Allowed

Hdfc Bank v. Naj Kumar Hobby

DRT6 Dec 2023OA/521/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-parte application by HDFC Bank to recover a loan amount of Rs. 36.14 lakhs plus interest from the defendant who failed to appear. The court approved the claim based on documentary evidence and issued a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs. 36,14,296.34 plus interest; defendant barred from alienating secured assets; proceedings remanded to Recovery Officer.

Hdfc Bank versus Naj Kumar Hobby — Company and Corporate | DRT (2023)

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OA 521 of 2022lJl

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DRT. PATNA

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 521 of 2022

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HDFC Bank Limited, at 2nd floor, Rajendra Ran Plaza, Exhibition Road, Patna-800 001

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•...... Applicant

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V S.

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Naj Kumar Hobby Gorrower) S/o Bishwanath Kapri, at Laxmi Nagar, Sagar, Post- Laxmisagar, District- Darbhanga, Bihar, Pin code- 846004 (Near Gyan Bharti Public School)

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And also at : M/s Balajee Agency, a sole proprietorship concern, through its proprietor Naj Kumar Hobbey, at Laxmi Nagar, Sagar, Post- Laxmisagar, Dl.strict-Darbhanga,Bihar,Pincode-846004

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....... Defendant

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Present:

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For the Applicant : Shri Bhola Shankar, Advocate For the Defendant : None

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Dated: 06.12..2023

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JUDGMENT

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I- The Applicant bank has made this application u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 26.09.2022 against the defendant to recover its debts from defendant of Rs.36,14,296.34 as on 12.08.2022 along with pendente-lite and future interest at the contractual rate from 13.08.2022 with costs till realization.

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2- The application has been duly registered and numbered as above.

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3- The brief facts of the case of the applicant bank as stated in the application areas under-

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The applicant bank is a company incorporated under the Companies Act 1956 and registered under Banking Regulation Act, 1949, which is competent to file a suit.

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OA 521 of 2022lJl

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DRT. PATNA

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Defendant has approached the applicant bank for sanction of business loan facility of Rs.30 Lakh vide loan application dated 09.10.2019 and after considering the request of the defendant, the applicant bank had sanctioned business loan facility to the tune of Rs.25 Lakh vide sanction letter dated 24.10.2019 on various terms and conditions, which were accepted by the defendant. The defendant agreed to pay the loan amount with interest @ 17% p.a. with monthly rests.

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To secure the loan facility the defendant has execute relevant loan and security documents and also hypothecated the movables in favour of the applicant bank by executing the hypothecation agreement.

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Defendant again approached the applicant bank for additional fund WCRL under Guaranteed Emergency Credit Line (GECL) scheme and by way of GECL, the applicant bank sanction an amount of Rs.4,67,312/-vide sanction letter dated 16.07.2020.

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After availing the sanctioned credit facilities defendant became irregular in repayment of its dues as per agreed terms and failed to adhere to the flnancial norins of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 06.07.2021. Thereafter the applicant bank issued demand cum recall notice on 20.08.2022.

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Thus the total liability in the loan account is Rs.36,14,296.34 with Pendent-1ite and future interest contractual rate from 13.08.2022 till the realization. Since, the defendant has failed and neglected in spite of several reminders to make payment of the dues recoverable to bank, hence this application has been filed by the bank.

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4- This Tribunal issued summolwhotice copy of application & paper book to the defendant by registered/speed post on 21.09.2022, requiring him to

"voi.\`. . .

OA 521 of 2022[Jl

I)RT. PATNA

show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendant has not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendant on 16.03.2023 in "Dainik Jagran" newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendant to defend its case, but he failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 17.05.2023.

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5- To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Swapan Patra, Legal Manager of the applicant bank. The details of documents are as follows:

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Sl.No	Description of Documents Photocopies	Date of Execution	Amount (in Lakh)	Signature of Executants	Ex./ Arm, No.
1	Loan application	09.10.2019	30.00	Defendant	1
2	Loan agreement	24.10.2019	25.00	Defendant	2
3	GECL Sanction letter	16.07.2020	Rs.4,67,312/-	Bank	3
4	Loan cumhypothecationagreement			Defendant	4
5	Loan recall notice	20.08.2022		Bank' s adv.	5
6	Statement of account			Bank	6

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6- Heard arguments for leamed counsel for applicant bank and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendant has taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant

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ty"/

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DRT. PATNA 0A 52l of 2022TJl

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bbank in its usual course of business. The interest /compound interest has been charged at sueh rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by ld. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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7- It has been established that defendant is living and carrying on its business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 lacs. The applicant bank is functioning within jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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8- On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 06.07.2021, whereas the present application has been filed on 26.09.2022. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that present application has been filed well within the period of limitation.

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9- Shri Swapan Patna, Legal Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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10- Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record

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OA 521 of 2022TJl

DRT. PATNA

sworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker's Books evidence that Act,1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker's Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker's Books evidence that Act,1891 runs as under-

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S.4. Mode Of proof Of entries in bankers' I)ooks.-Subject to the provisions Of this Act, a certified copy Of any entry in a banker's book shall in all legal proceedings be received as prima facie evidence of the existence Of such entry, and shall be admitted as evidence Of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is rrow by low admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account, more so since the entries in the statement of account have not been challenged.

