Allowed

Canara Bank v. M/S Addu Mod Kidz

DRT11 Apr 2025TA/2788/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 11,86,968.85 and future interest from a proprietor who failed to repay loans. The Tribunal issued a recovery certificate and directed proceedings against assets.

What did the court decide?

Direct recovery of Rs. 11,86,968.85 plus future interest from the sale of hypothecated or other properties; issuance of recovery certificate.

Canara Bank versus M/S Addu Mod Kidz — Banking and Recovery | DRT (2025)

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T.A. No. 2788 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, )eevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 2788 of 2022

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Canara Bank

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Rohini, Sector-9 D.C. Chowk, Delhi-110085

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Applicant

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Versus

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M/s Addu Mod Kidz Through its Proprietor Sh. Rajneesh Singh

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Shop No.4, Ground floor D-12/1, Sector-7 Rohini, Delhi

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Also at: 65-A, Jhang Apartment Sector-13, Rohini Defendants Delhi-110085

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Present: Sh.M.K.Jha, Counsel for the applicant bank

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Date of Institution: 13.03.2019

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Date of Pronouncement: 11.04.2025

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FINAL ORDER

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This original application has been filed by the applicant before DRT III, Delhi on 13.03.2019 and then transferred to DRT-I Delhi through Shri Hemant Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of

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T.A. No. 2788 of 2022

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Rs.11,86,968.85 (Rupees Eleven Lacs Eighty Six Thousand Nine Hundred Sixty Eight and Paisa Eighty Five only) as on 31.01.2019 together with pendentelite and future interest @10.90% per annum with monthly rests for Cash Credit facility and @9.20% per annum with monthly rests for Term loan facility along with penal interest @2% per annum with monthly rests from 18.11.2017 till the date of realization and costs.

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The brief facts of the case are that at the request of defendant vide loan application dated 08.06.2016, applicant bank sanctioned OCC General facility of Rs.5,00,000/- (Rupees Five Lacs only) and Term Loan Facility of Rs.5,00,000/(Rupees Five Lacs only) on 08.06.2016 @10.90% interest per annum which was renewed on 28.09.2017 against hypothecation of stocks and plant & machinery, etc. under PMMY scheme for trading of children clothes. The term loan was to be repayable in 84 EMI of Rs.8,195/-

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That in order to avail the said loan facilities, the defendant executed Request for Overdraft facility (NF-372), Pronote (NF-480), Certificate of Loan Papers (NF-482), Letter Evidencing Execution of Documents (NF-803), Letter of Proprietorship (NF-110), Particulars of Vehicles/Machinery/ Equipment/Livestock (NF-373), Agreement cum Deed of Hypothecation (NF-855), Cash Credit Agreement (NF-795, Letter of Undertaking (NF-721), Particular of Guarantor/ CoObligant (NF-589) in favour of the applicant bank.

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It has been submitted by the applicant banks that after availing the aforesaid loan facilities, the defendant miserably failed and neglected to pay the interest and installments in the accounts and failed to maintain financial discipline as per terms

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T.A. No. 2788 of 2022

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and conditions despite various notices and reminders. The applicant bank classified the account as NPA on 17.11.2017 as per RBI guidelines and issued recall notice dated 28.03.2018 but the defendant failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its 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 10.03.2025, 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 Shri Hemant Kumar, au,horized representative of the applicant who has proved the documents as Power of Attorney Ex.AW-1/1, Loan Application with other necessary documents Ex.AW-1/2, Sanction Letter Ex.AW-1/3, Request for Overdraft Ex.AW-1/4, Pronote Ex.AW-1/5, Certificate of Loan Papers Ex.AW-1/6, Letter Evidencing Execution of Documents Ex.AW-1/7, Letter of Proprietorship Ex.AW-1/8, Particulars of Vehicles/Machinery/EqCpment/ Livestock etc. Ex.AW-1/9, Agreement cum Deed of Hypothecation Ex.AW-1/10, Cash Credit Agreement Ex.AW1/111^{Letter of Undertaking Ex.AW-1/12, Particular of} Guarantor/co-obligant Ex.AW-1/131^{Recall Notice Ex.AW-1/14,} Statement of Account Ex.AW-1/15.

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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. scf

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T.A. No. 2788 of 2022

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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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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 30 days, a sum of Rs.11,86,968.85/(Rupees Eleven Lacs Eighty Six Thousand Nine Hundred Sixty Eight and Paisa Eighty Five only) as on 31.01.2019 together with pendentelite and future interest @12.00% per annum with monthly rests (since no bifurcation of outstanding shown) from the date of filing of this application till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, machinery etc. 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 Recovery Officer,} DRT I, Delhi on 10.06.2025.

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T.A. No. 2788 of 2022

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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: 11.04.2025

Canara Bank v. M/S Addu Mod Kidz

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S Addu Mod Kidz

Case brief

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What did the court decide?

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