CANARA BANK vs SELWELL PROTEIN FOOD PVT LTD on 6 May 2026

Order

Oflice action with date and dated Signature of parties when necessary

06.05 Order with Signature Counsel for the parties Mr. Subhadip Basu, Ld. Advocate for the applicant Bank. None for the defendants T.A.t444 ot 2O2O (arising out of O.A./934 of 2018) is allowed and disposed of. Final Order / Judgment is in separate sheet of 6 pages File be consigned to record room. Order be uploaded on the Tribunat,s website. ,'- e,- (Aibind Macthav) Presiding Ofiicer DRT-2, Kotkata f .A.1444 of 2020 - DRf -2Kot DEBTS RECOVERY TRIBUNAL .2, KOLKATA Jeevan Sudha Bldg., 07th Floor,42tC, J.L. Nehru Road, Kolkata _7OOO11 Before Shri Arbind Madhav. Presidinq Officer T.A. No. !,1Q, sf 2020 (arising out of O.A./934 ot 2018) ln the matter of canara Bank (erstwhire Syndicate Bank), a body corporate constituted under Banking companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head ofiice at 112' J.c. Road, Bengaruru - 560002, and carrying on Banking business, inter-aria, at its Barabazar Branch, Kaveri House, 13211,M.G. Road, p.s.- Jorasankoo, Korkata -7oooo7, West Bengal. Applicant Bank -Versus- selwell Protein Food pvt. Ltd., Address: Tl2or2Bt1lgrl, canar west Road, Korkata

- 700006; and also at 70, Balram Dev Street, Kolkata _ 700006. Rahul Burman, Director of serweil protein Food pvt. Lrd.,Tt2ot2BtH/3/1 canar west Road, Kolkata - 700006; and also at 70, Balram Dev sheet, Korkata - 700006; and residing at Diamond city (North), 2E, Btock-22, Jessore Road, Kolkata - 7ooos5. Rohit Burman, Director of selwell protein Food pvt. Ltd., Tl2ol2BlHlgtl canal west Road, Kolkata - 700006; and also at 70, Balram Dev street, Kolkata - 700006; and residing at Diamond city (North), 2E, Btock-22, Jessore Road, Kotkata - 7oooss. . Defendants I

Counsel for parties: For the Applicant Bank For the Defendants : Mr. Archan Dutt and Mr. Subhadip Basu : Ex-Pafte FINAL ORDER / JUDGMENT Delivered on 06.05.2026 Applicant (Canara Bank) erstwhile Syndicate Bank instituted the present Application being the original Application No.934 ot 2o1g fited in DRT-3, Kotkata on 17 .11.201g against three Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.s4,s5,824.40 (Rupees fifty four lakh fifty five thousand five hundred twenty four and paise fofi) as on 29.10.201g together with further interest @ 17.55o/o per annum, with monthly rests thereon from 30.10.201g, 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/KOu2o1g(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kotkata DRT-3,s order dated 15.11.2019 and the same has been renumbered asT.A.t444 ot 2o2o vide Ld. Registra/s order dated 02.07.2020.

T.4.1444 ol 2020 - ORT -Z/Kot syndicate Bank has been merged / amargamated into canara Bank vide Gazette Notification dated March 04,2020, issued by the Government of rndia pubrished under Extraordinary Part-ll, Section 3, sub-section (i) in the Gazette of lndia in terms of Section 9 of the Banking companies (Acquisition and rransfer of Undertaking) Act, 1970. rn view of the merger / amargamation of syndicate Bank into canara Bank, the appricant name in this case should be read / inserted as canara Bank instead of syndicate Bank.

3. ln accordance with the Notice dated so.o7.2o2o of this Tribunal, Ld. Advocate for canara Bank has fired a petition being r.A./2gg ot 2o2o dated o1.12.2020 praying for amendment of cause Tifle in view of amalgamation of syndicate Bank with canara Bank vide G.o.l. Notification dated 04.03.2020; and in accordance with the direction of the Tribunal necessary amendment in cause tifle has been carried out by Ld. Advocate of the applicant Bank on 17.12.2020, such has been recorded in Ld. Registrar,s order dated 17.12.2020.

