Allowed

Canara Bank v. Shanti Trading Company Prop Biswajit Sarkar

DRT28 Aug 2026OA/186/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a Certificate of Recovery against three respondents for a debt of approx. Rs. 22.95 Lakhs arising from a loan account, granting the bank priority over hypothecated assets.

What did the court decide?

Certificate of Recovery for Rs. 22,94,896.71 with interest; paramount charge over hypothecated stock; restraint on alienation of assets.

Canara Bank versus Shanti Trading Company Prop… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL, SILIGURI

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Case No. OA/186/2025	ORDERSHEET Canara Bank -VS- Shanti TradingCompany prop. Biswajit Sark	ar Office action with
Date of the order.	Order with signature	date and dated signature of parties when necessary.
28.08.2026	Present :- Counsel for the Applicant : Mr. Rajneesh Tripathi, virtual mode. Counsel for the Defendant : None. The order is dictated and corrected by the undersigned and pronounced in the open Tribunal under my signature on this 28^stday of August, 2026. Let the Certificate of Recovery be drawn up by the Learned Registrar forthwith in terms of judgment for issuance of the same against the defendants in favour of Applicant Bank under Sub-Section 7 and 22 of Section – 19 of The Recovery of Debts and Bankruptcy Act, 1993 and put up the same for signature for issuance. Copy of the judgment/final order be given/sent to the parties. (Rakesh Pati Tiwari) Presiding Officer DRT-Siliguri RAKESH PATI TIWARI Digitally signed by RAKESH PATI TIWARI Date: 2026.08.29 12:51:56 +05'30'

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THE DEBTS RECOVERY TRIBUNAL, SILIGURI

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O.A. No. 186/2025

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Canara Bank, Malda II Branch, Branch Code- 19550, IFSC-CNRB0019550, at 18 , Ramkrislma Pally, NH 34, PS- English Bazar, PO & District- MaIda, West Bengal, Pin732ror.

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…………………….Applicant

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Vs.

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SHANTI TRADING COMPANY PROP- BISWAJIT SARKAR, son of Jaleswar Sarkar, Boxinagar, ViII Aiho, PS- Habibpur , District-MaIda, West Bengal, Pin732121.

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MR BISWAJIT SARKAR, son of Jaleswar Sarkar, ViII- Boxinagar, PO- Aiho, PSHabibpur, District-MaIda, West Bengal, Pin- 732121.

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MR HARIHAR MAHATO, Son Of Shashthi Mahato, ViII-Ganga Prasad Colony , PO-Maheshpur, PS- Bamangola, District- MaIda, West Bengal, Pin-732138.

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……..……………Defendants

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Counsel for the Applicant Counsel for the defendants

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: Mr. Rajneesh Tripathi

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: Ms. Lipi Mahanayak

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PRESIDING OFFICER : RAKESH PATI TIWARI Date of Judgment - 28.08.2026

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J U D G M E N T

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This is an application under section 19 of the Recovery of Debts and Bankruptcy Act, 1993, filed by the applicant bank against the defendants seeking issuance of Certificate of Recovery for realization of a sum of Rs. 22,94,896.71 (Rupees Twenty Two Lakhs Ninety Four Thousand Eight Hundred Ninety Six and Paisa Seventy One only) in respect of Loan Accounts being No. 125004868262(CC), with interest calculated upto 07.10.2025 and further interest @10.50% per annum with monthly rests from 08.10.2025 till realization of the entire amount along with injunction restraining the defendants from disposing of and/or alienating and/or encumbering the personal charged and uncharged assets and also costs.

