CANARA BANK vs MR BALJIT SINGH on 10 February 2025

Page No.**KOLKATA DEBTS RECOVERY TRIBUNAL NO. 2****ORDER SHEET (Continuation)**

T.A./228 of 2019

Canara Bank

Case No. \_\_\_\_\_

Vs

Mr. Baljit Singh

<table border="1"> <thead> <tr> <th data-bbox="124 212 200 278">Date of Order</th> <th data-bbox="200 212 778 278">Order with Signature</th> <th data-bbox="778 212 910 278">Office action with date and dated Signature of parties when necessary</th> </tr> </thead> <tbody> <tr> <td data-bbox="124 278 200 917"> <p>17<br/>10.02.2025</p> </td> <td data-bbox="200 278 778 917"> <p>Counsel for the parties:<br/> Ms. Mekhala Kanji, Ld. Counsel with Ms. Gitasree Chattopadhyay, Ld. Advocate for the applicant Bank.<br/> None for the defendant.<br/> T.A./228 of 2019 (arising out of O.A./275 of 2018) is allowed and disposed of.<br/> Final order / Judgment is in separate sheet of 4 pages.<br/> File be consigned to record room.<br/> Order be uploaded on the Tribunal's website.</p> <p style="text-align: right;"> <br/> (Arbind Madhav)<br/> Presiding Officer<br/> DRT-2, Kolkata </p> </td> <td data-bbox="778 278 910 917"></td> </tr> </tbody> </table>

1

T.A./228 of 2019 – DRT-2/Kol

**DEBTS RECOVERY TRIBUNAL - 2, KOLKATA**

Jeevan Sudha Bldg. 07^th Floor, 42/C, J.L. Nehru Road, Kolkata – 700071

**Before Shri Arbind Madhav, Presiding Officer**

**T.A. No. 228 of 2019** (arising out of O.A./275 of 2018)

**In the matter of –**

**Canara Bank**, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Registered Office at 112, J.C. Road, Bengaluru – 560002, and carrying on business, *inter-alia*, from its Baguiati Branch, 1B/3, Hatiara Road, Ashwini Nagar, Baguiati, P.S.- Baguiati, Kolkata – 700059.

..... Applicant Bank

-Versus-

**1. Mr. Baljit Singh**, DD-30, Radha Krishna Apartment, Baguiati, Kolkata – 700059.

..... Defendant

Counsel for parties:

For the Applicant Bank : Ms. Mekhala Kanji.

For the Defendant : *Ex-Parte*

**FINAL ORDER / JUDGMENT** Delivered on 10.02.2025

Applicant, Canara Bank instituted the present Application being the Original Application No.275 of 2018 filed in DRT-3, Kolkata on 18.04.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.13,41,469.65 (Rupees thirteen lacs forty one thousand four hundred sixty nine and paise sixty five) as on 06.04.2018 with interest @ 10.40% per annum for Term Loan Account, till full realization of the dues. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide Hon'ble Chairperson DRAT, Kolkata's direction vide letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 19.10.2019 and the same has been renumbered as T.A./228 of 2019 vide Ld. Registrar's order dated 28.10.2019.

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

(i) That the Defendant had approached and applied before the applicant Bank for financial accommodation for purchase an Eicher 10.90 L CWC BS-III vehicle vide loan Application dated 30.03.2015. Upon consideration of application, applicant Bank was pleased to grant / sanction a Term Loan of Rs.12,68,000/- (Rupees twelve lacs sixty eight thousand) vide sanction Memorandum dated 30.03.2015. Copy of loan application and sanction Memorandum both dated 30.03.2015 are annexed and marked as Annexure 'A' & 'A-1'

(ii) To avail the said term loan facility of Rs.12.68 lacs, the defendant executed the following security documents all dated 20.04.2015 in favour of applicant Bank:

- (a) Pronote for Rs.12.68 lacs;

- (b) Letter of undertaking re: Loans / Advances;

- (c) Deed of Hypothecation Re: Vehicles.

Copy of said documents are annexed and marked as Annexure 'B', 'B-1' & 'B-2'.

