Allowed

Canara Bank v. Sahruk Trading Co. and Anr.

DRT4 Sept 2026OA/191/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal Siliguri allowed an application for issuance of a Certificate of Recovery against a non-appearance of the defendants. The bank claimed dues of Rs. 38,13,663.55 plus interest arising from loan facilities that were classified as NPA. The Tribunal upheld the bank's evidence and granted recovery along with an injunction against asset disposal.

What did the court decide?

Certificate of Recovery issued for Rs. 38,13,663.55 plus interest. Defendants granted 30 days to repay. Alienation of assets restrained. Recovery officer directed to realize dues.

Canara Bank versus Sahruk Trading Co. and Anr. — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL, SILIGURI

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Case No.	ORDERSHEET
OA/191/2025	Canara Bank -VS- Sahruk TradingCo & Anr
Date of the order.	Order with signature	Office action with date and dated signature of parties when necessary.
04.09.2026	Present :- Counsel for the Applicant : None. Counsel for the Defendants : Ex-parte. There is Resolution of the Bar today. The order is dictated and corrected by the undersigned and pronounced in the open Tribunal under my signature on this 04^thday of September, 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: 2026.09.05 13:38:47 +05'30'

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THE DEBTS RECOVERY TRIBUNAL, SILIGURI

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O.A. No. 191/2025

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Canara Bank, Bamongram Branch, Village & P.O.: Bamongram, P.S. Kaliachak-I, District: Malda, Pin Code: 732206, West Bengal.

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…………………….Applicant

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Vs.

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SAHRUK TRADING СО., Prop. Md Sahruk Ali, Office Address: Gharialchak, P.S. Kaliachak, District: Malda, Pin Code: 732201.

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MD. SAHRUK ALI, Prop. of Sahruk Trading Co, S/o. Md Saber Ali, Dukhu Mahaldarpara, Bahadurpur, Malda, Pin Code: 732201, West Bengal.

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……..……………Defendants

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Counsel for the applicant : Ms. Puja Bhupal. Counsel for the defendants : Ex-parte.

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PRESIDING OFFICER: RAKESH PATI TIWARI Date of Judgment -04.09.2026

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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 Rs.38,13,663.55/- (Rupees Thirty-Eight Lakhs Thirteen Thousand Six Hundred Sixty- Three and Fifty-Five Paisa) only [Rs. 26,05,523.55 (OCC account no. 125004186376) + Rs. 12,08,140.00 (Vehicle Loan account no. 161001771660)] with interest calculated upto 17.10.2025 and further interest thereon from 18.10.2025 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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The facts in brief, giving rise to the present application as pleaded are that the Defendant No. 1 is a proprietorship firm and Defendant No. 2 is the sole proprietor of Defendant No. 1. Considering the application of the defendant no.1 through its proprietor defendant no.2 dated 10.07.2023, the applicant bank sanctioned the loan facility for a sum of Rs. 25,00,000/- (Rupees Twenty- Five Lakhs only) in favour of the Defendants, vide Sanction Memorandum dated 13.07.2023. The defendants on 13.07.2023 executed Letter of proprietorship, Pronote, Cash Credit Agreement, Letter of undertaking re:

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.09.05 TIWARI 13:38:58 +05'30'

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(Contd…)

