CANARA BANK vs 4 STAR SECURITY on 9 June 2025

1. 1. **4 Star Security**, 16 (4/1), Barasat Road, Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122.

2. 2. **Sri Gurupada Roy**, Son of Late Subodh Kumar Roy, Partner of 4 Star Security, Panchanantala Road, P.O.- Nona Chandanpukur, Kolkata – 700122.

3. 3. **Sri Dipak Malakar**, Son of Sri Dayamay Malakar, Partner of 4 Star Security, 209, Joy Hind Pally, Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122; and also at 32(15) A, Panchanantala Road, P.O.- Nona Chandanpukur, Kolkata – 700122.

4. 4. **Smt. Keya Dhar**, Wife of Late Parimal Chandra Dhar, (Legal heir of Parimal Chandra Dhar, since deceased, Partner of 4 Star Security), Jafarpur, Rabindrapally East, Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122.

5. 5. **Sri Pranab Dhar**, Son of Late Parimal Chandra Dhar, (Legal heir of Parimal Chandra Dhar, since deceased, Partner of 4 Star Security), Jafarpur, Rabindrapally East, Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122.

6. 6. **Sri Ponoy Dhar**, Son of Late Parimal Chandra Dhar, (Legal heir of Parimal Chandra Dhar, since deceased, Partner of 4 Star Security), Jafarpur, Rabindrapally East, Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122.

7. 7. **Sri Dayamay Malakar**, Guarantor of 4 Star Security, 209, Joy Hind Pally Barrackpore, P.O.- Nona Chandanpukur, Kolkata – 700122; and also at 32(15) A, Panchanantala Road, P.O.- Nona Chandanpukur, Kolkata – 700122.

..... Defendants

Counsel for parties:

For the Applicant Bank

: Ms. Sangeetha Ghosh Amicus Legal Associates

For the Defendants

: Ex-Parte.

**FINAL ORDER / JUDGMENT**

Delivered on 09.06.2025

Applicant, Canara Bank instituted the present Application being the Original Application No.810 of 2018 filed in DRT-3, Kolkata on 11.10.2018 against seven Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of an aggregate amount of Rs.12,88,500.00 (Rupees twelve lacs eighty eight thousand five hundred) as on 29.08.2018 and 20.09.2018 towards Canara Budget Loan and Term Loan respectively together with further interest thereon @ 14.15% per annum & @ 10.05% per annum, with monthly rests on and from 30.08.2018 and 21.09.2018 respectively, 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 30.10.2019 and the same has been renumbered as T.A./648 of 2020 vide Ld. Registrar's order dated 09.12.2020.

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

(i) That the defendant No.1 is a partnership firm in the name of 4 Star Security and engaged in business of security services and other allied subjects. The defendants No.2 & 3 and Parimal Chandra Dhar (since deceased) are the partners of defendant No.1. The defendant No.7 is the guarantor for the defendant No.1. Defendants No.4 to 6 became the legal heirs of Parimal Chandra Dhar (since deceased), hence impleaded as party defendants. The defendants No.2, 3 & Parimal Chandra Dhar (since deceased) had entered into a partnership commencing from 19.08.2009 and engaged in business of security services. Copy of notarized Deed of Partnership dated 19.08.2009 is annexed and marked as Annexure 'A'. The defendants No.2, 3 & Parimal Chandra Dhar (since deceased) jointly opened a current Account with applicant Bank as partners of defendant No.1 in the year 2014. Copy of current account opening Form dated 24.09.2014 is annexed and marked as Annexure 'B'.

(ii) The defendant No.3 approached and applied the applicant bank in the month of October, 2015 with a request for financial assistance for an amount of Rs.1,50,000/- in the nature of Canara Budget Loan; copy of said loan application dated 05.10.2015 is annexed and marked as Annexure 'C'. Upon relying on application made by the defendant No.3, applicant Bank was pleased to grant / sanction the credit accommodation in the nature of Canara Budget Loan for an amount of Rs.1,50,000.00 (Rupees one lakh fifty thousand) to the defendant No.3. Parimal Chandra Dhar (since deceased) stood as guarantor for the said credit facility. Copy of said sanction Memorandum dated 05.10.2015 along with specimen signature card is annexed and marked as Annexure 'D'.

(iii) In respect of Canara Budget Loan sanctioned to defendant No.3 in October 2015, the following documents were executed by the defendants all dated 05.10.2015 in favour of applicant Bank:

(a) Promote for an amount of Rs.1,50,000/- duly executed by defendant No.3;

- (b) Take Delivery Letter to DPN for an amount of Rs.1,50,000/- duly executed by defendant No.3;

- (c) Guarantee Agreement duly executed by Parimal Chandra Dhar (since deceased) in favour of applicant Bank unconditionally guaranteeing due repayment of Rs.1.50 lakhs plus interest thereon.

