Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs M/S POWER ENGINEERS on 16 June 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 1/2023
Date of Institution: 01.06.2009
Date of Decision: 16.06.2026
Canara Bank having its branches all over India and a branch at Shalamar Road, Srinagar.
……..Applicant
Vs.
1. M/s Power Engineers through its proprietor Sh. Ashok Khushu s/o Sh. O.N. Khushu, r/o 28 A/D Gandhi Nagar Jammu.
2. Sh. Ashok Khushu s/o Sh. O.N. Khushu, r/o 28 A/D Gandhi Nagar Jammu.
3. Sh. Satvir Khushu s/o Sh. O.N. Khushu, r/o 28 A/D Gandhi Nagar Jammu.
……….Defendants
Advocates
Mr. Ajay Singla proxy counsel for Ms. Kanchan Sehgal, Counsel for the applicant bank.
Defendants-ex parte vide order dated 28.03.2025.
TA for the Recovery of ₹1,13,86,908.09p with interest @15.75% per annum with monthly rests from 01.06.2009.
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ORDER
1. On 01.06.2009, Canara Bank, filed the suit for the recovery of ₹1,13,86,908.09p with interest against M/s Power Engineers and others (defendants) in the Civil Court Jammu. However, vide order dated 01.10.2022, 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 18.04.2001, it had granted O.C.C. Limit of ₹10.00 Lacs and a Bank Guarantee of ₹5.00 Lacs, totaling to ₹15.00Lacs to defendant No.1 through its proprietor defendant No.2 for business purpose. To secure the Limits, Defendant No.2 had mortgaged property and hypothecated assets (fully detailed in para No.7 of the application).
Again on 23.08.2003, at the request of the defendants, bank granted an Adhoc Limit of ₹5.00 Lacs in addition to the existing limit of ₹20.00 Lacs to defendant No.1 through its proprietor defendant No.2 for Business purpose. On 28.02.2005, bank enhanced the existing limit from ₹20.00Lacs to ₹40.00Lacs and the Bank Guarantee from ₹5.00 Lacs to ₹10.00 Lacs. The O.C.C. Limit was enhanced from time to time and lastly on 20.02.2006 for ₹60.00Lacs. Defendant No.3 stood as guarantor for both the limits. On 31.05.2009, total sum of ₹1,13,86,908.09p 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, summonses were sent to the defendants which were duly served, However, they did not put in appearance and were proceeded ex parte on 28.03.2025.
4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Anil Pandoh, Authorized Officer, 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 the loans under various schemes and on 31.05.2009, a sum of ₹1,13,86,908.09p was due.
6. Accordingly, the case of the bank for the recovery of ₹1,13,86,908.09p (Rupees One Crore Thirteen Lacs Eighty Six Thousand Nine Hundred Eight and Paise Nine Only) with interest @15.75% per annum with monthly rests from 01.06.2009, till the date of payment is hereby allowed with costs. The liability of defendant Nos.1 to 3 would be would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.7 of the application as well as from the personal movable and immovable property(ies) of the defendants accordingly.
7. Pending IAs, if any, stand disposed of.
8. Recovery Certificate be issued accordingly.
9. Parties are directed to appear before Recovery Officer on 17.07.2026, who is directed to distribute the sale proceeds of the mortgaged land and hypothecated assets 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.
Pronounced in the open court.
(A S Narang) Dated: 16.06.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA