CANARA BANK vs SANJAY KUMAR GUPTA on 12 January 2026

FINAL ORDER

This original application has been filed by the applicant before DRT II, Delhi on 16.09.2021 and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.47,45,972/- (Rupees Forty Seven Lacs Forty Five Thousand Nine Hundred Seventy Two only), out of which Rs.38,11,305.91 along with interest @10.60% per annum in

OCC/ODBD account and Rs.9,34,665.75 in Term Loan account alongwith interest @9.10% per annum pendentelite and future interest with monthly rests from date of filing this application till the date of realization and costs. The defendants agreed to pay penal interest @2% per annum in case of default or delay in repayment. Further, the name of Mr. Madan Singh Rawat has been substituted as authorized representative in place of Sh. Prashant Kumar, erstwhile AR of the applicant bank.

2. The brief facts of the case are that at the request of defendant being proprietor of M/s Kajal Enterprises, the applicant bank sanctioned OCC limit for Rs.20,00,000/- (Rupees Twenty lacs only) and SL-ODBD limit for Rs.5,00,000/- on 16.12.2014 against hypothecation of stocks, book debts and mortgage of property which was renewed and enhanced on various dates lastly on 31.01.2019 for OCC/ODBD limit for Rs.30.00 lacs and sub limit of ODBD for Rs.5 Lacs. In between the defendant availed Adhoc limits of Rs.5.00 lacs which was adjusted. The applicant bank sanctioned Term Loan facility for Rs.14,35,000/- on 18.09.2017 @10% interest to be repaid in 60 EMIs for purchase of machinery against hypothecation. The limits sanctioned in favour of defendant are covered under CGTMSE cover.

3. That in order to avail the loan facilities, the defendant executed Request for Overdraft facility, Letter of Proprietorship, Pronotes, Cash Credit Agreement with Annexure, Letter of Undertaking re: Loan/ Advances against Book Debts, Letters of Renewal, Supplemental Agreement, Letter extending / enhancing Credit Limit, Letter of Undertaking/ Consent, Link Letter of Enhancement of Credit Facilities with Appendix, Deed of Hypothecation re: Machinery on 16.12.2014 and thereafter on enhancement/renewal and sanction of term loan facilities on various dates lastly on 31.01.2019 with the applicant bank.

4. The defendant acknowledged his liability by executing Acknowledgement of Debt dated 18.02.2016, 15.022018, 31.01.2019 towards the applicant bank.

5. It has been submitted that after availing the aforesaid loan facilities, the defendant miserably failed and neglected to pay the interest and installments in the accounts and maintain financial discipline as per sanction terms and conditions despite various notices and reminders. The applicant bank classified the account as NPA on 01.12.2020 as per RBI guidelines and issued legal notice dated 16.06.2021 but the defendant failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

6. Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 08.07.2022, the defendant has been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Ramneshwar Prasad Roy, authorized representative of the applicant who has proved the documents Power of Attorney, Sanction Memorandum, Certificate of Loan Papers, Letter evidencing Execution of Documents, Pronote, Request for Overdraft facility, Stamped Cash Credit agreement with annexure, Letter of Undertaking, Supplemental Agreement, Letter of proprietorship, Guarantee Agreement, Letter of renewal, Acknowledgements of Debt, Letter extending/enhancing Credit Limit, Deed of

Hypothecation, Recall Notice, Legal Notice, Statement of Account marked as Ex.AW-1/1 to Ex.AW-1/77.

8. 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 proved.

9. 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.

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

ORDER

I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.47,45,972/- (Rupees Forty Seven Lacs Forty Five Thousand Nine Hundred Seventy Two only), out of which

- Rs.38,11,305.91 in OCC/ODBD account @10.60% interest per annum;

- Rs.9,34,665.75/- in Term loan account @9.10% interest per annum with monthly rests from the date of filing of this application till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts & machinery. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

(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 Recovery Officer, DRT I, Delhi on 12.03.2026. (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: 12.01.2026