Allowed

Canara Bank v. Saifuddin Mondal

DRT8 May 2026OA/404/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Canara Bank against Saifuddin Mondal. Validating the loan documents and interest rates, the court determined the outstanding debt sum, allowed specific interest rates, and granted an injunction against the transfer of mortgaged and hypothecated assets.

What did the court decide?

Respondent ordered to pay sum of Rs. 27,89,820.31 inclusive of interest and future interest at 10.75% per annum. Respondent debarred from transferring assets.

Canara Bank versus Saifuddin Mondal — Contract and Commercial Disputes | DRT (2026)

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Page No,

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KOLKATA DEBTS REGOVERY TRIBUNAL ilO. 2 ORDER SHEET (Continuatlon)

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Canara Bank
O.A.[4O4 ol2024
Case No. Vs
Saifuddin Mondat
Office action with
.Date date and datsd
of Order with Signature Signature of
Order parties when
necessaty
Counsel for the parties:
08.05.2026 Mr. Subhadip Basu, Ld. Advocate for the applicant Bank.
None for the defendant.
O.A.1404 of 2024 is atlowed and disposed of.
Final Order / Judgment is in separate sheet of 6 pages.
File be consigned to record room.
Order be uploaded on the Tribunal's website.
6*
(Arbind Madhav)
Presiding Officer
DRT-2, Kolkata

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Central Bank of lndia

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O.A.|4O4 of 2024 - DRT -zJKot

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DEBTS RECOVERY TRIBUNAL - 2, KOLKATA Jeevan sudha Brdg. Ozh Froor,42rc, J.L. Nehru Road, Korkata -rooo71 Shri rbi Madhav Presi tn I

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O.A. No.404 ot 2024

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ln the matter of

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canara Bank, a body corporate constituted under the provisions of the Banking companies (Acquisition and rransfer of Undertakings) Act 1970, having their Head ofiice al 112, J'C Road, Bangarore, Karnataka and carrying on business, inter-atia, from its Garanga Branch, at Mll.- Dhobaberia, Medinipur, p.o.- chandabila, p.S.- Garbeta, District -^{Paschim Medinipur,pin} -721127, West Bengal.

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Applicant Bank

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-Versus-

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1 saifuddin Mondar, Prop. of M/s Green power Fertirizer, at Vi[.- Lowbagan, p.o.Morar, P.s.- Bishnupur, Dist.- Bankura, pin-122164,west Bengar; And arso at viil. 1 no. Camp, P.O.- Morar, p.S.- Bishnupur, Dist._ Bankura, West Bengal _722164.

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Defendant

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Counsel for parties:

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For the Applicant Bank : Mr. Subhadip Basu

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For the Defendant : Ex-Pafte.

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FINAL ORDER ,JUDGMENT Delivered on 08.05.2026

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Applicant, canara Bank, instituted the present Application being the original Application No.404 of 2024 on 07.10.2024 against sole Defendant under section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of sum of Rs.27,89,820.31 (Rupees twenty seven lakh eighty nine thousand eight hundred twenty and paise thirty one) inclusive of interest calculated upto 31.08.2024 in the open cash credit Account and upto 08.09.2024 in the GECL Term Loan Account with further interest @ 13.50o/o per annum from 01.09.2024 in the Open Cash Credit account and @ 11.25o/o per annum from 09.09.2024 in the GECL / Term Loan account, till realization. 2. The brief facts of the case as set out by applicant Bank in its Original Application, as under:

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(i) The Defendant is carrying on business as a sole proprietor under the name and style of M/s Green Power Fertilizer. Al the request of the defendant, applicant Bank was pleased to sanction an open cash credit facility to the limit of Rs.10,00,000/- (Rupees ten lakh) to the defendant vide sanction Memorandum dated 16.12.2017. Copy of sanction

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O.A.l4U ol 2024 - DRT-2tKot

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Memorandum dated 16.12.2017 is annexed and marked as Annexure ,A-1,.

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(ii) Pursuant to the sanction of aforesaid credit limit of Rs.10.00 lakh, the defendant executed the following documents all dated 16.12.2017 in favour of applicant bank:

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a) Pronote of Rs.10,00,000/-;

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b) Cash Credit Agreement;

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c) Request for Overdraft facility.

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copies of said documents are annexed and coilectivery marked with Letter ,A-2,.

