Allowed

Canara Bank (Syndicate Bank) v. M/s. S.S.K. Forms

DRT18 Sept 2025OA/362/2022

Case brief

AI extract

What is this about?

This Original Application, filed by Canara Bank to recover outstanding dues from S.S.K. Forms and Prop. S. Selvakumar, was heard ex-parte. The Tribunal found the bank's documentary evidence regarding various loan facilities sufficient to prove the claim and allowed the application.

What did the court decide?

Defendants directed to jointly pay Rs. 30,48,485.45 with interest. Liberty granted to the bank to sell mortgaged/hypothecated properties for recovery of dues.

Canara Bank (Syndicate Bank) versus M/s. S.S.K. Forms — Banking and Recovery | DRT (2025)

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OA No. 362/2022

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 18^TH DAY OF SEPTEMBER, 2025 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.362/2022

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Between

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Canara bank, (Erstwhile Syndicate Bank), Udyami Mitra Branch, SME-II , Palace Road, East Veli Street, Madurai. Rep. By its Senior Manager. ---Applicant Bank

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And

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M/s S.S.K. Forms, Prop. S. Selvakumar, 32/8B, Ahimsapuram 2^nd Street, Sellur, Madurai – 625 002.

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Mr. S. Selvakumar, S/o Sankaran, 1E/8A, Arunkumar Compound, Periyar Street, Ahimsapuram 7^th Street, Madurai – 625 002. ---Defendants

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Counsel for the Applicant Bank : M/s V. Sukumar, Mark J Jackson, P. Balamurugan, R. Anbarasu.

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This Original Application was heard and fixed for passing final order before me in the presence of the above said Advocate for Applicant Bank and the Defendants having been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the

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records and having stood over for consideration till this day, this Tribunal delivered the following:

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JUDGEMENT

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1 . This Application has been filed under Sec.19 (1) of the "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" now amended as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 02.03.2022 to recover from the Defendants a total sum of Rs.30,48,485.45p/- i.e., (i) Rs.22,92,885.84p together with interest at the rate of 9.40% p.a. in respect of Overdraft loan facility (ii) Rs.2,01,889.62p together with interest at the rate of 7.65% p.a. in respect of 1^st GECL loan facility (iii) Rs.4,39,879.78p together with interest at the rate of 7.50% p.a. in respect of 2^nd GECL loan facility and (iv) Rs.1,13,830.21p together with interest at the rate of 9.40% p.a. in respect of FITL loan facility from the date of filing of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.

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2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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The 1st defendant through the 2nd defendant approached the Applicant bank seeking following credit facility and enhancements for the purpose of developing their business. The details of loans are as follows:

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A. WORKING CAPITAL/OVER DRAFT LOAN:

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The 1st defendant through the 2nd defendant approached the applicant bank seeking working capital over draft loan facility for the purpose of Manufacturing of Computer Papers and submitted an application on 29.01.2015. Applicant bank processed the said loan application. The plaintiff bank agreed to sanction loan facility to the tune of Rs.4,00,000/(Rupees Four Lakhs Only) at the rate of 11.25% per annum. The 1st defendant through the 2nd defendant executed a Composite Hypothecation Agreement on 30.01.2015 for a sum of Rs.4,00,000/-. Under which the said 1st defendant through the 2nd defendant agreed to repay the loan with interest at the rate of 11.25% per annum being 1% over and above bank's base rate raising and falling there with from time to time with calendar monthly rests or as per changes in the credit risk, rating system or such other credit rating system as may be prevalent in the bank from time to time. The defendants hypothecated all their stocks in trade and manufacturing machineries situated at their unit. The said details reflected in Schedule of the said Composite Hypothecation Agreement. The Defendants executed an undertaking letter dated 30.01.2015 where under

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the 1 defendant through the 2nd defendant confirmed that the stocks worth Rs. 3,00,000/- (Rupees Three Lakhs only) was hypothecated which is covered under the above said hypothecation deed.

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The 1st defendant through the 2nd defendant executed a promissory note for a sum of Rs. 4,00,000/- (Rupees Four Lakhs only) with interest at the rate of 11.25% p.a being 1% over and above syndicate bank's prime lending rate (PLR) or such other rate notified by the bank. The 1st defendant through the 2nd defendant executed 'Overdraft/Cash Credit/Loan facility granted to me/us' dated 30.01.2015 where under the 1st defendant agreed to repay the loan amount as per above said promissory note and agreed to pay the interest at the rate of 11.25% per annum. The defendants agreed to pay all monies whether principal, interest, service charge, commitment charge, commission, discount, costs, charges and expenses.

