Allowed

Bank of Baroda v. Ritesh Kumar Jha

DRT18 Sept 2024OA/1/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna allowed an application under Section 19 of the RDB Act filed by Bank of Baroda against two defendants for loan recovery. The court accepted documentary evidence including a statement of account and awarded recovery of the principal amount with interest.

What did the court decide?

The defendants were ordered to jointly and severally pay Rs. 30,01,182/- along with interest at 10.60% p.a., pending costs, and future interest till realization. A recovery certificate was issued.

Bank of Baroda versus Ritesh Kumar Jha — Contract and Commercial Disputes | DRT (2024)

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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. 01 of 2023

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Bank of Baroda. at Naugachia. Old NAC Road. Near Durga Asthan. Naugachia. Bhagalpur-853204.

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. . . . . . .Applicant

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Ritesh Kumar Jha S/o Yogendra Narayan Jha, R/o At Kali Asthan Rangra. Gopalpur. P.O.-Rangra Chowk. Bhagalpur-853204, PAN no. ALHPJ 1 892R.

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Neelam Devi W/o Yogendra Kumar .Tha. R/o At Kali Asthan Rangra. no.

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Gopalpur. P. O.-Rangra Chc)wk. Bhagalpur-853204. PAN BLLPD4 88 1 R.

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Defendants

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Present:

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For the Applicant Shri Manish Kishore. 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) on20.12.2022 against the defendants to recover its debts from defendants of Rs.30.01.1 82/-as on:7.12.2022 along with pendente-lite and fUture a& 10.60% p.a. with monthly rests from 8.12.2022 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 banking companies ( Acquisition and Transfer of Undertaking) Act 1970. having its Head c)fnce at Baroda Bhawan, R.C. Dutt Road. Alkapuri Vadodra-390007 and Branch Office at Naugachia. Old NAC Road. Near Durga Asthan, Naugachia. Bhagalpur853204

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Defendants approached the bank for financial assistance of Rs.24 lakh under SRTO scheme in order to purchase Mahindra Truck on 29.11.2016. which was sanctioned by the bank on 3.1.2017. Defendants executed the various loan documents. The rate of interest as agreed by the defendant in respect of term loan payable to the bank is 10.60% p.a. compounded monthly and liability being overdue additional interest of 2'Y' shall also be payable as

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OA 01 of 2023 IJI

penal interest to the bank. Defendants hypothecated the truck in favour of the bank details given at page 8 in para I of OA. The defendants deposit of Rs.5000/- on 25.2.2022 which is the last credit entry in the loan account.

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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 18.10.202 1

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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.30.01.182/- with pendentelite and future interest @ 10.60% p.a. with monthly rests from 8.12.2022 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 23.1.2023. 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 5.9.2023 in '-Dainik 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 file WS, hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 3.1.2024

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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 dlso given evidence on affidavit by way of affidavit by Shri Kanhaiya Kumar Roy. Branch Manager of the applicant bank. The details of documents are as follows: I / {\\

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SI-N'	IDescription of Documents Photocopies	IDateof Execution	IAmount (inLakh)	Signature of Executants	Ex./ IAnn No
	Loanapla	s		mI
a	e	s		a Andaccepted bydefendants
r	s			e
4	Composite hypothecation agreement	5.1.2017	s		4
5	r hypothecationof vehicle	5.1.2017	s		5
6	Declaration cum undertaking	5.1.2017		Defendants	6
7	r	5.1.2017	s		7
8	PDR	sa			8
9	Taxinvoice				9
10	letters	23.8.2018 24.9.2018 4.12.2018		bank	10
11	Legal notice	23.8.2018 23.5.2019		Bank adv.	11
12	Letter acknowledgement of of debt	24.12.2019		Defendants	12
1 3	Demand notice	12.10.2021		Bank	13
14	Demand notices	2. 1 1.202 1 3 1 . 1 .2022 20.5.2022 16.7.2022		Bank	14
15	Statementofaccount	s 7. 12.2022	a		15

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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.

