Allowed

Bank of India v. Laxmi Narayan Gupta

DRT17 Sept 2024OA/214/2022

Case brief

AI extract

What is this about?

Bank of India applied under S. 19 RDB Act to recover a loan of Rs. 24.74 lakhs from a defaulting borrower. The defendant did not appear. The tribunal verified documents, accepted the bank's affidavit under Rule 12(10), found merit, and determined the debt with interest, issuing a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs. 24,74,858.05 plus interest at 10.60% p.a. from 10.03.2022 till realization; assets attached.

Bank of India versus Laxmi Narayan Gupta — Service and Employment | DRT (2024)

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OA 214 of 2022 IJl

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DRT. PATN A

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

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 214 of 2022

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Bank of India. Patna C & P Branch. Raghubir Prabha Palace. Boring Road. Patna.

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. . . . . . .Applicant

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Laxmi Narayan Gupta S/o Jaggitan Prasad. Village Dharhara P.O. –Turigani Nenua, Buxar 802111 PAN no. AXFPG2909J.

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. . . . . . . Defendant

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Present:

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For the Applicant :Shri Abhishek Singh. Advocate For the Defendant : None

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Dated: 17.09.2024

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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 Banluuptcy Act. 1993 (here-in-after referTed to as Act) on 10.3.2022 against the defendant to recover its debts from defendant of Rs.24.74.858.05 as on 17.7.2021 along with pendente-lite and future interest a7 10.60% p.a. with monthly rests from 18.7.202 1 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 Undertakings) Act 1970 having its Head office at Star House, C-5. G-Block. Bandra-Kurla Complex. Bandra (East). Mumbai400051 and Branch Office at Patna C & P Branch. Raghubir Prabha Palace. Boring Road. Patna

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The defendant approached the bank for grant of loan of Rs. 24.50 lakh on 15.12.2017. which was sanctioned of Rs.24 lakh by the bank on 26.12.2017. defendant executed the various loan documents.

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After availing the sanctioned credit facilities defendant became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank an(+avoiding the repayment of its dues to the bank,

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in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 3 1.1.2020

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Since. the defendant 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.24.74.858.05 with pendentelite and future interest @10.60% p.a. with monthly rests from 18.7.202 ltill the realization

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This Tribunal issued summon/notice copy of application & paper book to the defendant by registered/speed post on 5.5.2022. requiring them to showcause 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 13.12.2022 in "Prabhat Khabar-' newspaper.

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Despite the registered summon/notice 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 his 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 17.2.2023 .

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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 Vinay Shankar Prasad. Chief Manager of the applicant bank. The details of documents are as follows:

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SI.N'	I Description of	fDate of	Amount	Signature of	1Ex./
	Documents	Execution		Executants	Ann
	Photocopies				No
l	Loan application	15.12.2017	Rs.24.50 lakh	Defendant	a
3	Sanction letter	26.12.2017	Rs.24 lakh	Bank

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OA 214 of 2022 IJl

4	DPnote	sa			4
5	c loanagreement		Rs.24 lakh	Defendant	5
6	c debts and securltles			Defendant	6
7	le			Defendant	7
8	RC ofhypothecated vehicle				8
9	e			Bank	9
10					10
11	a	s 17.7.2021	a		11

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8 Heard arguments 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 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 defendant is living and carrying on his 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 3 1.1 .2020. whereas

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OA 214 of 2022 1.Jl

the present application has been filed on 10.3.2022. 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 Vinay Shankar Prasad, 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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14 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 aftldavit 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.–Subject to thc pro-isions qf this Act, a certifIed copY qf cm\’ entrY in ct hanker's hook shall in all legal proceedings be received as prima facie evidence of the existence of such enDv. curd shall be adnlitted cls evidence of The matters, transactions and accounts therein recorded in ever\’ case u'here. and to the same exlenl as. the original entry itself is no\t bv lot cldnrissihle. but not further or othen'ise.

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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 defendant has applied for loan and the

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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 proved by aforesaid evidence. Defendant has 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 17.7.2021 has been proved to be Rs.24.74.858.05 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 defendant of Rs.24.74.858.05 along with pendente-lite and future interest @, 10.60% p.a. with compounded monthly rests from 10.3.2022 (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 and debt is determined with costs against the defendant. The defendant is hereby. ordered to pay the applicant bank its debt amounting to Rs.24.74.858.05 along with pendente-lite and future interest @ 10.60% p.a. with compounded monthly rests from 10.3.2022 (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

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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 defendant. by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendant.

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Parties are directed to appear before the Recovery C)fReer. DRT. Patna on 04.11.2024. The order be communicated accordingly.

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Judgment signed, sealed. dated and pronounced in the open court on 17th day of September. 2024.

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Dictated &corrected by me

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b/// {+~ [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) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, PaUla800025

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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.

RC No. 182/2024

Case No: OA/214/2022

In the Matter of

(CH- 1) BANK OF INDIA PATNA C AND P BRANCH RAGHUBIR PRABHA PALACE BORrNG ROAD PATN A ,BIHAR -0

Applicant(s)

--–-- Versus -------

(CD- 1) LAXMI NARAYAN GUPTA S/o Jaggitan Prasad Defendant(s) Village- Dharhara P.O.-Turiganj Nenua. Buxar 802 ll 1 Pan no- AXFPG29C)9J Buxar,BIH AR -802 1 ] 1

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Recovery Certincatc for Rs 2474858.05 1 Rupees Twenty Four Lakhs Seventy Four Thousands Eight Hundred Fifty Eight And P:rise Five OnI}LI

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In terms of final order dated 17/09/2024 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, 2474858.05 along with cost. expenses and interest from the 10/03/2022 i.e. date of HUng / with effective date of the OA/214/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certitlcate Debtors. hereinafter referred to as:-

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Sr.no	ICDName	^Loan Type	Int ype/Mode	Int IRate	Effective Date	Order Date	,mount(Rs.)	Liability Type	ntcrest ason lrder at	RC blAmount(Rs.)	Remar
I	LAXMI INARAYAN IGUPTA		Compound Interest I(Monthly)	lo.60 f	10/03/2022	l17/09/20	24l2474858.05	IFuUy	on Order IDate	2474858.05

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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 anal order under the recovely proceeding in pursuance of the Recovery certificate issued under Section 1 9(22) of Recovery of Debts and Bankruptcy Act 1 993. Parties are directed to appear before M ANOJ KUMAR , Recovery Ofllcer, DEBTS RECOVERY TRIBUNAL PATNA 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 Recovel)' 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^18/09/2024

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DIis £:CqYs£ rYa{t\bund _ P4tna

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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