Allowed

Canara Bank v. Ravinder Kumar

DRT3 Jul 2023OA/338/2022

Case brief

AI extract

What is this about?

In an ex parte application under Section 19 of the RDB Act, the Debts Recovery Tribunal allowed Canara Bank's claim against Ravinder Kumar for ₹33,19,582 along with interest and costs, confirming jurisdiction and limitation and directing issuance of a Recovery Certificate.

What did the court decide?

Recovery of ₹33,19,582 with pending and future interest @8.80% p.a. with compounded monthly rests from 22.6.2022 till realization along with costs.

Canara Bank versus Ravinder Kumar — Cheque Dishonour | DRT (2023)

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DRT,PATNA

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OA 338 of 2022 (J)

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road at PATNA-80002S

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case no. : 338 of 2022

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Canara Bank, Retail Asset Hub, s" Floor, Luv Kush Tower, Exhibition Road, Patna-L

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. Applicant

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Vs.

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Ravinder Kumar S/o Sri Mukesh Prasad, Rio Flat no. 706,Block-B, Chhatrapati Shivaji Greens, Branch Road of Bhogipur, Ektapuram, P.S.Gopalpur, District-Patna, Pin-804453.

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Rio House no. K4062, IP Extension Sector 49, Fatehpur Taga(29), CityFaridabad, State-Haryana, Pin-121001.

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...Defendant

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Present: For the Applicant : Shri Manoj Kumar, Advocate For the Defendant : None

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Dated: 03.07.2023

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JUDGMENT

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1- The Applicant bank has made this application U/S 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 22.6.2022 against the defendant to recover its debts from defendant of Rs.33,19,5821- as on 5.5.2022 alongwith pendente-lite and future interest at the contractual rate from 6.5.2022 with costs till realization.

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2- The application has been duly registered and numbered as above.

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3- The brief facts of the case of the applicant bank as stated in the application are as under-

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The applicant bank body corporate constituted under Banking companies (Acquisition and Transfer of Undertakings) Act, 1970 Head Office at 112, J.C. Road,Bangalore-560002 and Branch Office at Retail Asset Hub, 8th Floor, Luv Kush Tower, Exhibition Road, Patna-l.

¶20

The defendant approached the bank seeking housing loan of Rs.38.50 lakh for purchase of Flat vide application dated 29.8.2018. Upon consideration of the loan proposal for housing loan of Rs.38.50 lakh the same was sanctioned by the bank on 29.8.2018. The defendant executed the various loan documents i.e. housing loan agreement, PDR and undertaking. The bank at the request of defendant granted housing loan for the purpose of purchase of flat on the same being secured flat no. B1706 along with undivided proportionate share in the land of each flat vide agreement of sale deed dated 19.9.2018 details given at page 28 in Schedule-B of OA.

DRT,PATNA

OA 338 of 2022 [J)

A first charge by way of hypothecation of the entire goods, movable and immovable and other assets present and future including document of title to the goods and other assets such as book debts receivables by way of cash assistance and cash incentives under the cash incentive scheme or any other scheme, claims including claims by way of refund of customs duties under the duty draw back credit scheme or any other schemes, bills invoices, documents, contract, insurance policies, guarantees engagements, securities, investments, and rights uncalled capital and all machinery present and future of such form satisfactory applicant bank.

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All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. After availing the sanctioned credit facilities became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 29.9.2021

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Thus the total liability in the loan account is Rs.33,19,582/- with pendentelite and future interest at the contractual rate from 6.5.2022 till the realization.

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The interest Icompound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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Since, the defendant has failed and neglected in spite of several reminders to make payment of the dues recoverable to bank, hence this application has been filed by the bank.

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4Vis 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993, copies of application & paper book was sent by this Tribunal to the defendant by registered/speed post on 18.7.2022, and summon/notice issued requiring the defendant to show-cause within 30 days of the service of summon/notice as to why relief prayed for, should not be granted.

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On perusal of the case records, it is clear that on 18.7.2022, summon/notice were sent to the defendant, but the defendant has not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendant on 31.8.2022 in "Aaj" newspaper.

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Despite the registered summon/notice and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend his case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant 20.2.2023.