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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 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 18.10.2021. whereas the present application has been filed on 20.12.2022 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 the present application has been filed well within the period of limitation.

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Shri Kanhaiya Kumar Roy. Branch 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 of entries in bankers’ books.Subjet'I to thc provisions ( if this Act. a cerli'fled copy of any entry in a banker's hoo}, shall in all legal proceedings be received as prinra .facie evidence o.f the existence Qf such entry. cmd shall be admitted as evidence of The

CH -' )L/ - \

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mailers, Iransaclions and (lccc)umts therein recorded in every case \’here. and to the same extenl cls. Itre original entrY itself is non' hv luv adnlissible. 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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15 . 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 emc)r 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 07.12.2022 has been proved to be Rs.30.01,182/- 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.30.01.182/-along with pendente-lite and future interest kb.10.60% p.a. with compounded monthly rests from 20.12.2022 (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 defendants. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting toRs.30.01.182/-along with pendente-lite and future interest @ 10.60% p.d.

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with compounded monthly rests from 20.12.2022(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 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 anal 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 fOI 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 4.11.2024. The order be communicated accordingly.

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

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Dictated &corrected by me.

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\ 8 \c\ W [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patnd

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FORM NO. 9

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DEBTS RE(:0\’ER' TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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

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

RC No. 210/2024 IN

Case No: OA/1/2023

In the Matter of:

(CH- 1) BANK OF BARODA BRANCH OFFICE AT NAUGACHIA OLD NAC ROAD NEAR DURGA ASTH AN NAUGACHIA

Applicant(s)

BHAGALPUR ,BIHAR -o

––-- Verstls ––---

(CD- 1) RITESH KUNIARJHA S/o Yogendra Narayan Jha resident of At. Kali As;than Rangra, .Gopalpur P.O.Rangra Chowk. Bhagalpur .BIHAR -853204

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Defendant( s )

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(CD- 2) NEEL AM DEVI

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W/o YO(-}FNDR A KUMAR J FIA RESIDENT OF AT KALIASTHAN RANGRA. GOPALPUR, P.O. RANGRA CHOWK. BHAGALPUR. 853204

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Recovery CertifIcate for Rs 3001182.00 [ Rupees Thirty Lakhs One Thousand One Hundred EigUy Two Only_ 1

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In terms of anal order dated 18/09/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Cel{iHcate Holder Bank is entitled to recover a sum of Rs. 3001182.00 along with cost, expenses and interest from the 20/12/2022 i.e. date of filing / with effective date of the OA/1/2023 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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r.noiCDNam
RITESH UMAR JHA	mt 10.60 terest :Monthly )	.120/12/2022	F 18/09/2024	?!3001182.oo	lintlyAnd {Severally	Interest As Order Ite	11 82.00
EELAM DEVI	Io.60.	l20/12/2022	fl8/09/2024	1182.00	ointly And IIly	Interest As Order FDate	LOO11 82.00

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In case of failure to pay the aforementioned adjudicated amuunt 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 certitlcate 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 Recovely of Debts and Bankruptcy Act 1993

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Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 04/ 11/2024.

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The Recovery C)fReer shall realize the amount as per this Cenincate 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 19/09/2024

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„ ,.g„, P8taa

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PRESltJi§+G OFFICER DEBTS RECOVERY TRiBUNAL PATNA

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FORM NO. 10

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DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24(2)]

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar

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(GPOA). Ashiana Digha Road. Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE

IVIFIMO OF COSTS

RC No. 210/2024

Case No: OA/1/2023

Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): RITESH KUMAR JH A

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Sr.No	FItemofCosts	! Amount in Rs
	t	m
2	r	[0
3	.dvocateFees	Dc
4	o	hi
5	:iscellaneous Charges	[ii
	Total Costs:Rs	m3

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Place: PATIVA

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Date: 19/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of Baroda v. Ritesh Kumar Jha

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Ritesh Kumar Jha

Case brief

What is this about?

What did the court decide?

What the court decided

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