CANARA BANK vs METRO ENTERPRISES on 19 September 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 16.02.2018 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a *Sd-*

sum of Rs.54,07,040.75 (Rupees Fifty Four lacs Seven thousand Forty & paisa Seventy Five only) as on 31.12.2017 along with pendentelite and future interest @10.90% plus penal interest @2% over the normal rate of interest from 01.01.2018 till its realization along with costs.

2. The brief facts of the case are that on the request of the defendant no.1 being proprietorship concern of defendant no.2 vide loan application dated 02.06.2014, the applicant bank sanctioned OCC facility of Rs.30,00,000/- (Rupees Thirty lacs only) on 08.07.2014 @11.45% rate of interest subject to change from time to time as per bank guidelines under Canara MSE Unnati Scheme against hypothecation of stocks, book debts and plant & machinery which was covered under CGTMSE scheme. On the request of defendant vide letter dated 02.12.2015, the applicant bank enhanced the OCC facility to Rs.50,00,000/- (Rupees Fifty lacs only) @10.90% interest per annum on 16.12.2015 in favour of defendants.

3. In order to avail the credit facilities, the defendant no.2 on behalf of defendant no.1 submitted loan application with required documents and executed Cash Credit Agreement, Book Debt Agreement NF 450, Promissory Note, Letter of Proprietorship NF 110 along with list of plant & machinery, Certificate of Loan papers NF-482, Letter evidencing execution of documents NF 803, Request for Overdraft (NF 372), Pronote (NF 480), Collateral Security Agreement: Machinery Vehicle NF 723 in favour of the applicant bank on 08.07.2014. In addition, the defendants executed common Hypothecation Agreement, Letter of Renewal dated 17.12.2015, Pronote, Certificate of Loan Papers (NF-482) etc. after enhancement of credit facility.

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4. The defendant no.2 to show his worth handed over title document i.e. GPA/Agreement to Sell and Payment Receipt dated 16.04.1996 of Plot admeasuring 200 sq.yds, out of Khasra No.63/3, Plot No.132-A, Village Nangloi Jat, Vandana Vihar, Nangloi, New Delhi.

5. The defendant no.2 on behalf of defendant no.1 executed acknowledged of the Debt and Security vide letter dated 17.12.2015 for Rs.27,62,992.60 admitting all the relevant documents, agreement, security etc. shall remain in force and effect until account is adjusted in full.

6. That in order to secure the credit facilities, the defendant no.2 as proprietor of defendant no.2, hypothecated the goods, stocks and plant & machinery etc. in favour of applicant bank.

7. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the sanction terms and conditions and only withdrawn the amounts without depositing / maintaining repayment schedule and defaulted despite several reminders. The defendant no.1 requested for enhancement of limit but due to poor conduct of the account and shifting of place of business without intimation to bank, the request was declined. The applicant bank classified the account as NPA on 28.08.2017 and issued letter dated 01.09.2017 recalled the credit facility. Further, the applicant bank also issued legal notice dated 16.01.2018 requested the defendant to clear the outstanding in the account but defendants did not respond. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

8. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to sd- absent from the proceedings. As per order dated 25.08.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

9. In order to prove its case, the applicant bank has filed its evidence by submitting the documents such as Power of Attorney of AR, Loan Application, Cash Credit Agreement, Book Debt Agreement, Letter of Proprietorship, Title Documents of Plot, Certificate of Loan Papers, Credit Limit Facilities : Collateral Machinery Vehicle NF-723, Overdraft Request Letter, Pronote, Collateral Security Agreement, Statements of Account, Risk Rating – Industrial Accounts Model report, Loan Application NF 998, Sanction Letter, Link Letter, Common Hypothecation Agreement, Letter of Renewal, Certificate of Loan Papers, Legal Notice, Certificate under Section 2A of Bankers' Books Evidence Act marked as Page no.1 to 200.

10. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

11. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

12. In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.54,07,040.75 (Rupees Fifty Four lacs Seven thousand Forty & paisa Seventy Five only) as on 31.12.2017 along with pendentelite and future interest @12.90% per annum with monthly rests from 01.01.2018 till the date of realization along with costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, plant & machinery etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 18.11.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 19.09.2026