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Loans/Advances, Request for Overdraft Facilities, Letter of Undertaking not to avail OCC Facility Elsewhere, Existing Interest Clause Stand Substituted by the following RLLR Linked Rate Clause and Letter of Undertaking. Thereafter considering the application of the defendant no.2 dated 19.08.2023, the applicant bank sanctioned a Vehicle loan facility of a sum of Rs. 14,25,000/- (Rupees Fourteen Lakhs Twenty-Five Thousand only), in the favour of the Defendant No. 2. The Defendants executed Canara Vehicle Loan Agreement dated 21.08.2023, Particulars of Vehicles/Machinery/Equipment/ Livestock, etc. hypothecated dated 21.08.2023, Disbursement Request Format for Loans dated 22.08.2023 and Undertaking regarding Personal Loans dated 13.11.2023. The Defendant have also submitted the Certificate of Registration of the said Vehicle dated 31.08.2023, to the Applicant Bank. The Defendants again on 19.06.2024, applied for the renewal of the credit facility of Rs. 25,00,000/- (Rupees Twenty Lakhs only) granted by the Applicant Bank and the Applicant Bank considering the request of the Defendants sanctioned the said renewal on 31.07.2024. The Defendants executed Request for Overdraft Facilities dated 31.07.2024 and Letter of Undertaking not to avail OCC Facility Elsewhere dated 22.08.2024. After availing the loan the defendants failed to regularize the loan account and as such the loan account was classified as NPA on 03.08.2025. The Applicant Bank issued Recall Notices for the accounts No. 125004186376 and Vehicle Loan being Account No. 161001771660 on 25.04.2025 as well as Demand Notice on 12.08.2025, upon the Defendants. According to the applicant bank after giving credits for all sums of moneys paid by and/or realized on behalf of the defendants altogether a sum of Rs.38,13,663.55/- (Rupees Thirty-Eight Lakhs Thirteen Thousand Six Hundred Sixty- Three and Fifty-Five Paisa) only with interest calculated upto17.10.2025 was due against the defendants in the loan account No. 125004186376(OCC) and 161001771660 (Vehicle Loan).

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Despite the service of summons upon the defendants through Newspaper Publications, the defendants did not put their appearance before this Tribunal. Hence the matter is proceeding ex-parte against the defendants, vide order dated 28.07.2026. 4. The Applicant Bank in support of its case has filed evidence by way of affidavit as affirmed by Sri Abhishek Sarkar, the Branch Manager of the Applicant Bank and also relied upon the following documents:-

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.09.05 TIWARI 13:39:09 +05'30'

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(Contd…)

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Sl. No.	Name of the documents	Exhibits No
1.	General Power of Attorney dated 21.05.2019	AW-1/1
2.	Loan Application dated 10.07.2023	AW-1/2
3.	Sanction Memorandum dated 13.07.2023	AW-1/3
4.	Letter ofproprietorshipdated 13.07.2023	AW-1/4
5.	Pronote dated 13.07.2023	AW-1/5
6.	Cash Credit Agreement dated 16.11.2022	AW-1/6
7.	Letter of undertaking re: Loans/Advances dated 13.07.2023	AW-1/7
8.	Request for Overdraft Facilities dated 13.07.2023	AW-1/8
9.	Letter of Undertaking not to avail OCC Facility Elsewhere dated 13.07.2023	AW-1/9
10.	Existing Interest Clause Stand Substituted by the following RLLR Linked Rate Clause in Our Loan Documents dated 13.07.2023	AW-1/10
11.	Letter of Undertaking	AW-1/11
12.	Loan Application dated 19.08.2023	AW-1/12
13.	Sanction Memorandum dated 21.08.2023	AW-1/13
14.	Communication of Repayment Schedule to borrowers dated 21.08.2023	AW-1/14
15.	Canara Vehicle Loan Agreement dated 21.08.2023	AW-1/15
16.	Particulars of Vehicles/Machinery/Equipment/Livestock, etc. hypothecated dated 21.08.2023	AW-1/16
17.	Disbursement Request Format for Loans dated 22.08.2023	AW-1/17
18.	Undertaking regarding Personal Loans dated 13.11.2023	AW-1/18
19.	Certificate of Registration of the said Vehicle dated 31.08.2023	AW-1/19
20.	Loan Application dated 19.06.2024	AW-1/20
21.	Letter of Renewal dated 19.06.2024	AW-1/21
22.	Sanction Letter dated 31.07.2024	AW-1/22
23.	Request for Overdraft Facilities dated 31.07.2024	AW-1/23
24.	Letter of Undertaking not to avail OCC Facility Elsewhere dated 22.08.2024	AW-1/24
25.	Recall Notices dated 25.04.2025 and the Demand Notice Dated 12.08.2025	AW-1/25
26.	Bankers Certificate	AW-1/26
27.	Statement of Accounts	AW-1/27
28.	Interest Calculation Sheet	AW-1/28
5.	I have heard the learned counsel for the applicant bank and perused t	he documents

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and evidence adduced by the applicant bank. The applicant bank has adduced documentary evidences which are marked as Exhibits ‘AW-1/1’to ‘AW-1/28’. The sanction of loan has been proved by producing the Sanction Memorandum dated 13.07.2023, 21.08.2023 and