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B. ENHANCEMENT OF WORKING CAPITAL/OVER DRAFT LOAN (1st Enhancement)

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The 1st defendant through the 2nd defendant approached the applicant bank seeking enhancement of above said loan facility for the purpose of Manufacturing of Computer Papers and submitted an application on 03.05.2017. Applicant bank processed the said loan application and issued a loan sanction letter dated 03.06.2017. The applicant bank agreed to sanction loan facility for a sum of Rs.8,00,000/-(Rupees Eight Lakhs Only) at the rate of 8.75% (MCLR)+ 1.25% = 10% per annum. The 1^st defendant through the 2^nd defendant agreed all the terms and conditions of the loan sanction letter. The 1^st defendant through the 2^nd defendant executed a Composite Hypothecation Agreement on 03.06.2017 for a sum of Rs.8,00,000/-. Under which the said 1st defendant through the 2 ^ (nd) defendant agreed to repay the loan with interest at the rate of 8.75% (MCLR)+ 1.25% = 10% per annum or as per changes in the credit risk, rating system or such other credit rating system as may be prevalent in the bank from time to time as per instruction of Reserve Bank of India. The defendants hypothecated all their stocks in trade situated at their unit and also hypothecated theirs stocks including Paper reels, Carbon roll etc., The said details reflected in Schedule-III of Part A and B of the Composite Hypothecation Agreement.

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The 1^st defendant through the 2nd defendant confirmed that the stocks worth Rs. 17,00,000/- (Rupees Seventeen Lakhs only) as on 03.06.2017 was hypothecated in the above said hypothecation deed. For which the defendants executed an undertaking letter dated 03.06.2017. The 1^st defendant through 2nd defendant executed a promissory note for a sum of Rs. 8,00,000/- (Rupees Eight Lakhs only) with interest at the rate of 8.75% (MCLR) + 1.25% 10% per annum over and above bank's prime

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lending rate (PLR) or such other rate notified by the bank. The 1st defendant through the 2nd defendant executed Overdraft/Cash Credit/Loan facility granted to me/us' dated 03.06.2017 where under the 1st defendant agreed to repay the loan amount as per above said promissory note. The 1st defendant through the 2nd defendant renewed the above said loan facility by way of execution of 'Renewal letter for all Facilities' dated 03.06.2017 and renewed the all the loan facility. The defendants specifically confirmed that the stocks were given as security.

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C. ENHANCEMENT OF WORKING CAPITAL/OVER DRAFT LOAN (2nd Enhancement)

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The 1st defendant through the 2nd defendant approached the applicant bank seeking enhancement of loan facility for the purpose of 'Computer forms and adding rolls' and submitted an application on 02.07.2019. Applicant bank processed the said loan application and agreed to sanction loan facility for a sum of Rs. 10,00,000/-(Rupees Ten Lakhs Only). The 1^st defendant through the 2nd defendant executed a Composite Hypothecation Agreement on 18.07.2019 for a sum of Rs. 10,00,000/-. Under which the said 1st defendant through the 2nd defendant agreed to repay the loan with interest at the rate of 9.60% (MCLR) being 1% over and above the bank's base rate raising or falling therewith from time to time with calendar monthly rests or as per changes in the credit risk, rating system or such other credit rating system as may be prevalent in the bank from time to time as per instruction of Reserve Bank of India. The defendants hypothecated all their stocks in trade situated at their unit. The 1st defendant through 2nd defendant executed a promissory note dated 18.07.2019 for a sum of Rs. 10,00,000/- (Rupees Nine Lakhs only) with interest at the rate of 9.60% (MCLR) per annum 1% over and above bank's rating system or such other rate notified by the bank. The 1^st defendant through the 2nd defendant executed 'Overdraft/Cash Credit/Loan facility granted to me/us' dated 18.07.2019 where under the 1st defendant agreed to repay the loan amount as per above said promissory note. The 1^st defendant through the 2nd defendant confirmed that the stocks worth Rs.50,47,000/- (Rupees Fifty Lakhs Forty-Seven Thousand only) was hypothecated in the above said hypothecation deed. For which the defendants executed an undertaking letter dated 18.09.2019. The 1st defendant through the 2nd defendant renewed the said loan facility by way of execution of 'Renewal letter for all Facilities' dated 18.07.2019 and renewed the all the loan facility. The defendants specifically confirmed that the stocks are given as security.

