CANARA BANK vs GITA RAI on 8 May 2026

Order

0ffice action wi0r date and drhd Sfunatun of paflierllcn rEcessry

08.05.2026 Counsel for the parties: Mr. Subhadip Basu, Ld. Advocate representing Mr. Archa Dutt, Ld. Counsel for the applicant Bank. None for the defendant. I.A.|3IZ of 2O19 (arising out of O.A./309 ot 2O1B) allowed and disposed oi Final Order / Judgment is in s Fire be consigned to record .:T"t" sheet of 6 pages Order be uploaded on the Tribunal,s website. &' (Arbind Madhav) Presiding Officer DRT-2, Kotkata Order with Signature Central Bank of lndia

T.A./307 of2019 - DRT-2/Kot DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan Sudha Bldg. QTur Fbor,42tC, J.L. Nehru Road, Kolkata _7OOO71 Jayachamarajendra Road, Bengaluru _ 560002, and carrying on business, it's Behala Branch, g, Ramkrishna Sarani, Kolkata _ 700060. Before Shri Arbind Madhav. Presidino Officer T.A. No.307 of 2019 (arising out of O.A./309 of 2018) ln the matter of - Canara Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 112, inter-alia, at

Counsel for parties: For the Applicant Bank For the Defendant : Mr. Archan Duft and Mr. Subhadip Basu : Ex-Pafte ..... Applicant Bank -Versus- smt' Gita Rai, proprietress of M/s M.K. printing, 46/M, Lockgate Road, Kashipur, Chitpur, Kolkata - 7OOOO7. Defendant FINAL ORDER/J UDGMENT Delivered on 08.05.2026 Applicant, canara Bank instituted the present Apprication being the originar Application No.309 of 2018 fited in DRT-3, Korkata on 26.04.201g against single Defendant under section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.42,66,30s.00 (Rupees forty two rakh sixty six thousand three hundred five) inclusive of interest calculated upto 30.11.2017 and further interest @ 1 2.85% per annum compounded monthry f rom 01 .1 2.2017, tirl realization. subsequenfl y, 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/Kou2o18(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3,s order dated 21 .1o.2o1gand the same has been renumbered as T.A./307 of 201g vide Ld. Registrar's order dated 29.10.2019.

2. The brief facts of the case as set out by applicant Bank in its original Application, as under:

T.A./307 of 2019 - DRT-2/Kot

(i) The defendant is carrying on business under the name and styre of M/s M.K. Printing as a sore proprietress. The Defendant had appried to the appricant Bank for open cash credit facility of Rs.30.00 lakh vide loan application dated 02.07.201i;copy of loan apprication dated 02-07 -2015 is annexed and marked with Letter,A,. Upon consideration of loan application, appricant Bank was preased to grant / sanction open cash crecrit facirity to the extent of Rs.30,00,000/- (Rupees thirty lakh) in favour of the defendant vide sanction Memorandum dated o2.o7.2015. copy of sanction Memorandum dated 02.07.2015 is annexed and marked with Lefter ,B,.

(ii) ln consideration of the aforesaid occ facirity of Rs.30.00 rakh, the defendant executed the foilowing security documents ail dated 02.07.2015 in favour of appricant Bank:

(a) Request for Overdraft facility;

(b) Pro-note for Rs.30.00 takh;

(c) Cash Credit Agreement for Rs.30.00 lakh. copy of said documents are annexed and coilectivery marked with Letter,c'. By the said cash credit Agreement the borrower / defendant hypothecated stocks, i..e. Fabric, Dyes etc. book debts, outstanding monies, receivabres, craims, bils etc. both present and future in favour of appricant Bank by way of a first charge as security for the cash credit limit granted by the appricant Bank, particurars of which are annexed and marked with Letter'C-1,.

(iii) The defendant has 'Acknowledgement of Debt outstanding balance in roan Account for a sum of Rs.29,99,03 7 .26 wirhinterest @ 10.gio/o per annum compounded monthry; copy of said acknowredgement of debt & Iiabirity dated 26.08.2016 is annexed and marked with Letter,D,.

