Allowed

Hdfc Bank v. M/s Guru Kripa Saree and Suit Collection

DRT18 Sept 2024OA/214/2023

Case brief

AI extract

What is this about?

HDFC Bank applied under Section 19 of the RDB Act for recovery of Rs. 54.94 lakh against partners of M/s Guru Kripa Saree. Defendants failed to appear. Tribunal accepted bank's affidavit evidence regarding loan sanction, utilization, and statement of account.

What did the court decide?

Ordered defendants to pay Rs. 54.94 lakh with interest and costs; issued Recovery Certificate under Section 19(22) for realization from secured and personal assets.

Hdfc Bank versus M/s Guru Kripa Saree and Suit Collection — Money Laundering | DRT (2024)

¶1

DRT. PATN A

¶2

OA 214 of 2023 IJl

¶3

Debts Recovery Tribunal, Patna

¶4

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶5

Presiding Officer : Shri KaushalendraYadav

¶6

OA Case No. 214 of 2023

¶7

HDFC Bank Ltd.. 2"d Floor Rajendra Ram Plaza Exhibition Road. Patna- 1

¶8

.Applicant

¶9

¶10

M/s Guru Kripa Saree & Suit Collection a partnership concern through its partner. Mr. Randhir Kumar. having its unit /shop at NA from of Union Bank. Thantheri. District-Buxur Pin-802 101.

¶11

Mr. Randhir Kumar S/o Vijay Kumar Sarraf’. R/o at Town and VillageNai Bazar. Buxur. Old Aluminium District-Buxur-802 10 1.

¶12

Jyoti Devi D/o Omprakash Tibre\val and W/o Randhir Kumar. R/o C/o Vijay Kumar Sarraf, Nai Bazar. Buxur. Old Aluminium District-Buxur802101 .

¶13

Shaili Devi D/o Gopal Kedia and W/o Mukesh Kumar R/o Vijay Kumar Sarraf. Nai Bazar. Buxur. Old Aluminium District-Buxur-802 101. Smita Devi D/o Anna Ram Agra\val and W/o Anand Kumar R/o Vijay Kumar Sarraf. Nai Bazar. Buxur. Old Aluminium District-Buxur-802101

¶14

Pushpa Devi D/o Hai Ballabh Banka and W/o Vijay Kumar R/o Vijay Kumar Sarraf. Nai Bazar. Buxur. Old Aluminium District-Buxur-802 101

¶15

Mukesh Kumar S/o Vijay Kumar Sarraf. R/o Vijay Kumar Sarraf. Nai Bazar. Buxur. Old Aluminium District-Buxur-802 101 .

¶16

Anand Kumar S/o Vijay Kumar Sarraf. R/o Vijay Kumar Sarraf. Nai Bazdr. Bu><ur. Old Aluminium District-Buxur-802101

¶17

. . . . . . . Defendants

¶18

Present:

¶19

For the Applicant Shri Bhola Shankar. Advocate For the Defendants None

¶20

Dated: 18.09.2024

¶21

JUDGMENT

¶22

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 25.4.2023 against the defendants to recover its debts from defendants of Rs.54.94.479.18 as on 4.2.2023 along with pendente-lite and future interest rif. 9.25% p.a. with monthly rests from 5.2.2023with costs till realization.

v,in

DRT. PATN A

OA 214 of 2023 IJI

The application has been filed with the contention that the applicant bank. is a body corporate, under the companies Act 1956 carrying on banking business under License Granted by RBI and registered under banking regulation Act 1949 having its registered office at HDFC Bank House. Senapati Bapat Marg, Lower Parel ( West). Mumbai-400013 and one of its Branch Oface at 2"d Floor Rajendra Ram Plaza Exhibition Road. Patna- 1

¶28

Defendant no. 1 is a partnership concern, defendant no. 2 to 8 are the partners of defendant no. 1. Defendants approached the bank for grant of cash credit loan of Rs. 70.50 lakh on 10.6.2019. which was sanctioned by the bank on 15.9.2019. Defendants further approached the bank for grant of GEC'L loan of Rs. 12.63 lakh, which was sanctioned by the bank on 10.6.2020. Defendants further approached the bank for grant of GECL loan of Rs. 6.32.684/-. which was sanctioned by the bank on 14.2.2022. Defendants executed the various loan documents. Defendant no. 2 & 3 are created equitable mortgage over the property details give at page 29 & 30 in schedule A & B of OA.