DRT,PATNA

OA 338 0(2022 IJI

5- To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit of Shri Om Narayan, Divisional Manager of the applicant bank. The details of documents are as follows. :-

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SI.No	Description of photocopies Documents	Date of Execution	Amount	Signature of executant	Ex.! Ann. No.
1	Loan application	29.8.2018	Rs.40 lakh	defendant	1
2	sanction letter	29.8.2018	Rs.38.50 lakh	bank	2
3	Housing loan agreement	20.9.2018	Rs.38.50 lakh	defendant	3
4	PDR	20.9.2018	Rs.38.50 lakh	defendant	4
5	undertaking	20.9.2018	Rs.38.50 lakh	defendant	5
6	agreement for sale vide deed no. 10471	19.9.2018	...	...	6
7	affidavit	...	...	...	7
8	Draft Tripartite agreement	20.9.2018	...	'"	8
9	Legal notice	23.4.2022	...	bank	9
10	statement of account	as on 5.5.2022	Rs.33,19,582/-	bank	10

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6- Opportunity of hearing has been fully given to both the parties, but despite several opportunities given to defendant, the defendant has not appeared to contest the case, hence, the ex-parte arguments of learned counsel for applicant bank were heard and perused the case record.

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Ld. counsel of applicant bank submitted that the defendant has taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence.

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It is further submitted by Id, Counsel of applicant bank that there is no any stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, inOA.

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7- It has been established that defendant is living and carrying on his business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within jurisdiction of this tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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8- On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.9.2021 , whereas the present application has been filed on 22.6.2022 Even, it is counted for the purpose of Limitation, then it is established that

'\v(\l

DRT,PATNA

OA 338 of 2022 IJI

the applicant bank has filed the case within the limitation period. As such, it is established that present application has been filed well within the period of limitation.

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9- In the affidavit of Shri Om Narayan, Divisional Manager of the applicant bank, has stated that he is well acquainted with the facts of the case and has on verification of record, sworn in the affidavit in support of contents of application and the documents as evidence and established on oath the pleadings and documents of the applicant bank as stated above. The documents as stated above reveal that the defendant has applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents, which strength the case of the applicant bank.

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The applicant bank has also furnished statement of account as above, which is not only admissible but shall be taken as correct statement of account, more so since the entries in the statement of account has not been challenged.

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10Since, the case was proceeded ex-parte against defendant, all contentions raised and documents produced by plaintiff remained unrebutted and the tribunal may act upon the affidavit of the applicant as per law. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any specific error and discrepancy in the Statement of Account, which is kept in due course of business, evidence on affidavit, which has supported the claim of the applicant bank, established to have fully correct and believable. Provisions contained in Rule 9(2) of Debt Recovery Tribunal (Procedure) Rules, 1993 provide that the documents referred in the application shall be duly stated by senior officer of the bank, or financial institution as the case may be and numbered accordingly. The rule 12 (10) provides that the provisions contained in section 4 of the Banker's Books evidence that Act, 1891 (18 of 1891) shall applied to certified copy of an entry in a Banker's Books furnished alongwith application filed under sub section 1 of section 19 by the applicant.

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11On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the applicant bank has granted the loan facility, documents were executed by the defendant and facility was availed by the defendant as stated in the application.

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12The applicant bank has sought for recovery of a sum of Rs.33,19,582/- with cost and further interest at the contractual rate from 6.5.2022 till realization.

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13Learned Advocate appearing for applicant bank submits that the applicant bank has charged interest in terms of the agreements and that interest has been charged at such rates, and capitalized at such periodical

DRT,PATNA

OA 338of20221J)

rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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14On consideration of the arguments and on perusal of the pleadings, documents and affidavit, it is proved that the applicant has charged interest against defendant in terms of documents and as per directives of RBI.

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15None of the defendant appeared before the tribunal to contest the claim made by the applicant, therefore, it necessarily goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendant has not disputed the claim, therefore, the claim referred to the tribunal is recoverable till full and final realization of the claim.

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16In Indian Bank Vs. Blue Jaggers Estates Limited and others [2010] 8 SCC 129,the Hon'ble Supreme Court of India has observed as under-

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"The Court cannot lose sight of the fact that the bank is a trustee of public fund. It cannot compromise the public interest for benefiting private individuals. Those who take loan and avail financial facilities from the bank are duty bound to repay the amount strictly in accordance with the terms of the contract. Any lapse in such matters has to be viewed seriously and the bank is not only entitled but duty bound to recover the amount by adopting all legally permissible methods. Parliament enacted the act because it was found that legal mechanism available till then was wholly insufficient for recovery of the outstanding dues of the banks and Financial Institutions."