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(iii) By the said cash credit Agreement, the defendant hypothecated stocks, such as fertilizer, pesticides etc. are lying at Vill + p.9._ Morar, p.S._ Bishnupur, Bankura, pin _ 722164, morefully described in Schedule at page 21A and para 3A at page 3 & 4 of the original application. To secure the said occ facility, the defendant created equitable mortgage over the immovabre property, described in schedule at page 21 and para 3A at page 3 to 5 of the original application, by depositing Tifle Deed being No.8543 for the year 2003 with the applicant Bank. The Letter evidencing deposit of rifle Deed dated 16.12.2017 with copy of the title deed being No.8543 of 2003 alongwith English translation copy and the valuation report dated 18.04.2023 are annexed and marked with Letter,A_ 4','A-5' & 'A-6' respectively.

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(iv) At the request of the defendant, the applicant bank was pleased to renew / enhance the credit facility from Rs.10.00 takh to Rs.24,00,000/- (Rupees twenty four takh) vide sanction letter dated 16.12.2o18; copy of said sanction letter dated 16.12.2018 is annexed and marked with Letter'A-7'.

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(v) ln consideration of the said enhanced credit facility of rs.24.00 lakh, the defendant executed and delivered loan documents all dated 12.02.2019 in favour of applicant Bank:

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(a) Letter of Renewal;

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(b) Supplemental Agreement;

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(d) Pronote of Rs.24.00 lakh.

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Copy of said documents are annexed and collectively marked with Letter,A-g,

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(vi) At the request of the defendant, applicant Bank renewed the existing credit limit of Rs.24,00,000/-. Pursuant to the said renewal, the defendant has executed the Lefter of Renewal dated 15.02.2020 in favour of applicant bank; copy of said document is annexed and marked with Letter'A-9'.

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(vii) The defendant has acknowledged his debt & liability for a sum of Rs.23,74,393.70 exclusive of interest from 15.02.2020 @ RLLR + 2.25o/o per annum compounded monthly by executing Acknowledgement of Debt & Security dated 15.02.2020; copy of said Acknowledgement of Debts and Security dated 15.02.2020 is annexed and marked with Lefter'A-10'.

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O.A.|4M ot 2024 _ ORf _2Kot

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(viii) At the request of the defendant, applicant Bank renewed the existing credit facilities and to avail the said renewal, the defendant executed the Letter of Renewal dated 23.02.2021 in favour of appricant bank; copy of said document is annexed and marked with Letter'A-1 1'.

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(ix) At the request of the defendant, applicant Bank renewed the existing credit facilities and to avail the said cash credit limit renewed, the defendant executed the Letter of Renewal dard 24.02.2022 in tavour of appricant bank; copy of said document is annexed and marked with Letter'A-12'.

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(x) At the request of the defendant, applicant Bank renewed the existing credit limit vide its sanction memorandum dated 23.11.2022; copy of said sanction Memorandum dated 23.11.2022 is annexed and marked with Letter 'A-13'. To avair the said existing credit facility renewed, the defendant executed the Letter of Renewal dated 23.11.2022in favour of applicant bank; copy of said document is annexed and marked with Letter ,A_ 14',.

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(xi) At the request of the defendant, applicant Bank renewed the existing credit limit of Rs.24,00,000/- vide its sanction letter dated 20.05.2024: copy of said sanction letter dated 20.05.2024 is annexed and marked with Letter'A-15'. To avail the said cash credit facility renewed, the defendant executed the Letter of Renewal dated 20.0s.2024 in favour of applicant bank; copy of said document is annexed and marked with Letter,4-16,.

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(xii) The defendant has acknowledged his debt & liability in the open cash credit account for a sum of Rs.23,99,565/- exclusive of interest from 23.11.2022 @ RLLR + 2.25o/o pet annum compounded monthly by executing Acknowledgement of Debt & security dated 23.11.2022; copy of said Acknowledgement of Debts and security dated 23.11.2022 is annexed and marked with Lefter,A-17'.

