CANARA BANK vs PALASH BISWAS on 30 April 2025

1. **Palash Biswas**, Proprietor of Mamata Enterprise, Son of Sri Anath Biswas, West Beraberi Narayanpur, Ground Floor, P.O.- Rajarhat Gopalpur, P.S.- Airport, Kolkata – 700136; and residing at Ashatala Bhaban, 12/5A, Jessore Road East, Bidhan Park, P.O.- Barasat, District – 24-Parganas (North), Kolkata – 700124; and also at 46/3, Chinar Park, P.O.- Kaikhali, Kolkata – 700157.

..... Defendant

Counsel for parties:

For the Applicant Bank : Mr. Subhadip Basu For the Defendant : *Ex-Parte***FINAL ORDER / JUDGMENT**

Delivered on 30.04.2025

Applicant (Canara Bank) erstwhile Syndicate Bank instituted the present Application being the Original Application No.502 of 2018 filed in DRT-3, Kolkata on 21.06.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.21,33,472.86 (Rupees twenty one lacs thirty three thousand four hundred seventy two and paise eighty six) as on 31.05.2018 together with further interest @ 13.75% per annum, with monthly rests on and from 01.06.2018, 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/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 26.10.2019 and the same has been renumbered as T.A./125 of 2020 vide Ld. Registrar's order dated 07.11.2019.

2T.A./125 of 2020 - DRT-2/Kol

1. 2. Syndicate Bank has been merged / amalgamated into Canara Bank vide Gazette Notification dated March 04, 2020, issued by the Government of India published under Extraordinary Part-II, Section 3, sub-section (i) in the Gazette of India in terms of Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. In view of the merger / amalgamation of Syndicate Bank into Canara Bank, the applicant Name in this case should be read / inserted as Canara Bank instead of Syndicate Bank.

2. 3. In accordance with the Notice dated 30.07.2020 of this Tribunal, Ld. Advocate for Canara Bank has filed a petition being I.A./32 of 2021 praying for amendment of Cause Title in view of amalgamation of Syndicate Bank with Canara Bank vide G.O.I. Notification dated 04.03.2020; and in accordance with the direction of the Tribunal necessary amendment in cause title has been carried out by Ld. Advocate of the applicant Bank on 01.02.2021, such has been recorded in Ld. Registrar's order dated 01.02.2021.

3. 4. The brief facts of the case as set out by the Applicant Bank in its Original Application, as under:

1. (i) The defendant is carrying on manufacturing and trading business of readymade and hosiery garments in the name and style of M/s Mamata Enterprise. That the Defendant approached and applied the applicant Bank for sanction of cash credit facility of Rs.15.00 lakhs vide loan application dated 01.09.2014. Copy of loan application dated 01.09.2014 and particulars of assets and liabilities of the defendant dated 03.09.2014 are annexed and marked with Letters 'A-1' and 'A-2'. upon consideration of loan application, Applicant Bank was pleased to grant / sanction a cash credit facility for a sum of Rs.15,00,000/- (Rupees fifteen lacs) in favour of the defendant's firm 'M/s Mamata Enterprise' vide Letter of Sanction dated 05.09.2014. The said cash credit facility was to be repaid by the defendant with interest @ 11.75% per annum with monthly rests. Copy of the letter of sanction dated 05.09.2014 is annexed and marked with Letter 'A-3'.

2. (ii) In consideration of the said sanction of Rs.15.00 lakhs, the defendant executed the following security documents in favour of applicant Bank:

1. (a) Letter of proprietorship dated 05.09.2014;

2. (b) Composite Hypothecation Agreement dated 05.09.2014;

3. (c) Declaration of value of stocks dated 26.09.2014 with stock statement dated 26.09.2014.Copy of said documents are annexed and marked as Annexures 'A-4', 'A-5' & 'A-6' respectively.

3. (iii) The defendant acknowledged his liabilities towards the applicant bank by executing the letter of acknowledgement of debt dated 18.07.2017 acknowledging the outstanding balance in loan Account(s). Copy of said letter of acknowledgement of debt dated 18.07.2017 is annexed and marked with Letter 'A-7'.

