Allowed

State Bank of India v. Ms Daga Enterprises

DRT13 Sept 2024OA/166/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the State Bank of India's application to recover Rs. 79,26,581.05 plus interest against borrowers who failed to repay sanctioned cash credit and loan facilities. The court affirmed the bank's evidence and issued a recovery certificate under Section 19(22).

What did the court decide?

Order confirmed recovery of Rs. 79,26,581.05 with interest at 7.80% p.a. and issued a Recovery Certificate for enforcement.

State Bank of India versus Ms Daga Enterprises — Banking and Recovery | DRT (2024)

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QA 166 of 2023 [fl

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PRT. PATNA

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Debts Recovery Tribunal, Patna

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KarpuriThakurSadan,AashianaDighaRoadPatna-800025

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Presiding offlcer : Shri Kaushalendra Yadav

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OA Case No.166 of 2023

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State Bank of India, SARB, 2nd Floor of its Patna Main Branch Building, West Gandhi Maidan-Patna-800001.

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....... Applicant

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V S.

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M/s Daga Enterprises through its proprietor Rohan Daga having its unit situated at DSA Ground, Nawrattan Hata, Pumea-854301.

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Rohan Daga S/o Anil Kumar Daga, R/o DSA Ground, Nawrattan Hata, Pumea-854301 PAN no. CCMPD9685E.

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Smt. Suman Devi W/o Sri Anil Kumar Daga, R/o DSA Ground, Nawrattan Hata, Pumea-854301.

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.... Defendants

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Present:

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Shri S.K. Singh, Advocate For the Applicant None For the Defendants

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Dated:13.09.2024

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The Applicant bank has made this application u/s l9 of the Recovery of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 23.3.2023 against the defendants to recover its debts from defendants of Rs.79.26,581.05 as on 20.2.2023 along with pendente-lite and future interest at the contractual rate fi.om 21.2.2023 with costs till realization.

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The application has been filed with the contention that the applicant bank, is a body corporate, constituted under the State Bank of India Act 1955 havingitscoxporateofficeatMadamCamaRoad,Mumbai-400021andoneof its Local Head Offices at West Gandhui Maidan, Patna-1 and one of its Branch at ADB, Pumea from where the account migrated for its recovery and resolution to SARB, 2nd Floor of its Patna Main Branch Building, West Gandhi Maidan-Patna-800001

¶19

Defendant no.1 through proprietor defendant no. 2 availed cash credit limitofRS.101akhunderPMMYlaterandagainapproachedthebankforgrant of cash credit limit of Rs.50 lakh on 30.7.2018, which was sanctioned by the bank on 3.8.2018. Defendant further approached the bank for sanction of GECL loan of Rs.10 lakh on 30.7.2020, which was sanctioned by the bank.

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I...;,,A.

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DRT` pAmA QL^ 166 Of2023 |]i

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Defendants further approached the bank for grant of FITL loan of Rs.15 lakh, which was sanctioned by the bank on 27.7.2021. Defendants executed the various loan documents and also defendant no. 2 equitable mortgage of immovable property land and building details given at page 29 in schedule-B of OA. The bank registered the mortgage properties with the central registry of securitization assets reconstruction and security interest of India.

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After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms 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 31.7.2022.

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Since, the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

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The total liability in the loan account is Rs.79,26,581.05 with pendentelite and future interest contractual rate from 20.2.2023 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 19.5.2023, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendants have 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 defendants on 14.9.2023 in "Prabhat Khabar" newspaper.

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Despite the registered summons/notices and publication of notice in newspaper, the defendants have appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to file WS, hence, opportunity for filing the written statement stands closed on 18. I .2024.

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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 Shashi Ranjan

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OA 166 of 2023 IJl

I)RT. PATNA

Choudhary, Chief 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	Signature of Executants	Ex./ Arm. No.
1	Loan application	30.7.2018	Rs.501akh	Defendantno.1& 2	1
2	Arrangement letter	3.8.2018	Rs.50 lakh	Bank	2
3	Supplemental agreement of loancurhypothecation	3.8.2018	Rs.50 lakh	Defendant no. 1 & 2	3
4	Guarantee agreement	3.8.2018	Rs.50 lakh	Defendantno.3	4
5	PDR	3.8.2018	Rs.50 lakh	Defendantno.1& 2	5
6	PDR	3.8.2018	Rs.501akh	Defendantno.3	6
7	Copy of sale deed				7
8	Letter of confirmation			Defendant no.2	8
9	Certificate of registry				9
10	Application and revival letter	30.7.2020	Rs.10 lakh	Defendant no. 1 & 2	10
11	Arrangement letter	13.8.2020	Rs,10 lakh	Bank `	11
12	Supplemental agreement of loanCurhypothecation	13.8.2020	Rs.60 lakh	Defendant no. 1 & 2	12
13	memorandum	13.8.2020		Bank	13
14	Inland letter	13.8.2020			14
15	Letter ofarrangement	27.7.2021	Rs.15 lakh	Bank	15
16	Legal notice	23 .1.2023		Bank adv.	16
17	Statement of account	Ason20.2.2023	Rs.79,26,581.05	Bank	17

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have 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 bank in its usual course of business. The interest /compound interest has been charged at such 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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OA 166 of 2023 lJl

DRT. PATNA

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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It has been established that defendants are living and carrying on their 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 the jurisdiction of this Tribunal. Therefore, this Ti.ibunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 31.7.2022, whereas the present application has been filed on 23.3.2023. 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 the present application has been filed well within the period of limitation.