(iv) The Defendant had applied to the applicant Bank for enhancement of her credit facility from Rs.30.00 lakh to Rs.34.00 lakh vide loan application dated 30.0g.2016; copy of loan application dated 30.0g.20'16 is annexed and marked with Letter ,E,. upon consideration of loan application, applicant Bank was pleased to enhance / sanction the existing credit limit from Rs.30.00 lakh to Rs.34,00,000/- (Rupees thirty four lakh) in favour of the defendant vide sanction Memorandum dated 30.0g.2016. copy of sanction Memorandum dated 30.08.2016 is annexed and marked with Letter,F,.

(v) ln consideration of the aforesaid enhanced credit limit of Rs.34.00 lakh, the defendant executed the following security documents all dated 30.0g.20j6 in favour of applicant Bank:

(a) Pro-note for Rs.4.00 lakh;

(b) Link Letter in respect of enhancement of credit facility;

(c) Supplemental Agreement;

(d) Agreement-cum-Deed of Hypothecation; (e) Lefter of Renewal. acknowledged and Security' her debt & liabilities by executing dated 26.08.20't6 acknowledging the o

T.A./307 of 2019 _ DRT_2/Kot copy of said documents are annexed and corectivery marked with Letter,G,.

(vi) The defendant had applied to the applicant bank for Ad-hoc / enhancement of credit facility to the extent of Rs.6.00 lakh vide her letter dated 2g.09.2016; copy of said letter dated 28'09'2016 is annexed and marked with Letter 'H'. At the request of the defendant, applicant Bank was pleased to sanction Ad-hoc credit facility to the extent of Rs.6.00 lakh (Rupees six rakh) to the defendant with interes t @ 10.g50/o per annum compounded monthly.

(vii) rn consideration of the aforesaid Ad-hoc credit facirity of Rs.6.00 rakh, the defendant executed the following security documents all dated 2g.0g.2016 in favour of applicant Bank:

(a) Pro-note for Rs.6.00 lakh;

(b) Link Letter in respect of enhancement of credit facility;

(c) Supplemental Agreement. copy of said documents are annexed and coilectivery marked with Letter,r,. 3' The Defendant availed and enjoyed the said credit facilities by opening Account in Bank's Behara Branch, g, Ramkrishna sarani, Korkata - 700060. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the outstanding loan amount and overdue interests in loan Accounts. Since the defendant did not pay any attention to regularize the Accounts inspite of repeated requests and personal contact made by applicant Bank, the Accounts became out of order and was crassified as N.pA. on 29.0g.2017. rn view of the fairure on the part of the defendant to liquidate their dues, the applicant Bank was compelled issue notice dated 10'01'2018 upon the defendant through its Advocate demanding to repay the outstanding Bank's dues, but the defendant did not compry the said notice; copy of said notice dated 10.01.2018 is annexed and marked with Letter ,J,. certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been fired to show and prove the dues (Annexure ,K,), and further interest @ 12.85o/o per annum compounded monthly from 01 .12.2017, till realization, 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. lt is seen from the service report that service of Notice / summons upon the Defendant is not successful, such has been recorded vide Ld. Asstt. Registrar's order dated 07 .11 .2024. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summon upon the defendant by way of paper publication; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 28.10.2025 along with relevant portion of paper cuttings in two newspapers, namely (i)'The tndian Express, in English and (ii)'Baftaman'in Bengali, both dated 22.10.202s, such has been recorded ^vide Ld. Registrar's order No.18. Despite service, the sole defendant did not appear nor @

T.A./307 of 2019 _ DRT_ZKo| fired the written statement; thus, the defendant is hereby ordered to be proceeded ex_ parte' Ld' Advocate of the appricant Bank has submitted argument on 06.04.2026. 5' Appricant Bank has fired the evidence-on-affidavit affirmed by shantanu Das, Manager of Bank's Behara Branch, at g, Ramkrishna sarani, Korkata - 700060 arong with copy of originar documents executed by the Defendant. originar documents have been produced by appricant 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 shahab Aram, sr. Manager of Bank's Behara Branch, Korkata - 700060 0n 20.01.2020, such has been recorded in Ld. Registrar's order dated 20.01.2020. The documents produced by applicant Bank are exhibited and annexed at ,A_1 , to A_1 1,. r have heard the Ld. Advocate ofthe appricant Bank and perused the records. 6' Evidence-on-affidavit, fired by appricant Bank, has remained uncharenged, un- rebutted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the o.A Appricant Bank has proved the sanction of open cash credit facility of Rs.30.00 lakh vide sanction Memorandum dated 02.07.2015; enhancement of credit limit to Rs.34.00 rakh vide sanction Memorandum dated 30.0g.2016 ancr Ad_hoc credit facility of Rs.6.00 rakh vide sanction Memorandum dated 28.09.2016. Appricant Bank has proved the hypothecated movabre assets and one personar immovabre property, described in schedure at page 1g & 19 and para 3A at page 3 to 5 of the originar application.

