CANARA BANK vs NAZIR HOSSAIN on 25 June 2026

Order

25.06.2026 Vs Nazir Hossain of Office action with date and dated Signature of parties when necessry Counsel for the parties: Ms. Sangeetha Ghosh, Ld. Advocate for the applica Bank. None for the defendant. T.A. 106 of 2019 (arising out of O.A./165 of 2018) is atl and disposed of Final Order / Judgment is in separate sheet of g pages. File be consigned to record room. Order be uploaded on the Tribunal,s website ffi*on^u, Presiding Officer DRT-2, Kotkata Order with Signature

T.A./106 of 2019 - DRT-2/Kol DEBTS RECOVERY TRIBUNAL .2, KOLKATA Jeevan sudha Bldg 07tn Floor, 42tc, J.L. Nehru Road, Kolkata _7ooo71 Befo re Shri Arbind Madhav, P nq T.A. No.106 of 2019 (arising out of O.A./165 of 2018) ln the matter of canara Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970, having their Head office at 112,J c Road, Bengaluru

- 560002, and having its Branch among others at 167, Garia Main Road, Tentultala Garia, P.s.- sonarpur, Kolkata - 7000g4, commonly known as ,Garia Branch,. Applicant Bank -Versus- 1' Nazir Hossain, Son of Jumman Abdul, Proprietor of M/s Aminia Engineering Works, Kusumba (Karbala), P.O.- Narendrapur, P.S.- Sonarpur, KKolkaa -700103; and also at shimultala, sonarpur station Road, Korkata - 700150. Defendant Counsel for parties: For the Applicant Bank lt/s. sangeetha Ghosh Amicus Legal Associates. Ex-Parte For the Defendant FINAL ORDER / JUD GMENT Delivered on 25.06.2026 Applicant, Canara Bank instituted the present Application being the Original Application No.165 of 2018 filed in DRT-3, Kolkata on 12.03.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 19g3 (amended from time to time) for the recovery of Rs.36,46,789.91 (Rupees thirty six lakh forty six thousand seven hundred eighty nine and paise ninety one) as on 31 .01.201g together with further interest thereon @ 12.15o/o per annum from 01 .02.2018, till realization of the entire dues. Subsequently, the instant case has been transferred to DRT-2, Kolkala vide the Hon,ble chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KoL/201g(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./ 106 of 2O1g vide Ld. Registrar's order dated 02.1 1 .2019.

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

(i) The defendant No.1 is the sole proprietor of proprietorship concern, namely M/s mina Engineering Works doing business as manufacturer of machine tools and spare

T.A./106 of 2019 _ DRT_2/Kol parts' That the Defendant had approached the applicant Bank in the month of March 2009 for financial assistance for an amount of Rs.5,00,000/-; copy of loan application dated 29'03'2009 is annexed and marked as Annexure 'A'. Relying upon representation made by the defendant, applicant Bank was pleased to grant / sanction a cash credit facility for an amount of Rs'5,00,000/- (Rupees five lakh) in favour of the defendant vide sanction [\4emorandum dated 31.03.2009. The defendant dury signed and acknowledged the receipt of the said sanction tMemorandum thereby accepting the terms and condition mentioned therein. copy of sanction lVlemorandum dated 31.03.200g is annexed and marked as Annexure ,8,.

(ii) ln consideration of the aforesaid cash credit facility of Rs.5.00 lakh, the defendant duly executed the following loan lsecurity documents all dated o2.o4.2oog in favour of applicant Bank:

(a) Request for overdraft facirities for an amount of Rs.5,00,000/_; (b) Pronote for the amount of Rs.5,00,000/_;

(c) cash credit Agreement duly signed and executed by defendant for an amount of Rs.5.00 takh; (d) Agreement re: Collateral Security: Machinery: Vehicles for an amount of Rs.S,00,000/-. Copy of said documents are annexed and marked as Annexure ,C-1, to ,C-4,.