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D. ENHANCEMENT OF WORKING CAPITAL/OVER DRAFT LOAN (3rd Enhancement)

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The 1st defendant submitted a loan application dated 02.12.2019 seeking enhancement of loan facility for the purpose of its business. Applicant bank processed the said loan application and agreed to enhance the loan facility for a sum of Rs.20,00,000/-(Rupees Twenty Lakhs Only) and issued a Sanction letter dated 09.12.2019. The 1 defendant through the 2nd defendant executed a Composite Hypothecation Agreement on 09.12.2019 for a sum of Rs.20,00,000/-. Under which the said 1 defendant through the 2nd defendant agreed to repay the loan with interest at the rate of margin interest 15% and Present rate of interest 10.75% p.a. compounded monthly being 2% over and the above the syndicate bank's base rate raising or falling therewith from time to time with calendar monthly rests or as per changes in the credit risk, rating system or such other credit rating system as may be prevalent in the bank from time to time as per instruction of Reserve Bank of India. The defendants hypothecated all their stocks in trade situated at their unit. The said details reflected in Schedule-III of the Composite Hypothecation Agreement. The 1st defendant through the 2nd defendant executed a promissory note for a sum of Rs. 20,00,000/- (Rupees Twenty Lakhs only) with interest at the rate of 10.75% per annum 2% over and above syndicate bank's rating system or such other rate notified by the bank. The 1st defendant through the 2nd defendant executed "Overdraft/Cash Credit/Loan facility granted to me/us' dated 09.12.2019 where under the 1st defendant agreed to repay the loan amount as per above said promissory note and other terms and conditions of the applicant bank.

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E. Covid-19 Support Loan (GECL) (2nd Loan)

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The defendants submitted a Stock statement dated 06.03.2020 where under they confirmed that they were having stocks worth 73.67 Lakhs. further the 1st defendant requested the applicant bank seeking Covid-19 support for its business. Applicant bank processed the said loan application dated 21.04.2020 and agreed to support the loan facility for a sum of Rs.2,00,000/-(Rupees Two Lakhs Only). The defendants issued a request cum undertaking letter dated 24.04.2020. The defendants confirmed that hypothecation shall continue as security. The defendants also confirmed that the they are having stock value worth Rs. 73,67,860/- as on 27.04.2020. The 1st defendant through 2nd defendant executed a Take deliver letter to DPN along with promissory note dated 24.04.2020 for a sum of Rs. 2,00,000/- (Rupees Two Lakhs only) with interest at the rate of 0.75% per annum above/below ongoing marginal cost of funds based Lending Rate (MCLR) at present being 7.30%. The defendants promised to repay the borrowed amount with interest.

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F. Covid-19 Support Loan (GECL) (3rd Loan)

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The 1 defendant requested the applicant bank seeking covid-19 support for its business. Applicant bank processed the said loan application dated 30.06.2020 and agreed to support the loan facility for a sum of Rs.4,00,000/-(Rupees Two Lakhs Only). The Applicant bank issued offer letter dated 04.07.2020. 36 monthly instalments were fixed after 12 months of moratorium. The defendants executed hypothecation letter dated 04.07.2020 and confirmed that they are having stock value worth Rs. 40,00,000/-(Rupees Forty Lakhs only) Applicant bank issued a request cum undertaking letter dated 04.07.2020 for disbursement of loan. The 1st defendant through 2nd defendant executed a Take deliver letter to DPN along with promissory note dated 04.07.2020 for a sum of Rs. 4,00,000/(Rupees Two Lakhs only) with interest at the rate of 0.60% per annum above/below ongoing marginal cost of funds based Lending Rate (MCLR) at present being 7.50%. The 1st defendant through the 2nd defendant executed a Composite Hypothecation Agreement on 04.07.2020 for a sum of Rs.4,00,000/-. Under which the said 1st defendant through the 2nd defendant agreed to repay the loan with interest at the rate of 0.60% per annum or as per changes in the credit risk, rating system or such other credit rating system as may be prevalent in the bank from time to time as per instruction of Reserve Bank of India. The defendants hypothecated all their stocks in trade situated at their unit and also hypothecated theirs manufacturing machines. The said details reflected in Schedule-III of the Composite Hypothecation Agreement.