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(Contd…)

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.09.05 TIWARI 13:39:20 +05'30'

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Sanction Letter dated 31.07.2024 (Exhibits - ’AW-1/3’, ‘AW-1/13’ & ‘AW-1/22’).The execution of required documents like General Power of Attorney, Loan Application, Letter of proprietorship, Pronote, Cash Credit Agreement, Letter of undertaking re: Loans/Advances, Request for Overdraft Facilities, Letter of Undertaking not to avail OCC Facility Elsewhere, Existing Interest Clause Stand Substituted by the following RLLR Linked Rate Clause in the Loan Documents, Letter of Undertaking, Communication of Repayment Schedule to borrowers, Canara Vehicle Loan Agreement, Particulars of Vehicles/Machinery/Equipment/ Livestock, etc. hypothecated, Disbursement Request Format for Loans, Undertaking regarding Personal Loans, Certificate of Registration of the said Vehicle, Letter of Renewal Request for Overdraft Facilities etc. have been proved by exhibiting the same at ‘AW-1/1’, ‘AW-1/2’, ‘AW-1/4’ to ‘AW-1/12’, ‘AW-1/14’ to ‘AW-1/21’, ‘AW-1/23’, ‘AW-1/24’. By filing the statement of account (Exhibits – ‘AW-1/27’), the applicant bank has proved the total outstanding dues of Rs.38,13,663.55/- (Rupees Thirty-Eight Lakhs Thirteen Thousand Six Hundred Sixty- Three and Fifty-Five Paisa) 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 sanction of loan and execution of documents on 13.07.2023 and as such the claim of the applicant bank is within limitation. 7. 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.

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In the instant matter applicant bank has not pleaded about the specific rate of interest rather simply under para 6-1 it is mentioned that it is entitled to get pendente lite and further interest at the contractual rate. The rate of interest as mentioned in the loan documents is RLLR+2.25%=11.50%, RLLR at that time was 9.25% p.a. and the effective rate of interest became 11.50% p.a.with monthly rests for OCC account no. 125004186376. The rate of interest as mentioned in the loan documents is RLLR+0.15%=9.55%, RLLR at that time was 9.40% p.a. and the effective rate of interest became 9.55% p.a. with monthly rests for Vehicle Loan account no. 161001771660 and thus the bank is entitled for the interest @10.50% p.a. with monthly rests for the pendente lite and post RC period till the realization of dues amount.

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(Contd…)

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.09.05 TIWARI 13:40:44 +05'30'

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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.191/2025 filed by the applicant bank is allowed against the defendants No.1 & 2 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.38,13,663.55/- (Rupees ThirtyEight Lakhs Thirteen Thousand Six Hundred Sixty- Three and Fifty-Five Paisa) only with interest calculated upto 17.10.2025 and further interest thereon @10.50% p.a. with monthly rests from 18.10.2025 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) Hypothecation of present and future Stock of the borrower, as mentioned in the Schedule ‘A’ of the original application, and Hypothecation of Vehicle being Mahindra Thar, Make: Mahindra & Mahindra Ltd., Model Name: THAR LXD MT 4WD 4S HT, Year of Manufacture 2023, Engine No. YKP4H34478, Chassis No. MA1UJ4YK2P2H45132 having registration No. WB 66 AQ 2279, registered on 31st August, 2023 in the name of Md. Sahruk Ali, as mentioned in the Schedule ‘B’ of the original application, shall remain charged to the applicant bank and the applicant bank shall have paramount charge thereon.

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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

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RAKESH Digitally signed by RAKESH PATI PATI TIWARI Date: 2026.09.05 TIWARI 13:41:04 +05'30'

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(Contd…)

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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, 1993and 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 4^th day of Digitally signed by September, 2026. RAKESH RAKESH PATI TIWARI

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Digitally signed by RAKESH RAKESH PATI TIWARI PATI TIWARI Date: 2026.09.05 13:41:22 +05'30'

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(RAKESH PATI TIWARI) Presiding Officer DRT, Siliguri.

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(Contd…)

Canara Bank v. Sahruk Trading Co. and Anr.

Case brief

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Canara Bank v. Sahruk Trading Co. and Anr.

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