(iii) The defendant again approached the applicant Bank in the month of February 2o1o with a request for enhancement of existing cash credit facility from Rs.5,00,000/- to Rs.8,00,000/-; copy of loan Application dated 23.02.2010 is annexed and marked as Annexure 'D'. Relying upon the application of defendant, applicant Bank was pleased to enhance / sanction the cash credit facility from Rs.5.00 lakh to Rs.8,00,000/- (Rupees eight lakh) vide sanction Memorandum dated 23.02.2010. The defendant has duly accepted and agreed the terms and conditions of the said sanction memorandum. Copy of said sanction Memorandum dated 23.02.2010 is annexed and marked as Annexure ,E,.

(iv) ln consideration of the aforesaid enhanced credit facility of Rs.g.00 lakh, the defendant duly executed the following loan / security documents all dated 23.02.2010 in

(a) Letter of Renewal dated 23.02.2010 for an amount of Rs.g,00,000/_; (b) Pronote for an amount of Rs.3,00,000/-. Copy of said documents are annexed and marked as Annexure 'F-1 ' &,F-2'.

(v) At the request of the defendant, applicant Bank was pleased to enhance the cash credit limit from Rs.8.00 lakh to Rs.10,00,000/-. ln consideration of the said enhanced credit facility of Rs.10.00 lakh, the defendant duly executed the following loan / security documents all dated 02.05.2011 in favour of applicant Bank:

(a) Pronote for an amount of Rs.2,00,000/-; (b) Acknowledgement of debt and security for existing cash credit limit of Rs.10,00,000/-. ,

T.A./106 of 2019 _ DRT-2/Kot Copy of said documents are annexed and marked as Annexure ,G-1, & ,G-2,.

(vi) The defendant again approached the applicant Bank in the month of tvay 2012 wilh a request for enhancement of cash credit facility from Rs.10,00,000/- to Rs.15,00,000/_; copy of letter dated 14'05.2012 is annexed and marked as Annexure ,H,. Relying upon the application of defendant, applicant Bank was pleased to enhance / sanction the cash credit facility from Rs'10'00 lakh to Rs.15,00,000/- (Rupees fifteen takh) vide sanction Memorandum dated 30'05.201 2. Thedefendant has dury accepted and agreed the terms and conditions of the said sanction memorandum. copy of sanction [Vlemorandum dated 30.05.2012 is annexed and marked as Annexure ,1,.

(vii) ln consideration of the aforesaid enhanced credit limit of Rs.15.00 lakh, the

(a) Letter of Renewar dated 30.05.201 2for an amount of Rs.15,00,000/_; (b) Pronote for an amount of Rs.S,00,000/_;

(c) supprementar Agreement for the amount of Rs.15,00,000/-; (d) Link Letter in respect of enhancement of credit facility for an amount of Rs.15,00,000/-; (e) Acknowledgement of debt and security for the amount of Rs.g,4g,016.61 as on 01.05.2012. Copy of said documents are annexed and marked as Annexure ,J-1, to ,J-5,.

(viii) The defendant again approached the applicant Bank in the month of tMay 2013 with a request for enhancement of cash credit facility from Rs.15,00,000/- to Rs.20,00,000/_; copy of loan Application dated 14.05.2013 is annexed and marked as Annexure ,K,. Upon consideration of loan application of the defendant, applicant Bank was pleased to enhance / sanction the cash credit facility from Rs.15.00 lakh to Rs.20,00,000/- (Rupees twenty lakh) vide sanction lt/lemorandum dated 15.05.2013. The defendant has duly accepted and agreed the terms and conditions of the said sanction memorandum. Copy of sanction Memorandum dated 1s.0s.2013 is annexed and marked as Annexure ,L,.