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(xiii) Again, the defendant applied to the applicant Bank for a GECL / Term Loan facility of Rs.3,90,000/- vide letter of undertaking dated 02.08.2022 and the applicant bank accepted the same. copy of said document dated 02.08.2022 is annexed and marked with Letter'A-18'. To avail the said GECL / Term Loan, the defendant executed the Agreement-cum-Deed of Hypothecation dated 02.08.2022 in tavour of appticant bank; copy of said document is annexed and marked with Letter'A-19'. 3. The Defendant availed and enjoyed the said Loan facilities by opening Accounts in Bank's Garanga Branch, at Vill.- Dhobaberia, P.O.- Chandabila, P.S.- Garbeta, Dist.Paschim Medinipur. However, the defendant committed breach of terms and conditions of the agreement and made defaults in payment. The Defendant did not repay the outstanding Bank's dues, agreed EMls and overdue interests in loan Accounts. The Accounts became out of order and was classified as N.P.A. on 21.05.2024. Applicant Bank finding no other alternative issued Notice U/s 13(2) of Sarfaesi Act, 2002 dated 06.07.2024 upon the defendant, but the defendant did not comply with the said notice; copy of said notice dated 06.07.2024 is annexed and marked with Letter dated^'A-20'. ln view of the failure on the part of the defendant to liquidate its dues, applicant bank was

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O .A.l4O4 of 2024 - DRf -2JKot

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compelled to issue notice dated 2g.og.zo24 upon the defendant through its Lawyer demanding to repay the outstanding dues amount, but the defendant did not pay any attention to repay the same; copy of said notice dated 2g.0g.2024 is annexed and marked with Lefter'A-21'' certified copies of statement of Accounts along with certificate under Bankers' Books of Evidence Act, with interest carcuration sheet, have been fired to show and prove the dues (Annexure rLener'A-22'), and further interest @ 13.5oyoper annum from 01.09'2024 in the open cash credit account and @ 11.250/o per annum from 09'09'2024 in the GECL / Term Loan account, tirr rearization, have been prayed. Applicant Bank submitted that their craim in the Apprication is within rimitation.

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4' The Notice / summons was sent to the sore Defendant by the Tribunar. rt is observed from the S/R on affidavit dated 0g.04.2025 that service of Notice / summon upon the Defendant is successfur, such has been recorded vide Ld. Registrar,s order dated 09.04.2025. Despite service, the defendant did not appear nor fired the written statement; thus, the defendant was ordered to be proceede d ex-paie vide order dated 17 .02.2026. Ld. Advocate of the appricant Bank has submitted argument on 06.04.2026.

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Applicant Bank has filed evidence on Affidavit, affirmed by chandra sekhar singha, Manager of Bank's Garanga Branch, Vill.- Dhobaberia, p.o.- chandabila, Dist._ paschim Medinipur along with copy of originar documents executed by the defendant. Appricant Bank has filed l.A. being l.A.r2ozs of 2025 with put-up l.A./2012ot 2o2s dated03.o9.2o2s praying for verification of original documents. copy of documents have been produced by applicant Bank; the same have been verified with copies of the documents annexed with o.A. and after verification the same have been returned to Mr. K. Ghosh, Managerof Bank's Garanga Branch, P.o.- chandabila, Dist.- paschim Medinipur, pin-72,1127,such has been recorded vide Ld. Registrar's order dated 11.0g.202s. Accordingly, the 1.A.12035 ol2025 with put-up l.A.l2o12of 2o2s is allowed and disposed of. The documents produced by applicant Bank are exhibited and annexed at,A_1,to^,A_23'.

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I have heard the Ld. Advocate ofthe applicant Bank and perused the records.

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Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, unrebutted and its veraci$ cannot be put to dispute. Applicant Bank has corroborated the averments made in the o.A. Applicant Bank has proved the sanction of open cash credit facility of Rs.10,00,000/- vide sanction Memorandum daled 16.12.2017; subsequenfly, renewed / enhanced the facility on dated 16.12.2018, 15.02.2020, 23.02.2021, 24.02.2022,23.11.2022 &20.05.2024 and appticant Bank accepted the defendant's Letter of Undertaking towards GECL / Term Loan facitity of Rs.3,90,000/- on dated 02.08.2022. Applicant Bank has proved the creation of equitable mortgage over the immovable property and hypothecated movable assets, described in Schedule at page 21 &21Aand para 3A at page 3 to 5 of the original application.

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O.A.1404 ol 2024 - ORT-2tKot

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on the point of rimitation, Loan has been sanctione d on 22.0g.2017, subsequenily renewed / enhanced the facility on dated 16.12.2018, 15.02.2020, 23.02.2021, 24.02.2022,23.11.2022 &20,0s.2024; roan / security documents have been executed on 16.12.2017, 12.02.2019, 15.02.2020, 23.02.2021, 24.02.2022, 2g.11 .2022 & 20.05.2024: and originar Apprication has been fired on 07.10.2024. As such, the originar Apprication appears to have been filed well within the period of limitation.

