Allowed

Canara Bank v. Ms Fatima Cellulars Prop. Mr. Farid Gaus MD Dastagir

DRT25 Aug 2025OA/17/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of Rs. 21,66,765.50. The defendant did not appear. The court reduced the claimed future interest rate from 11.25% to 9% per annum (simple) and ordered a Recovery Certificate.

What did the court decide?

Defendant to pay Rs.21,66,766/- with future interest @9% p.a. (simple) from 01.04.2022; Recovery Certificate issued.

Canara Bank versus Ms Fatima Cellulars Prop. Mr. Farid Gaus MD… — Banking and Recovery | DRT (2025)

¶1

Presented on: 01.04.2022 Registered on: 16.01.2023 Decided on: 25.08.2025 Duration: Y M D 03 04 25

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.17/2023.

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CANARA BANK ,

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A Body corporate constituted under the Banking Companies Acquisition and Transfer of Undertakings Act, 1970 having its Head Office at Bangalore, Karnataka State and Circle Office at Shivajinagar, Pune and Branch Office at Shivajinagar, Pune.

¶5

Versus M/s Fatima Cellulars Through Proprietor - Mr. Farid Gaus Md Dastagir Address - Shop No.23, Ashok Vijay Complex, 326, M.G. Road, Camp, Pune-411 001. Also at- Shop No.7, Kalyani Nagar, Camp, Pune-411 006. Also at- Oxford Village Premium, Flat No.102, P-B Building, Next to Kedari Petrol Pump, Wanowrie, Pune-411 040.

… Applicant

… Defendant

(OA No.17/2023)

Page 1 of 6

[ANIL]

APPEARANCES

For the Applicant	Mrs. Pooja Mali i/b M.V.Kini & Co.
	– Advocates & Solicitors.
For the Defendant	Exparte.

¶13

TOTAL CLAIM AMOUNT –Rs.21,66,765.50Ps. JUDGMENT

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(Delivered on 25^th August, 2025)

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The Applicant Bank has filed present application for recovery of sum of Rs.21,66,765.50Ps towards A/c No.53211400000149 together with future interest thereon @11.25% p.a. with monthly rests till actual realization of the entire amount from the defendant.

¶16

Brief facts of the application are as under:

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Defendant is a proprietary firm engaged in business of selling Mobile Handset, Software Spares and other Accessories through its Proprietor approached to the applicant bank on 05.06.2014 for Working Capital (SODH) of Rs.10 lakhs for purpose of working capital requirement for selling Mobile Handset, Software Spares and other accessories and repairs of Mobiles.

¶18

Applicant Bank considered the request of the Defendant on 09.06.2014 and sanctioned Rs.10,00,000/- to it towards Working Capital (SODH) for the purpose of working capital requirement for selling Mobile Handset, Software Spares and other accessories and repairs of Mobiles, on certain terms and conditions.

(OA No.17/2023)

Page 2 of 6

[ANIL]

In order to secure the said Loan facility, the Defendant has executed necessary loan transaction and security documents, on 09.06.2014 in favour of the Applicant Bank for securing the above said loan facility as mentioned in Para No.5.6 of the Original Application.

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Defendant has executed Deed of Hypothecation dated 09.06.2014 and hypothecated stocks such as Mobile Handsets, Spares, Software and other accessories of Rs.15 lakhs situated at Shop No.23 Ashok Vijay Complex, 326, M.G. Road, Camp, Pune and Book debts both present and future of the firm; hypothecation of current assets of the firm, and hypothecation of Stock in Trade, Finished – Semi Finished Goods, Raw materials, Vehicles/ Equipment/Machineries, Work in process; and hypothecation of Assets Book-Debts, Receivables and other Movables Assets of the firm.

¶24

It is contended that pursuant to request of the defendant through its Proprietor applicant bank renewed working capital of Rs.10 lakhs on 26.06.2015.

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Defendant signed and executed an acknowledgment of debt and security for facility of Rs.10 lakhs dated 06.05.2019, whereby acknowledged the outstanding dues payable by him.

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Defendant availed the said loan and failed to pay the installments and service the interest of the said loan account and committed

(OA No.17/2023)

Page 3 of 6

[ANIL]

default. Applicant repeatedly informed the defendant to pay the overdue amount and regularize the loan account, but all the efforts of the applicant bank failed. Therefore, on 14.02.2017, the applicant constrained to classify the loan accounts under reference as NPA in its book as per the Reserve Bank of India guidelines.

¶31

Thereafter, the applicant bank issued Loan Recall Notice dated 24.03.2022 through Advocate to the defendant and called upon to pay the applicant bank an outstanding due loan amount together with interest, costs, charges etc. However, the defendant even after issuance of notice failed to pay the aforesaid due amount. Hence, this application is filed.

¶32

Defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte against it vide Order dt.17.02.2025 passed below Application (Exhibit-01).

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Applicant Bank filed Claim Affidavit of evidence (Exhibit-6) of Mr. Deepankar Mishra, Manager & Authorized Signatory which supports the case of the Applicant Bank elucidated in the application.

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Applicant Bank has produced in evidence original loan documents at Sr.Nos.AW-1/1 to AW-1/9, which corroborate the case of the Applicant Bank.

(OA No.17/2023)

Page 4 of 6

[ANIL]

I have heard arguments of the learned Advocate for the Applicant Bank.

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Since the Defendant failed to appear and contest the application, I find no reason to disbelieve the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for reliefs as claimed.

¶40

The applicant bank claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

¶41

10 Applicant Bank has claimed future interest @11.25% p.a. for the said loan facility. Considering the facts of the present case, I am of the opinion that if future interest is granted @9% per annum (simple) for all the facilities, it would be just and reasonable.

¶42

11 Hence, I pass the following order: -

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ORDER

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(A) Original Application No.17/2023 is allowed with costs.

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(B) Defendant shall pay to the Applicant Bank Rs.21,66,766/- (Rupees Twenty One Lakhs Sixty Six Thousand Seven Hundred Sixty Six only) towards Loan A/c No.53211400000149 with future interest @9% per annum (Simple) from the date of filing of the Original Application i.e.01.04.2022 till payment/realization of the amount mentioned in this operative order.

(OA No.17/2023)

Page 5 of 6

[ANIL]

(D) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant and Defendant.

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Place: Pune Date: 25.08.2025

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Sd/(Dilip G. Murumkar) Presiding Officer, Debts Recovery Tribunal, Pune.

¶53

(OA No.17/2023)

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Page 6 of 6

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[ANIL]

Canara Bank v. Ms Fatima Cellulars Prop. Mr. Farid Gaus MD Dastagir

Case brief

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Canara Bank v. Ms Fatima Cellulars Prop. Mr. Farid Gaus MD Dastagir

Case brief

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