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G. Covid-19 Support Loan (FITL) (4th Loan)

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In terms of Covid-19 regulatory package, Applicant bank had extended a Moratorium / deferment of payment of interest, to the eligible Borrowers who had desired to avail the same. The defendants desired to availed the said loan. ii) Pursuant to the same RBI has permitted the Applicant bank at its discretion to convert the accumulated interest for the deferment period up to August 31, 2020 into COVID Funded Interest Term Loan [FITL], which shall be repayable not later than March 31, 2021. In tune with above said RBI guidelines, Applicant bank have converted accumulated interest from 01.03.2020 till 31.08.2020, in the accounts of all the defendant by opening separate FITL accounts in the Books and created loan account for a sum of Rs. 99,461/- at the rate of interest 9.40% per annum. As per applicant bank policy all the securities given by the applicant concerned shall continue for the above said FITL and they shall be bound by all other terms and conditions contained in our original sanction letter and loan documents executed.

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COMMON TO ALL ACCOUNTS:

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OA No. 362/2022

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Defendants failed to adhere to the financial discipline of repayment of the loan either towards principal, interest or charges thereon. The defendants have not paid any amount as agreed. There is a default in repaying the loan amount. Hence the applicant bank caused to issue legal notice dated 25.08.2021 requesting to repay the loan amount and interest. The defendants ignored the said notice. The said notice returned as no such address. The defendants played tactics before the postal departments. The defendants despite the knowledge of notices and its subsequent procedures fully aware of the consequences of their statutory obligation towards the applicant bank, they failed to discharge their liability. Hence the Applicant bank is filing this application before this Hon'ble Tribunal.

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Despite repeated demands and reminders, made by the Applicant Bank, the Defendants have failed and neglected to repay and adjust their liability. Hence, the Applicant Bank has filed the OA for recovery of a total sum of Rs.30,48,485.45p/- i.e., (i) Rs.22,92,885.84p together with interest at the rate of 9.40% p.a. in respect of Overdraft loan facility (ii) Rs.2,01,889.62p together with interest at the rate of 7.65% p.a. in respect of 1^st GECL loan facility (iii) Rs.4,39,879.78p together with interest at the rate of 7.50% p.a. in respect of 2^nd GECL loan facility and (iv) Rs.1,13,830.21p together with interest at the rate of 9.40% p.a. in respect of FITL loan facility from the date of filing of Application till the date of realization with cost.

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The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

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S. No.	Date	Description of document	Exhibits
1	29.01.2015	Loan Application of the defendants	Ex.No.A-01
2	30.01.2015	Composite Hypothecation Agreement executed through the 2^nddefendant	Ex.No.A-02
3	30.01.2015	Undertaking letter relating to hypothecation of stocks executed by the 1^stdefendant through the 2^nddefendant	Ex.No.A-03
4	30.01.2015	Promissory note executed by the 1^st defendant through the2^nddefendant	Ex.No.A-04
5	30.01.2015	Overdraft/Cash Credit Loan facility granted to me/us by the 1^stdefendant through the 2^nd defendant	Ex.No.A-05
6	03.05.2017	Loan Application of the defendants	Ex.No.A-06
7	03.06.2017	Sanction letter issued by the applicant bank in favourofthe1^st defendant	Ex.No.A-07
8	03.06.2017	Composite Hypothecation Agreement executed bythe 1^stdefendant through the 2^nd	Ex.No.A-08

