CENTRAL BANK OF INDIA vs Mr. Kazi on 16 July 2026

J U D G M E N T

*[Handwritten signature]* 16.07.2026

Debt Recovery Tribunal Siliguri

This is an application under section 19 of the Recovery of Debts and Bankruptcy Act, 1993, filed by the applicant bank against the defendants seeking issuance of Certificate of Recovery for realization of a sum of Rs.72,24,051/- (Rupees Seventy Two Lakhs Twenty Four Thousand and Fifty One) only [Rs. 37,35,881.00 (CC account no. 3478722567) + Rs. 34,88,170(TL account no. 3447804537)] with interest calculated upto 08.11.2019 and future interest thereon from 09.11.2019 @11.60 % p.a. with monthly rests for Cash Credit account and @11.10 % p.a. with monthly rests for Term Loan account till realization of the entire amount along with injunction restraining the defendants from disposing of and/or alienating and/or encumbering the personal charged and uncharged assets and also costs.

2. The facts in brief, giving rise to the present application as pleaded are that considering the application of the defendant No.1 and Guarantor's Consent Letter of the (Contd...)

Defendant No.2, all dated 02.11.2014, the applicant bank sanctioned a Cash Credit (H) facility to the tune of Rs. 15,00,000.00 (Rupees Fifteen Lakhs) only and a Term Loan facility to the tune of Rs. 42,00,000.00 (Rupees Forty Two Lakhs) only vide Sanction Letter dated 03.09.2015. The Defendant No. 1 on 23.03.2015 submitted a Form of Declaration in respect of the Sole Proprietor of Data Baba Oil Mill and apart from himself one other person is having any interest in the said proprietorship concern. The Defendant No. 1 on 23.03.2015 executed Agreement of hypothecation to secure demand cash credit against goods together with Annexure - I Text of the Consent Clause to be included in the loan documents to be executed by borrower/s, Demand Promissory Note, Letter of Continuity and Letter of Waiver for the sum of Rs. 15,00,000.00 (Rupees Fifteen Lakhs) only and Term Loan Agreement for the sum of Rs. 42,00,000.00 (Rupees Forty Two Lakhs) only, Letter of Interest Variation and Agreement for Loan-cum-Hypothecation Agreement (animals, livestock, crops, plants, equipment, machineries, etc.), and unqualified acceptance and conditions of the loan agreement dated 09.03.2015. The Defendant No. 2 on 23.03.2015 executed Form of Guarantee for Advances and Credits Generally along with Consent Clause Annexure - II and Declaration cum Undertaking and undertakes not to dispose of the assets as mentioned in the loan application form. The Defendant Nos. 1 and 2 on 24.03.2015 deposited Title Deed being No. 4383 for the year 1980 dated 13th October, 1980, Title Deed being No. 2670 for the year 2005 dated 12th December, 2005, Title Deed being No. 5641 for the year 2014 dated 7th November, 2014, all registered with the office of Additional District Sub- Registrar of Mollarpur, Birbhum to the Applicant Bank. The Defendant Nos. 1 and 2 vide their respective inland Letter dated 24.03.2015 duly confirmed their individual intention in respect of creation of mortgage in favour of the Applicant Bank. The Defendant No. 1 at the time of creation of mortgage deposited Notarized Affidavit inter alia declared that the possession of the property offered for mortgage with the Bank is in the sole possession of the Defendant No. 1 and undertakes that during the pendency of the Loan he shall not deal with the property until prior written consent given by the bank or till the repayment of said loan. Thereafter at the request of the defendant No. 1 on 28.03.2015 the Applicant Bank revised the repayment schedule and other terms of the sanction letter dated 9th March, (Contd...)

16.7.2022

Siliguri

2015. The Defendant Nos. 1 and 2 duly acknowledged the terms and condition of the sanction letter dated 28.03.2015 which is in continuation of sanction letter dated 09.03.2015. The Applicant Bank disbursed the entire funds in favour of the Defendant No. 1. Thereafter considering the letter of the defendant No.1 dated 28.10.2016 and Guarantors Consent Letter dated 01.11.2016 along with other personal identification documents of the defendant No.2, the Applicant Bank enhanced the earlier sanctioned Cash Credit (H) facility from the tune of Rs. 15,00,000.00 (Rupees Fifteen Lakhs) only to tune of Rs. 30,00,000.00 (Rupees Thirty Lakhs) only and Term Loan facility to the tune of Rs. 42,00,000.00 (Rupees Forty Two Lakhs) only at RDDB of Rs. 36.40 Lakhs vide its Renewal-cum-Enhancement Sanction Letter dated 09.12.2016 in favour of the Defendant No. 1. The Defendant No. 1 on 13.12.2016 executed Agreement of hypothecation to secure demand cash credit against goods, Term Loan Agreement, Article of Agreement, Agreement for Loan-cum-Hypothecation Agreement (animals, livestock, crops, plants, equipment, machineries, etc.), Demand Promissory Note, Letter of Continuity and Letter of Interest Variation. The Defendant No. 2 on 13.12.2016 executed Form of Guarantee for Advances and Credits Generally. The Defendant No. 1 deposited Affidavit with the Bank. The Defendant Nos. 1 and 2 on 13.12.2016 re-affirmed the earlier created mortgage in favour of the bank in respect of the properties which has already been mortgaged with the Bank. The then branch Manager of the Applicant Bank vide its letter dated 13.12.2016 informed the Defendants regarding re-creation of mortgage which is duly acknowledged by the Defendants. The Applicant Bank issued a Legal Demand Notice upon the defendants, but the defendants submit a letter on 03.10.2017 to the Branch office of the Applicant Bank with a request to grant sometime to regularize the loan accounts. After availing the loan, the defendants failed to repay the dues of the loan accounts and as such the loan accounts were classified as NPA 29.11.2017 as per the guidelines of RBI. The Applicant Bank on 06.06.2018 served notice under section 13(2) of SARFAESI Act, 2002, upon the defendant and served a notice under section 13(4) of the SARFAESI Act, 2002 dated 05.09.2018 and affixed the said Notice over the mortgage property as well as published the said Notice in the widely circulated newspaper Bengali vernacular daily "Aajkal", and English Daily "Business 18.7.2017

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(Contd...)

Standard" both dated 11.09.2018. After giving credits for all sums of moneys paid by and/or realized on behalf of the defendants a sum of Rs.72,24,051/- (Rupees Seventy Two Lakhs Twenty Four Thousand and Fifty One) only with interest calculated upto 08.11.2019 was due against the defendants in respect of loan Account Nos. 3478722567 (CC) and 3447804537 (TL).

3. Despite the service of summons upon the defendants through speed post, the defendants did not put their appearance before this Tribunal and hence the matter is proceeding ex-parte against the defendants, vide order dated 18.06.2026.

4. The Applicant Bank in support of its case has filed evidence by way of affidavit as affirmed by Mr. Prakash Chandra Sen, the Branch Manager of the applicant bank and also relied upon the following documents:- <table border="1"> <thead> <tr> <th>Sl. No.</th> <th>Name of the documents</th> <th>Exhibit No.</th> </tr> </thead> <tbody> <tr> <td>1.</td> <td>Valuation Report dated</td> <td>A-1</td> </tr> <tr> <td>2.</td> <td>Loan Application Form dated 02.11.2014</td> <td>A-2</td> </tr> <tr> <td>3.</td> <td>Guarantor's Consent Letter dated 02.11.2014</td> <td>A-3</td> </tr> <tr> <td>4.</td> <td>Sanction Letter dated 09.03 2015.</td> <td>A-4</td> </tr> <tr> <td>5.</td> <td>Letter dated 19.03 2015.</td> <td>A-5</td> </tr> <tr> <td>6.</td> <td>Form of Declaration in respect of the Sole Proprietor dated 23.032015.</td> <td>A-6</td> </tr> <tr> <td>7.</td> <td>Agreement of hypothecation to secure demand cash credit against goods together Annexure - I Text of the Consent Clause to be included in the loan documents to be executed by borrower/s, Demand Promissory Note, Letter of Continuity and Letter of Waiver and Term Loan Agreement all dated 23.03.2015.</td> <td>A-7 collectively</td> </tr> <tr> <td>8.</td> <td>Letter of Interest Variation, Loan-cum-Hypothecation Agreement (animals, livestock, crops, plants, equipment, machineries, etc.) and declaration all dated 23.03.2015</td> <td>A-8 collectively</td> </tr> <tr> <td>9.</td> <td>Form of Guarantee for Advances and Credits Generally alongwith Consent Clause Annexure - II and Declaration cum Undertaking all dated 23.03.2015</td> <td>A-9 collectively</td> </tr> <tr> <td>10.</td> <td>Title Deeds, Inland letters dated 24.03.2015 and Notarised Affidavit</td> <td>A-10 Collectively</td> </tr> <tr> <td>11.</td> <td>Translated Bengali Deeds</td> <td>A-11 collectively</td> </tr> </tbody> </table>

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(Contd...)

