BANK OF INDIA vs FARHAT JAHAN on 21 May 2026

Order

Office action rvith date and dahd S(lnature of perties uhen lFO$Silry

21.05.2026 Counsel for the parties: Ms. Anindita Das, Ld. Counsel with Ms. Mayu Chakraborty, Ld. Advocate for the applicant Bank. None for the defendant. T.A.l89 ot 2020 (arising out of O.A./3S3 of 2018) is aflowed and disposed of. Final Order / Judgment is in separate sheet of 6 pages. File be consigned to record room. Order be uploaded on the Tribunal's website. ffi*n,", Presiding Officer DRT-2, Kolkata Order with Signature

DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan Sudha Bldg. 07th Floor,42tC, J.L. Nehru Road, Kolkata _7OOO71 B re Shri rbind dhav P idin fficer T.A. No. 89 ot 2020 (arising out of O.A./353 of 2018) !n the matter of Bank of lndia, a body corporate duly constituted under the Banking companies (Acquisition and rransfer of Undertakings) Act, 1970, having Head office at ,star House,, Plot No.c-S, G-Block, Bandra-Kurla complex, Bandra (East), Mumbai - 400051, and carrying on business, inter-alia, from its c.l.T. New Road Branch, situated al p-12, Scheme No.52, C.l.T. New Road, pS.- Entally, Kolkata _700014. Applicant Bank -Versus- Farhat Jahan, Daughter of sayed Abdul Moquim, proprietress of M/s Aney Auto spares, having place of business at r86/2c, Topsia Road (south), Korkata - 700046, and residing at 11, Kustia Road, Kolkata Municipal corporation, Tiljala, south 24- Parganas, Pin - 700039. Defendant

Counsel for parties: For the Applicant Bank For the Defendant : Ms. Anindita Das : Ex-Parte FINAL ORDER / JUDGMENT Delivered on 21.05.2026 Applicant, Bank of lndia instituted the present Application being the original Application No.353 of 2018 on 14.05.2018 against single Defendant under Section 19(1) of the Recovery of Debts & BankruptcyAct, 1993 (amended from time to time) for recovery of Rs.51,50,844.00 (Rupees fifty one lakh fifty thousand eight hundred forty four) inclusive of interest calculated upto 15.03.2018 with further interest @ 1g.4so/o per annum from 16.03.2018 with monthly rests, till realization, interim interest and interest on judgment. 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/KOU2018(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./89 ol 2020 vide Ld. Registrar's oider dated 06.11.2019.

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

(i) The Defendant is carrying on business of manufacturing and sale of automobile parts as the Proprietor of M/s Aney Auto spares. The defendant had approached the applicant Bank for financial assistance towards working capital finance of her business. Upon consideration of loan Application, applicant Bank was pleased to grant / sanction a cash credit limit of Rs.30,00,000/- (Rupees thirty lakh) to the defendant vide sanction letter dated 21.09.2012. The defendant has acknowledged receipt of said sanction letter and conveyed acceptance of the terms and condition of said sanction. Copy of sanction letter dated 21.09.2012 is annexed and marked as Annexure ,A,.

(ii) ln consideration of sanction of said credit facility of Rs.30.00 lakh, the defendant duly executed the following loan / security documents all dated 21.0g.2012 in favour of applicant Bank, as under:

(a) Demand Promissory Note (L-434) for a sum of Rs.30,00,000/- along with interest thereon @ 13.50o/o per annum with monthly rests; (b) Loan Bearer Letter (1435);

(c) Lefter of continuity (L-516), inter-atia, declaring the D.p. Note to be the continuing security and enforceable for all money due and payable by the defendant to the applicant Bank; (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 ,8,, .C,, ,D', ,E, & ,F, respectively.

(iii) ln consideration of sanction of the cash credit limit of Rs.25.00 lacs, the defendant executed a Hypothecation-cum-Loan Agreement dated 21 .09.20 12 in favour of applicant Bank. The defendant by executing the said Agreement has been agreed to abide by several terms and condition including repayment schedule, as mentioned in schedule of the Agreement. copy of said Hypothecation-cum-Loan Agreement dated 21.09.2012 is annexed and marked as Annexure 'G'.

(v) Again, the defendant had approached the applicant Bank for enhancement of existing cash credit limit from Rs.30.00 lakh to Rs.48,00,ooo/- by application dated 20.05.2013. At the request of the defendant, applicant Bank was pleased to enhance / sanction the existing cash credit limit from Rs.30.00 lakh to Rs.48,00,000.00 (Rupees forty eight lakh). copy of loan application dated 20.05.2013 and sanction lefter are annexed and collectively marked as annexure 'H'.

(vi) ln consideration of sanction of the enhanced credit facility of Rs.48.00 lakh, the defendant duly executed the following loan / security documents all dated 20.05.2013 in favour of applicant Bank, as under:

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(a) Demand Promissory Note (L434) for the additional limit of Rs.18,00,000/_ atong with interest thereon @ 13.75o/o per annum with monthly rests; (b) Loan Bearer Letter (La3S);

(c) Letter of Continuity (L-516), inter-alia, declaring the D.p. Note to be the continuing security and enforceabre for ail money due and payabre by the defendant to the applicant Bank; (d) Supplemental Hypothecation Agreement to secure additional Cash Credit facility. copy of said documents are annexed and marked as Annexure ,r,, ,J,, ,K, & ,L' respectively.

