BANK OF INDIA vs SHABISTA SHAKIR on 13 March 2026

1. **Shabista Shakir**, Wife of Sayed Abdul Shair, Proprietor of ATO Enterprises, having place of business at 95, Bainchtola Dhapa, Kolkata – 700039, and residing at 23, Karaya Road, Kolkata Municipal Corporation, Beniapur, Kolkata – 700017.

..... Defendant

Counsel for parties:

For the Applicant Bank : Ms. Anindita Das For the Defendant : *Ex-Parte*.

**FINAL ORDER / JUDGMENT**

Delivered on 13.03.2026

Applicant Bank of India instituted the present Application being the Original Application No. O.A./352 of 2018 filed in DRT-3, Kolkata on 14.05.2018 against sole Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for realization of **Rs.48,62,100.00** (Rupees forty eight lacs sixty two thousand one hundred) inclusive of interest calculated upto 31.03.2018 with further interest from 01.04.2018 @13.45% per annum with monthly rests till realization. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide the Hon'ble Chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 21.10.2019 and the same has been renumbered as T.A./88 of 2020 vide Ld. Registrar, DRT-2's order dated 06.11.2019.

1. The brief facts of the case as set out by the Applicant Bank in its Original Application, as under:

(i) That the Defendant is carrying on business of servicing and repairing motor vehicles as the Proprietor of M/s ATO Enterprises. The defendant had approached the applicant Bank for financial assistance towards working capital requirement of her business. Upon consideration of Application, applicant Bank was pleased to grant / sanction a cash credit limit of Rs.45,00,000/- (Rupees forty five lacs) to the defendant under CGTMSE Scheme vide sanction letter dated 24.06.2013. The defendant acknowledged receipt of said sanction letter and conveyed acceptance of the terms and condition of said sanction. Copy of loan Application and sanction letter dated 24.06.2013 is annexed and marked as Annexure 'A'.

(ii) In consideration of the said credit facility of Rs.45.00 lakhs, the defendant executed and delivered the following security documents all dated 24.06.2013 in favour of applicant Bank, as under:

- (a) Demand Promissory Note (L-434) for a sum of Rs.45,00,000/- along with minimum interest thereon @ 13.25% per annum with monthly rests;

- (b) Loan Bearer Letter (L-435);

- (c) Letter of Continuing (L-516), *inter-alia*, declaring the D.P. Note to be the continuing security and enforceable for all money due and payable by the defendant;

- (d) An Agreement of Hypothecation of Tangible Movable Machinery and plant;

- (e) An Agreement of Hypothecation of Tangible Movable Property.

Copy of said documents are annexed and marked as Annexure 'B', 'C', 'D', 'E' & 'F' respectively.

(iii) In consideration of sanction of the cash credit limit of Rs.45.00 lacs, the defendant executed a Hypothecation-cum-Loan Agreement dated 24.06.2013 in favour of applicant Bank. Copy of said Hypothecation-cum-Loan Agreement dated 24.06.2013 is annexed and marked as Annexure 'G'.

(iv) The defendant has acknowledged his debt & liability by executing a Letters in Acknowledgement of debt / Securities (L-444 C), the last of which has been executed by the defendant on dated 20.06.2016 confirming correctness of outstanding of Rs.45,92,299.41 as on 20.06.2016 together with further interest due and payable by the defendant to the applicant Bank. copy of said acknowledgement of debt & security dated 20.06.2016 is annexed and marked as Annexure 'H'.

3. The Defendant enjoyed the aforesaid credit facility by opening Account in Bank's C.I.T. New Road Branch, at P-12, Scheme No.52, C.I.T. New Road, Kolkata – 700014. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the outstanding Bank's dues and overdue interests in loan Account. Inspite of repeated requests and personal contact made by applicant Bank, the defendant failed and neglected to regularize the loan Account. Since the defendant did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. on and from 30.09.2017. Applicant Bank getting no other alternative, has issued demand notice dated 30.04.2018 upon the defendant

through its Ld. Advocate demanding to repay the outstanding Bank's dues for a sum of Rs.48,62,100/- inclusive of interest as on 31.03.2018 together with further interest @ 13.45% per annum from 01.04.2018, till realization, but the defendant did not comply the said notice; copy of said demand notice dated 30.04.2018 along with postal receipt is annexed and marked as Annexure 'I'. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'J'), and further interest @ 13.45% per annum with monthly rests from 01.04.2018, till realization, interim interest, and interest on judgment, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notice / summons was sent to the Defendant by the Tribunal. It is seen from the S/R on affidavit dated 24.01.2024 and its enclosure that service of Notice / summons upon the Defendant by postal service is successful, such has been recorded vide Ld. Registrar's order dated 25.01.2024. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 04.12.2025. Ld. Advocate of the applicant Bank has submitted argument on 10.02.2026.