7. on the point of rimitation, Loan has been sanctione d on o2.0r.2015, 30.08.2016 & 28'09.2016; security documents have been executed and derivered on 02.07.201s, 30.08.2016&28.09.2016,andoiiginarAppricationhasbeenfiredon26.04.20i8. Assuch, the original Application appears to have been filed well within the period of limitation. 8' Applicant Bank has stated that the outstanding balance in Loan Accounts (inclusive of accrued lnterest and other charges as carcurated upto 30..r1.2017) is Rs.42,66,305.00 (Rupees fofi two lakh sixty six thousand three hundred five) as on 30.11 .2012 ,which is the amount claimed by appricant Bank in the originar Apprication, and the defendant is liable to repay the said amountto the applicant Bank with pende nte tite andfuture interest, till realization. I allow the craim as made by appricant Bank in the originar Apprication. Applicant Bank has prayed further interest @ 12.gs% per annum compounded monthry trom 01.12.2017, titt realization, whire in pro-note dated 02.07.2015, 30.08.20i6 and 28.09.2016 the rate of interest @ 1o%, @ 10.gso/o and @ 10.g5% per annum respectively, have been mentioned. Therefore, in my view, the pendente /lfe & future rate of interest @ 10.5% per annum, with quarterly rests, trom 01.12.2017, is allowed.

9. The matter also falls within the tenitorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the o.A./T.A. The original application being T.A./307 of 2019 (arising out of o.A./309 of 2018) deserves to be altowed; hence allowed. o

T.A./307 of 2019 - DRT-2/Kot

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

ORDER

(i) T 'A'1307 0f 2019 (arising out of o.A./309 0f 2018), fired by appricant Bank, is arowed and debt is determined with cost against the sore Defendant. rt is hereby ordered that the Defendant is hereby directed to pay the totar debt amount of Rs.42,66,305.00 (Rupees forty two lakh sixty six thousand three hundred five) due and payabre, incrusive of interest and other charges as carcurated upto 30.1 1.2017; and interest for the period pendente tite and future rate @ 11.5o/o per annum, with quarterly rests, from 01.12.2017,ti|| realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in the roan account or amount, if any, recovered by appricant Bank after firing of original Apprication, the same may be taken into account whire arriving at the exact amount of dues/debt payabre by the Defendant. Accordingly, the pendente rite and future interest shail be carcurated on the reduced amount.

(iii) The defendant debarred from transferring, arienating, encumbering or disposing of the hypothecated movabre assets and personar immovabre property, described in schedule at page 18 & 1g and para 34 at page 3 to 5 ofthe originar apprication, as under- Hvoothecated Movable Assets ".Hyp.othecated security such as sfocks r.e. Fabic, Dyes, Book Debts, monies, receivables claims, bills receivables etc. both present and future.,, Personal lmmovable Prooertv '!l!llat Building on rand measuring 2 coftah at 46M, Lockgate Road, Korkata - 700002." The Defendant is also debarred from transferring, arienating, encumbering or disposing any other property(s) either movable or immovabre and assets beronging to her 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. ln case the Defendant fails to pay the dues within the above mentioned time, applicant Bank is entiled to recover its dues by sale of secured properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immoveable and also proceed against the sole 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 Defendant 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. -o

T.A./307 of 20't9 - ORT-2/Kot

(vi) Ld. Recovery officer sharr realize the amount as per the Recovery certificate from the sole Defendant, in accordance with law.

(vii) Ld. Registrar of this Tribunar is directed to prace Recovery certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1 993. Accordingry, the original Apprication, being T.AJ307 0f 201g (arising out of O.A.r309 of 2018) is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 08th day of May, 2026. copy of the Finar order / Judgment be uproaded in the Tribunal's website. #h Iu- th (Arbind Ma av) Presiding Officer DRT-2, Kolkata