STATE BANK OF INDIA vs M S TASTE BUDS AND ORS on 14 August 2026

Order

Otfice action with date and dated Signature of parties when necessary

14 08 2026 Counsel for the parties: Ms. Gunja Pachisia, Ld. Advocate for the applicant Bank. None for the defendants. T.A.1262 of 2O2O (arising out of O.A./571 ot 2O1B) allowed and disposed of. Final Order / Judgment is in separate sheet of 5 pages. File be consigned to record room. Order be uploaded on the Tribunal,s website.

(Arbind l\4adhav) Presiding Officer DRT-2, Kolkata I Order with Signature

TN262of 2020 - DRT-2/Kol DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan Sudha Bldg. 07th Floor, 421C, J.L. Nehru Road, Kolkata -700071 Before Shri Arbind Madhav. Presidinq Officer T.A. No. 262 ot 2020 (Arising out of O.4.1571 of 201 8) ln the matter of State Bank of lndia, a body corporate constituted under the State Bank of lndia Act, 1955 having its Central Office at State Bank of lndia, [Vladame Cama Road, Mumbai-400021 and local Head Office at 'Samriddhi Bhawan', 1 Strand Road, Kolkata - 700001, and transacting through its Bidhannagar Branch, CD Block, Salt Lake, Block-CD/32, Ground Floor, Sector-|, Kolkata - 700064 and also at Small & Medium Enterprises Centre, in short S.M.E.C. Kolkata, 1, Strand Road, 04th Floor, P.S.- Hare Street, Kolkata - 700001. Applicant Bank -Versus- '1. M/s Taste Buds, a partnership firm having its place of business at 684, Bhupen Roy Road, Kolkata - 700034.

2. Mr. Jayanta Ghosh, son of Nitai Pada Ghosh, partner of tt//s Taste Buds of 2711, Sarat Pally, Boral Main Road, Garia, Kolkata - 700084.

3. Mr. Amit Kumar Mitra, son of Late Amiya Kanti Mitra, partner of M/s Taste Buds at 60, Dhiren Dhar Sarani, Bowbazar, Kolkala -700012.

4. Mr. Goutam Dey, son of Biswanath Dey of partner of M/s Taste Buds, 277|C, Parui Kancha Road, Sarsuna, Kolkata - 700061. ... Defendants Counsel for parties. For the Applicant Bank For the Defendants It/s. Gunja Pachisia Ex-Parte. FINAL ORDER / JUDG MENT Delivered on 14.08.2026 Applicant State Bank of lndia instituted the present Application being the Original Application No.571 of 2018 filed in DRT-3, Kolkata on 11 .07.2018 against four Defendants under Section 1g(l ) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for realization of Rs.13,47,586.00 (Rupees thirteen lakh forty seven thousand five hundred eighty six) inclusive of interest calculated as on 11.06.2018 and interest and interest on judgment @15.35%o per annum compounded with monthly rests from 12.06.201g, till realization. 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/DRArKOLI201g(pt.) dated 16.09.2019, such has been recorded vide Ld'

f A1262 o12020 - DRT'2/Kol Registrar, Kolkata DRT-3's Order dated 26.10.2019 and the same has been renumbered as T.4./262 of 2020 vide Ld. Registrar's order dated 10.06.2020.

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

(i) The defendants No.2, 3 & 4 are the partners of defendant No.1 running their partnership business in the name and style of 'M/s Iasfe Buds' made an application with the applicant Bank for grant of loan facilities. lt is pertinent to mention that the loan was original sanctioned and disbursed from Jodhpur Park Branch of State Bank of Travancore. Pursuant to a notification dated 22.02.2017 of the Government of lndia, State Bank of Travancore has been acquired by State Bank of lndia under section 35 of the State Bank of lndia Act,1955 with effect from 01 .04.2017; hence, though the loan was sanctioned from State Bank of Travancore, Jodhpur Park Branch but the loan documents and the loan Account is now maintained at State Bank of lndia, S.M.E.C. Kolkata, 1, Strand Road, 04th Floor, P.S.- Hare Street, Kolkata - 700001. ln consideration of loan application, applicant Bank was pleased to sanction a cash credit facility to the tune of Rs.4,00,000/- (Rupees four lakh) and Term Loan facility of Rs.8,00,000/- (Rupees eight lakh) to the defendants. Copy of sanction letter dated 20.09.2016 is annexed and marked as Annexure 'A-1'.

(ii) ln consideration of the aforesaid credit facilities, the defendants No.2, 3 & 4 duly executed loan documents all dated 20.09.2016 in favour of applicant Bank.

(a) Term Loan Agreement;

(b) Hypothecation-cum-Working Capital Agreement;

(c) Guarantee Agreement for working capital limit. Copy of said documents are annexed and marked as Annexure 'A-2', 'A-3' & 'A-4'.

