Allowed

Uco Bank v. M/s Jai Mata Di Jewellers and Others

DRT20 Jul 2024OA/5/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed UCO Bank's ex-parte application under Section 19 RDBA, 1993 to recover Rs. 30,29,644 along with interest. The court relied on uncontroverted documentary evidence and the appellant's affidavit, ruling that the defendants failed to appear or deny liability.

What did the court decide?

Recovery certificate issued for Rs. 30,29,644 plus interest @ 11.40% p.a. from filing date till realization; mortgaged assets attached.

Uco Bank versus M/s Jai Mata Di Jewellers and Others — Banking and Recovery | DRT (2024)

¶1

OA 050(2023 [JJ

¶2

DRT,PATNA

¶3

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

¶4

Presiding Officer : Shri Kaushalendra Yadav

¶5

OA Case No. 05 of 2023

¶6

UCO Bank, branch at Birpur Branch, Begusarai.

¶7

....... Applicant

¶8

Vs.

¶9

Mis Jai Mata Di Jewellers through its proprietor Sarita Kumari, Wlo Santosh Sah, At- Ward no- 6, Birpur Bazar, PO+PS- Birpur, Distt.Begusarai, Pin- 851127.

¶10

Sarita Kumari, proprietor of Mis Jai Mata Di Jewellers, Wlo Santosh Sah, At- Ward no- 6, Birpur Bazar, PO+PS- Birpur, Distt.- Begusarai, Pin- 851127.

¶11

Sri Santosh Sah, S/o Sri Maheshwar Sah, Resident at- Ward no- 6, Birpur Bazar, PO+PS- Birpur, Distt.- Begusarai, Pin- 851127.

¶12

Mrs. Lalita Devi, W/o Sri Maheshwar Sah, Resident at- Ward no- 6, Birpur Bazar, PO+PS- Birpur, Distt.- Begusarai, Pin- 851127 .

¶13

....... Defendants

¶14

Present:

¶15

For the Applicant : Shri Manoj Kumar, Advocate For the Defendants : None

¶16

Dated: 20.07.2024

¶17

JUDGMENT

¶18

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 23.12.2022 against the defendants to recover its debts from defendants of Rs.30,29,644/- as on 30.11.2022 along with pendente-lite and future interest at the contractual rate from 01.12.2022 with costs till realization.

¶19

The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

DRT,PATNA

OA 050(2023 [J]

Defendant no.2 is the proprietorship firm and defendant no.2 is the proprietor of the defendant no.l. Defendants no. 3 and 4 are the guarantors of the loan facilities availed by defendant no.2. At the request of the defendants the financial assistance mentioned below, was provided to defendant no.I and 2.

¶24

S1. No.	Nature of loan	Amount (In Lakh)	ROI	Security, if any, by def.	Sanction date
01.	Cash credit	25.00	11.40 %	Mortgage and hypothecation	21.06.2017
02.	FIOTL	Rs.l,67,8 57/-	--	--	06.09.2020

¶25

To secure the loan facilities the defendants executed various loan and security documents including the guarantee agreement and also created mortgage and hypothecated the movables in favour of the applicant bank. Details whereof have been given in Schedule-B of the Original Application. Defendants have also executed letter of acknowledgement of debt/securities on 31.05.2020.

¶26

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 30.06.2021. Thereafter the applicant bank sent legal notice on 06.06.2022 to the defendants but the notice was completely without any effect.

¶27

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.

¶28

The total liability in the loan account is Rs.30,29,644/- with pendentelite and future interest contractual rate from 01.12.2022 till the realization.

¶29

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 01.02.2023, requiring them to show-cause within 30 days of the service V/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. But the defendants have not appeared, hence,

DRT,PATNA

OA OS0(2023 [J)

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 18.07.2023 in "Hindustan" newspaper.

¶34

Despite the registered summons/notices and publication of notice in the 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 07.11.2023.

¶35

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 Manish Kumar, Branch Manager of the applicant bank. The details of documents are as follows:

¶36

SI.N 0	Description of Documents Photocopies	Date of Execution	Amount (in Lakh)	Signature of Executants	Ex.! Ann. No.
1	Loan Application	02.06.2017	25.00	Defno.2	1
2	Sanction Letter	21.06.2017	25.00	Bank	2
3	Hypothecation agreement	21.06.2017	25.00	Defno.2	3
4	Demand Note	21.06.2017	25.00	Bank	4
5	Demand Note	21.06.2017	25.00	Bank	5
6	D.P. note	21.06.2017	25.00	Defno.2	6
7	PDR Agreement executed	21.06.2017	--	Defno.2	7
8	Guarantee agreement	21.06.2017	25.00	Defno.3 &4	8
9	Photocopy of Sale deed	07.09.2015	--	--	9
10	Acknowledgement of Debt/Securities	31.05.2020	Rs.25,14,172.55/-	Defno.2	10
11	Legal Notice	06.06.2022	Rs.27.11.238/-	Bank's advocate	11
12	Statement of account	As on 30.11.2022	Rs.30,29,644/-	Bank	12

¶37

Heard arguments and perused the case record.

¶38

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

V:;\7

DRT,PATNA

OA 05of2023 [J]

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.

¶44

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.

¶45

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.

¶46

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.06.2021, whereas the present application has been filed on 23.12.2022. 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.

¶47

Shri Manish Kumar, 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.

¶48

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

¶49

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.

¶50

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 19by the applicant.

¶51

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

OA 05 0(2023 [J)

DRT,PATNA

SA. Mode of proof of entries in bankers' books.-Subject to theprovisions of this Act, a certified copy of any entry in a banker's book shall in all legalproceedings 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 now by law admissible, but notfurther or otherwise.

¶56

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.

¶57

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.

