CANARA BANK vs ARVIND PRASAD VERMA on 25 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank before DRT-II, Delhi on 08.09.2021 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.21,71,282/- (Rupees Twenty One Lacs Seventy One Thousand Two Hundred Eighty Two only) as on 31.08.2021

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along with pendentelite and future interest @9.55% per annum in OCC/SL-ODBD account and @9.15% per annum in Term Loan account with monthly rests along with penal interest @2% from the date of filing this application till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned OCC limit for a sum of Rs.15,00,000/- (w/w SL-ODBD limit for Rs.5,00,000/-) on 29.06.2017 against hypothecation of stocks, book debts, etc. covered under CGTMSE scheme. Further, on the request of the defendant, the applicant bank sanctioned Adhoc limit for a sum of Rs.3.00 Lacs on 10.11.2017 and enhanced the limit to Rs.18.00 lacs on 02.07.2019 and restructure OCC limit on 26.03.2020 by sanctioning WCTL if Rs.90,000/-.

3. In order to avail the loan facilities, the defendant submitted loan application and executed Pronote, Request for Overdraft Facility, Stamped Cash Credit Agreement, Letter of Undertaking re:Loan/Advances, Letter of Undertaking, Stamped Agreement re: Advances against Book Debts, Letter of Proprietorship, Letter extending/enhancing credit limits, Stamped Supplemental Agreement, Link Letter, Letter of Renewal with annexure in favour of the applicant bank on various dates.

4. In order to secure the credit facility, the defendant hypothecated the stock and book debts in favour of applicant bank.

5. The defendant also executed Acknowledgement of Debt and Security dated 02.07.2019 in favour of the applicant bank.

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6. It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the account. Ultimately, the applicant bank classified the account as NPA on 11.11.2020 as per RBI guidelines and issued loan recall notice dated 01.04.2021 and legal notice dated 16.06.2021 but the defendant neglected the same. Hence the applicant bank has approached this Tribunal for recovery of their dues.

7. 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 18.12.2025, 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.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Prashant Kumar, authorized representative of the applicant bank, who have proved the documents such as General Power of Attorney, Sanction Letter, Letter evidencing Execution of Documents, Certificate of Loan Papers, Letter of Proprietorship, Request for Overdraft facility, Letter of Undertaking re: Loan/Advances, Pronote, Stamped Cash Credit Agreement, Letter of Undertaking, Stamped Agreement re: Advances against Book Debts, Guarantee covering Letter, Stamped Guarantee Agreement, Letter extending/enhancing Credit Limits, Pronote, Stamped Supplemental Agreement, Link Letter, Letter of Renewal, Letter of Undertaking, Acknowledgement of Debt & Security, Sanction Memorandum, Specimen Signature Card, Stamped Debtor-Creditor agreement, Stamped Debt Restructuring Agreement, Sd/- Deed of Hypothecation, Letter dated 16.09.2020, Loan Recall Notice, Legal Notice, Statement of Account marked as Ex.AW-1/1 to Ex.AW-1/45 (Colly) .

9. 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.

10. 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.

11. 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.21,71,282/- (Rupees Twenty One Lacs Seventy One Thousand Two Hundred Eighty Two only) together with pendentelite and future interest @9.55% per annum from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and book debts 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.

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(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.

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

(Dictated and pronounced in open court)

Dated: 25.03.2026