Allowed

Canara Bank v. Sh. Mohan Lal Gupta

DRT21 Jun 2025OA/52/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's recovery application. The defendant had failed to route transactions through the account and regularize it, leading to NPA classification. The Tribunal proceeded ex-parte due to non-appearance and directed payment of the dues.

What did the court decide?

Direction to pay Rs.26,33,802/- with interest @11.15% p.a. and costs within 30 days; recovery from sale of hypothecated stock/defaulting borrower's properties.

Canara Bank versus Sh. Mohan Lal Gupta — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 52 of 2024

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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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O.A. No.52 of 2024

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Canara Bank

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33, Aggarwal Modern Bazar

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Lawrence Road, Keshavpuram New Delhi-110035

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Applicant

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Versus

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Sh. Mohan Lal Gupta s/o Ramesh Gupta Proprietor M/s Aggarwal Granites R/o E 2A. Ground Floor,

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Near Madav Pvt.Ltd., Mansarovar Garden West Delhi, New Delhi-110015

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Also at:

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House No.333, Ground Floor

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Pocket - B-5, Rohini, Sector-8 North West Delhi, Delhi-110085

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Defendant

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Present: Shri Sanjeev Chopra, Counsel for the applicant bank

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Date of Institution: 17.01.2024

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Date of Pronouncement: 21.06.2025

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FINAL ORDER

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This original application has been filed by the applicant ank on 17.01.2024 through Mr. Bharat Kumar Kochhar, a thorized representative of the applicant bank under Section 1 of Recovery of Debts and Bankruptcy Act, 1993 against the d fendant for recovery of a sum of Rs.26,33,802/- (Rupees

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O.A. No. 52 of 2024

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Twenty Six Lacs Thirty Three Thousand Eight Hundred Two only) as on 30.11.2023 along with pendentelite and future interest @11.15% per annum from 01.12.2023 till its realization along with costs.

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The brief facts of the case are that on the request of the defendant vide loan application dated 11.03.2022, the applicant bank sanctioned Cash Credit facility for a sum of Rs.25,00,000/- (Rupees Twenty Five Lacs only) on 11.03.2022 @9.15% per annum against hypothecation of present and future stock of defendant.

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That in order to avail the credit facility, the defendant executed Cash Credit Agreement (NF795), Request for Overdraft Facilities (NF372), Pronote (NF480), Letter of Undertaking Re: Loans/Advances (NF721), Letter of Proprietorship and Agreement cum Deed of Hypothecation on 11.03.2022 in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions of sanction and not routed their transactions through the account and failed to regularize the account with the applicant bank. The applicant bank classified the account as NPA on 09.06.2023 as per RBI guidelines and issued legal demand notice dated 24.11.2023 for adjustment of the account with interest but no response, hence the applicant bank has approached this tribunal for recovery of their dues.

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O.A. No. 52 of 2024

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Notices of this O.A. were issued to the defendant and

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despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 03.03.2025, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has filed its

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evidence by way of affidavit of Shri Bharat Kumar Kochhar, authorized representative of the applicant bank who has proved the Original/Copy documents as Power of Attorney EXB.AW1/A(OSR), Loan Application EXB.AW1/B, Sanction Letter EXB.AW1/C, Cash Credit Agreement EXB.AW1/D, Request for Overdraft facilities -NF372 EXB.AW-1/E, PronoteNF480 EXB.AW-1/F, Letter of Undertaking Re: Loans/

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Advances NF721 EXB.AW-1/G, Letter of Proprietorship EXB.AW1/H, Agreement cum Deed of Hypothecation EXHWW, Legal Demand Notice along with Postal Receipts XB.AW1/J, Certified Statement of Account under Bankers' ooks Evidence Act EXB-AW1/K.

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

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8 The case filed by the applicant bank gone unrebutted and t ere is no question of disbelieving the case of the applicant b nk and the applicant bank has proved its case beyond rzasonable doubts.

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O.A. No. 52 of 2024

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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.26,33,802/- (Rupees Twenty Six Lacs Thirty Three Thousand Eight Hundred Two only) as on 30.11.2023 together with pendentelite and future interest @11.15% per annum from 01.12.2023 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated Stock. 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 • fficer, DRT I, Delhi on 20.08.2025.

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

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

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(Dictated and pronounced in open court) D ted: 21.06.2025

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Canara Bank v. Sh. Mohan Lal Gupta

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Mohan Lal Gupta

Case brief

What is this about?

What did the court decide?

What the court decided

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