5. Applicant Bank has filed the evidence-on-Affidavit affirmed by Sri Rakesh Kumar, Sr. Manager of Bank's C.I.T. New Road Branch, at P-12, Scheme\_No.52, C.I.T. New Road, Kolkata – 700014 along with the copies of original documents executed by Defendant. Original documents have been produced by applicant Bank; the same have been verified with copies of the documents annexed with O.A. and after verification the original documents have been returned to Sri Amit Kumar, Sr. Branch Manager of Bank's C.I.T. New Road Branch, C.I.T. New Road, Kolkata – 700014 on 22.11.2022, such has been recorded in Ld. Registrar's order dated 22.11.2022. The documents produced by applicant Bank are exhibited and annexed at Exhibit 'A/1' to 'A/10'.

I have heard the Ld. Advocate of the applicant Bank and perused the records.

6. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, unrebuted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the O.A. Applicant Bank has proved the sanction of cash credit limit of Rs.45.00 lakhs vide sanction letter dated 24.06.2013. Applicant Bank has proved the hypothecated movable assets / property(s); described in Schedule at page 21 and para III.A at page 7 to 9 of the original application.

7. On the point of limitation, Loan has been sanctioned on 24.06.2013; documents have been executed on 24.06.2013 and original Application has been filed on 14.05.2018. Further, the defendant has acknowledged his debt & liability by executing a Letter in Acknowledgement of debt / Securities dated 20.06.2016 acknowledging the outstanding balance in loan Account. As such, the original Application appears to have been filed well within the period of limitation.

8. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued interest and other charges as calculated upto 31.03.2018) is **Rs.48,62,100.00** (Rupees forty eight lacs sixty two thousand one hundred) as on 31.03.2018, which is the amount claimed by applicant Bank in the original Application, and the defendant is liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization of entire dues. I allow the claim as made by applicant Bank in the original Application. Applicant Bank has prayed future interest @ 13.45% per annum with monthly rests from 01.04.2018, till realization, while in Demand Promissory Note dated 24.06.2013 the rate of interest @ 13.25% per annum with monthly rests, has been mentioned. Therefore, the *pendente lite* & future rate of interest @ 13.25% per annum, with quarterly rests, from 01.04.2018, is allowed.

9. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A. Hence, the original application being T.A./88 of 2020 (arising out of O.A./352 of 2018) deserves to be allowed; hence allowed.

10. In view of the above, I pass the following order :-

ORDER

(i) T.A./88 of 2020 (arising out of O.A./352 of 2018), filed by applicant Bank, is allowed and debt is determined with cost against the Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.48,62,100.00** (Rupees forty eight lacs sixty two thousand one hundred) due and payable, inclusive of interest and other charges as calculated upto 31.03.2018; and interest for the period *pendente lite* and future rate @ 13.25% per annum, with quarterly rests, from 01.04.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in the loan account or amount, if any, recovered by applicant Bank after filing of the Original Application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendant. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendant is debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets / property(s); described in Schedule at page 21 and para III.A at page 7 to 9 of the original application, as under –

Hypothecated Movable Assets:

*"ALL THAT Stocks-in-trade consisting of different parts of motor cars, machine parts, machine tools and other related items including various finished and semi-finished products including excisable raw materials, stocks in process (including bought out finished products), consumables and all the articles, accessories and such other movable property, stored or to be stored at the place of business / automobile garage of the defendant situated at 11, Kustia Road, Kolkata-700039 and also at 95, Bainchtola Dhapa, Kolkata-700039, or elsewhere or in transit, belonging to the proprietorship firm of the said defendant as well the book debts of the Firm."*

13

The Defendant is also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to him till the aforesaid adjudicated debt amount are recovered from the Defendant.

(iv) The defendant is given a time of sixty days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to her. In case the Defendant fails to pay the dues within the above mentioned time, applicant Bank is entitled to recover its dues by sale of secured assets / properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immovable and also proceed against the Defendant personally to recover the dues, in accordance with law.

(v) Let the Certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final Order / Judgment for issuance of the same against the sole Defendant in favour of Applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from the Defendant, in accordance with law.

(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

**Accordingly, the Original Application, being T.A./88 of 2020 (arising out of O.A./352 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 13^th day of March, 2026.

Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

kkb