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8' Applicant Bank has stated that the outstanding balance in Loan Accounts (inclusive of accrued interests and other charges as carcurated upto 31.0g.2024 in occ Account and upto 08.09.2024 in GECL / Term Loan Account) for an aggregated sum of Rs.27'89'820'3r (Rupees twenty seven rakh eighg nine thousand eight hundrecr twenty and paise thirty one), which is the amount craimed by the appricant Bank in the originar Application, and the sole defendant is liable to repay the said amount to the applicant Bank with pendente lite and future interest, till realization of entire dues. I allow the claim as made by applicant Bank in the originalApplication. Applicant Bank has prayed further interest @ 13.50o/o per annum rrom 01.09.2024 in open cash credit account and @ 11'25o/o pet annum from 09.09.2024 in GECL / Term Loan account, till realization, while in Pronote dated 12.02.2o19 the rate of interest @ 2.2s% per annum above the ongoing base rate being @ 8.700/o p$ annum, has been mentioned. Therefore, in my view, the pendente /ife & future rate of interest @ 1o.zso/o per annum, with quarterly rests, from 01 .09.2024, is allowed.

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The matter also falls within the tenitorial as well as pecuniary jurisdiction of this Tribunal. Applicant Bank has proved to claim made in the o.A. The original application being O.A.\4M ot 2024 deserves to be allowed; hence allowed.

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ln view of the above, I pass the following order:

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ORDER

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(i) o.A. No.a04 of 2024, filed by applicant Bank, is ailowed and debt is determined with cost against the Defendant. lt is hereby ordered that the Defendant is hereby directed to pay the total debt amount of Rs.27,89,820.3i (Rupees twenty seven lakh eighty nine thousand eight hundred twenty and paise thirty one) due and payable, inclusive of interest and other charges as calculated upto 31 .08.2024; and interest for the period pendente lite and future rate @ 10.75o/o per annum, with quarterly rests, from 01 .09.2024, till realization of the entire sum due and recoverable.

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(ii) Amount, if any, paid by the Defendant in the loan account or amount, if any, recovered by the applicant Bank afterfiling of the original application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendant. Accordingly, the pendente lite and future interest shall be calculated on the reduced amount.

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O .A.l4O4 ol 2024 - DRf -2lKot

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(iii) The defendant is debarred from transferring, arienating, encumbering or disposing of the mortgaged immovable property and hypothecated movabre assets, described in schedure at page 21 &21A and para 34 at page 3 to 5 0f the originar apprication, as under:

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ed lm ova Pro

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"All rhat Bastu rand measuring about 1 decimar in Mouza - Morar, J.L. No.117, L.R..Khatian No-1420, Hat Das uo.ae, uniiii Bti.F.o aisnnipir,-o,isirici'_ Bankura, West Bengal - 7221641,

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H oth ted ova Ass ts

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"All rhat hypothecafed stocks s uch as fertirizer, ptasticides etc. tying at vitt. + p.o.Morar, P.S.- Bishnupur, Bankura _ 722164."

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The Defendant is arso debarred from transferring, arienating, encumbering or disposing of any other proper$(s) either movable or immovable and assets belonging to him till the aforesaid adjudicated debt amount are recovered from the Defendant.

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(iv) The defendant is given a time of sixty days from the date of this Final order / Judgment for repayment of the above mentioned dues, so intimated to him. rn case the Defendant fails to pay the dues within the above mentioned time, appricant Bank is entiled to recover its dues by sale of secured properties, as aforesaid. Appricant Bank is also entitled to proceed against personal properties of the Defendant both moveable and immoveable and also proceed against the Defendant personaily to recover the dues, in accordance with law.

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(v) Let the certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final Order / Judgment for issuance of the same against the sole Defendant in favour of applicant Bank under section 19(22) ofthe Recovery ofDebts and BankruptcyAct, 1993 (amended from time to time) and put up the same for signature for issuance.

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(vi) Ld. Recovery officer shall realize the amount as per the Recovery certificate from the Defendant, in accordance with law.

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(vii) Ld. Registrar of this Tribunal is directed to place Recovery certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

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Accordingly, the originar Application, being o.A./404 of 2024 is altowed and stands disposed of.

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This order is dictated and corrected by the undersigned and pronounced on this the 08th day of May,2026.

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Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

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.)4 I L* A*^& (Arbind av) Presiding Officer DRT-2, Kolkata

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kkb

Canara Bank v. Saifuddin Mondal

Case brief

What is this about?

What did the court decide?

Canara Bank v. Saifuddin Mondal

Case brief

What is this about?

What did the court decide?

What the court decided

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