Allowed

Canara Bank v. Sh. Sharad Bansal

DRT1 Feb 2025TA/548/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application to recover outstanding dues of Rs.80.44 lakh accrued from Open Cash Credit and other facilities. The defendants were directed to pay the amount with interest, failing which the hypothecated property and assets would be sold.

What did the court decide?

Directed defendants to pay Rs.80.44 lakh with interest within 30 days; recovery certificate issued for sale of hypothecated mortgaged property and other assets.

Canara Bank versus Sh. Sharad Bansal — Banking and Recovery | DRT (2025)

¶1

T.A. No.548 of 2023

¶2

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

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

T.A. No. 548 of 2023

¶5

Canara Bank Shakti Nagar Delhi-110007 Applicant

¶6

Versus

¶7

Sh.Sharad Bansal s/o Late Sh.Surender Bansal Proprietor of M/s Bansal Saree Emporium Shop No.2001, First Floor Kinari Bazar, Dariba Kalan, Chandni Chowk Delhi-110006

¶8

Also at:

¶9

879/1, Ghanta Ghar, Subzi Mandi Kamla Nagar, Delhi-110007

¶10

Mrs. Preeti Bansal w/o Sharad Bansal 879/1, Ghanta Ghar, Subzi Mandi Kamla Nagar, Delhi-110007 Defendants

¶11

Present: Ms. Seema Gupta, Counsel for the applicant Lank

¶12

Date of Institution: 22.06.2022

¶13

Date of Pronouncement: 01.02.2025

¶14

FINAL ORDER

¶15

This original application has been filed by the applicant bank on 22.06.2022 before DRT-III Delhi & then transferred to DRT-I Delhi through Shri Ashutosh Kumar Jha, authorized representative of the applicant bank under Section 19 of

¶16

T.A. No.548 of 2023

¶17

Recovery of Debts and Bankruptcy Act, 1993 read with Rule 8 of Debt Recovery Tribunal (Procedure) Rules 1993 against the defendant for recovery of a sum of Rs.80,44,724.60 (Rupees Eighty Lacs Forty Four Thousand Seven Hundred Twei ity Four & paisa Sixty only) as on 15.06.2022 along with pendentelite and future interest @9.55% per annum plus 2% penal interest with monthly rest from the date of filing of this application till the date of realization and costs.

¶18

The brief facts of the case are that at the request of defendant no.1 as proprietor of Bansal Saree Emporium vide his loan application dated 15.01.2018 with relevant documents, the applicant bank sanctioned Open Cash Credit/Overdraft facility of Rs.60.00 lacs on 22.03.2018 @9.95% interest per annum which was renewed on 12.04.2019 and 09.07.2020 against stock in trade, book debts as well as collateral security of mortgage of property. On the request of defendant no.1 vide loan application dated 13.07.2020, the applicar:: bank sanctioned GECL limit of Rs.12.00 lacs @7.85% and maximum @9.65% interest per annum on account of Covid 19 pandemic. In addition to this, applicant bank granted RFITL of Rs.1.65 lacs on 17.06.2021 in favour of defendant no.1. The defendant no.2 stood as guarantor for the credit facilities availed by defendant no.1 which was renewed from time to time.

¶19

That in order to avail the aforesaid loan facilities, the defendant no.1 submitted Form NF-589, Networth Statement (Annexure 3C), Bio-Data, Signature Verification etc. and executed Letter of Proprietorship dated 22.03.2018 & 09.07.2020 (Form NF110), Specimen Signature Card, Request for Overdraft Facility (NF372), Pronote, Common Hypothecation Agreement, Letter of Undertaking Re: '.oans &

¶20

¶21

T.A. No.548 of 2023

¶22

Advances, Letter of Undertaking dated 22.03.2018, Letter of Renewal (NF493) & Letter of Undertaking dated 12.04.2019 & 09.07.2020 with the applicant bank. In addition, the defendant no.1 executed Letter of Proprietorship, Pronote, Undertaking Letter and Agreement cum Deed of Hypothecation (Form NF855) dated 13.07.2020 at the time of sanction of GECL Limit. The defendant no.2 jointly executed personal and continuing guarantee in favour of applicant bank for the credit facility availed by defendant no.1 on 22.03.2018, extended it on 12.04.2019, 09.07.2020 and 13.07.2020.