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.08.29 TIWARI 12:52:27 +05'30'

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(Contd…)

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The facts in brief, giving rise to the present application as pleaded are that considering the Loan Application dated 03.11.2023 of the defendant No. 2 in the name of his proprietorship business firm viz. “SHANTI TRADING COMPNAY, PROP- BISWAJIT SARKAR”, the applicant bank sanctioned a loan Facility upto the limit of Rs.24,50,000.00 (Rupees Twenty Four Lacs Fifty Thousand) only in favour of the business of the defendant No.1, vide Sanction Letter dated 03.11.2023. The defendant No.1 on 03.11.2023 executed Cash Credit Agreement Form NF 795, Form NF 546, Request for Overdraft Facilities Form NF 372, Pronote Form NF 480, Two Appendix-47 & Appendix67, Letter of Proprietorship Form NF-110. In order to secure the repayment the defendant No. 1 to 3 in their personal capacity stood as guarantor and executed Guarantee Covering Letter NF-371 along with Guarantee Agreement (NF-370), both dated 03.11.2023. The defendant No.1 further applied to the applicant bank for renewal of the said existing Credit Facility in the name of his proprietorship business and in view of the Loan Application dated 29.01.2025 of the defendant No.1, the Applicant Bank renewed the said Credit Facility of Rs. 24,50,000.00 (Rupees Twenty Four Lacs Fifty Thousand) only, vide Sanction Letter dated 29.01.2025. The defendant no. 1 on 29.01.2025 executed one Letter of renewal along with Key Fact Statement Annexure-I. After availing the loan, the defendants failed to repay the dues of the loan account despite several requests and reminders and thus ultimately the loan accounts were classified as NPA on 29.04.2025 as per the guidelines of the Reserve Bank of India. After giving credits for all sums of moneys paid by and/or realized on behalf of the defendants altogether a sum of Rs. 22,94,896.71 (Rupees Twenty Two Lakhs Ninety Four Thousand Eight Hundred Ninety Six and Paisa Seventy One only) with interest calculated upto 07.10.2025 was due against the defendants in respect of Loan Accounts being No. 125004868262(CC).

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Although on 12.05.2026 the defendants put their appearance before this Tribunal though their counsel but did not file any written statement inspite of sufficient opportunities given to them and hence the right to file the written statement of the defendants were closed, vide order dated 29.06.2024.

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.08.29 TIWARI 12:53:14 +05'30'

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(Contd…)

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The Applicant Bank in support of its case has filed evidence by way of affidavit

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as affirmed by Sri Sunil Kumar, the Chief Manager of the applicant bank and also relied upon the following documents:-

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Sl. No.	Name of the documents	Exhibit No.
1.	Application Form for Loans to Micro Small & Medium Enterprises (MSMEs) dated 03.11.2023 along with online copy of Udyam Registration Certificate	A
2.	Sanction Letter dated 03.11.2023	A/1
3.	Cash Credit Agreement Form NF 795 dated 03.11.2023	A/2
4.	Form NF 546 dated 03.11.2023	A/3
5.	Request for Overdraft Facilities Form NF 372 dated 03.11.2023	A/4
6.	Pronote Form NF 480 dated 03.11.2023	A/5
7.	Two Appendix-47 & Appendix-67 dated 03.11.2023	A/6
8.	Letter of Proprietorship Form NF-110 dated 03.11.2023	A/7
9.	Guarantee Covering Letter NF-371 dated 03.11.2023	A/8
10.	Guarantee Agreements NF-370 dated 03.11.2023 along with Appendix-32	A/9
11.	Application Form for Loans to Micro Small & Medium Enterprises(MSMEs)dated 29.01.2025	B
12.	Sanction Letter dated 29.01.2025	B/1
13.	Letter of Renewal dated 29.01.2025 along with Key Fact Statement Annexure I	B/2
14.	Post Sanction Visit Report dated 08.05.2025	B/3
15.	Notional Interest, Bankers Certificate & Statement of Accounts	C,D, & E

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I have heard the learned counsel for the applicant bank and perused the documents and evidence adduced by the applicant bank. The Applicant bank has adduced documentary evidences which are marked as Exhibits - ‘A’, ‘A/1’ to ‘A/9’, ‘B’, ‘B/1’ to ‘B/3’, ‘C’, ‘D’ & ‘E’. The sanction of loans have been proved by producing the Sanction Letters dated 03.11.2023 & 29.01.2025 (Exhibits- ‘A/1’ & ‘B/1’), the execution of required documents like Cash Credit Agreement Form NF 795, Form NF 546, Request for Overdraft Facilities Form NF 372, Pronote Form NF 480, Two Appendix-47 & Appendix-67, Letter of Proprietorship Form NF-110, Guarantee Covering Letter NF-371, Guarantee Agreements NF-370 dated 03.11.2023 along with Appendix-32, Application Form for Loans to Micro Small & Medium Enterprises (MSMEs), Letter of Renewal, Post Sanction Visit Report etc. have been proved by exhibiting the same at ‘A/2’ to ‘A/9’, ‘B’, ‘B/2’ and ‘B/3’. By filing the statement of accounts (Exhibits ‘E’), the applicant bank has