The brief fucts of the case as set out by the Appricant Bank in its originarApprication, as under:

(i) The defendant No.1 is engaged in manufacturing business of milk products and has vailed overdraft facility from the applicant Bank. The defendants No.2 & 3 are the directors of the defendant No.1 company. The defendant No.2, one smt. suman Burman (since deceased) furnished her personar guarantee to secure the credit facirity avaired by defendant No.1. During the continuation of said credit facility, smt. suman Burman died leaving behind the defendants No.2 & 3 as her legal heirs and successors. Hence, the defendant No.3 is impleaded in this proceeding as legal heir of said Suman Burman; hence, the defendant No.3 is liable to pay the outstanding loan amount to the applicant Bank. The defendants No.2 & 3 inherited the movable and immovable properties as well as the other assets left out by said Suman Burman (since deceased).

(ii) The defendant No.1 through its Directors, the defendants No.2 and said suman Burman (since deceased) approached the applicant bank for overdraft facility by an application dated 14.08.2014. copy of loan application dated 14.0g.2014 and particulars of assets and liabilities of defendants are annexed and collectively marked with Lefter ,A- 1'. upon consideration of loan application, applicant Bank was pleased to grant / sanction an overdraft facility for a sum of Rs.50,00,000/- (Rupees fifty lakh) in favour of the defendant No.1 vide Lefter of sanction dated 31.10.201s towards the working capital requirement against hypothecation of entire stock and receivables, current & future assets of the company. copy of sanction letter dated 31.10.201s is annexed and marked with Letter 'A-2', and terms and conditions of the sanction duly acknowledged by the defendants.

(iii) ln consideration of the said sanction of Rs.50.00 lakhs, the defendant No.2, said Suman Burman (since deceased) deposited, executed and delivered the following security documents in favour of applicant Bank:

T.4.1444 of 2020 - DRT-2tKot

(a) Extracts from the minutes of meeting of Board of Directors of defendant No.1 dated 03.11.201S;

(b) A Power of Aftorney for collection of bills, book debts and other receivables dated 03.1 1 .2015 executed by defendant No.1 ;

(c) Composite Hypothecation Agreement dated 19.1 1.20i 5; (d) Guarantee Agreement dated 19.1 1 .2015 executed by defendant No.2; (e) Guarantee Agreement dated 1g.11.201s executed by suman Burman (since deceased). copy of said documents are annexed and marked as Annexures ,A-3, to ,A-7, respectively.

5. The Defendants enjoyed the said credit facility by opening Account in erstwhile Bank'sBarabazarBranch, 1g2t1,M.G.Road,Kolkata-7oooo7. However,thedefendants failed and neglected to abide by the terms and conditions of the facility. The Defendants did not repay the outstanding Bank's dues and overdue interests in loan Account. lnspite of repeated requests made by applicant Bank, the defendants failed to regularize the loan Account. since the defendants did not pay any attention to regularize the Account, the Account became out of order and classified as N.pA. on 27.0g.201g. ln view of such irregularities and defaults committed by the defendants despite repeated requests and demands, the applicant bank was compelled to issue / serve the demand / recall Notices dated 26.10.2017,27.11.2011, oz.os.2o1} & 01.10.2018 upon the defendants requesting them to regularize the account, but the defendants did not choose to regularize the Account; copy of said notices are annexed and marked with letter ,A-g,. Thereafter, the applicant bank served the legal demand notice dated 22.10.201g and 12.11.201g upon the defendants through its Advocate demanding to pay the outstanding dues amount of Rs.54'20'564.40 together with interest thereon from 01.10.2018, but the defendants did not comply with the said notice; copy of said legal demand notices dated 22.10.201g and 12.11 .2018 alongwith postal receipts are annexed and collectively marked with letter ,A-9,. 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 'A-10' & 'A-11'), and interim interest, and interest on judgment @ 17.s5o/o per annum with monthly rests on and from 30.10.2018, till realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The notice / summons was sent to the Defendants No.'l , 2 & 3 by the Tribunal. lt is observed from s/R on afiidavit daled 27.08.2022 & 02.11.2022 and its enclosures that service of Notice / summons upon the Defendants by postal service and/or hand delivery are not successfully efiected, such has been recorded vide Ld. Registrar's order dated 29.08.2022 and 09.11.2022 respectively. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summons upon the defendants No.1 to 3 by way of paper publication; and Ld. Advocate of applicant Bank has brought on record the affidavit of service on publication daled 12.12.2022 along with relevant portion of paper cuttings in

T .A.l4M ot 2020 - DRJ-2lKot two newspapers, namely (i) 'The Eco of tndia'in English and (ii) ,Janasafta, in Hindi, both dated 11.12-2022, such has been recorded vide Ld. Regiskar's order dated 14.12.2022. lt is also observed from annexures of the s/R on afiidavit dated 10.01.2023 that the publication has also made in 'The tndian Express'in English and,Jugashankho, in Bengali daily both dated 08.01.2023. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceed ed ex-pafte vide order dated o8'o7.2024. Applicant Bank has filed the written notes of argument on dated 01'04'2026 thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on 01 .04.2026. 7' Applicant Bank has filed the evidence-on-Affidavit affirmed by Anil Kumar Singh, Branch Manager of erstwhire Bank's Barabazar Branch, 1g2t1, M.G. Road, Korkata _ 700007 along with the copies of original documents executed by the Defendants. original documents have been produced by applicant Bank; the same have been verified with copies of documents annexed with o.A. and the original documents have been returned to sri Rwittick Dutta, Manager of Bank's Barabazar Branch, 1g2t1, M.G. Road, Korkata on 22'06.2022. such has been recorded vide Ld. Registrar's order dated 22.06.2022. The documents produced by applicant Bank are exhibited and annexed at ,A_1,to ,A_1 1,. I have heard the Ld. Advocate for the appricant Bank and perused the records. 8' Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, un+ebufted 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 overdraft facitity to the limit of Rs.50.00 lakhs vide letter of sanction dated 31.10.2015. Applicant Bank has proved the hypothecated movable assets, described in 'schedule of Securities, at page 2g and para 3A at page 7 to 9 of the original application.

9. On the point of limitation, Loan has been sanctioned on 3,l.10.2015; documents have been executed on 03.11.2015 & '19.11.2015; original Application has been filed on 17.11.2018. As such, the original Application appears to have been filed well within the period of limitation. 10' Applicant Bank has stated that the outstanding balance in loan Account (inclusive of accrued interest and other charges as calculated upto 2g.10.201g) for a sum of Rs'54'55'524.40 (Rupees fifty four lakh fifty five thousand five hundred twenty four and paise forty) as on29.10.2Q18, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1, 2 & 3 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with pendente lite and future interest, till realization. I allow the claim as made by applicant Bank in the original Application. Applicant Bank has prayed further interest, interim interest and interest on judgment @ 17 .55o/o per annum with monthly rests on and from 30.10.2018, till realization, while in Sanction Letter dated 31.10.2015 the rate of interest @ 10.95o/o per annum, has been mentioned. Therefore, the pendente /te & future rate of interest @ 10.95o/o per annum, with quarterly rests, from z1-0.1 0.20 1 8, is allowed.