¶58

The evidence discussed above goes to establish that the amount of loans as mentioned in the O.A., were availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till the date of NPA, has been proved by way of statement of accounts and the interest from the date of NPA till filing of O.A. has been proved by the statement/affidavit affirming the charged interest and expenses. The claim is supported by the statement of accounts as well as the affidavit with annexures. There is nothing to disbelieve the aforesaid uncontroverted evidence. It is manifest that the defendants have not disputed the claim, therefore, the claim referred to the tribunal is recoverable till full and final realization of the claim.

¶59

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.30,29,644/- along with pendente-lite and future interest @ 11.40%, p.a. with compounded monthly rests from 23.12.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends ofjustice.

ORDER

· .

OA 05 of 2023 (J)

DRT,PATNA

In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are herebyjointly and severally, ordered to pay the applicant bank its debt amounting to Rs.30,29,644/- along with pendente-lite and future interest @ 11.400/0p.a. with compounded monthly rests from 23.12.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶66

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

¶67

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.

¶68

Let a certificate of recovery be drawn up forthwith. The Recovery Officer will start the recovery proceedings, if an application on behalf of the Certificate Holder is filed within one month along with the details of amount due upto date to be recovered from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

¶69

Parties are directed to appear before the Recovery Officer, DRT, Patna on 30.08.2024. The order be communicated accordingly.

¶70

Judgment signed, sealed, dated and pronounced in the open court on 20th day of July, 2024.

¶71

Dictated &corrected by me.

¶72

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

¶73

FORM NO. 9 [See Regulation 24(1»)

¶74

DEBTSRECOVERYTRIBUNALPATNA

¶75

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

¶76

RECOVERY CERTIFICATE UNDER SECTION 1911) BEAD WITH SECTION 191m OF THE RECOVERY OF DEBTS & BANKRUPTCY

¶77

AC.'..lm. ASAMENDEDFROM TIME m TIME.

RC No. 86/2024 IN

Case No: OAfS/2023

In the Matter of:

(CH- I) UCO BANK BIRPUR BRANCH

Applicant(s)

BEGUSARAI ,BIHAR -0

Versus --

To,

(CD- 1) MIS JAI MATA DI JEWELLERS AND OTHERS. through its Proprietor Sarita Kumari Wife of Santosh Sah At- Ward no- 6, Birpur Bazar, ,PO PS- Birpur Begusarai ,BIHAR -851127

¶87

(CD-2) SARITAKUMARI PROPRIETOR OF MIS JAI MATA DI JEWELLERS WIFE OF SANTOSH SAH, AT- WARD NO.6, BIRPUR BAZAR, PO+PS- BIRPUR DISIT.- BEGUSARAI, PIN- 851127

¶88

Defendant(s)

¶89

(CD- 3) SRI SANTOSH SAH

¶90

SON OF SRI MAHESHWAR SAH, RESIDENT AT- WARD NO- 6, BIRPUR BAZAR, PO+PS- BIRPUR DISIT.BEGUSARAI, PIN- 851127

¶91

(CD-4) MRS. LALITADEVI WIFE OF SRI MAHESHWAR SAH, RESIDENT ATWARD NO- 6, BIRPUR BAZAR, PO+PS- BIRPUR DISIT.BEGUSARAI, PIN- 851127

¶92

BwIm:Y. Certificate (or R. 3029644.00 [ Rupees Thirty Lakhs Twenty Nine Thousagd. Six Hupdred fortY. FOur Only_)

¶93

In terms of final order dated 20/07/2024 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum ofRs. 3029644.00 along with cost, expenses and interest from the 23/1212022 i.e. date of filing 1 with effective date of the OAlSI2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶94

				Interest (as on Order Date)	RC Amonnt(Rs.) .
				Interest As on Order Date	3029644.00
2	SARITA KUMARI	Compound Interest (Monthly)	ointiyAnd Severally	Interest As on Order Date	3029644.00
3	SRI SANTOSH SAH	Compound Interest '(Monthly)	ointly And Severally	Interest As on Order Date	3029644.00
	RS. LALITA DEVI	Compound Interest (Monthly)	Jointly And Severally	Interest As on Order Date	3029644.00

¶95

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

¶96

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.

¶97

Parties are directed to appear before ASHISH KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 30/08/2024.

¶98

The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 2S 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.

¶99

This Certificate has been issued under my signature and seal of the Tribunal on this 20/07/2024 v

¶100

PRESIDING OFFICER DEBTSRECOVERYTRIBUNALPATNA

¶101

FORM NO. 10

¶102

[See Regulation 24(2)]

¶103

DEBTS RECOVERY TRIBUNAL PATNA

¶104

2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-80002S.

¶105

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 86/2024

Case No: OAl5/2023

Applicant(s): UCO BANK Versus

¶110

Defendant(s): MIS JAI MATA DI JEWELLERS AND OTHERS

¶111

Item of Costs	ount in Rs.
	33000
	o
cate Fees	0
erlReceiverNaluationiSecurity Fee	0
	o
Total Costs: Rs.	33000 v/

¶112

Place: PATNA

¶113

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶114

Date: 20107/2024

¶115

Note: Strike out whichever is not applicable

Uco Bank v. M/s Jai Mata Di Jewellers and Others

Case brief

What is this about?

What did the court decide?

Uco Bank v. M/s Jai Mata Di Jewellers and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank versus Vikas

Hdfc Bank versus Ab Enterprise and Ors.

Jagdishbhai Babubhai Kalathiya and Ors. versus Religare Housing Development Finance Corporation Limited

Canara Bank versus Sh. Bakha Singh @ Bukha Singh

Canara Bank versus Sri Sanjay Kumar Singh

Bank of Baroda versus M/s Gopal Trading Corporation and Others