CANARA BANK vs GAURAV SHARMA on 22 May 2026

FINAL ORDER

This original application has been filed by the applicant bank before DRT-III Delhi on 12.06.2019 and then transferred to DRT-I under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of Rs.41,98,171/- (Rupees Forty One Lacs Ninety Eight Thousand One Hundred Seventy One only) as on 08.05.2019 along with pendentelite and future interest @18.00% per annum with monthly rests plus 2% penal interest from the date of filing of this application till its realization with costs.

2. The brief facts of the case are that on the request of the defendant being proprietor of M/s Shri Bankey Bihari Metals engaged in the business of wire drawing and enamel coating of copper and aluminium vide loan application dated 30.05.2015, the applicant bank sanctioned Overdraft facility of Rs.30,00,000/- (Rupees Thirty Lacs only) @11.50% interest per annum on 12.06.2015 against hypothecation of stocks and machinery covered under CGTMSE scheme.

3. In order to avail the loan facility, the defendant submitted loan application dated 30.05.2015 and executed Sanction Letter, Composite Hypothecation Letter, Power of Attorney for collection of Bills, Book Debts etc. on 12.06.2015 in favour of the applicant bank.

4. It has been submitted by the applicant bank that after availing the credit facility, the defendant failed to comply with the terms and conditions of sanction and adhere the financial discipline to regularize the account. Ultimately, the applicant bank classified the account as NPA on 29.12.2017 as per RBI guidelines and issued legal notice dated 11.01.2018 but the defendant failed to regularize the accounts and hence the applicant bank has approached this Tribunal for recovery of their dues.

5. 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 13.11.2025, the defendant has been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. J.P. Singh, authorized representative of the applicant bank who has proved the documents such as General Power of Attorney Ex.AE1/1, Loan Application Ex.AE1/2, Sanction Letter Ex.AE1/3, Composite Hypothecation Letter Ex.AE1/4, Power of Attorney Ex.AE1/5, Statement of Account Ex.AE1/6 and Legal Notice Ex.AE1/7.

7. 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.

8. 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.

9. 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.41,98,171/- (Rupees Forty One Lacs Ninety Eight Thousand One Hundred Seventy One only) as on 08.05.2019 together with pendentelite and future interest @18.00% per annum with monthly rests from the date of filing of this application till the 5d- date of its realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock and 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. (III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 21.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH SHAPiA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 22.05.2026