Allowed

Canara Bank (Syndicate Bank) v. M/S Sharma Enterprises

DRT5 Apr 2025TA/221/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application by Canara Bank for recovery of dues totaling Rs. 41.90 lakhs from borrowers who failed to honor a secured overdraft and vehicle loan. The defendants, having absented themselves, were proceeded ex-parte, and the Tribunal directed the issuance of a recovery certificate enforceable through the auction of hypothecated assets and mortgaged property.

What did the court decide?

Recovery of Rs. 41,90,349/- together with pendentelite and future interest, recoverable from sale of hypothecated stock, mortgaged property, and other assets.

Canara Bank (Syndicate Bank) versus M/S Sharma Enterprises — Banking and Recovery | DRT (2025)

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T.A. No.221 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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T.A. No. 221 of 2023

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Canara Bank

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(e-Syndicate Bank) B-2/11, Phase II Ashok Vihar, Delhi-110052

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Applicant

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Versus

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1.^{M/s Sharma Enterprises} Through its proprietor Sh.Deepak Sharma s/o Sh.J.P.Sharma R/o 1808, 135, Shanti Nagar, Trinagar Main Road, New Delhi-110035

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Sh.Deepak Sharma 3rd Floor, E-2/198-A Shastri Nagar, Delhi-110052

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3.^{Surety: Sh.Vikas Sharma} E-2/59A, IIIrd Floor, Street No.3 Shastri Nagar, Delhi-110052

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Sh.Davinder Singh H.No.185, Ground Floor, Vishnu Garden Defendants Chand Nagar, West Delhi-110018

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Present: Sh.Anshuman Srivastava, Counsel for the applicant bank

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Date of Institution: 18.12.2020

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Date of Pronouncement: 05.04.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 18.12.2020 before DRT-III, Delhi and then transferred to DRT-I Delhi through Shri Puneet Kumar Hada, sd

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T.A. No.221 of 2023

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authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act,1993 read with Rule 8 of the Debt Recovery Tribunal (Procedure) Rules 1993 against the defendant for recovery of a sum of Rs.41,90,349/(Rupees Forty One Lacs Ninety Thousand Three Hundred Forty Nine only) as on 30.09.2020 out of which Rs.32,88,018/in Secured Overdraft account together with pendentelite future interest @11.70% and on Rs.9,02,331/- in vehicle loan account together with pendentelite and future interest @9.70% per annum plus 2% penal interest from the date of filing of this application with costs.

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The brief facts of the case are that at the request of defendant no.1 through its proprietor being defendant no.2, the applicant bank sanctioned secured overdraft facility for Rs.21,00,000/- (Rupees Twenty One Lacs Only) @11.70% for trading of mobile phones and accessories against hypothecation of stocks, book debts etc. and mortgage of property on 26.02.2016. Further, the applicant bank also sanctioned vehicle loan of Rs.7.50 lacs on 08.03.2016 for purchase of Dexter car having registration no.DL8CY5079. Both the said loan facilities were guaranteed by defendant no.4.

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That in order to avail the said loan facilities, the defendants submitted Loan Application Forms dated 25.02.2016 and 07.03.2016 along with Particulars of Assets & Liabilities and executed Composite Hypothecation Agreement, Letter of Proprietorship, Letter of Declaration all dated 26.02.2016, Copy of Sale Deed dated 11.07.2009 & 25.01.2016, Power of Attorney for Collection of Bills etc. Further, defendant no.1 executed Affidavit dated 07.03.2016, Guarantee Agreement, Pronote, Composite Hypothecation Agreement, Invoice by Divine Autotech P.Ltd., and Confirmation of Delivery & Machines dated 08.03.2016 as

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T.A. No.221 of 2023

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well as advances on Hypothecation of vehicle dated 14.08.2016 by the defendant no.2 on behalf of defendant no.1.