¶29

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 dvoiding 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 28.8.2022

¶30

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.

¶31

The total liability in the loan account is Rs.54.94.479.18- with pendentelite and future interest @9.25% p.a. with monthly rests from 5.2.2023 till the realization

¶32

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 29.5.2023, 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.

OA 214 of 2023 IJl

DRT, PATNA

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 19.10.2023 in "Dainik Jagaran-' newspaper,

¶37

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 29.1.2024

¶38

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 Swapan Patra, Legal Manager of the applicant bank. The details of documents are as follows:

¶39

SI'N	'Description Documents of Photocopies	IDate of Execution	Amount	Sjgnature of Executants	1Ex./ IAnn No
	Loan application			Defendants	II
l	Partnershipdeed				l
l -)	Sanctml	15.6.2019	1Rs.70.50lakh	Bank	-)j
4	Moltgage document				4
5	Overdraftagreemira	-–II(m	Rs.70.50lakh	n-i
6	in	i	ts	defendants	%
7	nae		s		R
8	e undertaking			Defendants	8
9	s		s		9
10	Supplemental facility CUITI hypothecation agreement	14 2 2022	s		10
	) undertaking	14.2.2022	s		11
12	Undertaking	14.2.2022	s	M	jl
13	Supplemental decldration			Defendants	13
14	Recall notice	6.2.2023		Bank	14

V(O\

DRT. PATN A

OA 214 of 2023 1.Jl

Statementof account	IAson	Rs.54.94,479.18Bank
	4.2.2023

¶45

8 Heard arguments and perused the case record.

¶46

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,

¶47

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.

¶48

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 1,ICS. 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 .

¶49

On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.8.2022. whereas the present application has been filed on 25.4.2023. 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 limitation.

¶50

Shri Swapan Patra. Legal Manager of the applicant bank. has Bled 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 ds stated above. _ ,' \iT

¶51

DRT. PATN A

¶52

OA 214 of 2023 1.II

¶53

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.

¶54

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.

¶55

The rule 12 ( I1 ) 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.

¶56

Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of- proof of entries in bankers’ books.–Sub.jecl lo I IIe lu'tnisicnls CIf' this Acl. a certifIed cc)py o.f cmy entry in a bunker 's hot)k shall in all legal proceedings he received CIS prinrct facie evidence Qf file existence of such entrY. and shall be ctdnlitf ed as evidence of fIle nIC IIters, Irclnsuctiotrs and accounTS therein recorded in ever' case \there. and to the sclnle extent CIS. the original emIr: itself is no\t by law Lldlllissible. but not fllrIIler or c}t+ler\vise.

¶57

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.

¶58

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.

¶59

16 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 4.2.2023

OA 214 of 2023 1.Jl

DRT. I'ATN A

has been proved to be Rs.54.94.479.18 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 anal realization of the claim .

¶65

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.54.94.479.18 along with pendente-lite and future interest at 9.25% p.a. with compounded monthly rests from 25.4.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

¶66

ORDER

¶67

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.54.94.479.18 along with pendente-lite and future interest k+, 9.25% p.a. with compounded monthly rests from 25.4.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶68

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

¶69

Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecdted or dn)' other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgage(I 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 alrd the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets.

¶70

Let a certificate of recovery be drawn up forthwith ,Ind 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

OA 214 of 2023 IJl

DRT, PATN A

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 mortgage(i/ hypothecated assets as well as other personal movable/immovable assets of the defendants.

¶75

Parties are directed to appear before the Recovery Officer, DRT. Patna on 04.11.2024. The order be communicated accordingly.

¶76

Judgment signed. sealed. dated and pronounced in the open court on

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18LI' day of September. 2024.

¶78

Dictated &corrected by me

¶79

r J

¶80

[KaushalendraYadav 'Presiding Officer Debts Recovery Tribunal. Patna

¶81

FOR>1 NOt 9

¶82

[See RegulatIon 24( 1 )1

¶83

b1.iII I'S I{[('o' ER\ 'l'l tII It'S;\I. I'ItI-'\

¶84

ItIll Flot ir. ( A. B & F WIng) Kurpuri Thllkur SaIl;III. Kclrtlrly iI K;lrulnull.Irl Pill lsilr (CII’C J A ). Ahhlu lra Digha RoiIII. Patllil-8000:5