Copies of said documents are annexed and marked as Annexure 'E-1 to E-3' respectively. As per request of defendant No.3, the said sanctioned loan amount of Rs.1,50,000/- was transferred to current Account of defendant No.1 on 05.10.2015.

(iv) The defendant No.2 also approached and applied the applicant bank in the month of October, 2015 with a request for financial assistance for an amount of Rs.1,50,000/- in the nature of Canara Budget Loan; copy of said loan application dated 14.10.2015 is annexed and marked as Annexure 'F'. Upon relying on application made by the defendant No.2, applicant Bank was pleased to grant / sanction the credit accommodation in the nature of Canara Budget Loan for an amount of Rs.1,50,000.00 (Rupees one lakh fifty thousand) to the defendant No.2. The defendant No.3 stood as guarantor for the said credit facility. Copy of said sanction Memorandum dated 14.10.2015 along with specimen signature card is annexed and marked as Annexure 'G'.

(v) In respect of Canara Budget Loan sanctioned to defendant No.2 in October 2015, the following documents were executed by the defendants all dated 14.10.2015 in favour of applicant Bank:

- (a) Promote for an amount of Rs.1,50,000/- duly executed by defendant No.2;

- (b) Guarantee Agreement duly executed by defendant No.3 in favour of applicant Bank unconditionally guaranteeing due repayment of Rs.1.50 lakhs plus interest thereon.

Copies of said documents are annexed and marked as Annexure 'H-1 & H-2' respectively. As per request of defendant No.2, the said sanctioned loan amount of Rs.1,50,000/- was transferred to current Account of defendant No.1 on 14.10.2015.

(vi) That Parimal Chandra Dhar (since deceased) also approached and applied the applicant bank in the month of October, 2015 with a request for financial assistance for an amount of Rs.1,50,000/- in the nature of Canara Budget Loan; copy of said loan application dated 14.10.2015 is annexed and marked as Annexure 'I'. Upon relying on application made by Parimal Chandra Dhar (since deceased), applicant Bank was pleased to grant / sanction the credit accommodation in the nature of Canara Budget Loan for an amount of Rs.1,50,000.00 (Rupees one lakh fifty thousand) to Parimal Chandra Dhar (since deceased). The defendant No.3 stood as guarantor for the said credit facility. Copy of said sanction Memorandum dated 14.10.2015 along with specimen signature card is annexed and marked as Annexure 'J'.

(vii) In respect of Canara Budget Loan sanctioned to Parimal Chandra Dhar (since deceased) in October 2015, the following documents were executed by the defendants all dated 14.10.2015 in favour of applicant Bank:

- (a) Pronote for an amount of Rs.1,50,000/- duly executed by Parimal Chandra Dhar (since deceased);

- (b) Guarantee Agreement duly executed by defendant No.3 in favour of applicant Bank unconditionally guaranteeing due repayment of Rs.1.50 lakhs plus interest thereon.

Copies of said documents are annexed and marked as Annexure 'K-1 & K-2' respectively. As per request of Parimal Chandra Dhar (since deceased), the said sanctioned loan amount of Rs.1,50,000/- was transferred to current Account of defendant No.1 on 14.10.2015.

(viii) That in furtherance of promoting the business of defendant No.1, the defendant No.3 and Parimal Chandra Dhar (since deceased) approached and applied the applicant bank in the month of November, 2015 with a request for financial assistance in the nature of Term Loan for an amount of Rs.5,00,000/-; copy of said loan application dated 06.11.2015 is annexed and marked as Annexure 'L'. Upon relying on application made by defendant No.3 and Parimal Chandra Dhar (since deceased), applicant Bank was pleased to grant / sanction the credit accommodation in the nature of Term Loan of Rs.5,00,000.00 (Rupees five lakhs) to defendant No.1. The defendant No.7 stood as guarantor for the said credit facility. Copy of said sanction Memorandum dated 06.11.2015 along with specimen signature card is annexed and marked as Annexure 'M'.

(ix) In respect of said Term Loan sanctioned to defendant No.1 in November 2015, the following documents were executed by the defendants No.2, 3 and Parimal Chandra Dhar (since deceased) all dated 06.11.2015 in favour of applicant Bank:

- (a) Partnership Letter duly signed by defendants No.2, 3 and Parimal Chandra Dhar (since deceased) informing applicant Bank that the defendants No.2, 3 & Parimal Chandra Dhar (since deceased) are the partners of defendant No.1;

- (b) Deed of Hypothecation for an amount of Rs.5,00,000/- duly executed by defendant No.3 and Parimal Chandra Dhar (since deceased);

- (c) Guarantee Agreement duly executed by defendant No.7 in favour of applicant Bank unconditionally guaranteeing due repayment of Rs.5.00 lakhs plus interest thereon from the date of demand by the applicant Bank.

