Allowed

Canara Bank v. M/S Society for Social Services

DRT28 Apr 2025TA/31/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Canara Bank for recovery of a term loan defaulting by defendants (an NGO and its officials). Following ex-parte proceedings due to the defendants' absence, the Tribunal granted the bank's claim.

What did the court decide?

Defendants directed to jointly and severally pay Rs.37,73,966/- with interest and costs; recovery certificate issued from hypothecated assets and subsequent properties.

Canara Bank versus M/S Society for Social Services — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 31 of 2022

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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.31 of 2022

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Canara Bank

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Azadpur branch, Azadpur Delhi-110033

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Applicant

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Versus

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M/s Society for Social Services D-463-64, Jahangirpuri Delhi-110033

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Sh.O.P Sharma

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General Secretary M/s Society for Social Services D-463-64, Jahangirpuri Delhi-110033

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Mrs. Sonia Sharma Treasurer

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M/s Society for Social Services D-463-64, Jahangirpuri Delhi-110033

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Sh. Amit Sharma Project Manager

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M/s Society for Social Services D-463-64, Jahangirpuri Delhi-110033 Defendants

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Present: Shri Rajiv B.Samaiyar, Counsel for applicant bank

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Date of Institution: 24.11.2021

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Date of Pronouncement: 28.04.2025

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T.A. No. 31 of 2022

FINAL ORDER

This original application has been filed by the applicant bank on 24.11.2021 before DRT-III, Delhi and then transferred to DRT-1 through Sh. Rajan, 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.37,73,966/- (Rupees Thirty Seven Lacs Seventy Three Thousand Nine Hundred Sixty Six only) as on 09.09.2021 along with pendentelite and future interest @10.50% per annum from the date of filing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 being NGO Registered under Society Act 1985 through their officials vide their loan application dated 30.11.2019, the applicant bank sanctioned Term Loan facility for a sum of Rs.33,00,000/- (Rupees Thirty Three Lacs) on 03.12.2019 to be repayable in 84 Equal Monthly Installment of Rs.57,685/- and last installment of Rs.60,472/- @10.50% interest per annum under Pradhan Mantri Mudra Yojana Scheme for purchase of X-Ray machine and Ultra sound system against hypothecation of assets, book debts, etc.

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In order to avail the loan facility, the defendant no.2 to 4 submitted loan application dated 30.11.2019 and executed Specimen Signature Document, Pronote, Deed of Hypothecation Re; Machinery, Guarantee Covering Letter and Guarantee Agreement of defendant no.2 to 4, Term Loan Agreement etc. on 03.12.2019 in favour of the applicant bank.

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T.A. No. 31 of 2022

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants tailed 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 10.03.2021 as per RBI guidelines and issued legal notice dated 06.10.2021 but defendants failed to regularize the account and hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of 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 not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendarits.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Rajan, authorized representative of the applicant bank, who has proved the documents as Power of Attorney Ex.AW-1/1, Loan application dated 30.11.2019 Ex.AW-1/2, Original Loan Documents dated 03.12.2019 Ex.AW-1/3(Colly), Certified Statement of Account Ex.AW-1/5, Legal notice dated 06.10.2021 Ex.AW-1/6.

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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 approved.

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T.A. No. 31 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 defendants to pay to the applicant bank, jointly or severally, within a period of :0 days, a sum of Rs.37,73,966/- (Rupees Thirty Seven Lacs Seventy Three Thousand Nine Hundred Sixty Six only) together with pendentelite and future interest @10.50% per annum with monthly rests from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated X-Ray Machine and Ultrasound System 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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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 26.06.2025.

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T.A. No. 31 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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2-r7 )••••-' (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 28.04.2025

Canara Bank v. M/S Society for Social Services

Case brief

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Canara Bank v. M/S Society for Social Services

Case brief

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