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Shri shashi Ranjan choudhary, Chief 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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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 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 1 9 by the applicant.

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Section 4 of Banker's Books evidence Act,1891 runs as underS.4. Mode Of proof Of entries in bankers' books.-S?bje.ct :o.the, provisions oj tits ict, -a certified copy Of any entry in a banker's book

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OA 166 of 2023 ul

DRT. PATNA

shall in all legal proceedings be received as prima facie evidence Of lqe 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 sane exterit as, the original eritry itself is now 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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On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants have 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 defendants have executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account.

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The evidence discussed above goes to establish that the amount of loan as mentioned in the O.A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 20.2.2023 has been proved to be Rs.79,26,58.1.05 only by way of statement of account. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.79,26,581.05 along with pendente-lite and future interest @ 7.80% p.a. with compounded monthly rests from 23.3.2023 (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 and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.79,26,581.05 along with pendente-lite and future interest @ 7.80% p.a. with

Yfo\

PATNA

OA 166 of 2023 lJl

compounded monthly rests from 23.3.2023 (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 defendants, be deducted in the claim amount, if not deducted.

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Defendants are 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 certificate 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 Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 04. I I.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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13th day of September, 2024.

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Dictated &corrected by me.

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ru
i_rJ
CJL.-'- I.\o.<br>T>

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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

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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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ERTIFlcAEqxEELRT8BE&.ngg#gffi:asT#E.REcOvERyoFDEBTs&

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IN Case No: OA/166/2023

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In the Matter of:

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(cH-I) STATE BANK oF rNDiA SSARB 2ND FLOOR OF ITS PAINA MAIN BRANCH Bul.LDING WEST GANDHI MAIDAN PA:INA J3lHAR -800001

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App'lcant(s)

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To,

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(CD-I) MS DAGA ENTERPRISES through its proprietor Rchan Daga ha`/ing its unit situated at PS.A Ground, Nawrattan Hata.

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Pumin ]3IHAR ng543ol

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(CD- 2) ROHAN DAGA S/O ANIL KUMAR DAGA, RESIDENT 0F DSA GROUND, NAWRATTAN HATA, PURNEA-854301.

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Defendant(s)

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(CD- 3) SMT. SUMAN DEVI (GUARANTOR) wro SRI ANIL KUMAR DAGA, REsiDENT OF D SA GROUND NAWRAITAN HATA` PURNIA85430 I .

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cd-I. fu in 792fs8i.05 I Blpr E4TdtT de Lrm Tut fty Tl- Ftr€ Hli]dnd Etw ou And pth

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Five OnlyJ

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In terms of final order dated 13/09#024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicaut Certificate Holder Bank is entitled to recover a sum of Rs. 7926581.05 along with cost, expenses and interest from the 23ro3A023 I e. date of filing / with effective date of the OA/ 166/2023 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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Isr.not	)CDNamei Loan rtype i(	Int. I ty,)e"Od€	Int" ,^Rate!	Effective Da,e	ordel. I Date I	Amountas.)i	Liability Tyl,e	II)terest(ason OrderDate)	RC Amountois.)	Remark
I I ^{MS DAGA} ENTERPRISES	:	II ^{Compound )} Interest(Monthly ) )	7.8o	I23/03/2023i	13/09/2024	^{7926581.05 i}	JointlyAd nSeverally	Interest AsOrder ,OnDale	7926581.05
2!ROHANDAGA	)	Compound IInterest(Month,y	), 7.80	23/03/2023		13/og/2o24l	^{7926581.05 :}	Jo,ntLyAndSeverally	Interest AsonOrderDate	79265 81.05
I3!iSMT. SUMAN DEVI (GUARANTOR)	) I I	i Compound Interest (Monthly) i	7.80 ,	i23/03/2023	13/og/2o24	I792	6581.051Jointly And Severally	InterestAs	on Order Date	7926581.05

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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/ Immovable 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 of Debts and Bankruptcy Act 1993.

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Parties are directed to appear before MANOJ KUMAR , Recovery Ofricer, DEBTS RECOVERY TRIBUNAL PATNA on 04/11/2024.

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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 13/09/2024

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Dchfuto#.e.#.r,a|,.,buna` Pa'na

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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) Kaxpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO 0F COSTS

RC No. 162/2024

Case No: OA/166/2023

Applicant(s): STATE BANK 0F INDIA

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Versus

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Defendant(s): MS DAGA ENTERPRISES

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Sr. No.	Item of Costs	Amount in Rs.
I.	Fee on the application	82000
2.	Process Fees(Inc. Publication)	0
3.	Advocate Fees	0
4.	Commi ssioner/Receiver/Valuation/S ecurity Fee	0
5.	Miscellaneous charges	``.._J0
	Total Costs: Rs.	82000

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Place: PATNA

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Date: 13/09/2024

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PRESIDIN#CER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

State Bank of India v. Ms Daga Enterprises

Case brief

What is this about?

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State Bank of India v. Ms Daga Enterprises

Case brief

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