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That in order to secure the loan facilities, the defendant No.2 created equitable mortgage of property by depositing title deeds of property bearing No. E-2/198A, Shastri Nagar, Delhi measuring 41.8 sq.meters by handing over Title Deeds of Property, Confirmation of deposit of Title Deed along with other property documents on 26.02.2016. The applicant bank filed affidavit dated 02.01.2025 clarifying that guarantor's property situated at WZ-70B, Plot No.185, Ground Floor, Chand Nagar, New Deli has not been secured.

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It has been submitted by the applicant bank that in order to secure the loan facilities, defendant hypothecated the Stock, Book debts, Car and machineries purchased from term loan availed from applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants tailed to honor its commitments to make the payment of interest/installments due to the applicant bank as per terms and conditions of the sanction and failed to regularize the account despite regular follow up. The applicant bank classified the account under SOD as NPA on 31.05.2016 and vehicle loan as NPA on 31.10.2017 but the defendants neglected to clear the overdue amount and failed to regularize the accounts. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 was issued by the applicant bank

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T.A. No.221 of 2023

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on 01.04.2019 and 05.09.2019 for SOD and Car Loan respectively and notice under Section 13(4) of Sarfaes: Act for possession on 13.12.2019 to the defendants but they failed to clear the dues.

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Notices of this O.A. were issued to the defendants and 8. despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 16.11.2023, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Puneet Kumar Hada, authorized representative of the applicant bank who has submitted the documents such as Power of Attorney Ex.AW1/1, Notification Ex.AW1/2, Application Form dated 25.02.2016 & 07.03.2016 Ex.AW1/3 & Ex.AW1/15, Particulars of Assets & Liabilities Ex.AW1/4 & Ex.AW1/12, Composite Hypothecation Agreement Ex.AW1/5 & Ex.AW1/19, Letter of Proprietorship Ex.AW1/6, Letter of Declaration Ex.AW1/7, Sale Deed Copy Ex.AW1/8(colly), Power of Attorney for Collection of Bills Ex.AW1/9, Letter of Handing mar Title Deeds of Properties Ex.AW1/10, Confirmation of Deposit of Title Deed Ex.AW1/11, Guarantee Agreement Ex.AW1/13, Copy of Gift Deed in favour of Defendant no.4 Ex.AW1/14, Affidavit Ex.AW1/16, Guarantee Agreement Ex.AW1/17, Pronote Ex.AW1/18, Copy of Invoice dated 08.03.2016 Ex.AW1/20, Confirmation of Delivery Ex.AW1/21, Advances on Hypothecation of Vehicle Ex.AW1/22, Notice u/s 13(2) & possession notice Ex.AW1/23(colly) & Ex.AW1/24, Statement

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T.A. No.221 of 2023

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of account Certified under Banker's Books Evidence Act Ex.AW1/25 and Ex.AW1/26(colly).

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10.^{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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11.^{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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12.^{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 (I) applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.41,90,349/- (Rupees Forty One Lacs Ninety Thousand Three Hundred Forty Nine only) out of which:

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^{Rs.32,88,018/- in Secured Overdraft account as on} 18.09.2020 together with pendentelite future interest @13.70%;

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^{Rs.9,02,331/- in vehicle loan account as on 30.09.2020} together with pendentelite and future interest @11.70% per annum

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from the date of filing of this application till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stock etc. as well as

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T.A. No.221 of 2023

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Dexter Car RXE-Petrol having Registration No.DL8CY5079, Chasis No.MEEHSRC85E6003803 & Engine No.D292842 and sale of mortgaged property bearing No. E-2/198A, 3rd Floor, Shastri Nagar, Delhi-52 owned by defendant no.2. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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

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(III)^{Parties are directed to appear before Recovery Officer,} DRT I, Delhi on 04.06.2025.

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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: 05.04.2025

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Canara Bank (Syndicate Bank) v. M/S Sharma Enterprises

Case brief

What is this about?

What did the court decide?

Canara Bank (Syndicate Bank) v. M/S Sharma Enterprises

Case brief

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