CANARA BANK (SYNDICATE BANK) vs MS AMBIKA INDUSTRIES on 15 September 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 30.03.2019 under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of Rs.50,42,544.25 (Rupees Five lacs Forty Two thousand Five hundred Forty Four & paisa Twenty Five only) as on 11.03.2019 along with pendentelite and future interest @10.25% per annum with monthly rests from the date of filing this application till the date of its realization with costs.

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2. The brief facts of the case are that on the request of defendant no.1 through its proprietor being defendant no.2 engaged in manufacturing of copper wires vide loan application dated 12.09.2017, the applicant bank sanctioned SOD limit of Rs.50,00,000/- (Rupees Fifty lacs only) @10.25% interest per annum on 06.09.2017 against hypothecation of stocks, fixed assets and book debts as working capital for enhancement of business which was covered under CGTMSE scheme.

3. That in order to avail the credit facility, the defendant no.2 as proprietor of defendant no.1 submitted loan application and executed Sanction Letter with terms and conditions, Power of Attorney for Collection of Bills, Book Debts and Other Receivables, Undertaking, Charge and Hypothecation of Book Debts Agreement, Consent Letter and Letter of Indemnity and other letters in favour of the applicant bank on 26.09.2017.

4. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to maintain financial discipline and comply with the sanction terms and conditions for regularization of the account. The applicant vide letters dated 20.11.2018 and 28.11.2018 requested the defendants to route their transaction through the account but defendants neglected despite assurance, due to which the applicant bank classified the account as NPA on 27.11.2018 as per RBI guidelines. The applicant bank issued legal notice dated 10.12.2018 for adjustment of outstanding of Rs.45,64,764.33 in the account to the defendants, but no action taken for liquidation of the dues, hence the applicant bank has approached this Tribunal for recovery of their dues.

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5. 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 08.05.2026, the defendants have 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 defendants.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Rajender Pal Chandel, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Ex.AW1/1, Loan Application Ex.AW1/2, Sanction Letter Ex.AW1/3, Composite Hypothecation Agreement Ex.AW1/4, Power of Attorney for Collection of Bills, Book Debts & Other Receivables Ex.AW1/5, Undertaking Ex.AW1/6, Charge & Hypothecation of Book Debts Agreement Ex.AW1/7, Consent Letter Ex.AW1/8, Letter of Indemnity Ex.AW1/9, Various Letters Ex.AW1/10, Letters dated 20.11.2018 & 28.11.2018 Ex.AW1/11(Colly), Legal Notice & Postal Receipts Ex.AW1/12(Colly), Memorandum of Account Ex.AW1/13, Statement of Account duly Certified under Bankers' Books of Evidence Act Ex.AW1/14.

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 unrebuted and there is no question of disbelieving the case of the applicant Sd- 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 defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.50,42,544.25 (Rupees Five lacs Forty Two thousand Five hundred Forty Four & paisa Twenty Five only) as on 11.03.2019 together with pendentelite and future interest @10.25% per annum with monthly rests from 11.03.2019 till the date of its realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock and book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(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 13.11.2026.

(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: 15.09.2026