BANK OF INDIA vs HOWRAH FRIENDS ELECTRIC COMPANY PVT LIMITED on 19 June 2026

Order

Office action with date and dated Signature of parties when necessary

19.06.2026 Counsel for the parties: Mr. Arpan Bose, Ld. Advocate representing Ms. An Das, Ld. Counsel for the applicant Bank. None for the defendants. T.A.1512 of 2O2O (arising out of O A.t1O22 of 2O1A) i 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 Tribunal,s website. (xrm^dhav) Presiding Officer DRT-2, Kotkata Orderwith Signature

T.A.1512 of Z0Z0 - DRT-2/Kot DEBTS RECOVERY TRIBUNAL .2, KOLKATA Jeevan sudha Brdg. 07th Froor, 42rc,J.L. Nehru Road, Korkata _Tooorl T.A No.5 12 of (arising out of O.A.t1022 of 2018) ln the matter of Bank of lndia' a body corporate duly constituted under the Banking companies (Acquisition and Transferof Undertakings)Act, 1970, having Head office at,star House,, plot No.C_s, G_ Block' Bandra-Kurla complex, Bandra (East), I\rumbai - 400051, and carrying on business, inter-alia, having its Branch office at 8A, Lindsay street, Kolkata -7ooog7, known as Lindsay Street Branch. Applicant Bank Howrah Friends Electric company Pvt. Limited, a company incorporated under the provisions of the companiesAct, 1956, having its Registered office and also Factory at 512'Khetra Mitra Lanne, Salkia, Howrah -711106; and another office at21, Hemanta Basu sarani, Kolkata - 700001; and ship Repairing Department at 90, Garden Reach Road, Kolkata -7OOO23 2' Mr' Sourav Dutta, Residing at 55, Ashutosh tMukherjee Lane, Salkia, Howrah -711106 3' Mrs' lndira Dutta, Residing at 55, Ashutosh Mukherjee Lane, Salkia, Howrah -711106, Defendants

Counsel for parties: For the Applicant Bank For the Defendant Ms. Anindita Das Ex-Parte L ORDER/JUDGMENT Delivered on 1 9.06.2026 Applicant, Bank of lndia instituted the present Application being the Original Application No' 1022 of 2018 on 21 .12.2018 against three Defendants under Section 1g(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.S s,gs,1gl.24 (Rupees fifty five lakh ninety five thousand one hundred eighty seven and paise twenty four) inclusive of interest calculated upto 31 .08.2018 together with further interest @ 1L65% per annum from 01.09.2018 with monthly rests, till realization, along with 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/DR Af KOLI20l g(pt.) 'dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated FI

-Versus-

T.A.1512 of 2O2O - DRT_2/Kot 30'12'2019 and the same has been renumbered as T.A.ts12 of 2o2ovide Ld. Registrar,s order dated 13.02.2020. 2' 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 a company engaged in business as the Electricaland Mechanical Engineers & contractors and also the Electric Repairer. The defendants No.2 & 3 are the Directors of the defendant No'1 company. The defendant No.1 had approached the appricant Bank through its Directors for financial assistance vide application dated 30.11 .2013. At the request of the Defendant No.1, applicant bank was pleased to sanction /grant a cash credit limit of Rs'45'00'000'oo (Rupees forty five lakh) to the defendant No.1 vide sanction letter dated 10'01 '2014 subject to certain terms and conditions mentioned in the sanction retter. The defendants No'2 & 3 as the director of defendant No.1 has acknowledged receipt of the sanction letter' copy of loan application dated 30.11.2013 and sanction letter dated 10.01 .2014 are annexed and marked as Annexures 'A'& 'B' respectivery.

(ii) ln consideration of the aforesaid sanction of credit limit of Rs.45.00 lakh, the directors of defendant No'1 company on 13.01 .2014 conveyed a Board Meeting at the registered office of the company' ln the said Board Meeting, Mr. sourav Dutta and Mrs. tndira Dutta, as the directors of defendant No'1 company have been auth orizedto execute the loan documents and also to create equitable mortgage over thee immovable property of the defendant No.1 company' copy of Extract of Meeting of the defendant No.1 company dated 13.01 .2014 is annexed and marked as Annexure ,C,.

(iii) Pursuant to the aforesaid sanction of cash credit limit of Rs.45.00 lakh, the defendant No'1 company through it's Directors duly executed the following loan documents all dated 14.01.2014 in favour of applicant bank:

a) Demand Promissory Note (L-43 4) for a sum of Rs.45,00,000/- with interest thereon @ 12.35o/o per annum with monthly rests;

b) Loan Bearer Letter dated (L_a3S);

c) continuing security Letter (L-516) declaring the demand promissory Note as the continuing security for all the amount due and payable by defendant No.1;

d) Letter of Undertaking, inter-alia, undertaking not to open any account with other banks without prior permission of the applicant Bank;

e) Hypothecation-cum-Loan Agreement. Copies of said documents are marked and annexed as Annexures ,D,, ,E,, ,F,, ,G, & ,H, respectively.

