CANARA BANK vs M/S UNITED OFFSET PRINTING PRESS on 6 July 2026

ORDER

1. On 04.11.2020, Canara Bank, filed the suit for the recovery of ₹40,40,398.40p with interest against M/s United Offset Printing Press and another (defendants) in the Court of Additional District Judge, Sopore. However, vide order dated 16.06.2023, Principal District Judge, Baramulla transferred this suit to DRT-I, Chandigarh.

2. Bank’s case is that on 19.01.2015, it had granted a loan of ₹10.00Lacs to defendant No.1 through its proprietor defendant No.2 in the form of Open Cash Credit (Hyp) Limit for business purpose. To secure the loan, Defendant No.1 hypothecated assets (fully detailed in para No.3 of the application). Again on 19.01.2017, at the request of the defendants, bank enhanced the existing limit from ₹10.00 Lacs to ₹25.00

Lacs. To secure the enhanced limit, Defendant No.1 hypothecated assets (fully detailed in para No.5 of the application). 2A. Again on 18.05.2019, at the request of the defendants, bank granted an Adhoc Limit of ₹4.00 Lacs payable within a month to defendant No.1 through its proprietor defendant No.2 for Business purpose. To secure the loan, Defendant No.1 hypothecated assets (fully detailed in para No.7 of the application). On 05.10.2016, in consideration of the aforementioned loan facilities, defendant No.2 mortgaged property (fully detailed in para No.10 of the application). Both the loan facilities were chargeable at different rates of interest. On 31.05.2019, a sum of ₹40,40,398.40p 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 which were duly served. They did not put in appearance despite service and were proceeded ex parte on 18.12.2019. After transfer of this suit, summonses were sent to the defendants which were duly served. However, they did not put in appearance. Vide order dated 06.02.2026, they were proceeded ex parte.

4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Bashrat Aziz, 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 total loan of ₹29.00 Lacs and on 31.05.2019, a sum of ₹40,40,398.40p was due.

6. Accordingly, the case of the bank for the recovery of ₹40,40,398.40p (Rupees Forty Lacs Forty Thousand Three Hundred Ninety Eight and Paise Forty Only) with interest @14.15% per annum

with monthly rests from 04.11.2020, till the date of payment is hereby allowed with costs. The liability of the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property and hypothecated assets fully detailed in para Nos. 3, 5, 7 and 10 of the application as well as from 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 07.08.2026, who is directed to distribute the sale proceeds of the mortgaged property 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: 06.07.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA