CANARA BANK vs JITENDRA SAHOO on 11 September 2026

1. Sri Jitendra Sahoo, Proprietor of M/s Shree Fashion, 179, S.N. Roy Road, Behala, Kolkata - 700038. Defendant Counsel for parties: For the Applicant Bank For the Defendant [\Ir. Archan Dutt and tVlr. Subhadip Basu Ex-Parte FINAL ORDER / JUDGMENT Delivered on 11 .09.2026 Applicant, Canara Bank instituted the present Application being the Original Application No.159 of 2018 filed in DRT-3, Kolkata on 09.03.2018 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.33,79,753.00 (Rupees thirty three lakh seventy nine thousand seven hundred fifty three) inclusive of interest calculated upto 30.11.2017 and further interest @ 13.85% per annum compounded monthly from 01.12.2017,hilr|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/DRAT|KOU2O18(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./97 of 2019 vide Ld. Registrar's order dated 28.10.2019.

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

(i) The defendant is carrying on business under the name and style of M/s Shree Fashion as a sole proprietress. The Defendant had applied to the applicant Bank for open cash credit facility of Rs.30.00 lakh vide loan application dated 18.07.2014; copy of loan application dated 18.07.2014 is annexed and marked with Letter 'A'. Upon consideration of loan application, applicant Bank was pleased to grant / sanction open cash credit facility to the extent of Rs.30,00,000/- (Rupees thirty lakh) in favour of the defendant vide sanction [Vlemorandum dated 18.07.2014. Copy of sanction Jt/lemorandum dated 18.07.2014 is annexed and marked with Letter'B'.

(ii) ln consideration of the aforesaid OCC facility of Rs.30.00 lakh, the defendant duly executed the following security documents all dated 18.07.2014 in favour of applicant Bank:

(a) Request for Overdraft facility;

(b) Pro-note for Rs.30.00 lakh;

(c) Cash Credit Agreement for Rs.30.00 lakh; (d) Agreement cum Deed of Hypothecation. Copy of said documents are annexed and collectively marked with Letter'C'. By the said cash credit Agreement the borrower / defendant hypothecated stocks, i.e. Ladies Garment, Sarees and dresses etc. book debts, monies, receivables, claims, bills etc. both present and future in favour of applicant Bank by way of a first charge as security for the cash credit limit granted by the applicant Bank, particulars of which are annexed and marked with Letter 'C-1'.

(iii) Again, the defendant applied for enhancement of his credit facility from Rs.30.00 lakh to Rs.32.00 lakh vide his loan application dated 10.08.2015; copy of application dated 10.08.2015 is annexed and marked with Letter'D'. Upon consideration of loan application, applicant Bank was pleased to enhance / sanction the credit limit from Rs.30.00 lakh to Rs.32.00 lakh (Rupees thirty two lakh) in favour of the defendant vide sanction [\Iemorandum dated 10.08.2015. Copy of said sanction l/lemorandum dated 10.08.2015 is annexed and marked with Letter'E'.

(iv) To avail the said enhanced credit limit of Rs.32.00 lakh, the defendant duly executed the following security documents all dated 10.08.2015 in favour of applicant Bank.

(a) Pro-note for Rs.2.00 lakh;

(b) Link Letter in respect of enhancement of credit facility;

(c) Supplemental Agreement;

(d) Letter of Renewal. Copy of said documents are annexed and collectively marked with Letter 'F'.

(v) The defendant has acknowledged his debt & liabilities by executing 'Acknowledgement of Debt and Security'dated 10.08.2015 acknowledging the ,outstanding balance in loan Account for a sum of Rs.29,98,7051- with interest @ 12-25%

r.A.l97 of 2019 - DRT-2/Kol per annum compounded monthly; copy of said acknowledgement of debt & liability dated 10.08.2015 is annexed and marked with Letter'G'.

(vi) The defendant applied for renewal of existing credit facility to the extent of Rs.32.00 lakh vide application dated 28.01.2016', copy of said letter dated 28.01.2016 is annexed and marked with letter'H'. At the request of the defendant, applicant Bank was pleased to renew the existing credit facility to the extent of Rs.32.00 lakh to the defendant with interest @ 11.85o/o per annum compounded monthly vide sanction l\Iemorandum dated 28.11.2016. Copy of sanction [vlemorandum dated 28.11.2016 is annexed and marked with letter'l'.

(vii) To availthe said renewed credit limit of Rs.32.00 lakh, the defendant duly executed the following security documents all dated 28.11.2016 in favour of applicant Bank.

(a) Pro-note for Rs.32.00 lakh'

(b) Letter of Renewal. Copy of said documents are annexed and collectively marked with Letter'J'.

(viii) The defendant acknowledged his debt & liabilities by executing 'Acknowledgement of Debt and Security' dated 28.11.2016 acknowledging the outstanding balance in loan Account for a sum of Rs.31,99,0151 with interest @ 11.85% per annum compounded monthly; copy of said acknowledgement of debt & liability dated 28.11.2016 is annexed and marked with Letter'K'.

(ix) The defendant applied for ad-hoc enhancement credit facility to the extent of Rs.1 .50 lakh vide application dated 31 .03.2017; copy of said application dated 31 .03.2017 is annexed and marked with letter 'L'. At the request of the defendant, applicant Bank was pleased to sanction the ad-hoc credit enhancement facility to the defendant vide sanction lvlemorandum dated 31.03.2017. Copy of which is annexed and marked with letter'[/l'.

(x) To avail the said ad-hoc credit enhancement facility of Rs.'1.50 lakh, the defendant duly executed the following security documents all dated 31 .03.2017 in favour of applicant Bank:

(a) Pro-note for Rs.1.50 lakh;

(b) Supplemental agreement. Copy of said documents are annexed and collectively marked with Letter 'N'.

3. The Defendant availed and enjoyed the said credit facilities by opening Account in Bank's Behala Branch, 8, Ramkrishna Sarani, Kolkata - 700060. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the outstanding loan amount and overdue interests in loan Accounts. Since the defendant did not pay any attention to regularize the Accounts inspite of repeated requests and personal contact made by applicant Bank, the Accounts became out of order andwasclassifiedasN.p.A. on30.07.2017. lnviewofthefailureonthepartofdefendant to liquidate their dues, applicant Bank was compelled issue Lawyer's notice on dated 10.01 .201g upon the defendant demanding to repay the outstanding Bank's dues, but the

defendantdid notcomplythesaid notice; copyof said noticedated 10.01 .2018 isannexed and marked with Letter 'O'. 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'P'), and further interest @ 13.85% per annum compounded monthly from 01.12.2017,ti||realization, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notice / summon was sent to the Defendant by the Tribunal. lt is seen from S/R on affidavit dated 18.08.2025 and its enclosures that service of Notice / summons upon the Defendant is not successful, such has been recorded vide Ld. Registrar-in- Charge's order dated 15.09.2025. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serye the summon upon the defendant by way of paper publication; and Ld. Advocate for applicant Bank has brought on record the affidavit of service on publication dated 05.01 .2026 along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Times of lndia' in English and (ii) 'Ananda Bazar Patrika' in Bengali, both dated 01.01 .2026, such has been recorded vide Ld. Registrar's order dated 05.01 .2026. Despite service, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded ex-parte vide order dated 15.07.2026. Applicant Bank has filed the written notes of argument on dated 24.04.2026 thereby stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on 28.08.2026.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Shantanu Das, ltllanager of Bank's Behala Branch, at 8, Ramkrishna Sarani, Kolkata - 700060 along with 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 Tanmoy l/istry, Branch [\Ianager of Bank's Behala Branch, Kolkata - 700060 on 11.09.2024, such has been recorded in Ld. Registrar's order dated 11.09.2024. The documents produced by applicant Bank are exhibited and annexed with Exhibit'A'to'P'. 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 open cash credit facility of Rs.30.00 lakh vide sanction tVlemorandum dated 18.07.2014; the said limit is enhanced to Rs.32.00 lakh vide sanction lVlemorandum dated 10.08.2015; subsequently renewed the facility to the extent of Rs.32.00 lakh vide sanction lt/emorandum dated 28.11.2016 and Ad-hoc enhancement facility of Rs.1.50 lakh was sanctioned by Bank vide sanction [Vlemorandum dated 31.03.2017. Applicant Bank has proved the hypothecated movable assets, described in Schedule at page 19 and para 3,A at page 3 to 5 of the original application. a

7. On the point of limitation, Loan has been sanctioned on 18.07.2014, subsequently enhanced the limit on 10.08.2015, renewed the facility on dated 28.11.2016 and sanctioned the ad-hoc enhancement on dated 31 .03.2017; security documents have been executed and delivered on 18.07.2014, 10.08.2015, 28.11.2016 & 31 .03.2017, and original Application has been filed on 09.03.2018. 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 Loan Accounts (inclusive of accrued lnterest and other charges as calculated upto 30.11 .2017) is Rs.33,79,753.00 (Rupees thirty three lakh seventy nine thousand seven hundred fifty three) as on 30.11 .2017, 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 applicant Bank in the original Application. Applicant Bank has prayed further interest @ 13.85% per annum compounded monthly from 01.12.2017,ti||realization, while in Pro-note dated 18.07.2014, 10.08.2015 and 31 .03.2017 the rate of interest @ 12.45oh, @ 10% and @ 12.60% per annum respectively, have been mentioned. Therefore, in my view, lhe pendente lite & future rate of interest @ 11.75% per annum, with quarterly rests, from 01 .12.2017, 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./T.A. The original application being T.A.l97 of 2019 (arising out of O.A./159 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./97 of 2019 (arising out of O.A./159 of 2018), filed by 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.33,79,753.00 (Rupees thirty three lakh seventy nine thousand seven hundred fifty three) due and payable, inclusive of interest and other charges as calculated upto 30.1 1 .2017', and interest for the period pendente tite and future rate @ 11.75o/o per annum, with quarterly rests, from 01j22017 , till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in loan accounts or amount, if any, recovered by applicant Bank after filing of 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' "6

r.A.l97 of 2019 - DRT-2/Kol

(iii) The defendant debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets and personal immovable property, described in Schedule at page 19 and para 3A at page 3 to 5 of the original application, as under- Hypothecated Movable Assets: "All That Ladies garments, sarees and dresses, book debts, outstanding monies, receivables efc." 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 sole 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./97 of 2019 (arising out of O.A./159 of 2018) is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the '11th day of September,2026. Copy of the Final Order i Judgment be uploaded in the Tribunal's Website. [.,. iV rbind lVa Presiding Officer DRT-2, Kolkata tb