Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs M/S RAYEES TOUR AND TRAVELS on 17 July 2026
IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 229/2023
Date of Institution: 23.03.2016
Date of Decision: 17.07.2026
Canara Bank, B/o Budshah Chowk, Srinagar, (Kashmir).
...Applicant
Vs.
1.
M/s Rayees Tour & Travels, Maharaja Bazar, Amira Kadal, Srinagar.
Through its Proprietor – Rais Manzoor Darzi.
2.
Rais Manzoor Darzi (Borrower),
S/o Late Manzoor Ahmad Darzi,
R/o Govt. Housing Colony Chanapora, Srinagar.
...Defendants
Advocates
Ms. Anuradha Gupta, Counsel for the Applicant Bank.
None for defendants.
TA for the Recovery of Rs.88,68,065/- with interest @11.45% per annum with monthly rests from 23.03.2016.
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ORDER
1. On 23.03.2016, Canara Bank filed the suit for the recovery of Rs.88,65,065/- with interest against M/s Rayees Tour & Travels and another (defendants) in the Court of Principal District Judge, Srinagar. However, vide order dated 28.01.2023, this suit was transferred by the Court of Additional District Judge (Bank Cases), Srinagar, to DRT-I, Chandigarh.
2. Defendant No.1 is a sole proprietorship firm, and defendant No.2 is its sole proprietor. Bank’s case is that on 25.06.2014, it had granted a Cash Credit facility of Rs.50 lacs to defendant No.1, through its proprietor, for business purpose. To secure the loan, defendant No.1, through its proprietor, had hypothecated its assets (fully detailed in Para No.3 of the plaint). The Cash Credit facility was chargeable to interest
@11.45% per annum with monthly rests. On 14.11.2014, Bank had granted a Working Capital Term Loan of Rs.20 lacs to defendant No.1, through its proprietor. The Working Capital Term Loan was chargeable to interest @10.20% per annum with monthly rests. The defendant No.2 had acknowledged his liability towards the debt on 14.11.2014. On 15.03.2016, a sum of Rs.88,68,065/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this suit.
3. On 27.04.2023, summonses were sent to the defendants by registered post, which were duly served. On 18.10.2024, the defendants were summoned for the purpose of admission and denial; however, no one appeared on behalf of defendants and they failed to avail the opportunity for admission and denial of documents.
4. In order to prove its case, the Bank has placed on record the affidavit of MD. Shahab Akhtar, Branch Manager, along with the loan and original 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 Cash Credit facility of Rs.50 lacs and a Working Capital Term Loan of Rs.20 lacs to defendant No.1, through its proprietor, and on 15.03.2016, a sum of Rs.88,68,065/- was due.
6. Accordingly, the application of the Bank for the recovery of Rs.88,68,065/- (Rupees Eighty-Eight Lacs Sixty-Eight Thousand and Sixty-Five Only) with interest @11.45% per annum with monthly rests from 23.03.2016, till the date of payment is hereby allowed with costs. Bank can recover its dues by the sale of hypothecated assets (fully detailed in Para No.3 of the plaint), 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 17.08.2026, who is directed to distribute the sale proceeds of the mortgaged property 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: 17.07.2026 Presiding Officer DRT-1, Chandigarh HARSH