STATE BANK OF INDIA vs SRI RAM KRISHNA DAS on 14 August 2025

1. **Sri Ram Krishna Das**, Son of Late Haran Chandra Das, carrying on business under the name and style of M/s R.K. Enterprise, sole proprietor thereof, *inter-alia*, at 45, Selimpore Lane, Dhakuria, Kolkata – 700031.

..... Defendant

Counsel for parties:

For the Applicant Bank : Sri Biswanath Das For the Defendant : Ex-Parte **FINAL ORDER / JUDGMENT**

Delivered on 14.08.2025

Applicant, State Bank of India instituted the present Application being the Original Application No.732 of 2018 filed in DRT-3, Kolkata on 04.09.2018 against single Defendant under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs. 11,97,879.25 (Rupees eleven lacs ninety seven thousand eight hundred seventy nine and paise twenty five) as on 25.06.2018 with further interest @ 10.25% per annum with monthly rests from 26.06.2018, till realization in full. 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 10/2019 and the same has been renumbered as T.A./ 360 of 2020 vide Ld. Registrar's order dated 20.06.2020.

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

(i) That on or about 10.07.2014 the defendant had applied before State Bank of Bikaner & Jodhpur, Jodhpur Park Branch, 394A, Gariahat Road (S), Kolkata – 700068, which has now merged into State Bank of India as per the Gazette of India notification dated 22.02.2017 with effect from 01.04.2017, for cash credit facility of Rs.10,00,000/-; copy of loan Application dated 10.07.2014 is annexed and marked as Annexure 'A'. Upon consideration of application, applicant Bank was pleased to grant / sanction a cash credit limit of Rs.10,00,000/- (Rupees ten lacs) in favour of the defendant vide sanction letter dated 16.07.2014 on certain terms and conditions contained in said sanction. Copy of said sanction letter dated 16.07.2014 is annexed and marked as Annexure 'B'. At the time of said loan facility, the effective rate of interest was @ 13% per annum with monthly rests. The primary security of the said loan was the hypothecation of present and future stocks and goods, fittings, furnitures, moneys, receivable claims and all other assets would remain hypothecated for the payment of all present and future indebtedness and liabilities.

(ii) In consideration of the aforesaid Loan facility of Rs.10.00 lakhs, the defendant executed the following security documents on dated 16.07.2014:

- (a) Agreement of Loan cum Hypothecation;

- (b) Letter of Consent Clause;

- (c) Confirmation Letter.

Copy of said documents are annexed and marked with Annexure 'C', 'C-1' & 'C-2' respectively.

(iii) The defendant had acknowledged his liabilities to the applicant Bank by executing a Revival Letter dated 22.06.2017 acknowledging the outstanding balance in loan Account. Copy of said Revival Letter dated 22.06.2017 is annexed and marked as Annexure 'D'.

3. The Defendant availed and enjoyed the said cash credit facility by opening Account in Bank's Jodhpur Park Branch, 394A Gariahat Road, Kolkata – 700068. 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. Inspite of repeated requests and personal contact made by 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. Applicant Bank finding no other alternative issued a demand notice dated 21.07.2018 upon the defendant and One Regd. Postal receipt dated 21.07.2018 demanding to repay the outstanding loan amount of Rs.11,97,879.25 with further interest from 26.06.2018 @ 10.25% per annum with monthly rests, but the defendant did not comply the said notice; copy of said notice dated 21.07.2018 is annexed and marked with Annexure 'F' & 'F-1' respectively. 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 'E'), and future interest @ 10.25% per annum with monthly rests from 26.06.2018, 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 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 31.07.2023. 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 05.04.2024. Applicant Bank has filed the written notes of argument on 14.02.2025 wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate for the applicant Bank has submitted arguments on 18.07.2025.

5. Applicant Bank has filed the evidence-on-affidavit affirmed by Biswajit Mondal, City Case Officer / Manager of Bank's SARB South Bengal, Jeevan Deep Bldg., 1, Middleton Street, Kolkata – 700071 along with the 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 the original documents have been returned to Sri Arjun Kumar Naskar, City Case Officer / Dy. Manager of Bank's SARB South Bengal, Jeevan Deep Bldg., 1, Middleton Street, Kolkata – 700071 on 29.11.2022, such has been recorded in Ld. Registrar's order dated 29.11.2022. The documents produced by the applicant Bank are exhibited and annexed at 'A-1' to 'A-9'.

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, 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 of Rs.10.00 lacs vide sanction letter dated 16.07.2014. Applicant Bank has proved the creation of hypothecated movable assets, described in Schedule at page 17 and para III.A at page 7 & 8 of the original application.

7. Applicant Bank has stated that the outstanding balance in Cash Credit Account (Inclusive of accrued interest and other charges as calculated upto 25.06.2018) is **Rs.11,97,879.25** (Rupees eleven lacs ninety seven thousand eight hundred seventy nine and paise twenty five) as on 25.06.2018, 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 @ 10.25% per annum, while in Letter of Arrangement dated 16.07.2014 the rate of interest @ 13% per annum, at monthly rests, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest which has been claimed by applicant Bank in the original application, i.e. @ 10.25% per annum, with quarterly rests, from 26.06.2018, is allowed.

8. On the point of limitation, Loan has been sanctioned on 16.07.2014, security documents have been executed and delivered on 16.07.2014 and original Application has been filed on 04.09.2018. Further, the defendant had acknowledged his debt & liability by executing a Revival Letter dated 22.06.2017 in favour of applicant Bank acknowledging the outstanding balance in loan Account. As such, the original Application appears to have been filed well within the period of limitation.

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./360 of 2020 (arising out of O.A./732 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./360 of 2020 (arising out of O.A./732 of 2018), filed by 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.11,97,879.25** (Rupees eleven lacs ninety seven thousand eight hundred seventy nine and pāise twenty five) due and payable, inclusive of interest and other charges as calculated upto 25.06.2018; and interest for the period *pendente lite* and future rate @ 10.25% per annum, with quarterly rests, from 26.06.2018, 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 debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets; described in Schedule at page 17 and para III.A at page 7 & 8 of the original application, as under –

*"All That defendant's present and future goods produce and merchandise including all Stock-in-trade, stocks, Book Debts, Goods, Fittings, Office Furniture, Money receivable, claims, Bills and all other assets and rights wherever they might be situated at 45, Selimpore Lane, Dhakuria, Kolkata – 700031 or wherever also the same might be are remaining as security for payment of applicant's claim herein."*

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. 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./360 of 2020 (arising out of O.A./732 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 14^th day of August, 2025.

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

(Arbind Madhokar) Presiding Officer DRT-2, Kolkata

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