(vii) The defendant has acknowledged his debt & liability by executing Letters in Acknowledgement of debt / securities (L444 c) confirming correctness of outstanding amount of Rs.13,50,980.48 as on 20.05.2013 together with further interest due and payable by the defendant and confirming correctness of outstanding amount of Rs.48,54,803.17 as on 17.0s.2016 together with further interest due and payable by the defendant. copy of Lefters of acknowledgement of debt & security dated 20.05.2013 & 17.05.2016 are annexed and collectively marked as Annexure ,M'.

3. The Defendant enjoyed the aforesaid credit facility by opening Account(s) in Bank's c.l.T. New Road Branch, P-12, scheme No.52, Korkata - zooo14. 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. lnspite 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. considering the default in repayment of outstanding loan amount inspite of repeated requests, applicant bank was compelled to issue demand notice dated 30.04.2018 upon the defendant through its Ld. Advocate demanding to repay the Bank's dues for a sum of Rs.s1,so,B44l- inclusive of interest as on 15.03.2018 together with further interest @ 13.4s% per annum from 16.03.201g, till realization, but the defendant did not comply the said notice; copy of said demand notice dated 30.04.2018 is annexed and marked asAnnexure'N'. 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'O'), and further interest @ 13.45o/o per annum with monthly rests from 16.03.2018, till realization, interim interest, and interest on judgment, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation. ,6

4. The notice / summons was sent to the Defendant by the Tribunal. lt is seen from the S/R on afiidavit dated 24.01.2024 and its enclosure that service of Notice / summons upon the Defendant by postal service is not successfully effected, such has been recorded vide Ld. Registrar's order dated 2s.01.2o24. 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 of the applicant Bank has brought on record the affidavit of service on publication dated 31.01 .2025 along with relevant portion of paper cuttings in two newspapers, namely (i)'The lndian Express' in English and (ii),Aajkal'in Bengali, both dated 28.01.2025, such has been recorded vide Ld. Registrar,s order dated 10.06.2025. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded ex-pafte vide order dated 17.03.2026. Ld. Advocate of the applicant Bank has submifted argument on 20.04.2026.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by sri Rakesh Kumar, sr. Branch Manager of Bank's c.l.T. New Road Branch, alp-12, Scheme No.s2, Kolkata

- 700014 along with the copies of original documents executed by the 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 A. Kumar, Branch Manager of Bank's c.l.T. New Road Branch, alP-12, scheme No.52, Kolkata -700014 on22.11.2022, 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 1 to 15. I have heard the Ld. Advocate ofthe applicant Bank and perused the records.

6. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, un- rebufted 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.30.00 lakhs vide sanction letter dated 21.09.2012, subsequenfly, the existing limit was enhanced to Rs.48.00 lakh through loan application dated 20.05.2013. Applicant Bank has proved the hypothecated movable assets of the defendant; described in Schedule at page 21 and para lll.A at page 7 & I of the original application.

7. On the point of limitation, Loan has been sanctioned on 21.09.2012, subsequenfly enhanced the same on dated 20.05.2013; documents have been executed on21.Og.2O12 & 20.05.2013 and original Application has been filed on 14.05.2018. Further, the defendant has acknowledged her debt & liability by executing a Letter in Acknowledgement of debt / Securities dated 17.05.2016 acknowledging the outstanding balance in loan Account(s). 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 15.03.2018) for a sum of Rs.51,50,844.00 (Rupees fifty one lakh fifty thousand eight hundred forty four) as on ,15.03.2018, which is the amount claimed by applicant Bank in the originalApplication, and a

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 further interest @ 13.4so/o per annum with monthly rests from 16.03.2018, till realization, interim interest and interest on judgment; while in Demand promissory Note dated 21 .09.2012 & 20.05.2013 the rate of interest @ 13.50o/o and @ 13.7 so/o per annum with monthly rests respectively, have been mentioned. Therefore, the pendente /ife & future rate of interest which has been claimed by applicant Bank in the original application, i.e. @ 13.450/o per annum, with quarterly rests, from 16.03.2018, 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 T.A. being T.A.l89 of 2020 (arising out of o.A./353 of 201g) deserves to be allowed; hence allowed.

10. ln view of the above, I pass the following order :- OR DER

(i) T.A./89 ot 2020 (arising out of o.A./353 of 2018), fited by appticant Bank, is ailowed and debt is determined with cost against the sole Defendant. lt is hereby ordered that the Defendant is hereby directed to pay the total debt amount of Rs.51,50,844.00 (Rupees fifty one lakh fifty thousand eight hundred forty four) due and payable, inclusive of interest and other charges as calculated upto 15.03.2018; and interest for the period pendente lite and future rate @ 13.45o/o per annum, with quarterly rests, from 16.03.2019, 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, lhe 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; described in Schedule at page 21 and para lll.A at page 7 & 8 of the original application, as under - Hvoothecated Movable Assets: "All That stocks-in-trade consisting of different pafis of motor cars, machine parts, machine tools and other related items including vaious finished and semi-finished products including excisable raw mateials, stocks-in-process (including bought out finished products), consumables and all the afticles, accesson'es and such other movable property, stored orto be stored at the place of business / automobile garage of the defendant situated at T862C, Topsia Road (South), Kolkata - 700046, or elsewhere or in transit, belonging to the propietorship firm of the said defendant as well the book debts of the Firm." 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.

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(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 him. rn case the Defendant fails to pay the dues within the above mentioned time, appricant Bank is entifled to recover its dues by sare of secured assets / properties, as aforesaid. Appricant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immoveable and arso proceed against the Defendant personaily 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 sore 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 1 993. Accordingly, the originar Apptication, being T.A./g9 ot 20zo (arising out of O.A./353 of 2018) is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 21st day of May,2026. copy of the Finar order / Judgment be uproaded in the Tribuna|s website. (Arbind AV tb Presiding Officer DRT-2, Kolkata