Copies of said documents are annexed and marked as Annexure 'N-1 to N-3' respectively. As per request of defendants No.2, 3 & Parimal Chandra Dhar (since deceased), the said sanctioned loan amount of Rs.5,00,000/- was transferred to current Account of defendant No.1 on 06.11.2015.

(x) That the defendant No.3 duly signed and executed an Acknowledgement of debt and security dated 28.09.2018 thereby acknowledging the indebtedness and liabilities with interest thereon towards Canara Budget Loan facilities. Copy of said Acknowledgement of Debt and security dated 28.09.2018 is annexed and marked as Annexure 'O'.

3. The defendants availed and enjoyed the aforesaid Loan facilities by opening Account in Bank's Barrackpore Branch, Old Calcutta Road, Barrackpore, Kolkata – 700122. However, the defendants did not comply with the agreed terms and conditions of said loan facilities. The defendants did not repay the outstanding Bank's dues and overdue interest of loan accounts. Despite several requests made by the applicant Bank, the defendants did not pay any attention to regularize the Accounts; consequently the accounts became irregular and were classified as NPA on 07.05.2016, 05.04.2016, 14.04.2016 and 14.04.2016 respectively. Since the defendants / borrower(s) failed to liquidate the dues with the applicant Bank inspite of repeated requests and reminders, applicant Bank compelled to issue recall demand notices dated 28.09.2018 upon the defendants calling upon them to repay the dues amount of Rs.12,88,500/-, but the defendants did not comply with the said Notices, copy of said notice dated 28.09.2018 along with postal receipts are annexed and marked as Annexure 'P'. Applicant Bank also issued demand notice dated 28.09.2018 upon the defendant No.7 demanding to pay the outstanding dues with further interest till the date of full and final payment; copy of said demand notice dated 28.09.2018 along with postal receipts are annexed and marked as Annexure 'Q'. Certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with Statement of Claim, Annexure 'R' & 'S', have been filed to show and prove the dues, and future interest @ 14.15% per annum towards Canara Budget Loan and @ 10.05% per annum towards Term Loan with monthly rests from 30.08.2018 and 21.09.2018, till realization of the entire dues, have been prayed. Applicant Bank submitted that their claim in the original Application is within limitation.

4. The Notices / summons were sent to Defendants No.1 to 7 by the Tribunal. It is observed that service of Notices / summons upon the Defendants No.1 to 7 have not been successful effected by postal service / hand delivery, such has been recorded vide Ld. Registrar's order dated 06.04.2022. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal was directed to serve the summons / notice upon the defendants by way of paper publication; and Ld. Advocate of the applicant Bank has brought on record the affidavit of service on publication dated 19.12.2022 upon the Defendants along with relevant portion of paper cuttings in two newspapers, namely (i) '*The Statesman*' in English and (ii) '*Aajkal*' in Bengali, both dated 20.11.2022, such has been recorded vide Ld. Registrar's order dated 19.12.2022. Despite service, the defendants No.1 to 7 did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded *ex-parte* vide order dated 21.02.2024. Applicant Bank has filed the written notes of argument on 27.11.2024 and 06.05.2025 wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted arguments on 06.05.2025.

5. Applicant Bank has filed Evidence-on-affidavit, affirmed by Ms. Shivani Singh, Manager of Bank's Barrackpore Branch, Old Calcutta Road, Barrackpore, Kolkata – 700122 along with the copy of original documents executed by the defendants. Original documents have been produced by the applicant Bank; the same have been verified with copies of the documents annexed with the O.A. and after verification the originals have been returned to Ms. Puja Ghosh, Officer of Bank's Barrackpore Branch, Barrackpore, Kolkata – 700122 on 01.03.2019, such has been recorded in Ld. Registrar, DRT-3's Order dated 01.03.2019. The documents produced by the applicant Bank are exhibited and marked as Exhibits 'A-1' to 'A-24'.

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 proved the averments made in the original Application. Applicant Bank has proved the sanction of Canara Budget Loan and Term Loan for an aggregate amount of Rs.12,88,500.00 vide sanction memorandum dated 05.10.2015, 14.10.2015 & 06.11.2015. Applicant Bank has proved the hypothecated movable assets, morefully described in Schedule at page 31 and para 3A at page 7 & 8 of the original application.

8. On the point of limitation, the loan has been sanctioned on 05.10.2015, 14.10.2015 & 06.11.2015; documents have been executed on 05.10.2015, 14.10.2015 & 06.11.2015; and original Application has been filed on 11.10.2018. Further, it is seen that the term loan of Rs.5.00 lakhs has been sanctioned on 06.11.2015 and the defendants executed loan documents on dated 06.11.2015, and the defendant No.3 has executed and delivered the Acknowledgement of debt & security dated 28.09.2018 acknowledging the outstanding balance in loan Account(s). As such, the original Application appears to have been filed well within the period of limitation.

