CANARA BANK vs M/S LAL ENTERPRISES AND ANR on 29 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 13.09.2022 before DRT-HI Delhi & then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.1,05,94,453/- (Rupees One Crore Five Lacs Ninety- Four Thousand Four Hundred Fifty-Three only) as on 31.08.2022 along with pendentelite and future interest @8.90% per annum with monthly rest from 01.09.2022 till the date of its realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 being proprietorship concern of defendant no.2 in the business of manufacturing & trading of gold jewellery and precious stones etc. vide their loan application dated 28.01.2020, the applicant bank sanctioned Secured Overdraft facility of Rs.90.00 lacs (Rupees Ninety lacs only) on 30.01.2020 @BPLR+1.95°/0 interest per annum against hypothecation of stock of raw material, finished jewellery of silver, gold and precious stones & book debts etc. and mortgage of property of defendant no.3 who stood as guarantor for the credit facility availed by defendant no.1. The applicant bank sanctioned additional fund based Working Capital Term Loan facility of Rs.5,80,000/- (Rupees Five Lacs Eighty Thousand only) on 06.11.2020 covered under GECL scheme @7.50% interest which was to be repaid in 36 EMIs of Rs.16,111/- as per Govt.of India guidelines dues to Covid-19.

3. That in order to avail the credit facility, the defendant no.1 through defendant no.2 executed Sanction Letter for SOD, Composite Hypothecation Agreement, Letter of Undertaking,

Agreement cum Deed of Hypothecation and Guarantee Agreement on 30.01.2020 and 06.11.2020 with the applicant bank.

4. In order to secure the credit facilities, the defendant no.3 created equitable mortgage of property being Entire 2nd & 3rd Floor of residential property at H-5/12, Malviya Nagar, New Delhi-110017 measuring 100 sq.yds. toward the applicant bank.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to adhere to the repayment schedule and defaulted in its repayments intentionally, failed to comply with the terms and conditions despite several reminders. Ultimately, the applicant bank classified the account as NPA on 01.04.2021 as per RBI guidelines and issued recall notice dated 01.09.2022 for Rs.1,05,94,453.16 but neglected by the defendants, hence approached this Tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 04.09.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 08.04.2021 to the defendants was issued by the applicant bank. The applicant bank issued possession notice under Section 13(4) on 21.10.2021 for taking possession of the property. Ste —

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Anoop Bisht, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Annexure A-1, Loan Application Form Annexure A-2, Sanction Letter Annexure A-3 & Annexure A-10, Composite Hypothecation Agreement Annexure A-4, Guarantee Agreement Annexure A-5, Letter of Undertaking Annexure A-6, Sanction Letter dated 06.11.2020 Annexure A-7, Agreement cum Deed of Hypothecation Annexure A-8, Notice u/s 13(2) and 13(4) of SARFAESI Act Annexure A-11(Colly), Loan Recall Notice along with Tracking Report Annexure A-12, Statement of Accounts Annexure A-13.

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 proved.

10. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and 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 defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.1,05,94,453/- (Rupees One Crore Five Lacs Ninety Four Thousand Four Hundred Fifty Three only) as on 31.08.2022 together with pendentelite and future interest

@8.90% per annum with monthly rest from 01.09.2022 till the date of its realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged Residential property being Entire 2nd & 3rd Floor at H-5/12, Malviya Nagar, New Delhi-110017 measuring 100 sq.yds. In case of shortfall, the same shall be recovered from the sale of movable and immovable property/assets 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 28.07.2026. (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: 29.05.2026