5. The Defendant enjoyed the said credit facility by opening Account in erstwhile Bank's Rajarhat Chinar Park Branch, 217, Loknath Park, Kolkata – 700157. However, the defendant failed and neglected to abide by the terms and conditions of the facility. The Defendant did not repay the outstanding Bank's dues and overdue interests in the loan Account. Inspite of repeated requests made by the applicant Bank, the defendant failed to regularize the loan Account. Since the defendant did not pay any attention to regularize the Account, the Account became out of order and classified as N.P.A. on 18.08.2016. However, the defendant by letters dated 12.12.2017, 08.01.2018 and 16.04.2018 requested the applicant bank for time for payment and undertakes to pay the outstanding loan amount, but the defendant failed and neglected to pay the outstanding Bank's dues. Copies of said letters dated 12.12.2017, 08.01.2018 & 16.04.2018 are annexed and collectively marked with Letter 'A-8'. In view of such irregularities and defaults committed by the defendant despite repeated requests and demands, the applicant bank was compelled to issue / serve the demand Notice dated 26.04.2018 upon the defendant, but the defendant did not choose to regularize the Account; copy of said notice dated 26.04.2018 is annexed and marked with letter 'A-9'. Thereafter, the applicant bank served the legal demand notice dated 07.06.2018 upon the defendant through its Advocate demanding to pay the outstanding dues amount, but the defendant did not comply with the said notice; copy of said legal demand notice dated 07.06.2018 alongwith postal receipts are annexed and collectively marked with letter 'A-10'. 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 'A-11' & 'A-12'), and future interest @ 13.75% per annum with monthly rests, till realization in full, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The notice / summons was sent to the Defendant by the Tribunal; service of Notice / summons upon the Defendant by postal service has not been successfully effected, such has been recorded vide Ld. Registrar's order dated 22.08.2023. However, the defendant appeared through Advocate on 20.12.2021 and has given undertake to file vakalatnama. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal is directed to serve the summons 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 07.03.2024 upon the Defendant along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Statesman' in English and (ii) 'Dainik Statesman' in Bengali, both dated 06.02.2024, such has been recorded vide Ld. Registrar-in-Charge's order dated 14.03.2024. After 20.12.2021, the defendant did not appear nor filed the written statement; thus, the defendant was ordered to be proceeded *ex-parte* vide order dated 04.07.2024. Ld. Advocate of the applicant Bank has submitted his argument on 18.12.2024.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Ms. Rohini Toppo, Branch Manager of erstwhile Bank's Rajarhat Chinar Park Branch, Ambika Apartment, 217, Loknath Park, Kolkata – 700157 along with the copies of original documents executed by the Defendant. Original documents have been produced by the applicant Bank affirmed by Branch Manager of erstwhile Bank's Rajarhat Chinar Park Branch, 217, Loknath Park, Kolkata – 700157 on 19.06.2018; the same have been verified with copies of the documents annexed with O.A. and after verification the original documents have been returned to Ld. Advocate of the applicant Bank, such has been recorded vide Ld. Registrar, DRT-3's order dated 22.01.2019. The documents produced by the applicant Bank are exhibited and annexed as Exhibit 'E-1' to 'E-12'.

I have heard the Ld. Advocate for the Applicant Bank and perused the records.

8. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, unrebuted 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 limit of Rs.15.00 lakhs vide letter of sanction dated 05.09.2014. Applicant Bank has proved the hypothecated movable assets and details of uncharged immovable property, described in 'Schedule of Securities' at page 27 and para 3A at page 7 & 8 of the original application.

9. On the point of limitation, Loan has been sanctioned on 05.09.2014; documents have been executed on 05.09.2014; original Application has been filed on 21.06.2018. Further, the defendant acknowledged his liabilities towards the applicant Bank by executing a letter of acknowledgement of debt dated 18.07.2017 acknowledging the outstanding balance in loan Account. As such, the original Application appears to have been filed well within the period of limitation.

10. Applicant Bank stated that the outstanding balance in loan Account (inclusive of accrued interest and other charges calculated upto 18.08.2016) is Rs.15,71,161.75 (Rupees fifteen lakhs seventy one thousand one hundred sixty one and paise seventy five) and unapplied interest from 19.08.2016 to 31.05.2018 is Rs.5,62,311.11 has been added / debited in the Account; hence the outstanding balance comes to **Rs.21,33,472.86** (Rupees twenty one lacs thirty three thousand four hundred seventy two and paise eighty six) as on 31.05.2018, 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 of entire dues. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 13.75% per annum with monthly rests on and from 01.06.2018 till realization, while in Letter of Sanction dated 05.09.2014 the rate of interest @ 11.75% per annum with monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 11.75% per annum, with quarterly rests, from 01.06.2018, is allowed.

11. 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./125 of 2020 (arising out of O.A./502 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./125 of 2020 (arising out of O.A./502 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendant. It is hereby ordered that the Defendant is hereby directed to pay the total debt amount of **Rs.21,33,472.86** (Rupees twenty one lacs thirty three thousand four hundred seventy two and paise eighty six) due and payable, inclusive of interest and other charges as calculated upto 31.05.2018; and interest for the period *pendente lite* and future rate @ 11.75% per annum, with quarterly rests, from 01.06.2018, 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 is debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets and details of uncharged immovable property, described in 'Schedule of Securities' at page 27 and para 3A at page 7 & 8 of the original application:

Hypothecated Movable Properties –

"ALL THAT stocks of readymade shirts, T-Shirt, Churidar, Hosiery products, Raw materials like cotton, Polyester rolls, chain, zip, button, etc. and also machineries i.e. Juki 8100, single needle lock stitch in 23 pieces, Pegasus M 752-13H-2x4 Four thread over lock machine 6 pieces, Pegasus A4 W 1562-01Gx356/BS three needle fat lock machine 3 pieces, Kansai Special DFB 1404PMD 1 piece, Kasiman 10" cutting machine 116800- 1 piece, Revo RIB cutting machine complete set in 1 piece all lying in West Berabari, Narayanpur, Ground Floor, P.S.- Airport, P.O.- Rajarhat Gopalpur, Kolkata – 700136, 1 number of Pulverizer machine 4 numbers of Chakki Grinder, 1 number of Dryer and 2 numbers of Packaging Machines, installed in the factory premises of "MAMATA ENTERPRISE" at 63/1, Khudiram Bose Sarani (Belgharia Road). P.S.- Ultadanga, Kolkata – 700037.

Details of Uncharged Property –

ALL THAT leasehold piece or parcel of commercial space measuring about an area 2763 sq.ft. as the entire 2^nd floor lying and situated at in R.S. Dag No.3222, R.S. Khatian No.3000, under Mouza – Gopalpur, J.L. No.2, Touzi No.2998, under P.S.- Airport within the limit of Rajarhat Gopalpur Municipality, District – North 24- Parganas for the period upto 26^th August, 2044."


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 them. 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 properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immovable 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 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./125 of 2020 (arising out of O.A./502 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 30^th day of April, 2025.

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

30-4-25 (Arbind Madhav) Presiding Officer DRT-2, Kolkata

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