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17In my view, Facts of the case stand proved by evidence of the applicant bank ex-parte. Accordingly, The applicant bank is entitled to recover from defendant of Rs.33,19,582/- alongwith pendente-lite and future interest @8.80% p.a. with compounded monthly rests from 22.6.2022 (The date of filing of this O.A.) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

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ORDER

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In the result, the application of the applicant bank is, allowed exparte and debt is determined with costs against the defendant. The defendant is hereby, ordered to pay the applicant bank it's debts amounting to Rs.33,19,582/- alongwith pendente-lite and future interest @8.80% p.a. with compounded monthly rests from 22.6.2022 (The date of filing of this O.A.) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendant, be deducted in the claim amount, if not deducted.

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Defendant is debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated

OA 338 of 2022[JI

DRT,PATNA

dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/ Sub- registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22)of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendant, by sale of mortgaged! hypothecated assets as well as other personal movable/immovable assets of the defendant.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 4.9.2023. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on this 03rd Day of July, 2023.

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Dictated & corrected by me.

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P._LJ
/1 .» ;ctr-
C JV'-' r1 .
: ""_9j,./ 0 ~\7 'YI
[Kaushalendra Yadav]
Presiding Officer
Debts Recovery Tribunal, Patna

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.1.'V.l,"lY.l.l'V. '7 [See Regulation 24{ I ) 1

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Kuramchuri Purisar (CiPOA), Ashiana Digha Road, Patna800025.

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RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SJ.<:CTlON 19(22) OF THE RECOVERY 9F . DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 413/2023

Case No: OA/338/2022

In the Matter of: (CH- I) CANARA BANK RETAIL ASSET HUB 8TH FLOOR LUV KUSH TOWER EXHIBITION ROAD PATNA ,BIHAR -('10000I

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Applicant(s)

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------ Versus -------

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To,

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(CD- I) RAVINDER KUMAR. S/o Sri Mukesh Prasad Resident at- Flat 110-706, Block-B, Chhatrapati Shivaji Greens, .Branch Road of Bhogipur, Ektapurarn, P.S.- Gopalpur, Patna ,BIHAR -804453 Derendanu s)

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Also At.

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RESIDENT Ar-HOUSE NO- K 4062, I P EXTENSION SECTOR 4Y, FATEHPUR TAGA (29), CITY- FARIDABAD, STATEHARYANA, PIN 121001

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Recovery' Certil1cale for Rs 3319582 I Rup-ces Thirty Three Lakhs Nineteen Thousands Five Hundred Eighty. Two OnlY_1

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In terms of final order dated 03/07/2023 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 3319582 along with cost, expenses and interest from the 22/06/2022 i.e. date of filing 1 with effective date of the OAl338/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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In case of failure to pay the aforementioned adjudicated amount within 30, days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors ..

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 . Parties arc directed to appear before MANOJ KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PAfNA on 04/09/2023.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 03/07/2023v

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PRESIDING OfFICER DEBTS RECOVERY TRIBUNAL PATNA

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-_. ·

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 413/2023

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¶103

Case No: OA/338/2022

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Applicant(s): CANARA BANK

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Versus

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Defendant(s): RAVINDER KUMAR

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Sr.No.
1.
	.,s(Inc.Publication)
	issioner/ReceiverNaluationiSecurity Fee
5. ..	llaneous Charges . ~ .•..... . .• ._.. .	JL_ _
		36000

Place: PATNA

Date: 03/07/2023

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

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Date of order or proceeding	DEBTS RECOVERY TRIBUNAL, PATNA Order with the Signature of the Court	Office action taken with data
	OA 3380f2022
03.07.2023	Judgment written on separate sheets kept on the case file and pronounced. Certificate of recovery be issued to the ld. Recovery officer for its execution. preSidi~cer
03.07.2023	Certificate_uls_ 19(7& 22) of the DRT Act, 1993 as amended from time to time in the form no. 09 of the Rules and procedures made there under prepared and signed by me for sending it to ld. Recovery Officer for its execution in accordance with law. preSiding~

Canara Bank v. Ravinder Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ravinder Kumar

Case brief

What is this about?

What did the court decide?

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