha Ornaments, Cement Kadal, Noor Bagh, Srinagar, Jammu and Kashmir, through its proprietor Ishfaq Ahmad Zargar.
2. Ishfaq Ahmad Zargar s/o Bashir Ahmad Zargar, r/o Guzer Chowk, Nowshera, Srinagar, Jammu and Kashmir.
……….Defendants
Advocates
Ms. Meena Malhotra proxy counsel for Sh. Sumit Batra, Counsel for the applicant bank.
Defendants- ex parte vide order dated 04.02.2026.
TA for the Recovery of ₹65,67,928/- with interest @12.65% per annum with monthly rests from 04.03.2016.
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ORDER
1. On 04.03.2016, Canara Bank filed the suit for the recovery of ₹65,67,928/- with interest against M/s Nikha Ornaments and another (defendants) in the Civil Court Jammu. However, vide order dated 27.02.2023, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Bank’s case is that on 06.07.2011, it had granted O.C.C. Limit of ₹5.00 Lacs to defendant No.1 through its proprietor defendant No.2 for business purpose. Again on 27.06.2013, at the request of the defendants, bank enhanced the O.C.C. Limit from ₹5.00 Lacs to ₹10.00 Lacs vide Sanction Letter, (Annexure P-8). Again on 11.04.2014, at the request of the defendants, bank again enhanced the existing limit from ₹10.00 Lacs to ₹40.00 Lacs vide Sanction Letter, (Annexure P13). Again on 25.11.2014, at the request of the defendants, applicant bank restructured the O.C.C. Limit and granted a WCTL of ₹10.00 Lacs to defendant No.1 through its proprietor defendant No.2 for business purpose. Both the loan facilities were chargeable at different rates of interest. Defendants had duly acknowledged their liability towards debt on 11.04.2014 and 25.11.2014. On 29.02.2016, a sum of ₹65,67,928/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, the suit.
3. The Civil Court sent summonses to the defendants by registered post, which was duly served. After transfer, the Tribunal sent summonses to the defendants, which were duly served. However, they did not put in appearance and were proceeded ex parte.
4. In order to prove its case, the Bank has placed on record the affidavit of MD. Shahab Akhtar, Branch Manager, along with the original loan and security documents.
5. 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 ₹50.00 Lacs (₹40.00 Lacs in C.C. Limit and ₹10.00 Lacs in Term Loan) and on 29.02.2016, a sum of ₹65,67,928/- was due.
6. Accordingly, the case of the bank for the recovery of ₹65,67,928/- (Rupees Sixty Five Lacs Sixty Seven Thousand Nine Hundred Twenty Eight Only) with interest @12.65% per annum with monthly rests from 04.03.2016, 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 the personal movable and immovable property(ies) of the defendants.
7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on 13.07.2026.
10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.
Pronounced in the open court.
(A S Narang) Dated: 10.06.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA