Canara Bank vs KHEMA OIL ENGINES PVT LTD AND ORS on 6 May 2026

Order

06.0s.202 Office action with date and dated Signature of parties when necessary Order with Signature ) Counsel for the parties: Mr. Subhadip Basu, Ld. Advocate for the applicant Bank None for the defendants. T.A./330 of 2019 (arising out of O.A./108 of 2018) is allowed and disposed of Final Order / Judgment is in separate sheet of 7 pages File be consigned to record room. Order be uploaded on the Tribunal,s website.z: (Arbind Madhav) Presiding Ofiicer DRT-2, Kotkata

,| T.A./330 of 2019 - ORT-2yKo| DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan sudha Brdg., 07rh Froor,42rc,J.L. Nehru Road, Korkata -Tooo71 Before Shri Arbind Madhav Presidin officer IA o.3 of 2019 arising out of O.A./108 ot ZOt A1 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-atia, atits Burrabazar-ll Branch, Kaveri House, 13211, M.G 700007 , West Bengat. Road, P.S.- Jorasanko, Kolkata _

.......... Applicant Bank -Versus- Khema Oil Engines pvt. Ltd., graving its registered address at 13g, B.R.B. Basu Road, Kolkata - 7OOOO1, and also having its shop and godown at 35, N.S. Road, Kolkata - 700001. Mr. Bhaven Kamdar, son of Sri Bhupendra Kamdar, residing al 13t3, Ballygunge Circular Road, Kolkata - 7OOO19 Mr' Bhupendra Kamdar, son of Late pranrar Kamdar, residing ar 13t3, Baflygunge Circular Road, Kolkata - 7OOO19. Defendants

Counsel for parties: For the Applicant Bank For the Defendants : Mr. Archan Dutt and Mr. Subhadip Basu : E. Pafte FI L ORDER / JUDGMENT Delivered on 06.05.2026 Applicant (Canara Bank) erstwhile Syndicate Bank instituted the present Application being the original Application No.108 of 2018 fited in DRT-3, Kotkata on 12.02.201g against three Defendants under section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.3,25,09,720.01 (Rupees three crore twenty five lakh nine thousand seven hundred twenty and paise one) interest as calculated upto 31.12.2017 together with interim interest and interest on judgment @ 1g.35o/o per annum trom 01.01.2018 compounded at monl tly rests, until realization. subsequenfly, 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/KOU2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 17 .10.2019 and the same has been renumbered as T.A./330 of 2019 vide Ld. Registrar's order dated 29.10.20,19. @

T.A./330 of 2019 - DRT-ZKot 2' syndicate Bank has been merged / amalgamated 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 shourd be read / inserted as canara Bank instead of syndicate Bank.

3. ln accordance with the Notice dated 30.07.2020 of this Tribunar, Ld. Advocate for canara Bank has fired a petition being r.4./286 of 2o2o dated 01.12.2020 praying for amendment of cause Tifle in view of nmargamation 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.

4. The brief facts of the case as set out by appricant Bank in its originar Application, as under:

(i) The defendant No.1 is the borrower and the defendants No.2 & 3 are the directors of the defendant No.1. That one sri Bhaven Kamdar carried on business in the name of Techno engineering company as its sore proprietor. That whire enjoying the credit facilities, the Techno Engineering co. by a letter dated 27.0g.2007 informed the applicant Bank that the proprietorship concern rechno Engineering company has been taken over by the newly incorporated pvt. Ltd. company, i.e. M/s Khema oil Engines (p) Ltd. wth effect from 01.09.2007 . copy of the letter daled 27 .09.2007 of the Techno Engineering co. signed by proprietor, Bhaven Kamdar is annexed and marked as Annexure ,A-1,. The Board of Directors of the Khema oil Engines pvt. Ltd., the defendant No.1 herein by a Board Resolution dated 16.07.2007 resolved to take over the assets and liabilities of the proprietorship concern Techno Engineering co. with effect from 01.og.2oo7. copy of the extract of he Board Resolution dated 16.01.2007 is annexed and marked as Annexure ,A- 2'. The Memorandum and Articles of Association of the defendant No.1 is marked and Annexed as Annexure'A-3'. on receipt of the letters daled 27.09.2007 and Board Resolution dated 16.07.2007, the apJ licant Bank permitted to take over the limit to M/s Techno Engineering company by M/s Khema oil engines pvt. Ltd. and ordered that fresh limit be sanctioned in the name of the company with the initial drawing power of Rs.s0.00 lakh. Copy of the office note of the Bank is annexed and marked as Annexure ,A-4'.

(ii) on request of the defendant No.1 , applicant Bank was pleased to grant / sanction cash credit Loan (SODH) of Rs.90,00,000/- (Rupees ninety lakh) in favour of the defendant No.1 vide Sanction Letter dated 11.10.2007. At the relevant point of time, the rate of interest was @ 15o/o per annum. The primary security of the said facility was the hypothecation of stocks and book debts, and collateral security is a "Shop' at Bhowanipur in the name of Bhaven Kamdar. Copy of sanction letter dated 11.10.2007 is annexed and marked as Annexure 'A-5'. The Board of Directors of the defendant No.1 by a Board a

T.A./330 of 2019 _ ORT_ZKo| resolution dated 12.1o-2007 has accepted the sanction terms and resolved. Extract of the Board of Resorution dated 12.10.200r is annexed and marked as Annexure ,4_6,..

(iii) ln consideration of the said sanction of Rs.90.00 rakhs, the defendants executed and delivered the foilowing security dccuments ail dated 1s.1o.2oor in favour of appricant Bank:

(a) A request retter for opening of a cash credit rimit of rs..g0.00 rakh; (b) A composite hypothecation agreement for Rs.90.00 lakh;

(c) Guarantee Agreement executed by defendant No.2; (d) Guarantee Agreement executed by defendant No.3; (e) A demand promissory note. copy of said documents are annexed and marked as Annexures A-7,, ,A-g,, ,A-g,, 'A-10' & 'A-1 1' respectivery. The charge has been dury registered with the Registrar of Companies.

(iv) To secure the aforesaid credit facility of Rs.90.00 lakh, the defendant No.2 by a letter dated 15. 10.2007 created equitable mortgage in respect of immovabre property, morefully described in retter handing over tifle deed of property and confirmation of deposit of tifle deed at page 94 to 97 in annexure 'A-12' & 'A-13'of the originar apprication, by deposit of Title Deed being No.03563 for the year 2007 with the appricant Bank. copies of the retter handing over the Tifle Deed(s), confirmation of deposit of rifle Deed dated .15.10.2007 and extract of the equitabre Mortgage Register is annexed and marked as Annexure .A_12,,,A_ 13' and 'A-13/1' respectively. lt is pertinent to mention that the tifle deed No.03563 for the year 2007 is not being annexed with o.A. as the property is sold under sarfaesi proceeding and the sale consideration is credited to the loan account towards part satisfaction of the debt due and the original deed is handed over to the purchaser.

(v) After availing the loan the defendant No.1 irregularly submitted the stock statements. The stock statements dated 1b.10.2007 and 31.0g.200g are annexed and marked as Annexure'A-14' &'A-15'.

(vi) The defendant No.1 availed the cash credit limit but failed and neglected in making repayment. Applicant Bank by its letter dated24.10.200g requested the defendant No.1 for regularizing the account and to submit the renewal application; copy of the letter dated 24.10.2008 is annexed and marked as Annexure '4-16'. The defendant No.1 by a letter daled 24.03.2009 requested the applicant Bank to restructure the cash credit Account into a Term Loan to be repaid in 72 months with a repayment holiday of 24 months; copy of request letter dated 24.03.2009 is annexed and marked as Annexure A-17'.

(vii) considering the said request, applicant Bank was pleased to restructure the then outstanding of Rs.96,'12,684.18 into a Term Loan to be repaid in 72 EMls inclusive of repayment holiday of 24 months. copy of the process note containing the sanction for rephasement is annexed and marked as Annexure'A-18'. pursuant to the said sanction, the defendants executed a rephasement agreement dated 25.03.2009; copy of the said agreement is annexed and marked as Annexure 'A-19'. ln consideration of the said a

o ,.4./330 of 2019 - DRT-2/Kor restructuring, the defendant No.1 executed a money receipt for a sum of Rs.g6,12,6g4.1g as on 25.03.2009; copy of the money receipt is annexed and marked as Annexure ,A_20,.

(viii) The defendants have acknowledged and admifted the loan from time to time by executing a Acknowredgement of Debt dated 20.03.2012 and 12.o2.2o1sacknowredging the outstanding balance in loan Account(s); copy of which are annexed and marked as Annexure, A-21' and, A_22'. 5' The Defendants enjoyed the said credit facility by opening Account in erstwhile Bank's Barabazar Branch, 13211,M.G. Road, Korkata - Toooor. However, the defendants failed and neglected to abide by the krrms 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 crassified as N.pA. on 30.06.2011. rn view of such irregularities and defaults committed by the defendants despite repeated requests and demands, the applicant bank has initiated action under Sarfaesi Act, 2002 and sold the mortgaged property(s) for a sum of Rs.46,05,000/- in favour of Mr. Subhajit Roy and Mrs. Rakhee Roy and the certificate of sale was issued on 13.03.201? and was registered. The sare proceeds have been credited to the term roan Account of the defendant No.1 . copy o't 13(2) notice and the copy of certificate for sale dated 13.03.2013 are annexed and marked as Annexure 'A-23' & 'A-24'. Thereafter, the appricant bank served notice on dated 03.11-2017 upon the defendants through its Advocate cailing upon them to pay the outstanding dues amount, but the defendants did not compry with the said notice; copy of notice dated 03.11.2017 with postal registration slips are annexed and marked asAnnexure 'A-25' & 'A-2511'. 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-26','A-26t1' &'A-zl,), and interim interest, and interest onjudgment@ 18.35o/o perannumcompoundedatmonthlyrestsonandfrom 01 .01 .201g, until realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The notice / summons was senl to the Defendants No.1, 2 &3by the Tribunal. lt is observed from S/R on affidavit dated 07.08.2023 and its enclosures that service of Notice / summons upon the Defendants is not successfully effected, such has been recorded vide Ld. Registrar's order dated 08.08.2023. 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 dated 26.02.2024 along with relevant portion of paper cuttings in two newspapers, namely (i) 'The rrmes of lndia'in English and (ri)'Dainik sfafesman'in Bengali, both dated 18.01 .2024, such has been recorded vide Ld. Registrar's order dated

01. M.2024. 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 a'

T.4./330 of 2019 - DRT-2/Kot 11 .07.2024. Appricant Bank has fired the written notes of argument on dated 30.03.2026 thereby stated the brief facts of the case as has been narrated in the originar apprication. Ld. Advocate of the applicant Bank has submitted argument on 30.03.2026.

7. Applicant Bank has fired the evidence-on-Affidavit affirmed by sri Mainak Sarkar, Branch Manager of erstwhire Bank's Burrabazar Branch, 1g2t1, M.G. Road, Korkata _ 700007 along with the copies of original documents executed by the Defendants. originar documents have been produced by applicant Bank; the same have been verified with copies of documents annexed with o.A. and the originar documents have been returned to the Manager of Bank's Burrabazar Branch, Kolkata - Tooooz on 20.02.2019, such has been recorded vide Ld. Registrar, DRT-3,s order dated 20.11.201g & 20.02.2019. The documents produced by applicant Bank are exhibited and annexed at,A_1, lo ,A_27, . r have heard the Ld. Advocate forthe appricant Bank and perused the records. 8' Evidence-on-affidavit, fired by appricant Bank, has remained unchaflenged, un-rebufted and its veracity cannot be put to dispute. Appricant Bank has corroborated the averments made in the o.A. Appricant Bank has proved the sanction of the cash credit Loan (soDH) limit of Rs.90.00 rakhs vide sanction retter dated 11.10.2007. Appricant Bank has proved the hypothecated movabre assets, described at page g and para ilr.A at page 4 & 5 ofthe original application.

9. on the point of rimitation, Loan has been sanctioned on 11..10.2007; documents have been executed on 15.10.2007; originalApplication has been filed on 12.02.201g. the defendants have acknowredged the roan from time to time by executing the Acknowledgement of Debt dated 20.03.2012 and 12.02.2015 in favour of appricant Bank acknowledging the outstanding barance in roan Account(s). As such, the originar Application appears to have been filed well within the period of limitation. 10' Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued interest and other charges as calculated upto 31 .12.2017) for a sum of Rs.3,25,09,720.01 (Rupees three crore twenty five lakh nine thousand seven hundred twenty and paise one) as on 31.12.2017, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1, 2 & 3 are, joinfly and/or severally, liable to repay the said amount to the applicant Bank with pendente /lfe and future interest, till realization. I allow the claim as made by applicant Bank in the original Application. Applicant Bank has prayed interim interest and interest on judgment @ 1g.3s% per annum compounded at monthly rests on and from 01.01.201g, until realization, while in Demand Promissory Note dated 15.10.2007 the rate of interest @ 1so/o per annum, being 2% over and above the Bank's BPLR, has been mentioned. Therefore, the pendente /lfe & future rate of interest @ 13Yo per annum, with quarterly rests, from 01.01.2019, is allowed. 11, 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./330 of 2019 (arising out of o.A./108 ot 2018) deserves to be allowed; hence allowed. ^o'

o T.A./330 of 2019 - DRT-2/Kot

12. ln view of the above, I pass the following order:

ORDER

(i) T.A./330 0f 2019 (arising out of o.A./108 0f 2018), fired by appricant Bank, is arowed and debt is determined with cost against the Defendants No.1 , 2 & 3. rt is hereby ordered that the Defendants No.1, 2 & 3 are hereby directed to pay, jointry and r or severa[y the totar debt amount of Rs.3,25,09,720.01(Rupees three crore twenty five rakh nine thousand seven hundred twenty and paise one) due and payable, inclusive of interest and other charges as carcurated upto 31.12.2017; and interest for the period pendente tite and future tale @ 13o/o per annum, with quarterly rests ftom 01.O'1.201g, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the roan account or amount, if any, recovered by the appricant Bank after firing of the originar apprication, the same may be taken into account whire arriving 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 debaned from transferring, arienating, encumbering or disposing of the hypothecated movabre assets, described at page 8 and para ilr.A at page 4 & 5 of the original application: HvoothecatedMovable Assets: "Hypothecation of stocks and book debts.,, The Defendants are arso debarred from transferring, arienating, 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 properties of the Defendants No.1 , 2 & 3 both moveable and immoveable and also proceed against the Defendants No.2 & 3 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 Defendants No.1, 2 & 3 in favour of applicant Bank under section 19(22) ot 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. a

T.A./330 of 2019 - DRT-ZKo|

(vii) Ld' Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) ot lhe Act of 1993. Accordingly, the origina! Application, being T.A./330 0f 201g (arising out of O.A./108 of 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 TribuI nal's Web 4rr" site. r\,)L,- tb ,9 (A ind adhav) Presiding Ofiicer DRT-2, Kolkata