Allowed

Idbi Bank Ltd. v. Mr. Ghanshyam Singh

DRT18 Sept 2024OA/202/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by IDBI Bank under Section 19 RDB Act to recover a debt of Rs. 28.56 lakhs from loan defaulters. The court upheld the bank's evidence and issued a Recovery Certificate against the defendants.

What did the court decide?

Recovery Certificate issued directing the Recovery Officer to enforce payment of Rs. 28.56 lakhs with interest and costs from the defendants' assets.

Idbi Bank Ltd. versus Mr. Ghanshyam Singh — Banking and Recovery | DRT (2024)

DRT. PATN A

o A 202 of 2023 IJ I

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 202 of 2023

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BI Bank Ltd.. Regional office Retail Recovery. First Floor. Bhdwani .rket. Akharaghat Road. P.S.-Town TIrana, District-Muzaffarpur-842001 .

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,Applicant

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Mr. Ghanshyam Singh S/o Late Nagendra Singh R/o Village + P.O.-BaIrd Ismaiel via Baghia. P.S.-Maniyari District-Muzaffarpur, Pin-844112 PAN no. BYDPS4494L.

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Mrs. Shanti Devi W/o Late Nagendra Singh Village + P.O.-Balra IsmdieI via Baghia. P.S.-Maniydri District-Muzaffarpur. Pin-844 112

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Bikash Tiwary. Advocate For the Defendants : None

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Dated: 18.09.2024

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JUDGMENT

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1 . 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 19.4.2023 against the defendants to recover its debts from defendants of Rs.28.56.507.44 as on 3.2.2023 along with pendente-lite and future interest at the contractual rate from 4.2.2023 with costs till realization

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The application has been filed with the contention that the applicant bank. is a body corporate. incorporated and registered under the companies Act 1956 ( 1 of 1956) and a banking company within the meaning of section 5© under the Banking regulation Act 1949 carrying the business of Banking and having its registered office at IDBI Tower. WTC complex. Cuffe Parade. Mumbai-400005 and one of its Local Office situated at Saraeydgani Branch. Goel Premises. Near Bharat Jalpan Hotel,P.S.-Town Thana. DistrictMuzaffarpur and Regional office Retail Recovery. First Floor. Bhawani Market. Akharaghat Road. P.S.-Town Thana. District-Muzaffarpur-842001

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OA 202 of 2023 1.J 1

DRT, PATN A

Defendants approached the bank for grant of housing loan of Rs. 14 lakh, which was sanctioned by the bank on 6.11.2018. Defendants further approached the bank for grant of auto loan of Rs. 6 lanl. which was sanctioned by the bank on 9.11.2018. Defendants executed the various loan documents and also defendant no. 2 created equitable mortgage of her property details given at page 16 in schedule-A of OA.

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After dvailing 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 31.8.202 1

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Since. the defendants failed and neglected in spite of severdl 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 28,56.507.44 with pendentelite and future interest at the contractual rate from 3.2.2023 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 10.5.2023. 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 29.8.2023 in "Daink Jagaran'- newspaper.

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Despite the registered summons/notices and publication of notice in newspaper. the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case. but they failed to appear and to nIe WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 4.3.2024

vi)\

OA 202 of 2023 IJI

DRT, PATN A

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 Smt. Madhulika Kumari. Assistant General Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents Photocopies	Dateof Execution	Amount	Signature of Executants	Ex./ IAnn. No
1	Loan application and sanction letter	6.11.2018	Rs.14 lakh	Defendant and bank	s1
a	Loandocuments	8.11.2018		e
a -1	Copyofsale deed				l -1
4	c and sanction letter		Rs.6 lakh	Defendant no. 1andbank	14
5	c			e 1
6	Sanctionletter	5.2.2019	Rs.6lakh	Bank	6
7	Loan documents	5.2.2019 6.2.2019		defendants	7
8	Recall notice	201 2023		Bank	8
9	Statement account n	(( 32.2023	6a		9

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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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It is further submitted by Id. 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.

DRT. PATN A

OA 202 of 2023 1.Jl

It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of dction 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 Tribunal 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 3 1.8.202 1. whereas the present application has been filed on 19.4.2023. 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 limitdtion.