(ix) ln consideration of the aforesaid enhanced credit limit of Rs.20.00 lakh, the defendant duly executed the following loan / security documents all dated 15.05.2013 in

(a) Letter of Renewal dated 1s.0s.2013 for the amount of Rs.20,00,000/_; (b) Pronote for an amount of Rs.5,00,000/-;

(c) Link Letter in respect of enhancement of credit facility for an amount of Rs.20,00,000/-; (d) Supplemental Agreement for the amount of Rs.20,00,000/_; (e) Acknowledgement of debt and security for the amount of Rs.1S,06,S21t- as on 01 .05.2013. . Copy of said documents are annexed and marked as Annexure '[Vl-1' to '[/-5'. a

T.A./106 of 2019 - DRT_2/Kot

(x) The defendant again approached the applicant Bank in the month of January 2o1s with a request for enhancement of cash credit facility from Rs.20,00,000/- to Rs'25,00,000/-; copy of loan Application dated 02.01.201s is annexed and marked as Annexure 'N'. Upon consideration of loan application of the defendant, applicant Bank was pleased to enhance / sanction the cash credit facility from Rs.20.00 lakh to Rs'25,00,000/- (Rupees twenty five lakh) vide sanction Memorandum dated 02.01.201s. The defendant has duly accepted and agreed the terms and conditions of the said sanction memorandum' copy of sanction lVlemorandum dated 02.01.201s is annexed and marked as Annexure'O,.

(xi) ln consideration of the aforesaid enhanced credit limit of Rs.25.00 lakh, the that the defendant is the sole Proprietor of tM/s Amina Engineering Works.

(b) Letter of Renewal dated 02.01.2015 for the amount of Rs.25,00,000/-;

(c) Pronote for an amount of Rs.5,00,000/_; (d) Link Letter in respect of enhancement of credit facility for an amount of Rs.25,00,000/-; (e) supplemental Agreement for the amount of Rs.25,00,000/-; (f) Acknowledgement of debt and security duly executed by defendant for the amount of Rs.20,23,012.11as on 01.01 .2015. Copy of said documents are annexed and marked as Annexure ,p-1, to ,p-6,.

(xii) The deiendant again approached the applicant Bank in the month of September 2015 with a request for enhancement of cash credit facility from Rs.2S,00,000/- to Rs.28,00,000/-; copy of loan Application dated 01.09.20',|5 is annexed and marked as Annexure 'Q'. Upon consideration of loan application of the defendant, applicant Bank was pleased to enhance / sanction the cash credit facility from Rs.25.00 lakh to Rs.28,00,000/- (Rupees twenty eight lakh) vide sanction Memorandum dated 01 .0g.2015. The defendant has duly accepted and agreed the terms and conditions of the said sanction memorandum. Copy of sanction [Memorandum dated 01.09.2015 is annexed and marked as Annexure'R'.

(xiii) ln consideration of the aforesaid enhanced credit limit of Rs.2g.00 lakh, the defendant duly executed the following loan lsecurity documents all dated 01.0g.2015 in that the defendant is the sole Proprietor of M/s Amina Engineering Works.

(b) Letter of Renewal dated 02.01.2015 for the amount of Rs.28,00,000/-;

(c) Pronote for an amount of Rs.3,00,000/-; , (d) Link Letter in respect of enhancement of credit facility for an amount of ,/n-, Rs.28,00,000/-;

T.A./106 of 2019 _ DRT_2/Kot

(e) supprementarAgreement for the amount of Rs.2g,00,000/_; Copy of said documents are annexed and marked as Annexure ,S-1, to ,S-5,.

(xiv) The defendant again approached the applicant Bank in the month of May 2016 with a request for renewal of cash credit facility for an amount of Rs.2g,00,000/-; copy of loan Application dated 06.05.2016 is annexed and marked as Annexure ,T,. At the request of application of the defendant, applicant Bank was pleased to renew / sanction the said facility for an amount of Rs.28,00,000/- (Rupees twenty eight lakh) vide sanction Memorandum dated 06.05.2016. The defendant has duly accepted and agreed the terms and conditions of the said sanction memorandum. copy of sanction Memorandum dated 06'05'2016 and specimen signature are annexed and marked as Annexure ,U,.