¶85

RECOVER\’ C'ERTI FIC,-\TE L:NPI;R SEC'FION 19(2) READ \’ITII Se(;TIL)IN 19(a) OF TIIE ItE(V'O'ER' OF DI;BTS & BANKRUPTCY ACT1 1993, AS AMENDED FRO$1 TIh1 E TO I INI r

¶86

RC No. 206/2024 IN Case Nt): OA/214/2023

¶87

In the Matter ol IC Hw 1 ) H DFC BANK 2 ND FL( X )R RAJENDItA RAM PLAZA EXHIBITI( )N R( )AD, PAI'N A ,BIll AR -80000 1

Applicant(s

\’crsus

(CI)- 1 ) M/S GL JltL' KRllIA SAICEL AND SUIT C’oLLE('TIt )N ,I Pallncnhlp cunccrn thrtlugII lts Panncr Mr. Randlrlr Kullrar haVlIIE lts ullll/bhup dt- NA tI'nnt ut jlllloll Ballk Th;lnthcrl Bu:Ir.BIHAR -802 1 O I

¶92

(CD- 2) MR. It ANDHIR KUMAR ( PARTNLR/L’OAPPLICAN-F//(iLd1 AR AN 11 JR ) SC IN 1 JF VII A- KI TNt AR SAR RAF. R FSlf)IN(-I AT TU\V N/'I LL AGE GRAM , NAI BAZA R . BLIX AR ULD A LLINlINILTNt

¶93

I)ISTR ICT- BI IIAR. PIN (_'t)DE- R02 1 01 . BIll AR

¶94

(CD- 3) J( )TI DLVI { PAl{TNEI{/C( ).

¶95

APPLIC'ANT/( ; UA RAN T( )R/Nl(JRTC iAC;C )R)

¶96

DAUtiIITFR CJF C)N'IPRAKASII TIBRE\-AL AND WIFE ( iF R ANDllIR KUMAR RESIDING xr TOWN/VILLAGE/GRAM-('/C) VIJAY KUMAR SARRAF. NAI BAZ AR BLIX AR. OLD ALUMINll_IM DISTRICT - BUX AR PIN CODE- Ht): 1 o I, BIHAR

¶97

(CD- +I SHAl1_ 1 DE'I I l’AltTNER C','I >. AlljJl_lf-'A NT/'( iLl A RAN A ll JR / Mt )R1 ( iA(-i( )1< ) DAUGIITFR QF GQPAL hiFI)IA AND \V IFF QF NIUKFSI I KLrNI AR RESIDING AT TU\VN/'ILL AGE/GRAM- C/L) VIJAY KUMAR SARRAF NAI BAZAR, BUXAR. OLD ALUMINIUM DISTRICT-BUX AR PIN CODE802 1 (II . BIHAR

¶98

Defendant(s )

¶99

ICD- 5) SNll'rA DF\’1 ( 1'ARI'NFR/('( ). APPLI('ANT/GLJARANTOR/MORTGAGC)R) DALJGI ITER OF ATM A RAM AGRAWAL AND WIFE OF AN AND KLINI AR RESIDING NF TCI\yN'"ll_ L AGE.'(IR AM- C/o VIJAY KUMAR S ARR AF NAI BAZAR. BLJXAIt. Ol D A[.tJNlINIUNI, DISTRI('T- BUX AR. PIN ('ODL- 8ti2 ItII B 1 HA R

¶100

(CD- 6) PLrSlll)A DFVI ( PARTNER/CC). APPl+l('AN T/GLIARANTOR/MORTG AGor{) DAUGHTER QF HAI BALLABH BANKA AND WIFE UP VIJAY KUMAR RESIDING AT TOWN/'ILLAGE,'GRAM- C/O VIJAY KUMAR SARRAF. NAI BAZAR BUX.\R, OLD ALUNIINIM. DISTRICT- BUXAR. PIN CODE St>2 1 o I. BIHAlt

¶101

(CD- 7) MUKESII KUMAR (PARl-NER/CO-APPLIC'ANI'/CiLJARANT( )R ) SON OF VIJAY KUMAR SAR RAFt RESIDING AT TCi\’N/VILl_ACil: CiR.ANI, VIJA' KLINI AIt SAItRAF NAI BA7.Al(. BUXAI<

