Allowed

Canara Bank v. Siddharth Gandhi

DRT20 Dec 2025OA/127/2023

Case brief

AI extract

What is this about?

In this ex-parte recovery application, the Debts Recovery Tribunal allowed the bank's claim for a credit facility default. With no rebuttal from the absent defendant, the tribunal directed payment of the principal sum, interest, and costs, authorizing recovery from hypothecated assets and subsequent properties.

What did the court decide?

Direction to pay Rs.20,88,612/- plus costs and interest within 30 days; authority to recover from hypothecated stocks and properties upon default.

Canara Bank versus Siddharth Gandhi — Banking and Recovery | DRT (2025)

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O.A. No.127 of 2023

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Debts Recovery Tribunal-I, Delhi 4th Floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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U.A. No. 127 of 2023

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Canara Bank Plot No.10, Surya Niketan Delhi-110092

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Applicant

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Versus

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Sh.Siddharth Gandehi Proprietor of M/s Divya Industries B-149, First Floor Vivek Vihar Phase I, Delhi-110095

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Also at:

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Shed No.D-33, DSIDC Work Center Jhilmil Colony, Delhi-110092

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Defendant

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Present: Shri Sanjeev Chopra, Counsel for the applicant bank

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Date of Reserve: 12.12.2025

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Date of Pronouncement: 20.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 07.01.2023 through Shri Ayush Agarwal, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.20,88,612/- (Rupees Twenty lacs Eighty Eight Thousand Six Hundred Twelve only) as on 05.01.2023 along with pendentelite and future interest @11.05% per annum with monthly rest from 06.01.2023 till the date of realization and costs.

O.A. No.127 of 2023

The brief facts of the case are that at the request of father of defendant Late Sh.Subhash Gandhi as proprietor of Divya Industries was availing SOD limit and after his death, the applicant bank sanctioned Cash Credit (MSME) for Rs.20,00,000/- (Rupees Twenty lacs only) vide sanction letter dated 16.09.2020 @9.15% interest per annum subject to change as per RBI guidelines against hypothecation of stocks and book debts covered under CGTMSE scheme and was further renewed on 28.12.2021. The defendant agreed to pay @2% penal interest in case of default in repayment of interest or instalment.

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That in order to avail the loan facility, the defendant submitted loan application and executed Agreement cum Deed of Hypothecation NF 855, Agreement : Advances against Book Debts, Guarantee Agreement, Cash Credit Agreement, Letter of Undertaking, Take Delivery Letter to DPN NF481, Link Letter and Letter of Renewal NF493 in favour of applicant bank on 16.09.2020 and 28.12.2021.

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That in order to secure the credit facilities, the defendant hypothecated the stocks and book debts in favour of applicant bank.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendant failed to comply with the terms and conditions despite several requests and reminders. The defendant failed to operate the account regularly and did not abide the terms of sanction and pay the outstanding dues in time to the applicant bank. Ultimately, the applicant bank classified the account as NPA on 21.12.2022 as per RBI guidelines and issued recall notice dated 28.12.2022 for repayment of outstanding dues but neglected by the

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O.A. No.127 of 2023

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defendant hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendant and despite of proper service the defendant has chosen to absent from the proceedings. As per order dated 13.01.2025, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets has been filed on behalf of the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Ayush Agarwal, authorized representative of the applicant bank who has proved the documents as Power of Attorney Exb.AW1/A(OSR), Loan Application Exb.AW1/B & Ex.AW1/J(Colly), Sanction Letters Ex.AW1/C & Ex.AW1/K, Agreement cum Deed of Hypothecation Ex.AW1/D, Agreement re: Advances against Book Debts as Prime Security NF450 Exb-AW1/E, Guarantee Agreement Exb-AW1/F, Cash Credit Agreement Exb-AW1/G, Letter of Undertaking Exb-AW1/H, Take Delivery Letter to DPN NF481 Exb-AW1/I(Colly), Link Letter Exb-AW1/L, Letter of Renewal Exb-AW1/M, Recall Notice Exb-AW1/N (Colly), Statement of Account under Bankers' Books Evidence Act ExbAW1/O.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank has proved its case beyond reasonable doubts.

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O.A. No.127 of 2023

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.20,88,612/- (Rupees Twenty lacs Eighty Eight Thousand Six Hundred Twelve only) as on 05.01.2023 along with costs, pendentelite and future interest @11.05% per annum with monthly rest from 06.01.2.023 till the date of realization, failing which the aforesaid amount shall be recovered from sale of hypothecated stocks and book debts etc.. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 18.02.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHAMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 20.12.2025

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Canara Bank v. Siddharth Gandhi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Siddharth Gandhi

Case brief

What is this about?

What did the court decide?

What the court decided

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