(xv) ln consideration of the renewal of aforesaid credit limit of Rs.2g.00 lakh, the that the defendant is the sole Proprietor of M/s Amina Engineering works.

(b) Letter of Renewal dated 06.05.2016 for the amount of Rs.2g,00,000/-;

(c) Acknowledgement of debt and security duly executed by defendant for the amount of Rs.29,03,457.g5 as on 06.05.2016. Copy of said documents are annexed and marked as Annexure ,V-1, to ,V-3,. 3' The Defendant availed and enjoyed the said cash credit facility by opening Account in Bank's Garia Branch, Tentultala, Garia, Kolkata - 700084. 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 to regularize the loan Account. since the defendant did not pay any attention to regularize the Account, the Account became irregular and was classified as N.p.A. on 30.0g.2016. Applicant Bank finding no other alternative and issued a re-call demand notice dated 22'05'2017 through theirAdvocate demanding to repay the outstanding dues amount of Rs'3'1 ,81,440.91, but the defendant did not comply the said notice; copy of said re-call demand notice dated 22.05.2017 along with postal receipts are annexed and marked as Annexure 'w'. certified copies of statement of Account along with certificate under Bankers' Books of Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Annexure 'X'& 'Y') together with future interest @ 12.15o/o perannum from 01.02.2018, till realization by the defendant, 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. tt is observed from S/R on affidavit dated 16.12.2021 and its enclosures that the service of summon by postalservice / hand delivery upon the defendant did not succeed, such has been recorded vide Ld. Registrar's order dated 04.01.2023. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summon upon the defendant by way a

T.A./106 o,f 2019 _ DRT_2/Kot of paper publication; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 22.07.2024 along with relevant portion of paper cuttings in two newspapers, namely (i)'The Echo of lndia'in English and (ii) 'Aajkal, in Bengali, both dated 19.07.2024, such has been recorded vide Ld. Registrar,s order dated 22'07 '2024' Despite seryice, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded ex-parfe vide order dated 0g.04.2026. Ld' Advocate of the applicant Bank has submitted argument on 18.0s.2026. 5' Applicant Bank has filed the evidence-on-affidavit affirmed by Sri Abinash Kumar, Manager of Bank's Garia Branch, 167, Garia tvain Road, Tentultala Garia, Kolkata - 700084 along with the copy 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 Abinash Kumar, lManager of Bank's Garia Branch, 167, Garia Main Road, Kolkata -7ooo\4 on 15.06.2018, such has been recorded in Ld. Registrar-in- Charge, DRT-3's order dated 15.06.2018. The documents produced by applicant Bank are exhibited and annexed at ,A_1, to ,A_4g,. 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, un- rebutted and its veracity cannot be put to dispute. Applicant Bank has proved the averments made in the o.A. Applicant Bank has corroborated the averments made in the o.A. Applicant Bank has proved the sanction of cash credit facility for an amount of Rs'5,00,000/- vide sanction Memorandum dated 31.03.200g and subsequenly enhanced the said facility from Rs.5.00 lakh to Rs.8,00,000/- on dated 23.02.2010, from Rs.B.00 lakh to Rs.10,00,000/- on dated 02.05.2011, from Rs.10.00 lakh to Rs.15,00,000/- on dated 30.05.2012, from Rs.15.00 lakh to Rs.20,00,000/- on dated 15.05.2013, from Rs.20.00 lakh to Rs.25,00,000/- on dated 02.01.2015, from Rs.25.00 lakh to Rs.2g,00,000/- on dated 01.09.2015 and renewed the cash credit facility of Rs.28.00 lakh on dated 06.05.2016. Applicant Bank has proved the hypothecation of movable assets, described in Schedule'A'&'B'at page 27 &28 and para 34 at page 4 & 5 of the original application.