<table border="1"> <tr> <td>12.</td> <td>Letter dated 28.03.2015</td> <td>A-12</td> </tr> <tr> <td>13.</td> <td>Letter dated 28.10 2016</td> <td>A-13</td> </tr> <tr> <td>14.</td> <td>Guarantor's Consent Letter dated 01.11.2016 alongwith other personal identification documents</td> <td>A-14<br/>Collectively</td> </tr> <tr> <td>15.</td> <td>Renewal-cum-Enhancement Sanction Letter dated 09.12.2016</td> <td>A-15</td> </tr> <tr> <td>16.</td> <td>Agreement of hypothecation to secure demand cash credit against goods, Term Loan Agreement, Article of Agreement, Agreement for Loan-cum-Hypothecation Agreement (animals, livestock, crops, plants, equipment, machineries, etc.), Demand Promissory Note, Letter of Continuity and Letter of Interest Variation dated 13.12.2016</td> <td>A-16<br/>collectively</td> </tr> <tr> <td>17.</td> <td>Form of Guarantee for Advances and Credits Generally dated 13.12.2016</td> <td>A-17</td> </tr> <tr> <td>18.</td> <td>Affidavit</td> <td>A-18</td> </tr> <tr> <td>19.</td> <td>Letters dated 13.12.2016</td> <td>A-19<br/>Collectively</td> </tr> <tr> <td>20.</td> <td>Legal demand notice dated 17.09.2017 and reply thereof dated 03.10.2017</td> <td>A-20<br/>collectively</td> </tr> <tr> <td>21.</td> <td>Statement of Accounts duly signed and certified to be true copy of entry in the banker's book by the Branch Manager/Senior Manager of the Applicant Bank as required under the Bankers Book of Evidence Act, 1891</td> <td>A-21<br/>collectively</td> </tr> </table>

5. I have heard the learned counsel for the applicant bank and perused the documents and evidence adduced by the applicant bank. The applicant bank has adduced documentary evidences which are marked as Exhibits 'A-1' to 'A-21'. The sanction of loans has been proved by producing the Sanction Letter dated 09.03.2015 and Renewal-cum-Enhancement Sanction Letter dated 09.12.2016 (Exhibits - 'A-4' & 'A-15'), the execution of required documents like Loan Application Form, Guarantor's Consent Letter, Letters, Form of Declaration in respect of the Sole Proprietor, Agreement of hypothecation, Text of the Consent Clause, Demand Promissory Note, Letter of Continuity, Letter of Waiver, Term Loan Agreement, Letter of Interest Variation, Loan-cum-Hypothecation Agreement (animals, livestock, crops, plants, equipment, machineries, etc.), declaration, Form of Guarantee alongwith Consent Clause, Declaration cum Undertaking, Title Deeds, Inland Letters, Affidavit, Translated Bengali Deeds, Article of Agreement etc. have been proved by exhibiting the same at 'A-2', 'A-3', *Am* 16.7.2016

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(Contd...)

'A-5' to 'A-14', 'A-16' to 'A-19'. By filing the statement of accounts (Exhibits - 'A-21'), the applicant bank has proved the total outstanding dues along with interest upto 08.11.2019 to the tune of Rs.72,24,051/- (Rupees Seventy Two Lakhs Twenty Four Thousand and Fifty One) only against the defendants.

6. Taking into account of the creation of the mortgage of immovable landed property by the defendants, the limitation available is for 12 (twelve) years and as such the claim of the applicant bank is within limitation.

7. The applicant bank has got valid cause of action to file this case as after taking the loan the defendants failed to make payment as per the terms and conditions of the sanction letter agreed by the defendants.

8. There is nothing available on the record to contradict the version of the applicant bank as the ex-parte hearing has been made in this case. Thus the applicant bank has sufficiently proved its case by exhibiting all relevant documents.

In the above circumstances, following order is passed ;

ORDER

(i) T.A. No. 96/2026 arising out of O.A. No. 137/2019 filed by the applicant bank is allowed against the defendants No. 1 & 2 jointly and severally with costs and it is hereby ordered that the applicant bank is entitled to recover the total dues debt amount of Rs.72,24,051/- (Rupees Seventy Two Lakhs Twenty Four Thousand and Fifty One) only with interest calculated upto 08.11.2019 and further interest thereon @11.30% p.a. with monthly rests from 09.11.2019 till realization of entire balance from the defendants along with cost amount.