¶102

OLD Al.tINlINILINI DISTli it 'T- IiI IX,\R. PIN CODL- Ht)2 it) I. BIt-I.\R

¶103

(CI)- 8) ANAND KL INI AR ( PARTNER/CO- APPLICANT/GLIARANTOR ) SON OF VIJA\’ KLiNIAR SAR RAF, RESIDING AT TQ\’N/VILLAGEl GRANt, VIJAY KUMAR SARRAF, NAI BAZAR, BUX AR

¶104

OLD ALUNlINlIJNI DISTRICT- BUX AR. PIN CODE- XI).2 1 o 1, BIll AR

¶105

R€c9''cr> CCrting'te fQr RS 5494479l10 IJIIlpetS Fifty Four Lakh s Ni11tty FoIlrTllu11 s,nds FQur ljundretl $gvtnty Njne Arlql Puise Eigjltttn Only_I

¶106

Ill ternIS of fiIIal order tlutecl 1 8/f )9/2(D+ passed by this Tribunal in the ilbove nlelltiolled cilse. it is tII'dered thilt the Applicullt Certificate Holder Bank is entitled to recover ,1 slim of Rs. 5494479.18 alt)IIg \vltll cost. cxpcnscs and interest I'l'om tIle 25/(H/2023 i.c. date bf nlllru / witlr cffcctivc date tIf the OA/2 14/2023 and future interest from order date till the date ol' realisiltiun iII Full. joIntly or severaljy l-rotll the C'ertillcate Debtors. hcreinal'ter rel-erred to as:-

¶107

CD NiIIlle Int. '[ Ett'cctivc [ t)rtlcr Liul)ility I Intcrc',t (
Date Order Date)
rS GURU KRIPA SARLE AND SUI'l'
R/tRI ; I I IIft: ( I'A ltl'N L it, C( )-
CANT/
DE\n
,NTOR/MORTGAGO
E,II All I DFVi-I hARTNFkJ l_'o-
OR )
!RBPJIEJ;l/LP£T;!:FIUTJLc)RTGAG( JR) L/2023 1 1 S/ 1)o/ 30 14 :l5494479. IS 79, 1 g
PLJSIIPA DEVI (
'ANT/GUARANTO R/NIORTGAGOR)
NIUKl:SII Kt T\t.\1{ (
K ( IiI At('-i
CANT/

¶108

In casc of failurc to pay the aforementioned adjudicated amount within 30 days. same shall be rccovcrcd t-lum the sale of the lmortgagecVhypothecatcd asscts as well as other personal mo\’able/ Inlnrovuble assets of the certillcalc debtors

¶109

The murtgagcd or hypotlrccatcd assets to sccurc tIle loan in question are Ircnby attached and shall be subjcct to thc final order under the recovery proceeding in pursuance ol' tIle Recovery certiticate issued under Section 1 9(22) of Recovery ol' Debts ulrd Balrkl'uptcy Act 1 993 Parties arc directed to appcar before hIANOJ KUMAR , Rccovcry OfFicer. DEBTS RECo'’ERY TRIBUNALPATNA on 04/11/2024.

¶110

The Recovery C)lllcer shall realize the unlollnt as per this CellillcaLe in the manner and mode prescribed under Sectit>ns 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act. 1993 (as amended from time to time) fronr the above named Certificate Debtors,

¶111

Fhis C-crtificatc hits bccn is!;ucd undcr my signature and seal of the Tribtlnal on this 1 9/09/2024

¶112

G„.
9 frs fSir: }{{ ; I r 1 b u n a 1

¶113

PRESIDING OFFICER
DEBTS RECOVERY TRIBUNAL PATN A

¶114

FORM NO. 10

¶115

¶116

[See Regulation 24(2)]

¶117

DEBTS RECOVERY TRIBUNAL PATNA

¶118

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

¶119

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

¶120

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 206/2024

Case No: OA/214/2023

Applicant(s): HDFC BANK Versus

¶125

Defendant(s): M/S GURU KRIPA SAREE AND SUIT COLLECTION

¶126

Sr. No	Fltem of Costs	iAmount inRs
	'eeontheapplication	m7
2	r	[ii
3	c	Dc
4	o	10
	s	ro
	Total Costs:Rs	157000

¶127

Place: PATNA

¶128

Date: 19/09/2024

¶129

PRESIDINyOFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶130

Note: Strike out whichever is not applicable

Hdfc Bank v. M/s Guru Kripa Saree and Suit Collection

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. M/s Guru Kripa Saree and Suit Collection

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

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