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(Contd…)

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.08.29 TIWARI 12:53:25 +05'30'

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proved the total outstanding dues along with interest upto 07.10.2025 to the tune of Rs. 22,94,896.71 (Rupees Twenty Two Lakhs Ninety Four Thousand Eight Hundred Ninety Six and Paisa Seventy One only) against the defendants.

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The applicant bank has filed this case against the defendants within three years from the date of execution of loan documents lastly on 03.11.2023 and as such the claim of the applicant bank is within limitation.

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The applicant bank has got valid cause of action to file this case as after taking the loan the defendants failed to make payment as per the terms and conditions of the sanction letter agreed by the defendants. 8. There is nothing available on the record to contradict the version of the applicant bank and thus the applicant bank has sufficiently proved its case by exhibiting all relevant documents.

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In the above circumstances, following order is passed ;

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O R D E R

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(i) O.A. No. 186/2025 filed by the applicant bank is allowed against the defendants No. 1, 2 & 3 jointly and severally with costs and it is hereby ordered that the applicant bank is entitled to recover the total dues debt amount of Rs. 22,94,896.71 (Rupees Twenty Two Lakhs Ninety Four Thousand Eight Hundred Ninety Six and Paisa Seventy One only) only with interest calculated upto 07.10.2025 and further interest thereon @10.50% p.a. with monthly rests from 08.10.2025 till realization of entire balance from the defendants along with cost amount.

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(ii) Amount, if any, paid by the defendants in the loan account or amount recovered by the applicant bank, if any, made towards the loan accounts after filing of the O.A be taken into account while arriving at the exact amount of outstanding payable by the defendants.

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(iii) The hypothecated property being hypothecation of present and future stock of Defendant No. 1 , i.e. Shanti Trading Company Prop- Biswajit Sarkar, son of Jaleswar Sarkar, Boxinagar, Vill- Aiho, PS- Habibpur, Dist- Malda, West Bengal, Pin-732121, as mentioned in the Schedule- “X” of the original application, shall remain charged to the applicant bank and the applicant bank shall have paramount charge thereon.

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.08.29 TIWARI 12:53:36 +05'30'

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(Contd…)

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(iv) The defendants are debarred from transferring; alienating, encumbering or disposing of the hypothecated/mortgaged properties or any other property and assets belonging to the defendants till the aforesaid adjudicated debt amount is recovered from the defendants.

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(v) The defendants are given a time of thirty days from the date of this judgment for repayment of the above decreed debt amount with interest failing which the applicant bank is entitled to recover its dues by sale of the hypothecated/mortgaged property as aforesaid and is also entitled to proceed against the said defendants personally and/or personal properties to recover the dues in accordance with law.

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(vi) Let the certificate of Recovery be drawn up by the Learned Registrar forthwith in terms of judgment for issuance of the same against the defendants in favour of applicant bank under Sub-Section 22 of Section-19 of The Recovery of Debts and Bankruptcy Act, 1993 and put up the same for signature and issuance.

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(vii) Learned Recovery Officer is directed to realize the dues amount from the defendants as per the recovery certificate in accordance with law.

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(viii) Let this judgment be uploaded on website of the tribunal and the Registry is directed to serve/send copy of this judgment to the parties free of cost.

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(ix) Record is consigned to the record room along with the judgment.

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The judgment is signed and pronounced in the open Tribunal on 28^th day of August, 2026. RAKESH Digitally signed

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.08.29 TIWARI 12:53:46 +05'30' (RAKESH PATI TIWARI) Presiding Officer DRT, Siliguri.

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(Contd…)

Canara Bank v. Shanti Trading Company Prop Biswajit Sarkar

Case brief

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Canara Bank v. Shanti Trading Company Prop Biswajit Sarkar

Case brief

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