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11- On consideration of the arguments and on perusal of the application, documents and affidavit, it is proved that the defendant has applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendant has executed various loan documents, as stated in the application and prove by afore' said evidence. Defendant has neither denied the utilization of funds advanced by applicant bank nor has pointed out any speciflc error and discrepancy in the Statement of Accounts.

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12- The applicant bank has sought for recovery ofa sum of Rs.36,14,296.34 with cost and futher interest at the contractual rate from 13.08.2022 till realization.

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13- The evidence discussed above goes to establish that the claim made by the applicant bank is genuine and true. It is manifest that the defendant has not disputed the claim, therefore, the claim referred to the tribunal is recoverable t]][fuiiandfinairealizatl°n°fthec[a[dru/

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OA 521 of 2022lJl

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14- In my view, facts of the case stand proved by evidence of the applicant bank ex-parte. Accordingly, the applicant bank is entitled to recover from defendant of Rs.36,14,296.34 along with pendente-lite and future interest @10% p.a. with compounded quarterly rests from 26.09.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is, allowed ex-parte and debt is determined with costs against the defendant. The defendant is hereby, ordered to pay the applicant bank its debt amounting to Rs.36,14,296.34 along with pendente-lite and future interest @ 10% p.a. with compounded quarterly rests from 26.09.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendant, be deducted in the claim amount, if not deducted.

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Defendant is debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certiflcate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/ Sub- registrar to endorse the charge over the secured assets.

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Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Offlcer. The Recovery Officer shall realize the amount as p rtificate in the manner

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and mode prescribed under the Act from the defendant, by sale of mortgaged/ hypothecated assets as well as other personal movchle/inmovable assets of the defendant.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 12.01.2024. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on

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06th day of December, 2023.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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DEBTS RECOVERY TRIBUNAL, PATNA

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FORM NO. 9 [See Regulation 24( I )]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. a & F Wing) Karpuri Thakur Sadrn, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna800025.

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BE±Qypry cHlrlTFlcATh uNDm sEcrlow i9t.71 READ wlTH sEcrloN i9t2z) OF_T= REcovHy OF DHBTS & BANKRUPTCY ACT,j222, AS AMENDED FROM TIME T0 TIME.

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Rc NO. 76ire023 IN

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Case No: OA/52l#022

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In the Matter of: (CH-I) HDFC BANK 2ND FLOOR RAJENDRA RAM PLAZA EXHIBITION ROAD PENA |3iHAR un 1

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Applicant(s)

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~ Versus -------

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To' (CIl I) NAJ KUMAR HOBBY . S/o Bishwanath Kapn at Laxmi Nagar, Sagar, Post Laxmisagar DDarbhangapIHAR-846004

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AwhAt. AANDALSOATM/SBALAJEEAGENCYA SOLE PROPRIETORSHIP CONCERN THROUGH ITS PROPRIETOR NAJ KUMAR HOBBEY, ADDRESS- LAXMI NAGAR. SAGAR rosT- LAXMlsAGAR DlsTRlcTDARBHNGA BIHAR, PIN CODE- 846004

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Defendant(s)

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BecDTeTT Cellmrfu for 8. 3<14296.34 I RID.e. ThJrty S1| I.un Fourtm TLom]idi Two HuldTed Nhet| SixAndPaiseThirtrtyiFourOnly:I

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In terms of final order dated 06/12/2023 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 3614296.34 along with cost, expenses and interest from the 26/09/2022 i.e. date of filing / with effective date of the OA/52l/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:~

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Sr.noI	iCDi Name i	Loan tryp:i	Int. I rtype"Odel	In,.I Rate	Hffective Date	Order Date	Amount(Rs.)	^Liability type	Interestl(asonI Order IDate)i	Amount(Rs.) J	IRC' IRemark)I
Ill	NAJKUMARHOBBY	+..i	^{:?:::sO::,n,d}	^,i •oj	2;6ioDi2fn:2	06/12/2023	i3614296.34	Fully	Interest ,Ason,Order,Da	tei 3614296.34 (+++	i IIi

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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Irnlnovable assets of the certificate debtors.

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery ofDebts and Bankruptcy Act 1993. Parties are dil.ected to appear before MANor KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 12/01/2024.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 08/12/2023

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:..\1....

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. 8 & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CHRTIFICATE MEMO 0F COSTS

RC No. 761/2023

Case No: OA/521#022

Applicant(s): IIDFC BANK

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Versus

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Defendant(s): NAJ KUMAR HOBBY

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Sr. No.	Item of Costs	Amount in Rs.
1.	Fee on the application	39000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commissioner/Receiver/Valuation/Security Fee	0
5.	Miscellaneous Charges	0
	Total Costs: Rs.	39000

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Place: PAINA

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Date: 08/12/2023

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HEED PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Hdfc Bank v. Naj Kumar Hobby

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Naj Kumar Hobby

Case brief

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What did the court decide?

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