CANARA BANK (SYNDICATE BANK) vs M/S CIVICO AUTO ELECTRICAL PARTS on 25 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank before DRT-III, Delhi and then transferred to DRT-I Delhi on 28.0.2019 under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sd- sum of Rs.1,16,46,255/- (Rupees One Crore Sixteen Lacs Forty Six Thousand Two Hundred Fifty Five only), out of which:

- - Rs.1,06,98,064.03 along with pendentelite and future interest @17.40% per annum with monthly rests;

- - Rs.9,48,190.97 in Term Loan account along with pendentelite and future interest @12.80% per annum with monthly rests from 28.03.2019 till the date of realization along with costs.

2. The brief facts of the case are that on the request of the Defendant being proprietorship concern of Sh.Kunal Kapoor in the business of manufacturing of automobile parts, the applicant bank sanctioned SODH facility for a sum of Rs.85,00,000/- (Rupees Eighty Five lacs only) on 31.12.2015 against hypothecation of stocks, receivables, raw material, finished goods etc. Further, the applicant bank sanctioned Term Loan facility of Rs.10,00,000/- (Rupees Ten lacs only) for purchase of machinery which was to be repayable in 60 Equal Monthly Installments of Rs.21,075/- on 30.06.2016 as per request of defendant. Both the sanctioned credit facilities were covered under CGTMSE scheme.

3. In order to avail both the loan facilities, the defendant submitted Loan Applications and executed Demand Promissory Note with Letter, Composite Hypothecation Agreement for creating First Charge on current assets, stocks receivables, raw materials etc. with the applicant bank on 31.12.2015. In addition, the defendant executed sanction letter dated 30.06.2016, Composite Hypothecation Agreement creating first charge on stocks and machinery purchased on 30.06.2016.

4. The defendant acknowledged its liability in both the accounts as on 31.03.2017 in their Balance Sheet and ITRs for Sd/- the year 2017-2018 amounting to Rs.88,12,919/- towards applicant bank.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 02.07.2018 as per RBI guidelines and issued notice dated 03.07.2018 u/s 13(2) of SARFAESI Act but the defendant neglected the same and hence the applicant bank has approached this Tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 25.11.2024, the defendant has 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 defendant.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Purushottam Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Sanction Letter dated 31.12.2015, Composite Hypothecation Agreement, Pro-forma Invoice, Sanction Letter, Invoice, Release Receipt, Demand Draft, Balance Sheet, Letter dated 13.10.2017, Notice u/s 13(2) dated 03.07.2018, Certified Statement of Account under Banker's Books Evidence Act, Recasted Statement of Account as Ex.AW-1/1 to Ex.AW-1/18.

8. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the SD A

applicant bank is based on the documents and the same have been duly approved.

9. The case filed by the applicant bank gone unrebuted 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 a period of 30 days, a sum of Rs.1,16,46,255/- (Rupees One Crore Sixteen Lacs Forty Six Thousand Two Hundred Fifty Five only) as on 27.03.2019, out of which:

- - Rs.1,06,98,064.03 in SOD account along with pendentelite and future interest @17.40% per annum with monthly rests;

- - Rs.9,48,190.97 in Term Loan account along with pendentelite and future interest @12.80% per annum with monthly rests from 28.03.2019 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 etc. 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.

*Sd/-*

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 25.05.2026.

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

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

(Dictated and pronounced in open court) Dated: 25.03.2026