J.A.1444 of 2O2O - DRf -2Kot

11. Upon perusar on records, it is observed that the defendant No.1 through its Directors, the defendant No.2 and one smt. suman Burman (since deceased) had approached the applicant Bank for credit accommodation vide loan application. During the continuation of aforesaid credit facility, the said smt. Suman Burman died leaving behind the defendants No.2 & 3 as her legal heirs and successors. lt is evident that the defendant No.2, Rahul Burman has signed and executed the composite Hypothecation Agreement and Guarantee Agreement on dated 1g.11.201s; and smt. suman Burman (since deceased) has signed and executed the Guarantee Agreement on dated 1g.1r.2015 in favour of applicant Bank. Arso, smt. suman Burman (since deceased) and the defendant No.2 (Rahul Burman) have signed and executed the Minutes of the meeting of Board of Directors of the borrower company. since smt. suman Burman (since deceased) Director of Defendant No.1, i.e. setwett protein Food Att. Lfd has expired, and the applicant Bank has filed the original application against (a) setwell protein Food pvt. Ltd. (b) Rahul Burman and (c) Rohit Burman [hereinafter referred to as defendants No.1, 2 & 3 respectively]; hence, the liability of legal heirs of Late suman Burman is only to the extent of the property(s) inherited by them from smt. suman Burman (since deceased), Director of defendant No.1 and guarantor. Though it is fact that the defendant No.3 had not applied for credit facility and has not been signed and executed the Guarantee Agreement or any other loan / security documents for the loan availed by smt. Suman Burman (since deceased) and Rahul Burman, but the estate of Late smt. suman Burman which will devolve upon the defendant No.3, will be liable for the loan of smt. Suman Burman (since deceased), as the defendant No.3 is impleaded in this proceeding as legal heir of said smt. Suman Burman (since deceased). Hence, the liability of Defendant No.3 is restricted to the extent of assets inherited by him from smt. suman Burman (since deceased), Director of defendant No.1 and guarantor. 12- The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. Applicant Bank has proved its claim made in the o.A. The original application being T.A./444 ot 2020 (arising out of o.A./934 of 2019) deserves to be allowed; hence allowed.

13. ln view of the above, I pass the following order

ORDER

(l T.A.1444 ol 2020 (arising out of O.A./934 of 2018), fited by appticant Bank, is allowed and debt is determined with cost against the Defendants No.1, 2 & 3. lt is hereby ordered that the Defendants No.1, 2 & 3 are hereby directed to pay, joinfly and I or severally the total debt amount of Rs.54,55,524.40 (Rupees fifty four lakh fifty five thousand five hundred twenty four and paise forty) due and payable, inclusive of interest and other charges as calculated upto 29.10.2018; and interest for the period pendente lite and future rate @ 10.95o/o per annum, with quarterly rests from 30.10.2018, till realization of the entire sum due and recoverable.

f .4.1444 of 2020 - ORr-2lKot

(ii) Amount, if any, paid by the Defendants in the roan account or amount, if any, recovered by the appricant Bank after filing of the original apprication, the same may be taken into account whire aniving at the exact amount of dues/debt payabre by the Defendants No.1 to 3. Accordingly, the pendente titeand future interest shall be calculated on the reduced amount.

(iii) The defendants No.1, 2 & 3 are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets, described in 'schedule of Securities' at page 29 and para 34 at page 7 to g of the original application: H oth Mova Ass "All rhat stocks of Milk products, Book Debts, all cunent assets present and future, plant and machineries etc. tying in the place of businesses of lhe defentdant No.1 at 120/28/11/3/1, canar west Road, Kotkata - 700006 and other praces.,, The liability of Defendant No.3 is restricted to the extent of assets inherited by him from smt. suman Burman (since deceased), Director of defendant No.1 and guarantor. The Defendants are also debarred from transferring, alienating, encumbering or disposing of any other property(s) either movable or immovable and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants.

(iv) The defendants No.1 , 2 & 3 are given a time of sixty days from the date of this Final order / Judgment for repayment of the above mentioned dues, so intimated to them. ln case the Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured property(s), as aforesaid. Applicant Bank is also entitled to proceed against personal property(s) of defendants No.1 & 2 both moveable and immoveable, 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 Defendants No.1, 2 & 3 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 Defendants No.1, 2 & 3, 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./444 ot 2O2O (arising out of 0.4.1934 ot 2018) is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 06th day of May,2026. Copy of the Final Order / Judgment be uploaded in the Tribunal's Website. A,Lk,! Nf) L. , (Arbind Madh Presiding Ofiicer DRT-2, Kolkata tb