Allowed

Canara Bank v. M/S Jigyasha Enterprjses Pvt. Ltd.

DRT17 May 2025OA/641/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application filed by Canara Bank against individual and corporate borrowers. The court upheld the bank's claim for recovery of dues based on proved loan documents and affirmed proceedings in absentia.

What did the court decide?

Direction to pay Rs. 26,94,149/- with interest within 30 days; recovery from hypothecated stocks and properties in case of shortfall; issuance of recovery certificate.

Canara Bank versus M/S Jigyasha Enterprjses Pvt… — Contract and Commercial Disputes | DRT (2025)

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O.A. No.641 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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O.A. No. 641 of 2023

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Canara Bank

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National Physical Laboratory Pusa, New Delhi-110012 Applicant

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Versus

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M/s Jigyasha Enterprises Pvt. Ltd. Through its Proprietor

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Sh. Jitender Kumar Sharma Plot No.112, Khasra No.80 Gali No.6, Samaypur Badli Delhi-110042

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Also at:

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Plot No.1/705, C Block, Sultanpuri, Delhi-110086

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Also at:

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House No.C-119, Block Behind Ekta Hospital Yadav Nagar, Badli North-West Delhi New Delhi-110042

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Also at:

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B N Shiv Colony, Dwarika Puri Bhuhar, Lucknow, UP-226001

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Sh. Jitender Kumar Sharma s/o Gajendra Sharma Plot No.112, Khasra No.80 Gali No.6, Samaypur Badli Delhi-110042

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Also at:

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Plot No.1/705, C Block, Sultanpuri, Delhi-110086

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O.A. No.641 of 2023

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Also at:

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House No.C-119, Block Behind Ekta Hospital Yadav Nagar, Badli North-West Delhi New Delhi-110042

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Also at:

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B N Shiv Colony, Dwarika Puri Defendants Bhuhar, Lucknow, UP-226001

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Present: Shri Dhruv Dwivedi, Counsel for the applicant bank

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Date of Institution: 28.07.2023

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Date of Pronouncement: 17.05.2025

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FINAL ORDER

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This original application has been filed by the applicant bank in DRT-I, Delhi on 28.07.2023 and then transferred to DRT-I through Sh.Saurabh Gupta, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.26,94,149/- (Rupees Twenty Six Lacs Ninety Four Thousand One Hundred Forty Nine only) as on 01.07.2023 along with pendentelite and future interest at contractual rates from the date of filing this application till the date of its realization and costs.

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The brief facts of the case are that on the request of the defendant no.2 being proprietor defendant no.1 vide loan application dated 18.09.2018, the applicant bank sanctioned Term loan of Rs.10,00,000/- (Rupees Ten Lacs only) @9.80% interest per annum on 26.09.2018 for manufacturing unit of kitchen cookware as working capital, which was converted and

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O.A. No.641 of 2023

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enhanced to Cash Credit limit of Rs.20,00,000/- (Rupees Twenty Lacs only) on 25.03.2021. Further, on the request of defendants for additional loan vide application dated 05.06.2020, the applicant bank sanctioned loan of Rs.1,90,000/- (Rupees One Lacs Ninety Thousand only) @7.90% interest to be repaid in 36 EMI with moratorium of 12 months on 09.06.2020 under Guaranteed Emergency Credit Line Scheme. An additional GECL 1.0 Ext. of Rs.4.00 lacs @9.25% interest was sanctioned on 12.11.2021 to meet operational liabilities by the applicant bank to be reparable in 60 EMIs. The applicant bank sanctioned all the loan facilities against hypothecation of stocks and book debts of defendant no.1.

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That in order to avail the credit facilities, the defendants submitted loan applications and executed Composite Hypothecation Agreement, Power of Attorney, Certificate of Loan, Offer letters of GECL, Sanction Letters, Agreement cum Deed of Hypothecation, Undertaking Letter from Borrower, Pronote, Cash Credit Agreement, Letter evidencing Execution of Documents, Certificate of Compliance of Terms and Conditions, Request for Overdraft Facilities, Guarantee Covering Letter, Composite Hypothecation Agreement, Letter of Renewal, Equipment/Livestock Hypothecated, Acknowledgment of Debt and Security in favour of the applicant bank on 29.06.2018, 06.06.2020, 09.06.2020, 25.03.2021 and 12.11.2021.

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In order to secure the loan facilities, the defendant no.2 being proprietor of defendant no.1 hypothecated the stock and book debts in favour of applicant bank.

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0.A. No.641 of 2023

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 29.11.2022 as per RBI guidelines due to non-adherence to financial discipline and applicant bank issued legal notices dated 18.10.2022, 28.10.2022, 14.112022 & 27.12.2022 but neglectea by the defendants. Hence, the applicant bank approached this tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to absent from the proceedings. As per order dated 05.03.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Saurabh Gupta, authorized representative of the applicant bank who has proved the documents as Power of Attorney of AR, Loan Appkation, Composite Hypothecation Agreement, Power of Attorney, Application Form for Loans to MSME, Certificate of Loan Papers, Offer Letter for GECL, Sanction of GECL, Agreement cum Deed of Hypothecation, Undertaking Letter from Borrower, Pronote, Cash Credit Agreement, Letter Evidencing Execution of Documents, Request for Overdraft Facilities, Guarantee Covering Letter, Letter of Renewal, Sanction Memoh andum, Equipment/Livestock etc., Acknowledgement of debt and Security, NPA Certificate, Demand Notices, Loan Recall Notice, Certified Statement of Account and Certificate under Banker - ?

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O.A. No.641 of 2023

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Books Evidence Act marked and Exhibited as Annexure AW-1/1 to AW-1/37.

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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 proved.

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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 and the applicant bank has proved its case beyond reasonable doubts.

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10.^{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 defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.26,94,149/- (Rupees Twenty Six Lacs Ninety Four Thousand One Hundred Forty Nine only) as on 01.07.2023 along with pendentelite and future interest at contractual rates from the date of filing this application till its realization with costs; failing which the aforesaid amount shall be recovered from the 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 defendants.

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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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RE-

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O.A. No.641 of 2023

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(III)^{Parties are directed to appear before Recovery Officer,} DRT I, Delhi on 16.07.2025.

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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 SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 17.05.2025

Canara Bank v. M/S Jigyasha Enterprjses Pvt. Ltd.

Case brief

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Canara Bank v. M/S Jigyasha Enterprjses Pvt. Ltd.

Case brief

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