3. The Defendants availed and enjoyed the aforesaid credit facilities by opening Accounts in Bank's Bidhannagar Branch, CD Block, Salt Lake, Sector-|, Kolkata - 700064. However, the defendant failed and neglected to operate the said Loan Account. The Defendants did not repay the outstanding loan amount, agreed EMls and overdue interests in loan Accounts. Since the defendants did not pay any attention to regularize the Accounts, the Accounts became out of order and was classified as N.P.A. on 24.12.2017 (cash credit Account) and on 25.09.2017 (Term Loan Account). Since the defendants failed and neglected to repay the outstanding Bank's dues, applicant Bank compelled to issue a legal notice on dated 27.06.2018 upon the defendants through its Advocate, but the defendants did not comply with the said notice; copy of said legal notice dated 27 .06.201g along with postal receipt are annexed and marked as Annexure 'A-5'. Certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure ,4-6'), and interest and interest on judgment @ 15.35% per annum compounded with monthly rests from 12.06.2018, till realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

f N262 of 2020 - DRT-2/Kol

4. The notice / summons was sent to the Defendants No.1 to 4 by the Tribunal. lt is observed from S/R on affidavit dated 08.08.2022 and its enclosure that service of summons upon defendants No.2 & 3 is successful, and Ld. Advocate appeared for defendants and undertakes to file vakalatnama, such has been recorded vide Ld. Registrar's order dated 22.08.2022. lt is observed from S/R on affidavit dated 17.01.2024 and its enclosures that serviced of summon upon the defendant No.1 is not successful. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summon upon the defendants by way of paper publication; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 29.04.2024 along with relevant portion of paper cuttings in two newspapers, namely (i) 'The tndian Express' in English and (ii) 'Bartaman'in Bengali, both dated 27.04.2024, such has been recorded vide Ld. Registrar's order dated 29.04.2024. After 22.08.2022, no one appeared on behalf of any of the defendants, also the defendants did not file the written statement; thus, all the defendant were ordered to be proceeded ex-parte vide order dated 07.08.2024. Ld. Advocate of the applicant Bank has submitted argument on 24.06.2026.

5. Applicant Bank has filed the Affidavit of Evidence, affirmed by Diptendu Kumar Rakshit, Dy. Manager of Bank's S.Nn.E.C. Kolkata, 1, Strand Road, P.S.- Hare Street, Kolkata - 700001 along with the copies of original documents executed by Defendants. 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 S.K. Gupta, l/lanager of Bank's S.M.E.C. Kolkata, Samriddhi Bhawan, 1, Strand Road, Kolkata - 700001 on22.08.2022, such has been recorded in Ld. Registrar's order dated 22.08.2022. The documents produced by applicant Bank are exhibited and annexed as Annexures "A-1" to "A-4". 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 corroborated the averments made in the O.A. Applicant Bank has proved the sanction of cash credit facility to the tune of Rs.4.00 lakh and Term Loan facility of Rs.B.00 lakh vide sanction letter dated 20.0g.2016. This case is not secured by mortgage of immovable property, only to secure the aforesaid credit facilities, the defendants No.2, 3 & 4 duly executed the Hypothecation cum working capital Agreement on dated 20.09.2016 in favour of applicant Bank, described in Annexure 'A-3' at page 39 to 56 and para lll.A at page 4 & 5 of the original application. T. On the point of limitation, Loan has been sanctioned on 20.09.2016'' loan documents have been executed on dated 20.09.2016 and original Application has been filed on 11.07.201g. As such, the originalApplication appears to have been filed wellwithin the period of limitation.

TN262 of 2020 - DRT-2/Kol

8. Applicant Bank stated that the outstanding balance in loan Accounts (inclusive of accrued interest and other charges as calculated upto 11.06.2018) is Rs.13,47,586.00 (Rupees thirteen lakh forty seven thousand five hundred eighty six) as on 11.06.2018, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1 to 4 are, jointly and/or severally, 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 originalApplication. Applicant Bank has prayed interim interest and interest on judgment @ 15.35o/o per annum compounded with monthly rests from 12.06.2018, while in the sanction letter dated 20.09.2016 the rate of interest @ 9.60% per annum with monthly rests, has been mentioned. Therefore, in my view, the pendente lite & future rate of interest @ 9.60% per annum, with quarterly rests, from 12.06.2018, is allowed.

9. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A. Hence, the O.A./T.A. being T.A.1262 of 2020 (arising out of O.A.1571 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.4./262 of 2020 (arising out of O.A.1571 of 2018) filed by applicant Bank, is allowed and debt is determined with cost against the Defendants No.1lo 4. lt is hereby ordered that the Defendants No. 1 ,2, 3 & 4 are hereby directed to pay, jointly and / or severally, the total debt amount of Rs.13,47,586.00 (Rupees thirteen lakh forty seven thousand five hundred eighty six) due and payable, inclusive of interest and other charges as calculated upto 1 1.06.2018; and interest for the period pendente lite and future @ 9.60% per annum, with quarterly rests, from 12.06.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan accounts 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 No.1 to 4. Accordingly, the pendente lite and future interest shall be calculated on the reduced amount.

(iii) Defendants No.1 to 4 are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets; described in Annexure 'A-3' at page 39 to 56 and para lll.A at page 4 & 5 of the original application. " Hypothecated Movable Assefs." The Defendants No.1 to 4 are also debarred from transferring, alienating, encumbering or disposing any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants.

\

TA1262 of 2020 - DRT-2/Kol

(iv) Defendants No.1 , 2, 3 & 4 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 to 4 both moveable and immoveable and also proceed against the Defendants No.2, 3 & 4 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 & 4 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 and issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from Defendants No.1,2,3 & 4, 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 1993. Accordingly, the Original Application, being T.A.1262 of 2O20 (arising out of O.A./571 of 2018) is allowed and stands disposed of. File be consigned to Record room. This order is dictated and corrected by the undersigned and pronounced on this the 14th day of August, 2026. Copy of the Final Order / Judgment be uploaded on the Tribunal's Website. "! tYfrt,r- ind M Presiding Officer DRT-2, Kolkata tb