3. The Defendant availed and enjoyed the said credit facility by opening Account in Bank's Baguiati Branch, 1B/3, Hatiara Road, Kolkata – 700059. The loan amount disbursed to the borrower's respective account. However, the defendant failed and neglected to abide by the terms and conditions of the facilities. The Defendant did not repay the agreed EMIs and overdue interests in loan Account. Since the defendant did not pay any attention to regularize the Account inspite of repeated requests, the Account became out of order and was classified as N.P.A. on 17.08.2017. In view of the failure on the part of the defendant, applicant Bank issued demand Notice dated 07.04.2018 upon the defendant through its Advocate demanding to repay the outstanding loan amounts, but the defendant did not comply the said notice; copy of Advocate notice dated 07.04.2018 along with postal receipts are annexed and marked as Annexure 'C'. 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 'D'), and future interest @ 10.40% per annum, till realization in full, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

4. The notice / summons was sent to the sole Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 12.10.2023. Despite service, the sole defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 29.07.2024. Ld. Advocate of the applicant bank has submitted arguments on 29.07.2024. In para 5.8 at page 15 of the Section 19 application, applicant Bank has mentioned an immovable property being residential flat at DD-30, Radha Krishna Apartment, Narayantala (E), P.O.- Aswini Nagar, P.S.- Baguiati, Kolkata – 700059, Holding No.AS/92/F/BC-DE/08-09, J.L. No.17, R.S. Dag No.289, RS Khatian No.63, standing in the name of Baljit Singh, and applicant Bank prayed for injunction over the property owned by Baljit Singh. Vide order dated 05.07.2018, Ld. Advocate of the applicant bank has submitted that the said immovable property of defendant is not mortgaged; and Ld. Tribunal has not been granted injunction over the said property.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Mrinal Chakraborty, Senior Manager of Bank's Baguiati Branch, 1B/3, Hatiara Road, Ashwini Nagar, Kolkata – 700059 along with the copy of original documents executed by the Defendant. Original documents have been produced by the applicant Bank; the same have been verified with copies of the documents annexed with O.A. and the original documents have been returned to Sri Shuvabrata Majumdar of Bank's Baguiati Branch, Ashwini Nagar, Kolkata – 700059 on 09.03.2023, such has been recorded in Ld. Registrar's order dated 09.03.2023. The documents produced by the applicant Bank are exhibited and annexed at 'A' to 'D'.

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 Term Loan facility of Rs.12.68 lacs. Applicant Bank has proved the creation of hypothecated stocks and movable assets etc., described in Schedule 'A' and para 3A at page 8 of the original application.

7. On the point of limitation, Loan has been sanctioned on 30.03.2015; security documents have been executed on 20.04.2015 and original Application has been filed on 18.04.2018. 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 Account (inclusive of accrued Interest and other charges calculated upto 06.04.2018 for a sum of **Rs.13,41,469.65** (Rupees thirteen lacs forty one thousand four hundred sixty nine and paise sixty five) as on 06.04.2018, 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 applicant Bank with *pendente lite* and future interest, till realization in full. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 10.40% per annum, while in the Pro-note dated 20.04.2015 the same rate of interest, i.e. @ 10.40% per annum, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 10.40% per annum, with quarterly rests, from 07.04.2018, 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./T.A. The T.A. being T.A./228 of 2019 (arising out of O.A./275 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./228 of 2019 (arising out of O.A./275 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the sole Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.13,41,469.65** (Rupees thirteen lacs forty one thousand four hundred sixty nine and paise sixty five) due and payable, inclusive of interest and other charges as calculated upto 06.04.2018; and interest for the period *pendente lite* and future rate @ 10.40% per annum, with quarterly rests, from 07.04.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendant in the loan account or amount, if any, recovered by the 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 'A' at page 24 and para 3A at page 8 of the original Application, as under –

"All That the *Hypothecation by way of first and paramount charge in favour of the applicant Bank in respect of an Eicher 10.90 L CWC, BS-III, Engine No. E413CDFB020973, Chassis No. MC243LRTOFB810585, Registration No. WB04G3504.*"

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 forty-five days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to him. In 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 propert(s), as aforesaid. Applicant Bank is also entitled to proceed against personal properties 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 sole 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 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./228 of 2019 (arising out of O.A./275 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 10^th day of February, 2025.

Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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