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		defendant
9	03.06.2017	Undertaking letter relating to hypothecation of stocks executed by the 1^stdefendant through the 2^nddefendant	Ex.No.A-09
10	03.06.2017	Promissory note executed by the 1^st defendant through the2^nddefendant	Ex.No.A-10
11	03.06.2017	Overdraft/Cash Credit Loan facility granted to me/us by the 1^stdefendant through the 2^nddefendant	Ex.No.A-11
12	03.06.2017	Renewal letter executed by the 1^stdefendant through the 2^nddefendant	Ex.No.A-12
13	02.07.2019	Loan Application of the defendants	Ex.No.A-13
14	18.07.2019	Composite Hypothecation Agreement executed by the 1^stdefendant through the 2^nd defendant	Ex.No.A-14
15	18.07.2019	Promissory note executed by the 1^st defendant through the2^nddefendant	Ex.No.A-15
16	18.07.2019	Overdraft/Cash Credit Loan facility granted to me/us by the 1^stdefendant through the 2^nd defendant	Ex.No.A-16
17	18.07.2019	Renewal letter executed by the 1^stdefendant throughthe 2^nd defendant	Ex.No.A-17
18	18.07.2019	Undertaking letter relating to hypothecation of stocks executed by the 1^stdefendant through the 2^nddefendant	Ex.No.A-18
19	02.12.2019	Loan Application of the defendants	Ex.No.A-19
20	09.12.2019	Sanction letter issued by the applicant bank in favourofthe1^st defendant	Ex.No.A-20
21	09.12.2019	Composite Hypothecation Agreement executed by the 1^stdefendant through the 2^nd defendant	Ex.No.A-21
22	09.12.2019	Promissory note executed by the 1^st defendant through the2^nddefendant	Ex.No.A-22
23	09.12.2019	Overdraft/Cash Credit Loan facility granted to me/us by the 1^stdefendant through the 2^nddefendant	Ex.No.A-23
24	21.04.2020	Loan Application of the defendants	Ex.No.A-24
25	21.04.2020	Undertaking letter relating to hypothecation of stocks executed by the 1^stdefendant through the 2^nddefendant	Ex.No.A-25
26	21.04.2020	Take delivery letter to DPN along with promissorynote	Ex.No.A-26
27	30.06.2020	Loan Application of the defendants	Ex.No.A-27
28	---	Sanction Letter	Ex.No.A-28
29	04.07.2020	Particulars of Hypothecated stocks	Ex.No.A-29
30	04.07.2020	Offer letter issued bythe Applicant bank	Ex.No.A-30

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	signed by the 1^stdefendant through the 2^nd defendant
31 04.07.2020	Agreement cum Deed of Hypothecation executed by the 1^stdefendant through the 2^nd defendant	Ex.No.A-31
32 04.07.2020	Take delivery letter to DPN along with promissorynote	Ex.No.A-32
33 25.08.2021	Legal Notice and Returned Envelop	Ex.No.A-33
34 01.03.2022	Statement of Account with certificate of Ledger Extract towards Over draft loan facilityi.e. 62001400000755	Ex.No.A-34
35 01.03.2022	Statement of Account with certificate of Ledger Extract towards 1^st GECL i.e. 62009580000015	Ex.No.A-35
36 01.03.2022	Statement of Account with certificate of Ledger Extract towards 2^nd GECL i.e. 620091600000168	Ex.No.A-36
37 01.03.2022	Statement of Account with certificate of Ledger Extract towards FITL i.e. 62007100000361	Ex.No.A-37

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SCHEDULE OF PROPERTY

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Immovable Properties- Not Available

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HYPOTHICATED GOODS

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All finished and unfinished stocks including papers, reels, carbon kept and stored at at 32/8B, Ahimsapuram, 2nd Street, Saraswathi Thetre Backside, Sellur, Madurai - 625 002

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HYPOTHICATED BOOK DEBTS

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All the hypothecated book debts, outstanding, money receivables, claims and bills due and owing to the defendants.

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3 . On the other hand, Notices were issued to Defendants and since from the beginning of the case, there was no representation on behalf of the Defendants. Hence, Defendants were set ex-parte.

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4. Now the main point for consideration before me is as to whether the Applicant has been able to prove his case on his own leg?

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Having gone through the affidavit of the applicant and the documents filed by them and also considering the submission of the counsel for the Applicant, I find that the Applicant Bank, in order to prove its claim, has

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filed Proof Affidavit executed by one Mr. T. Manoj Prabhakar, who is the Senior Manager of the Applicant Bank.

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He has stated in his affidavit that the defendants has availed Overdraft Loan, 1^st GECL Loan, 2^nd GECL Loan, FITL Loan from the Applicant Bank, but they failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-37 in support of its claim in the OA.

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The Loan Application of the defendants has been marked as Ex.No.A01, Composite Hypothecation Agreement executed through the 2nd defendant has been marked as Ex.No.A-02, Undertaking letter relating to hypothecation of stocks executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-03, Promissory note executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-04, Overdraft/Cash Credit Loan facility granted to me/us by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-05, Loan Application of the defendants has been marked as Ex.No.A-06, Sanction letter issued by the applicant bank in favour of the 1st defendant has been marked as Ex.No.A-07, Composite Hypothecation Agreement executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A08, Undertaking letter relating to hypothecation of stocks executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-09, Promissory note executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-10.