(ii) Amount, if any, paid by the defendants in the loan account or amount recovered by the applicant bank, if any, made towards the loan accounts after filing of the O.A be taken into account while arriving at the exact amount of outstanding payable by the defendants.

(iii) The mortgaged properties being (I) All that part and parcel of Land & Building/Factory Shed at Koat, P.O. - Sonj, P.S. - Mayureswar, Dist. - Birbhum, Mouza - Sonj, Plot No 523 and 524, J.L. No. - 66, LR Khatian No. - 2067 Area - admeasuring 5.50 Satak and 1.50 Satak, respectively, aggregating 7.00 satak (0.07 acre), Nature of land (Contd...)

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Bastu, property butted and bounded by North - Godown of Kazi Jahiruddin, South - Land of Kazi Jahiruddin & Mr Sakkar Sheikh, East - Land of Mr Mahinuddin Sheikh, Kazi Jahiruddin & Mr. Samsul and West - Land of Kazi Jahiruddin, (II) All that part and parcel of Land & Building/Factory Shed at Koat, P.O. Sonj, P.S. - Mayureswar, Dist. - Birbhum, Mouza - Sonj, Plot No. 550, 552, 553 & 554, J.L.No. - 60, LR Khatian No. - 1025 Area - admeasuring 0.01 acre, 0.02 acre, 0.02 acre & 0.01 acre & 0.01 acre, respectively aggregating 0.06 acre (6 Satak) and Nature of land Bastu, property butted and bounded by North - House of Mr. Samsuddin, South - Panchayat Road, East - House of Golam Pir, West - Panchayat Road, (III) All that part and parcel of Land & Building/Factory Shed at Koat, P.O. - Sonji, P.S. - Mayureswar, Dist. - Birbhum, Mouza - Sonji, Plot No 149, J.L. No. - 60, LR Khatian No. - 1025 Area - admeasuring 0.55 acre (55 Satak), Nature of Land Bastu, property butted and bounded as follow:- North - Property of Golam Murtaza, South - Road of Makkapukur, East - Land of Mohiruddin Sheikh, West - Property of Azam khan, (IV) All that part and parcel of Land & Building/Factory Shed at Koat, P.O. - Sonji, P.S. - Mayureswar, Dist Birbhum, Mouza - Sonji, Plot No 547, J.L.No. -60, LR Khatian No. - 1025 Area - admeasuring 2 Satak (0.02Acre), Nature of Land Bastu, property butted and bounded as follow:- North - Property of Mr Mahinuddin, South - Property of Sara Alam, East - Pucca Road, Kamraghat, West - Property of Kazi Jahiruddin, as mentioned in the Schedule 'I' of the original application, shall remain charged to the applicant bank and the applicant bank shall have paramount charge thereon.

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(iv) The defendants are debarred from transferring; alienating, encumbering or disposing of the hypothecated/mortgaged properties or any other property and assets belonging to the defendants till the aforesaid adjudicated debt amount is recovered from the defendants.

(v) The defendants are given a time of thirty days from the date of this judgment for repayment of the above decreed debt amount with interest failing which the applicant bank is entitled to recover its dues by sale of the hypothecated/mortgaged property as aforesaid and is also entitled to proceed against the said defendants personally and/or personal properties to recover the dues in accordance with law.

(Contd...)

(vi) Let the certificate of Recovery be drawn up by the Learned Registrar forthwith in terms of judgment for issuance of the same against the defendants in favour of applicant bank under Sub-Section 22 of Section-19 of The Recovery of Debts and Bankruptcy Act, 1993 and put up the same for signature and issuance.

(vii) Learned Recovery Officer is directed to realize the dues amount from the defendants as per the recovery certificate in accordance with law.

(viii) Let this judgment be uploaded on website of the tribunal and the Registry is directed to serve/send copy of this judgment to the parties free of cost.

(ix) Record is consigned to the record room along with the judgment.

The judgment is signed and pronounced in the open Tribunal on 16^th day of July, 2026.

*Rakesh Pati Tiwari* **(RAKESH PATI TIWARI)** **Presiding Officer** 16.7.2026 **DRT, Siliguri.**

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