STATE BANK OF INDIA vs KANCHON DATTA on 19 May 2025

1. **Kanchon Datta**, Son of Chana Datta, carrying on business as proprietor under the name & style of M/s Maa Durga Automobiles from I-5, Spandan Apartment, 380/1/56, Jessore Road (South), Madhyamgram Chowmatha, Kolkata – 700129.

..... Defendant

Counsel for parties:

For the Applicant Bank : Mr. Anirban Pramanick, Ld. Advocate For the Defendant : *Ex-Parte***FINAL ORDER / JUDGMENT** - Delivered on 19.05.2025

Applicant (State Bank of India), erstwhile State Bank of Bikaner & Jaipur instituted the present Application being the Original Application No.122 of 2018 filed in DRT-3, Kolkata on 19.02.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of **Rs.10,91,015.00** (Rupees ten lacs ninety one thousand fifteen) as on 08.11.2017 together with further interest @ 18% per annum, till realization of the entire dues. 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 17.10.2019 and the same has been renumbered as T.A./108 of 2019 vide Ld. Registrar's order dated 02.11.2019.

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

(i) That the sole Defendant is the borrower. On 20.03.2016 the defendant had applied and approached the State Bank of Bikañer & Jaipur (SBBJ), Rathtalla Branch, 271A, N.S.C. Bose Road, Kolkata – 700047, which has been merged into State Bank of India as per Gazette of India Notification dated 22.02.2017, with effect from 01.04.2017, for cash credit facility aggregating a sum of Rs.10,00,000/-, and upon consideration of Loan Application, applicant Bank was pleased to grant / sanction a Cash Credit facility to the limit of Rs.10,00,000/- (Rupees ten lacs) in favour of the defendant for the purpose of expansion of her business vide letter of arrangement dated 28.03.2016.

(ii) At the time of sanctioning of said credit facility, the effective rate of interest was @ 10.95% per annum. The primary security for the advance was hypothecation of entire assets of Maa Durga Automobile. Copy of letter of Arrangement dated 28.03.2016 is annexed and marked with letter 'A' and Exhibit-1.

(iii) In consideration of the aforesaid cash credit facility of Rs.10.00 lakhs, the defendant executed the following security documents in favour of applicant Bank on dated 28.03.2016:

- (a) Agreement of Loan-cum-Hypothecation;

- (b) Affidavit.

Copy of said documents dated 28.03.2016 are annexed and marked with Letter 'B' & 'C' and Exhibit-2 & 3 respectively.

(iii) The applicant bank thereafter visited the defendant's place of business and it was detected that there were no stocks in the said place of business. Applicant Bank immediately had lodged an F.I.R. before the Netaji Nagar police station on 23.10.2017 bearing F.I.R. No.325. Copy of said F.I.R. dated 23.10.2017 is annexed and marked with Letter 'D' and Exhibit-4.

3. The Defendant availed and enjoyed the said cash credit facilities by opening Account in Bank's Rathtala Branch, 271A, N.S.C. Bose Road, Kolkata – 700047. 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 loan Account. In spite of repeated requests and personal contact 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 was classified as N.P.A. on 27.02.2017. Thereafter, the applicant Bank issued legal notice dated 22.11.2017 upon the defendant through its Advocate demanding to repay the outstanding Bank's dues, but the defendant did not comply the said notice; copy of Advocate's notice dated 22.11.2017 is annexed and marked with letter 'E' and Exhibit-5. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, with Statement of Claim, have been filed to show and prove the dues (Annexure 'F' and Exhibit-6), and future interest @ 18% per annum till full realization of the amount together with costs, 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. Ld. Advocate of the applicant bank has brought on record the Affidavit of service dated 20.08.2024. and it is seen from the affidavit of service that the service of Notice / summons upon the Defendant by postal service / hand delivery has been successfully effected, such has been recorded vide Ld. Registrar's order dated 20.08.2024. I.A./1587 of 2023 along with I.A./1586 of 2023 dated 01.12.2023 has been filed by the applicant bank to leave the secondary evidence since the original documents have been seized by police authority, the said I.A. was allowed vide order dated 18.01.2024. 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 18.01.2024. Written notes of argument has been filed by the applicant Bank on 19.11.2024. Ld. Advocate of the applicant Bank has submitted arguments on 19.11.2024.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Sri Shyamal Kumar Kar, Manager SARC of Bank's SMECCC Ballygunge, 50A, Gariahat Road, Kolkata – 700019 along with the true certified copies of documents executed by the Defendant. The true copies of documents have been produced by the applicant Bank; the same have been verified annexed with O.A. and after verification the documents have been returned to Sri Arjun Kumar Naskar, Manager of Bank's SARB, South Bengal, Jeevan Deep Bldg., 1, Middleton Street, Kolkata – 700071 on 20.08.2024, such has been recorded in Ld. Registrar's order dated 20.08.2024. The documents produced by the applicant Bank are exhibited and annexed at AW-1 to AW-6.

6. I have heard the Ld. Advocate of the applicant Bank and perused the records.

7. 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 aggregating to a sum of Rs.10.00 lakhs vide letter of arrangement dated 28.03.2016. Applicant Bank has proved the hypothecated movable assets, i.e. stocks lying at M/s Maa Durga Automobiles, morefully described in Schedule at page 12 and para 3A at page 3 of O.A.

8. On the point of limitation, Loan has been sanctioned on 28.03.2016, security documents have been executed and delivered on 28.03.2016; and original Application has been filed on 19.02.2018. As such, the original Application appears to have been filed well within the period of limitation. .

9. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of Interest and other charges as calculated upto 08.11.2017) is **Rs.10,91,015.00** (Rupees ten lacs ninety one thousand fifteen) as on 08.11.2017, which is the amount claimed by the applicant Bank in the original Application, 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 original Application. Applicant Bank has prayed future interest @ 18% per annum, while in the letter of arrangements dated 28.03.2016 the rate of interest @ 10.95% per annum, at monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 10.95% per annum, with quarterly rests, from 09.11.2017, is allowed.

10. 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./108 of 2019 (arising out of O.A./122 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./108 of 2019 (arising out of O.A./122 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.10,91,015.00** (Rupees ten lacs ninety one thousand fifteen) due and payable, inclusive of interest and other charges as calculated upto 08.11.2017; and interest for the period *pendente lite* and future rate @ 10.95% per annum, with quarterly rests, from 09.11.2017, 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' at page 12 and para 3A at page 3 of the original Application, as under -- "Hypothecation of stocks lying at M/s Maa Durga Automobiles at No. 1-5, Spandan Apartment, 380/1, Jessore Road (South), Madhyamgram Chowmatha, Kolkata -- 700129."

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 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 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./108 of 2019 (arising out of O.A./122 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 19^th day of May, 2025.

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

\_\_\_\_\_ (Arbind Mathav) Presiding Officer DRT-2, Kolkata

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