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The Overdraft/Cash Credit Loan facility granted to me/us by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-11, Renewal letter executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-12, Loan Application of the defendants has been marked as Ex.No.A-13, Composite Hypothecation Agreement executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A14, Promissory note executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-15, Overdraft/Cash Credit Loan facility granted to me/us by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-16, Renewal letter executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-17, Undertaking letter relating to hypothecation of stocks executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-18, Loan Application of the defendants has been marked as Ex.No.A-19, Sanction letter issued by the applicant bank in favour of the 1st defendant has been marked as Ex.No.A-20.

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The Composite Hypothecation Agreement executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-21, Promissory note executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-22, Overdraft/Cash Credit Loan facility granted to me/us by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-23, Loan Application of the defendants has been marked as Ex.No.A-24, Undertaking letter relating to hypothecation of stocks executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-25, Take delivery letter to DPN along with promissory note has been marked as Ex.No.A-26, Loan Application of the defendants has been marked as Ex.No.A-27, Sanction Letter has been marked as Ex.No.A-28, Particulars of Hypothecated stocks has been marked as Ex.No.A-29, Offer letter issued by the Applicant bank signed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-30.

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The Agreement cum Deed of Hypothecation executed by the 1st defendant through the 2nd defendant has been marked as Ex.No.A-31, Take delivery letter to DPN along with promissory note has been marked as Ex.No.A-32, Legal Notice and Returned Envelop has been marked as Ex.No.A-33, Statement of Account with certificate of Ledger Extract towards Over draft loan facility i.e. 62001400000755 has been marked as Ex.No.A34, Statement of Account with certificate of Ledger Extract towards 1st GECL i.e. 62009580000015 has been marked as Ex.No.A-35, Statement of Account with certificate of Ledger Extract towards 2nd GECL i.e. 620091600000168 has been marked as Ex.No.A-36, Statement of Account with certificate of Ledger Extract towards FITL i.e. 62007100000361 has been marked as Ex.No.A-37. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

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As the Defendants remained ex-parte, the claim of the Applicant Bank is neither disproved nor dislodged and goes on record as proved. Accordingly a cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.

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Therefore, this Original Application is allowed. The Applicant Bank is entitled for a final order on the following lines:-

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The Applicant Bank is entitled to recover from the Defendants 1 & 2, a total sum of Rs.30,48,485.45p/- i.e., (i) Rs.22,92,885.84p together with interest at the rate of 9.40% p.a. in respect of Overdraft loan facility (ii) Rs.2,01,889.62p together with interest at the rate of 7.65% p.a. in

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respect of 1^st GECL loan facility (iii) Rs.4,39,879.78p together with interest at the rate of 7.50% p.a. in respect of 2^nd GECL loan facility and (iv) Rs.1,13,830.21p together with interest at the rate of 9.40% p.a. in respect of FITL loan facility from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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ORDERED

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(a) That the Defendants 1 & 2 are directed to pay jointly/severally a total sum of Rs.30,48,485.45p/- i.e., (i) Rs.22,92,885.84p together with interest at the rate of 9.40% p.a. in respect of Overdraft loan facility (ii) Rs.2,01,889.62p together with interest at the rate of 7.65% p.a. in respect of 1^st GECL loan facility (iii) Rs.4,39,879.78p together with interest at the rate of 7.50% p.a. in respect of 2^nd GECL loan facility and (iv) Rs.1,13,830.21p together with interest at the rate of 9.40% p.a. in respect of FITL loan facility from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.

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(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the movable / immovable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

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(c) If the sale proceeds are not sufficient, after defraying the expenses of such sale, for the payment of all such amounts, the defendants are jointly/severally liable to pay the amount of such deficiency with interest mentioned above until realization.

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(d) Any amount remitted during the course of this proceedings shall be given due credit, to the loan account of the defendants.

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(e) Recovery Certificate be prepared, as per the directions given above, and issue accordingly. A copy of the order is to be communicated to the parties concerned, immediately.

¶89

(f) It is further ordered that the Applicant Bank shall file cost memo within a period of one month from the date of receipt of this order, so as to prepare the recovery certificate with cost for the Overdraft Loan, 1^st GECL Loan, 2^nd GECL Loan, FITL Loan and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.

¶90

Page 12 of 13

¶91

OA No. 362/2022

¶92

Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 18^th September, 2025.

¶93

Sd/- (SEEMA SINHA) PRESIDING OFFICER

¶94

Uploaded on 19.11.2025

¶95

Page 13 of 13

Canara Bank (Syndicate Bank) v. M/s. S.S.K. Forms

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. M/s. S.S.K. Forms

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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