(iv) To secure the cash credit limit of Rs.45.00 lakh granted by the appticant bank to the defendant No.1, the defendants No.2 & 3 have furnished their personal guarantee by executing a Letter of Guarantee dated 14.01.2014 thereby undertaken to pay the applicant Bank all the amounts advanced by the Bank to the partners of defendant No.1 company along with interest, costs etc' Copy of Letter of Guarantee dated 14.01.2014 is annexed and marked as Annexure 'l' .. --a @

T.A.1512 o,r Z02O - DRT_2/Kol

(v) To secure the aforesaid cash credit limit of Rs.45.00 lakh, the defendant No.1 through its directors visited the branch office of bank on dated 24.01.2014 and created equitable mortgage in respect of immovable property, morefully described in schedule ,B,at page 27 and para lll'A at page 8 to 11 of the original application, by deposit of original rile Deed being No'1865 of 1992 retating to the aforesaid property with the applicant bank. The defendants No'2 & 3 as the Directors of the defendant No.1 company by putting endorsement on the attendance register has confirmed creation of mortgage over the aforesaid property. copy of oral assent along with copy of Attendance Register is annexed and marked asAnnexure,J,. copy of ritle Deed No.1g65 of 1gg2is annexed and marked asAnnexure,K,.

(vi) The Defendant No'1 company through its Directors has executed a Letter in Acknowledgement of Debt & security on date d 24.12.2015 has confirmed correctness of outstanding of Rs'44,05,5441- inclusive of interest as on 24.12.2015 along with further interest due and payable by the defendant No.1 company to the applicant Bank. copy of Letter in Acknowledgement of Debt & security dated 24.12.2015 is annexed and marked as Annexure 'L',. 3' The Defendants enjoyed the aforesaid credit facility by opening Account in Defendant No'1's name in Bank's Lindsay street Branch, Kolkata - 7oo0g7. However, the defendants 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 the loan Account. ln spite 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, it became out of order and was classified as N.P.A on and from 25.05 .2017. since the defendants failed and neglected to repay the outstanding loan amount inspite of request, applicant Bank compelled to issue demand notice dated 08.12.2018 upon the Defendants invoking guarantee furnished by the Defendants No.2 & 3 and calling upon the Defendants to pay joinly and severally for a sum of Rs.55,9 5,187 .24 inclusive of interest calculated upto 31 .og.2o1g together with further interest @ 11.650/o perannum from 01 .og.2o1g with monthly rests, till realization. copy of demand notice dated 08.12.2018 along with postal receipts are annexed and collectively marked as Annexure 'M'. certified copies of statement of Account along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, Annexure ,N,, have been filed to show and prove the dues, and further interest @ 11.6s%per annum with monthly rests from 01.09.2018, till realization along with interim interest, and interest on judgment, has been prayed. Applicant Bank submitted that their claim in the originalApplication is within limitation

4. The Notices / summons were sent to Defendants No. 1, 2 & 3 by the Tribunal. lt is observed from the S/R on affidavit dated 05.03.2024 that service of summons upon the Defendants is successful by postal service, such has been recorded vide Ld. Registrar,s order dated 11.03-2024. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded ex-parte vide orderdated 23.04.2025. Ld. Advocate of the applicant Bank has submitted argument on 25.11.2025 ,-a ' @