¶23

That in order to secure the credit facilities, the defendant no.1 created equitable mortgage by depositing original title documents along with chain of documents of immovable property being Commercial Shop on First Floor, Part of Property No.725 (Old No.), New No.2063, Gali Phool Ki Bakhal, Chhota Dariba, Tiraha Kinari Bazar, Ward No.V, Delhi-6 admeasuring 19.16 sq.meters on 21.03.2018 in favour of applicant bank.

¶24

The defendant no.1 acknowledged the debt and Security (Form NF-760) on 12.04.2019 and 09.07.2020 with the applicant bank.

¶25

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 and failed to maintain financial discipline. Ultimately, the applicant bank calling upon the defendants to pay the entire outstanding dues but the defendants neglected to clear the dues. The applicant bank classified the account as NPA on 31.12.2021 as per prudential norms of RBI and issued legal demand notice dated 09.05.2022 but they failed to comply, hence approached this Tribunal for recovery of their dues.

¶26

¶27

T.A. No.548 of 2023

¶28

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 04.4.2024, the defendants have been proceeded ex-parte & no affidavit of assets have been filed by the defendants.

¶29

Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 04.01.2022 was issued to the defendants and the applicant bank took symbolic possession of the mortgaged property on 15.03.2022 but defendars failed to clear the dues.

¶30

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Ashutosh Kumar Jha, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Loan Applications, Form NF-589, Net Worth Statement, Bio-Data, S'gnature Verification by Banker, Sanction Letters, Request for Overdraft Facility, Letters of Undertaking, Pronotes, Hypothecation Agreement for Cash Credit, Letter of Proprietorship, Specimen Signature Cards, Request for Overdraft Facility, Common Hypothecation Agreement, Letter of Undertaking Re: Loans & Advances, Letters evidencing Deposit of Title Deeds, Original, Gift Deed dated 14.07.2017, Original Sale Deed dated 15.02.2016, Original Sale Deed dated 18.10.2010, Original Affidavit by Sh.Madan Lal, Latest Property Tax Receipt, Electricity Bill, Affidavit & Indemnity Bond, Certified copy of Sale Deed dated 26.06.1948 with Notary attested copy of WILL & Death Certificate, Renewal Letters, Acknowledgement of Debt and Security, Guarantee Extension Letters, Sanction Memorandums, Agreement cum Deed of Hypothecation,

¶31

T.A. No.548 of 2023

¶32

LEDTD dated 13.07.2020 with NF462, Demand Notice u/s 13(2), Symbolic Possession Notice, Legal Demand Notice, Postal Receipts, Certified Statement of Accounts and Calculation sheets marked as Ex.AW1/1(OSR) to Ex.AW1/63.

¶33

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.

¶34

11.^{The case filed by the applicant bank gone unrebutted and} there is no question of disbelieving the case of the applicant bank and applicant bank has proved its case beyond reasonable doubts.

¶35

12.^{In the light of the above discussions, the Original} Application deserves to be allowed.

¶36

ORDER

¶37

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.80,44,724.60 (Rupees Eighty Lacs Forty Four Thousand Seven Hundred Twenty Four & paisa Sixty only) together with pendentelite and future interest @11.55% per annum with monthly rest from the date of filing of this application till the date of realization, failing which the a:oresaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged property being Commercial Shop on First Floor, Part of Property No.725 (Old No.), New

¶38

T.A. No.548 of 2023

¶39

No.2063, Gali Phool Ki Bakhal, Chhota Dariba, Tiraha Kinari Bazar, Ward No.V, Delhi-6 admeasuring 19.16 sq.meters. In case of shortfall, the same shall be recovered from the sale of movable and immovable property/assets of the defendants.

¶40

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

¶41

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 03.04.2025.

¶42

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

¶43

s d '2—

¶44

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

¶45

(Dictated and pronounced in open court) Dated: 01.02.2025