Allowed

Canara Bank v. Vinod Kumar Sharma

DRT24 Aug 2026OA/578/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of dues from the defendant. The court heard the bank's evidence of loan agreements and default without the defendant appearing, ruling in favor of the bank and directing payment of the outstanding sum with interest.

What did the court decide?

Direct the defendant to pay Rs. 20,58,705/- with pendentelite and future interest @13.50% p.a. within 30 days; ensure recovery via sale of assets; issue recovery certificate.

Canara Bank versus Vinod Kumar Sharma — Contract and Commercial Disputes | DRT (2026)

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O.A. No.578 of 2024

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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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O.A. No. 578 of 2024

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Canara Bank Kh.No.353-816, Ground Floor Extended Lal Dora Main 100 Foot Road, Baba Colony Burari, Delhi-110084 Applicant

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Versus

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Sh.Vinod Kumar Sharma Proprietor of M/s Dev Enterprises R/o H.No.149, Block B, Street No.1 Phool Bagh, Burari, Delhi-110084

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Also at: Kh.No.10/3, Shastri Park Extension Uttarakhand Enclave, Burari, Delhi-110084 Defendant

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Present: Shri Sanjeev Chopra, Counsel for the applicant bank

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Date of Reserve: 10.08.2026 Date of Pronouncement: 24.08.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 31.08.2024 through Shri Vineet Grover, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.20,58,705/- (Rupees Twenty lacs Fifty Eight Thousand Seven Hundred Five only) as on 23.08.2024 along with pendentelite and future interest @11.50% per annum with monthly rest from the date of

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O.A. No.578 of 2024

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present application along with @2% penal interest till its realization and costs.

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The brief facts of the case are that at the request of defendant registered as MSME through its sole proprietor Sh.Vinod Kumar Sharma, the applicant bank sanctioned Cash Credit facility of Rs.10.00 lacs (Rupees Ten Lacs only) on 01.03.2021 which was enhanced to Rs.15.00 lacs (Rupees Fifteen lacs only) on 04.02.2022 and further to Rs.20.00 lacs (Rupees Twenty lacs' only) on 24.01.2023 and renewed on 24.01.2024 @11.50% rate of interest per annum subject to change as per RBI guidelines against hypothecation of stocks and book debts. The defendant agreed to pay @2% penal interest in case of default in repayment of interest or instalment.

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That in order to avail the credit facility, the defendant submitted loan application and executed Letter of Proprietorship, Pronotes NF-480, Request for Overdraft Facilities, Letter of Undertaking Re: Loans/Advances NF-721, Cash Credit Agreement, Letters of Renewal NF-493, Link Letters in respect of Enhancement of Credit Facilities NF-719, Supplemental Agreements NF-718, Letters of Undertaking/Consent in favour of applicant bank on 01.03.2021 and on various dates thereafter.

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That in order to secure the credit facilities, the defendant hypothecated the stocks and book debts in favour of applicant bank.

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The defendant executed Acknowledgement of Debt and Security NF-760 on 24.01.2024 acknowledging the debt of Rs.19,99,212.43 towards the applicant bank. 5d-

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O.A. No.578 of 2024

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It has been submitted by the applicant bank that after availing the credit facility, the defendant failed to comply with the terms and conditions despite several requests and reminders. The defendant failed to operate the account regularly and did not abide the terms of sanction and pay the outstanding dues in time to the applicant bank. Ultimately, the applicant bank classified the account as NPA on 23.07.2024 as per RBI guidelines and issued recall notice dated 24.08.2024 for payment of outstanding but neglected by the defendant 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 defendant and despite of proper service the defendant has chosen to absent from the proceedings. As per order dated 16.02.2026, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets has been filed on behalf of the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Vineet Grover, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Cash Credit Agreement, Link Letter in respect of Enhancement of Credit Facilities, Letter of Undertaking, Supplemental Agreement, Letter of Renewal, Acknowledgement of Debt NF-760, Loan Applications, Pronotes, Letters of Renewal NF-493, Recall Notice along with Postal Receipts, Certified Statement of account under Bankers' Books Evidence Act,

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the

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O.A. No.578 of 2024

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applicant bank is based on the documents and the same have been duly approved.

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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 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 defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.20,58,705/- (Rupees Twenty lacs Fifty Eight Thousand Seven Hundred Five only) as on 23.08.2024 together with pendentelite and future interest @13.50% per annum with monthly rest from 24.08.2024 till the date of realization with costs, failing which the aforesaid amount shall be recovered from sale of hypothecated stocks and book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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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 27.10.2026.

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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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(GOVIND BALLA13115:7CarPRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 24.08.2026

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Canara Bank v. Vinod Kumar Sharma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vinod Kumar Sharma

Case brief

What is this about?

What did the court decide?

What the court decided

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