T.A.1512 of 2020 - DRT-2/Kot 5' Applicant Bank has filed evidence-on-Affidavit, affirmed by sudhir Kumar Barich, chief Manager of Bank's Lindsay street Branch, 8A, Lindsay street, Kolkata -7ooog7 along with copy of original documents executed by the defendants. original documents have been produced by applicant Bank; the same have been verified with copies of the documents annexed with the o'A' and after verification the originals have been returned to sri samarpan saha, chief Manager of Bank's Lindsay street Branch, BA, Lindsay street, Kolkata - Tooog. on 11 '10'2023, such has been recorded in Ld. Registrar's Order dated 11.10.2023. The documents produced by applicant Bank are exhibited and marked as Exhibits ,A-1, to ,A-15,. 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 originalApplication. Applicant Bank has proved the sanction of cash credit limit of Rs.45.00 lakh vide sanction letter dated 10.01 .2014. Applicant Bank has proved the hypothecated movable assets and mortgaged immovable property, morefully described in schedule ,A & ,B, at page 27 and para ilr.A at page g to 11 of the originar apprication. 7 ' on the point of limitation, the loan has been sanctioned on 10.01 .2o14,documents have been executed on 14.01.2014, and original Application has been filed on 21.12.201g. The defendant No.1 through it's directors has executed a Letter in Acknowledgement of Debt & Security dated 24.12.2015 in favour of applicant bank acknowledging the outstanding balance in loan Account(s). As such, the originalApplication appears to have been filed well within the period of limitation. 8' Applicant Bank stated that the outstanding balance in Cash Credit Account (inclusive of accrued interest and other charges as calculated upto 31 .0g.201g) is Rs.55 ,g5,1g7.24(Rupees fifty five lakh ninety five thousand one hundred eighty seven and paise twenty four) as on 31'08'2018 which is the amount claimed by applicant Bank in the originatApplication, and the defendants No'1 , 2 & 3 are, jointly and/or severally, liable to repay the said amount to the applicant Bank wilh pendente tite and future interest, till realization. I allow the claim as made by the applicant Bank in the originalApplication. Applicant Bank has prayed further interest @ 11 '650/o per annum with monthly rests from 01 .09.2018, till realization along with interim interest, and interest on judgment; while in Demand Promissory Note dated 14.01.2014 the rate of interest @ 12.35o/o per annum with monthly rests, has been mentioned. Therefore, the pendente /ife & future rate of interest which has been claimed by applicant Bank, i.e. @ 11.650/o per annum, with quarterly rests, from 01 .09.2018, 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 to claim made in the o.A./T.A. The T.A. being T.A.t512 of 2o2o (arising out of o.A.11022 of 2018) deserves to be allowed; hence allowed. a'

T.A.1512 of 2020 - DRT-2/Kot ln view of the above, I pass the following order OR ER

(i) T 'A'1512 of 2020 (arising out of o.A-t1022 of 2018), filed by applicant 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 / or severally, the total debt amount of Rs'55'95,187'24 (Rupees fifty five lakh ninety five thousand one hundred eighty seven and paise twenty four) due and payable, inclusive of interest and other charges calculated upto 31 '08'2018; and interest for the period pendente lite andfuture @ 1L65% per annum' with quarterly rests, from 01.09.2018, till realization of the entire sum due and recoverable

(ii) Amount, if any, paid by the Defendants No.1 to 3 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 Defendants. Accordingly, the pendente tite and future interest shall be calculated on the reduced amount.

(iii) The defendants are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets and mortgaged immovable property, described in schedule 'A' & 'B' at page 27 and para lll.A at page B to 11 of the original application, as under - Hypothected Movable Assets: "ALL THAT hypothecated sfocks-in- trade, semi-finished and finished goods, manufacturing materials, including raw materials, ptant and machineries both movable and fixed, engines, equipmenfs, accessories eic., pertaining to the manufacturing busrness of the defendant No.1 comp_any lying and stored at itsbfrice and Factory of the company at 5/2, Khetra Mitra Lane, Satkia, Hbwrah - 711106; and another office at g0, Garden Reach Road, Kotkata - 700023; and/or anywhere else and/or in-transit belonging to the said company, inctuding the book'debts of the defendant No.l company." Mortqaqed Immovable P "ALL THAT Land admeasuring about 74.62 square yards equivalent to 62.3gg square meter along with the House constructed thereon being ito.23-23-10, at viiige - sivalayam, sutvey No.440, Block No.6, T.s. No.440, Dr. No.zs.zz.g. o/dAssf. No. g423, within the ambit of Ward No. WB 23-23 of Vishakhapatnam Municipat Corporation- area and Vishakhapatnam Sub-Registry Office, in the District of Andhra pradesh, butted and bounded by - On the East : Municipat Road On the South : Building belonging to Dasan on the west : Building berongin-g to ratni*a Bibi on the North : Remaiiing poiion of the House of vendor.,, The defendants No.1 to 3 are also debarred from transferring, alienating, encumbering or disposing any other property(s) either movable or immovable and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants.

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T.A./512 of 2O2O - DRT-2/Kol

(iv) 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, applicant Bank is enti,ed to recover its dues by sale of secured property(s), as aforesaid. applicant Bank is also entifled to proceed against personal properties of the Defendants 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 &3in 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 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 19g3. Accordingly, the original Application, being T.A.ts12 of 2020 (arising out of o.A-11022 ol2018l is ailowed and stands disposed of. File be consigned to Record room. This order is dictated and corrected by the undersigned and pronounced on this the 19th day ofJune, 2020. Copy of the Final Order / Judgment be uploaded on the Tribunal,s Website \ lftt^ (Arbind tb V Presiding Officer DRT-2, Kolkata