9. Applicant Bank stated that the outstanding balance in Term Loan Account (inclusive of accrued interests and other charges as calculated upto 20.09.2018) is Rs.6,91,416.00 (Rupees six lacs ninety one thousand four hundred sixteen) as on 20.09.2018, and in Budget Loan Accounts (inclusive of accrued interests and other charges as calculated upto 29.08.2018) are an aggregate amount of Rs.5,97,084.00 (Rupees five lakhs ninety seven thousand eighty four) as on 29.08.2018; hence, the total outstanding aggregate sum comes to **Rs.12,88,500.00** (Rupees twelve lacs eighty eight thousand five hundred) which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1 to 7 are, jointly and/or severally, 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 @ 10.05% per annum towards Term Loan Account and @ 14.15% per annum towards Budget Loan Accounts, with monthly rests; while in sanction Memorandum in respect of Budget Loan Accounts dated 05.10.2015 & 14.10.2015 the rate of interest @ 14.65% per annum, and in sanction Memorandum in respect of Term Loan Account dated 06.11.2015 the rate of interest @ 10.20% per annum, have been mentioned. Therefore, in my view, for convenience of calculation, the *pendente lite* &

future rate of interest @ 13% per annum, with quarterly rests, from 30.08.2018, till realization of the entire dues amount of **Rs.12,88,500.00**, is allowed.

10. Since Parimal Chandra Dhar (since deceased), one of the Partners of defendant No.1 (4 Star Security) is the borrower and the applicant Bank has filed the original application against Smt. Keya Dhar (wife of Late Parimal Chandra Dhar), Sri Pranab Dhar (son of Late Parimal Chandra Dhar) and Sri Pronoy Dhar (son of Late Parimal Chandra Dhar) [hereinafter referred to as defendants No.4, 5 & 6 respectively]; hence, the liability of legal heirs of Late Parimal Chandra Dhar is only to the extent of the assets inherited by them from Parimal Chandra Dhar (since deceased), one of the partners of defendant No.1 (4 Star Security). Though it is fact that the defendants No.4, 5 & 6 are not personally responsible for the loan availed by Parimal Chandra Dhar (since deceased), but the estate of Late Parimal Chandra Dhar which will devolve upon the defendants No.4, 5 & 6, will be liable for the loan of Parimal Chandra Dhar (since deceased). Hence, the liability of Defendants No.4, 5 & 6 is restricted to the extent of assets inherited by them from Parimal Chandra Dhar (since deceased), one of the partners of defendant No.1 (4 Star Security).

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./648 of 2020 (arising out of O.A./810 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./648 of 2020 (arising out of O.A./810 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 to 7. It is hereby ordered that the Defendants No.1 to 7 are hereby directed to pay, jointly and / or severally, the total debt amount of **Rs.12,88,500.00** (Rupees twelve lacs eighty eight thousand five hundred) due and payable, inclusive of interest and other charges as calculated upto 29.08.2018; and interest for the period *pendente lite* and future @ 13% per annum, with quarterly rests, from 30.08.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants 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 Defendants No.1 to 7. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) Defendants No.1 to 7 are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets, described in Schedule at page 31 and para 3A at page 7 & 8 of the original Application, as under –

8T.A./648 of 2020 – DRT-2/KolHypothecated movable assets:

"the whole of borrowers present and future stocks and machines, assets etc. lying at 16(4/1), Barasat Road, Barrackpore, P.O.- Nona Chandanpukur, Kolkata. – 700122 together with all store components and spares which now belong to or may hereafter from time to time during the continuance of this security belong to the borrower and which are or shall or may be brought into stored or be in or upon or about the borrower's godown, or wherever else the same may be situated, stored or lying or being, including any such raw material articles or goods, stores, spares and components or other similar movable property in course of transit or delivery to the borrower (and all of which herein after for brevity's sake referred to as "the said goods")."

The liability of Defendants No.4, 5 & 6 is restricted to the extent of assets inherited by them from Parimal Chandra Dhar (since deceased), one of the partners of defendant No.1 (4 Star Security).

The Defendants are also debarred from transferring, alienating, encumbering or disposing any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1 to 7.

(iv) Defendants No.1 to 7 are 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 Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured assets, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants and also proceed against the Defendants No.2, 3 & 7 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 Defendants No.1, 2, 3, 4, 5, 6 & 7 in favour of applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from Defendants No.1, 2, 3, 4, 5, 6 & 7, 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./648 of 2020 (arising out of O.A./810 of 2018) is allowed and stands disposed of.**

File be consigned to Record room.

This order is dictated and corrected by the undersigned and pronounced on this the 09^th day of June, 2025.

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

(Arbind Madhav) 9.6. Presiding Officer DRT-2, Kolkata

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