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Smt. Madhulika Kulnari. Assistant General 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 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof tIf entries in bankers’ books.–Subjc'cl it) the pro\isions Qf 1 Iris Acl. cl cerli.f'ied cop)’ Qf any e Irlr)’ in CI banker 's hook s}taII in all legal proceedings he received as prima .facie evidence c)f the existence of such entry. and shall be admitted as evidence of- tIte nlatfers. transclctions and accounts therein recorded in ever' case

-R

OA 202 of 2023 IJl

DRT, PATN A

\there. and to the same cIIent as, the original cultY itself- is noit by law' adntissiblc. but noI flrrlher 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 3.2.2023 has been proved to be Rs.28.56.507.44 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 clainr

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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.28,56.507.44 along with pendente-lite and future interest kA 8.75% p.a. with compounded monthly rests from 19.4.2023 (The date of fIling of this OA) till realization. So the anal 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 defenddnts. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting to Rs.28.56.507.44 along with pendente-lite and future interest at 8.75% p.a. with

6\n

DRT, PATN A

OA 202 of 2023 1.J I

compounded monthly rests from 19.4.2023 (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 nlortgdged/ 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 04.1 1 .2024. The order be communicated accordingly.

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Judgment signed. sealed, dated and pronounced in the open court on 1 8th day of September. 2024.

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Dictated &corrected by me

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\1//=%p q [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECOVER\’ TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Kdrpuri Thakur Sadan, Kendrlyd Karamchari Parisar (GPOA). Ashiana Digha Road. Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACT, 1993, AS AMENDED FROM TIME TO TIME.

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RC No. 207/2024 IN Case No: OA/202/2023

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In the Matter of (CH- 1) IDBI BANK LTD. REGIONAL OFFICE RETAIL RECOVERY, FIRST FLOOR. BHAWANI MARbUT, AKHARAGHAT ROAD. P.S.- TOWN TH ANA MUZAFFARPUR .BIHAR -842001

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Applicant(s)

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To.

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(CD- 1) MR GH ANSHYAM SINGH S/o Late Nagendra Singh R/o Village and P.O.- Balra lsmaiel VIa Baghia. P.S.111anlyarl Muzaffarpur .BIHAR -8441 12

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Defendant( s)

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(CD- 2) MRS. SHANTI DEVI W/O LATE NAGENDRA SINGH VILLAGE+ P.O.BALRA ISMAIEL VIA BAGHIA P.S.- MANI\’ARI

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DI S’FRIC’l'- Mt JZA FFA R PCI R, BIHAR - 8++ J 12

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Recovery CertifIcate for Rs 2856507.44 1 Rupees Twenty Eight Lakhs Fifty Six Thousands Five Hundred $ev€n And Paise Forty Four OnI}LI

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In terms of llnal order dated 18/09/2024 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. 2856507.44 along with cost, expenses and interest fronr thc t 9/04/2023 i.e. date of filing / with effective d,lte of the C)A/202/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to

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	Loan Type	! Int. i Type/Mode	Int IRate	Effective Date	Order Date	Amount(Rs.	Liability e	as on [er	RC Lmount(Rs.)	Rem
MR HANSHYANI NGH i		llnpound Interest i( Monthly )	75	F19/04/2023i	18/09/2024	;6507.44	Fointlv :And vcrally	:Order	:856507,44
MRS. SHANTI DEVI		:ompound Intcrest .Monthly )	75	9/04/2023::	18/09/2024	:56507.44	IJoint]y And	FAs on Irdcr	!856507.44

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In case of failure to pay the aforementioned adjudicated amount witlrin 30 days. same shall be recovered from the sale of the mollgaged/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 1 9(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before MANOJ KUMAR . Recovery Ofncel DEBTS RECOVERY TRIBUNAL PATN A on 04/ 1 1 /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 ,Ind Fillancial Institutions Act, 1993 (as amended from time to nIne) 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 19/09/2024

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AM /a Rcastr or Debts Recovery Tribunal Patna

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PRES rG 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. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 207/2024

Case No: OA/202/2023

Applicant(s): IDBI BANK LTD.

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Versus

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Defendant(s): MR. GHANSHYAM SINGH

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	Item ofCosts	r
	Feeon the application	l3 1 000
	ProcessFees(Inc. Publication)	hi
	AdvocateFees	[0
	Commissioner/Receiver/Valuation/SecurityFee	iD
5	s	Fo
		no

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Place: PATNA

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Date: 19/09/2024

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PRES&)WMFFICER DEBTS RECOVERY TRI6UNAL PATNA

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Note: Strike out whichever is not applicable

Idbi Bank Ltd. v. Mr. Ghanshyam Singh

Case brief

What is this about?

What did the court decide?

Idbi Bank Ltd. v. Mr. Ghanshyam Singh

Case brief

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What did the court decide?

What the court decided

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