CANARA BANK vs DIPAK SHARMA on 21 August 2026

1. Dipak Sharma, son of Gopi Nath Sharma, Prop. pf 'Sharma Enterprise', at 16111, Becharam Chatterjee Road, Behala, Kolkata - 700061; and also at 203, Majlish Ara Road, Kolkata - 700034; and also at 27l1lA, Buro Shibtala Main Road, Kolkata - 700038. .. Defendant Counsel for parties: For the Applicant Bank For the Defendant Mr. Sovan Kumar Dutta Ex-Parte FINAL ORDER / JUDGMENT Delivered on 21 .08.2026 Applicant, Canara Bank instituted the present Application being the Original Application No.460 o'f 2018 on 05.06 .2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of dues amount of Rs.12,68,437.00 (Rupees twelve lakh sixty eight thousand four hundred thirty seven) inclusive of interest calculated upto 30.04.2018 and further interest @ 12.15% per annum compounded monthly rests from 01 .05.2018, till payment in full together with costs, expenses etc. 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/DRATlKOLlZ018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 24.10.2019 and the same has been renumbered as T.A.l07 of 2O2O vide Ld. Registrar's order dated 30.10.2019.

f .A.lO7 o'f 2020 - DRT-2/Kol

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

(i) The defendant is engaged in business of manufacturing of Voltage Stabilizer and lnverter under his proprietorship concern 'M/s Sharma Enterprise'. The defendant had applied to the applicant Bank for financial assistance for his business enhancement. Along with his application, the defendant had submitted 'Letter of Sr. [Vlanager, the National Small lndustries Corporation Limited' dated 13.08.2014 and acknowledgement of General Manager, District lndustries Centre, Kolkata dated 11.12.2013. Upon consideration of loan application, applicant Bank was pleased to grant / sanction an OCC Loan limit of Rs.10,00,000/-(Rupeestenlakh) underCanara MSMEPragati Scheme infavourof the defendant vide sanction letter dated 29.08.2014. Copy of loan Application dated 29.08.2014 and sanction letter dated 29.08.2014 are annexed and marked as Annexure 'A' collectively and Annexure 'B'. The defendant acknowledged the terms and condition of said sanction by putting his signature over the sanction letter.

(ii) ln consideration of the applicant bank granting the said OCC limit of Rs.10.00 lakh, the defendant duly executed the following loan documents all dated 29.08.2014 in favour of applicant Bank.

(a) Request for Overdraft facilities;

(b) Pronote for Rs.10,00,000/-;

(c) Cash Credit Agreement;

(d) Agreement-cum-Deed of Hypothecation; (e) Particulars of Assets standing in the name of the Applicant (borrower). Copies of said documents are annexed and marked as Annexure "C', 'D', 'E', 'F' & 'G' respectively.

(iii) The defendant by his letter dated 04.09.2015 again approached the applicant Bank for renewal of his existing OCC loan limit through an application dated 18.09.2015. At the request of the defendant, applicant Bank was pleased to renew / sanction the said loan limit for a further period of twelve months vide sanction letter dated 18.09.2015, subject to the other terms and conditions mentioned in the sanction letter. Copy of Letter of defendant dated 04.09.2015, loan Application dated 18.09.2015 and sanction letter dated 18.09.2015 are enclosed and marked as Annexure'H' collectively and 'l'.

(iv) ln consideration of sand sanction & renewal of existing OCC limit, the defendant duly executed the following documents all dated 18.09.2015 in favouir of applicant Bank:

(a) Letter of Renewal;

(b) Pronote;

(c) Particulars of Assets standing in the name of the Applicant / Guarantor. COpies of said documents are annexed and marked as Annexure 'J', 'K' & 'L'

T.A.l07 of 2020 - DRT-2/Kol

(v) The defendant executed and delivered the Acknowledgement of Debt and Security dated 18.09.2015 thereby confirmed the outstanding balance in loan Account for a sum of Rs.9,99,725l- exclusive of interest from 01.09.2015. Copy of said Acknowledgement of Debt and Security is annexed and marked as Annexure 'M'.

3. The Defendant availed and enjoyed the said credit facility by opening Account in Bank's Behala Branch, at 8, Ramkrishna Sarani, P.S.- Behala, Kolkata - 700060. However, the defendant failed and neglected to operate the said OCC Account. The Defendant did not repay the outstanding loan amount and overdue interests in 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 31.03.2015. Applicant Bank finding no other alternative issued demand Notice lastly on 10.03.2018 upon the defendant calling upon him to pay the demanded sum, but he did not comply with the said notice. The defendant by his letter dated 04.09.2015 acknowledged and promised for closing of his loan Account within six months by paying the outstanding loan amount, but deliberately failed to keep his promise. Copy of demand notice dated 10.03.2018 is annexed and marked as Annexure '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 @12 15o/o per annum compounded monthly rests from 01.05.2018, till payment in full together with costs, expenses etc., 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 observed from S/R on affidavit dated 20.12.2024 and its enclosures that service of summon upon the Defendant is not successful, such has been recorded vide Ld. Asstt. Registrar's letter dated 23.12.2024. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal was directed to serve the summon upon the defendant by way of substituted service, and Ld. Advocate of the applicant Bank has brought on record the affidavit of service on publication dated 21.01.2026 along with relevant portion of paper cuttings in two newspapers, namely (i)'The Busrness Standard in English and (ii) 'Arthik Lipi' in Bengali, both dated 30.10.2025, such has been recorded vide Ld. Registrar's order dated 22.01.2026. Despite service, the sole defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded ex-partevide order dated 07.05.2026. Ld. Advocate of the applicant Bank has submitted argument on 25.06.2026.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Sri Shantanu Das, Branch Manager of Bank's Behala Branch, B, Ramkrishna Sarani, P.S.- Behala, Kolkata - 700060 along with the copy of documents executed by the Defendant Copy of documents have been produced by the applicant Bank; the same have been verified with copies of the documents annexed with O.A. and after verification the same have been returned to Sri Tanmoy Mistry, Manager of Bank's Behala Branch, 8, Ramkrishna sarani, Kolkata - on 19. 12.2023,such has been recorded in Ld. Registrar's order dated 19j22023

T.A.l07 of 2020 - DRT-2/Kol The documents produced by applicant Bank are exhibited and annexed as Exhibit'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 corroborated the averments made in the O.A. Applicant Bank has proved the sanction of OCC limitof Rs.10,00,000/- vide sanction letter dated 29.08.2014. Subsequently, the said limit was renewed for further period of twelve months vide sanction letter dated 18.09.2015. Applicant Bank has proved the creation of hypothecated movable assets, described in Schedule at page 15 and para lll.A at page 6 & 7 of the original application.

7. On the point of limitation, Loan has been sanctioned on29.08.2014, subsequently renewed the existing facility on dated 18.09.201 5; security documents have been executed on 29.08.2014 & 18.09.2015; and original Application has been filed on 05.06.2018. As such, the originalApplication appears to have been filed well within the period of limitation.

8. Applicant Bank has stated that the outstanding balance in Open Cash CreditAccount (inclusive of accrued interests and other charges as calculated upto 30.04.2018) for a sum of Rs.12,68,437.00 (Rupees twelve lakh sixty eight thousand four hundred thirty seven) as on 30.04.2018, which is the amount claimed by applicant Bank in the originalApplication, and the defendant is liable to repay the said amount to the applicant Bank with pendente lite and future interest, till realization. I allow the claim as made by the applicant Bank in the originalApplication. Applicant Bank has prayed further interest @ 12.15o/o per annum compounded monthly rests from 01 .05.2018, while in the sanction letter and Pronote dated 29.08.2014 the rate of interest @ 12.45% per annum compounded monthly rests, has been mentioned. Therefore, the pendente lite & future rate of interestwhich has been claimed by applicant Bank in OriginalApplication, i.e. @ 1215o/o per annum, with quarterly rests, from 01 .05.2018, 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.l07 of 2020 (arising out of 0.A./460 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./07 of 2O2O (arising out of 0.A./460 of 2018), filed by the applicant Bank, is allowed 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.12,58,437-00 (Rupees twelve lakh sixty eight thousand four hundred thirty seven) due and payable, inclusive of interest and other charges as calculated upto 30.04.2018; and interest for the period pendente lite and future rate @ 12.15o/o per annum, with quarterly rests, from 01.05.2018' till realization of the entire sum due and recoverable. a

T.A.lO7 of 2020 - DRT-2/Kol

(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, the pendente lite and future interest shall be calculated on the reduced amount.

(iii) The defendant debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets, described in Schedule at page 15 and para lll.A at page 6 & 7 of the original application, as under- Hvpothecated Movalle Assets: "All that Hypothecated properlies of the Defendant such as, sfock of Voltage Stabilizer, lnverter, stock of coil, plant and machineries, tools, instruments, stock of finished and semi finished goods lying and sifuafes at the factory, workshop or found anywhere e/se including Book Debfs outstanding the Books of the Defendant's proprietorship concern at 161/1, Becharam Chatterjee Road, Behala, Kolkata-700061 and at 203, Majlish Ara Road, Kolkata - 700034." 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.

(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, 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 property(s) 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 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 sole 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 1993. Accordingly, the Original Application, being T.A./07 of 2020 (arising out of

0. A./460 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 August, 2026. copy of the Final order / Judgment be uploaded in the Tribunal's A Website "A- (Arbind Presiding Officer DRT-2, Kolkata r tb