7. On the point of limitation, Loan has been sanctioned on 31.03.2009, 23.02.2010, 02'05.2011, 30-05-2012, 15.05.2013, 02.01.2015 & 01.09.2015 and subsequentty the facility was renewed on dated 06.05.2016; security documents have been executed on 02.04.2009, 23.02.2010, 02.05 .2011, 30.05.20 12, 15.05.2013, 02.01 .2015,01 .09.2015 & 06.05.2016; and original Application has been filed on 12.03.2018. 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 lnterest and other charges as calculated upto 31.01.201g) is Rs.36,46,789.91 (Rupees thirty six lakh forty six thousand seven hundred eighty nine and paise ninety one) as on 31 .01.2018, which is the amount claimed by the applicant Bank in , the original Application, and the sole defendant is liable to repay the said amount to the -/-'1/

T.A./106 of 2019 _ DRT_2/Kot applicant Bank with pendente tite and future interest, till realization. lallowthe claim as made by the applicant Bank in the originalApplication. Applicant Bank has prayed future interest @ 12'15o/o per annum from 01 .02.2018, till realization, while in pronote dated 02'04'2009,23-02.2010, 15.05.201 3,02.01.2015 & 01.09.2015 the rate of interest @ 12'75% per annum , @ 12.750/o pe,t annum, @ Base Rate + 20/o pil annum, @ Base Rate + 2o/o per annum , @ 12'2Oo/o per annum and @ 130/'5 per annum respectively, have been mentioned' Therefore, the pendente tite &future rate of interest which has been claimed by applicant Bank in the original application, i.e. @ 12.1s%per annum, with quarterly rest, from 01 .02.2018, till full and final realization of the entire debt, is allowed. 9' 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'1106 of 2019 (arising out of o.A./165 of 2018) deserves to be alowed; hence allowed. ln view of the above, I pass the following order :_

ORDER

(i) T'A'/106 of 2019 (arising out of 0.4./165 of 2018), fited by the appticant Bank, is allowed and debt is determined with cost against the Defendant. lt is hereby ordered that the Defendant is hereby directed to pay the total debt amount of Rs.36,46,7gg.g1 (Rupees thirty six lakh forty six thousand seven hundred eighty nine and paise ninety one) due and payable, inclusive of interest and other charges as calculated upto 31.01.201g; and interest for the period pendente tite and future rate @ 12.1s% per annum, with quarterly rests, from 01 .02.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in loan ar:count 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, described in Schedule 'A' & 'B' at page 27 & 28 and para 3A at page 4 & 5 of the original application: Hypothecated [/ovable Assets: "the whole of borrowers present and future sfocks of machines efc. tying at Kusumba (Karbala), P.O - Narendrapur, P.S.- Sonarpur, Kolkata - 7OO103 and Shimuitata, Sonarpur Station Road, Kolkata - 700150 together with all store components and spares which now belong to or may hereafter from time to tiime during the continuance of this security belong to the borrower and which are or shall or may be brought into stored or be in or upon or about the borrowefs godown, or wherever else the saie may be situated, stored or lying or being, including any such raw material articles or goods, jfores, spares and components or other similar movable property in course of trahsit or delivery'to the borrower (and all of which hereinafter for brevity's sake referred fo as "the said go'ods").

10. g

T.A./106 of 2019 - DRT-2/Kot Allthe Proprietorship concern's present and futureslocks and book debts, including monies, receivables, claims due and gwning o, iniin may at any time become due and owing to the Borrower in the course. gf !!t ai"i"it iy any person, firm, company or body corporate or by the Government of tndia or any sfafe Government or'lndian Railways or any Government Deparlment or office .o.r any ltiunicipal or local semi-Government body or authority or any undertaking or project in the pubric sector.,, The Defendant is also debarred from transferring, alienating, encumbering or disposing of 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 him. ln case the Defendant fails to pay the dues within the above mentioned time, the applicant Bank is entitled 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 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, 19g3 (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 1gg3. Accordingly, the Original Application, being T.A./106 of 2019 (arising out of O.A./165 of 20181is altowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 25th day of June, 2026. copy of the Final order / Judgment be uploaded in the Tribuna 's Website ,lt >1 (Arbi Presiding Officer DRT-2, Kolkata tb