The Debt Recovery Tribunal allowed an application filed under Section 19 of the RBI Act against two defendants who defaulted on agricultural and KCC loans. The defendants did not appear. The recovery was confirmed ex-parte.
Defendants jointly and severally ordered to pay Rs. 52,26,018.50 along with interest @ 10% per annum compounded half-yearly and costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
•
OA 2240(2023 [J]
DRT,PATNA
Debts RecoveryTribunal, Patna
Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025
Presiding Officer : Shri Kaushalendra Yadav
OA Case No. 224 of 2023
Canara Bank, branch at Jamuaon, P.S.- Agiyaon, District- Bhojpur, Bihar, PIN- 802159.
. Applicant
Vs.
. Defendants
Present:
For the Applicant : Shri Radhe Shyam Kumar, Advocate For the Defendants :None
Dated: 20.07.2024
JUDGMENT
| S1. | Nature of | Amount | ROI | Security, if any, | Sanction date |
|---|---|---|---|---|---|
| No. | loan | (In Lakh) | by def. |
||
| 1. | KCC | 3.00 | 10% | Mortgage & |
02.02.2011 |
2
DRT,PATNA
OA 224 of2023 [J]
| Hypothecation | |||||
|---|---|---|---|---|---|
| 2. | Agricultural | 10.00 | 14.25 | -do- | 24.06.2011 |
| loan | % |
To secure the loan facilities the defendants executed various loan and security documents including guarantee agreement and also created mortgage and hypothecated the movables in favour of the applicant bank. Details whereof have been given in Schedule A and B of the Original Application.
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.
The total liability in the loan account is Rs.52,26,018.50/with pendente-lite and future interest contractual rate from 13.04.2023 till the realization. 5. This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 22.05.2023, 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, 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 III newspaper was also made against the defendants on 01.07.2023 in "Dainik Bhaskar" newspaper.
3
OA 224 of 2023 [J]
DRT,PATNA
| Sl.No | Description of Documents Photocopies |
Date of Execution |
Amount (in Lakh) |
Signature of Executants |
Ex.! Ann. No. |
|---|---|---|---|---|---|
| 1 | Loan Application | 02.02.2011 | 3.00 | Def.no.l&2 | 1 |
| 2 | Sanction Memorandum | 02.02.2011 | 3.00 | Bank & accepted by def.no.l |
2 |
| 3 | Agreement and Deed of Hypothecation for KCC |
11.02.2011 | 3.00 | Def.no.l | 3 |
| 4 | Quotation | 02.01.2011 | -- | Def.no.l&2 | 4 |
| 5 | Loan Application | 01.06.2011 | 10.00 | Def.no.1&2 | 5 |
| 6 | Sanction Memorandum | 24.06.2011 | 10.00 | Bank | 6 |
| 7 | Memorandum of Agreement for agricultural loan |
30.06.2011 | 10.00 | Def.no.l&2 | 7 |
| 8 | Instrument ofP.D.R. | 30.06.2011 | 10.00 | Def.no.l&2 | 8 |
| 9 | Letter of Receipt | 12.07.2011 | -- | -- | 9 |
| 10 | Land Possession Certificate | 01.09.2008 | -- | Def.no.l | 10 |
| 11 | Photocopy of Simple deed of Mortgage |
11.05.2012 | 5.00 | Def.no.l | 11 |
| 12 | Photocopy of Simple deed of Mortgage |
16.05.2012 | 5.00 | Def.no.l | 12 |
| 13 | Acknowledgement of Debt and Security |
16.05.2014 | -- | Def.no.l&2 | 13 |
| 14 | Legal Notice | 20.12.2018 | -- | Bank's Advocate | 14 |
| 15 | Legal Notice | 03.02.2023 | -- | Bank's Advocate | 15 |
| 16 | Statement of Account | -- | -- | Bank | 16 |
| 17 | Statement of Account | -- | -- | Bank | 17 |
| 18 | Certificates | -- | -- | Bank | 18 |
| 19 | Letter of Authority | -- | -- | Bank | 19 |
4
OA 224 of2023 [J]
DRT,PATNA
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.
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.
Section4 of Banker's Booksevidence.Act, 1891runs as under-
Q/~/
5
DRT,PATNA
OA 224 of 2023 (J]
S.4. 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.
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.
6
OA 224 of 2023[J]
DRT,PATNA
ORDER
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.52,26,018.50/- along with pendente-lite and future interest @ 10% p.a, with compounded half yearly rests from 02.05.2023 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.
It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.
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.
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.
Parties are directed to appear before the Recovery Officer, DRT, Patna on 30.08.2024. The order be communicated accordingly.
Judgment signed, sealed, dated and pronounced in the open court on 20 th day of July, 2024.
Dictated &corrected by me.
[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna
FORM NO, 9 [See Regulation 24(1)]
DEBTS RECOVERY TRIBUNAL PATNA
2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025.
RECOVERY CERTIFICATE UNDER SECTION 19(1) READ WITH SECTION 19(U) OF THE RECOVERY OF DEBTS & BANKRUPICYACI,.J..m., AS AMENDED FROM TIME TO TIME.
RC No, 8212024
IN
Case No: OAl224/2023
In the Matter of: (CH- I) CANARA BANK JAMUAON BRANCH JAMUAON P.S.AGIYAON BHOJPUR ,BIHAR -802159
Applicant(s)
------ Versus ------
To, (CD-I) SRI SANJAYKUMAR SINGH. Son Sri Harendra Singh Resident of Village- Barnaon, Bhojpur ,BIHAR -802203
Defendant(s)
(CD- 2) SRI AJAY KUMAR SINGH SON OF LATE SHATRUGHNA SINGH, RESIDENT OF VILLAGE- BARNAON, POST - BARNAON, P.S.- IYAR, DISTRICT- BHOJPUR BIHAR- PIN- 802203.
RwI!uy Certificate for Rs 5226018.50 L.Ru~ Two Lakbs )'wentY.Six Thousapds Eigbteen And Paise Fifty...Qnly. _J
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 of Rs. 5226018.50 along with cost, expenses and interest from the 02/05/2023 i.e. date of filing 1 with effective date of the OAl224/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors,hereinafter referred to as:-
| Snn | o CD Name | Loan Type |
Int. Type/Mode |
Int. Rate! |
II 1 Effective Date |
Order Date |
Amount(Rs,) | Liability Type |
Interest (as on Order Date) |
RC Amount(Rs.) |
Remad |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | SRI SANJAY KUMAR SINGH |
Compound Interest (Half-yearly) |
10 | _102/05/2023 _ | 1201071202 | _4_5226018.50 | Jointly And Severally |
Interest I JAson :Order iDate |
5226018.50 | ||
| 2 | SRIAJAY KUMAR SINGH |
Compound Interest (Half-yearly) |
10 I |
I !_02/05/2023 _ ! I |
IzO/07/2024 | 5226018.50 | ointly And Severally |
Interest lAs on IOrder IDate |
5226018.50 |
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 movablel Immovable assets of the certificatedebtors..
The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the fmal order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22)of Recovery of Debts and BankruptcyAct 1993. Parties are directed to appear before MANOJ KUMAR, Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 30/08/2024.
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 and Financial Institutions Act, 1993 (as amendedfrom time to time) from the above named CertificateDebtors.
This Certificate has been issued under my signatureand seal of the Tribunal on this 20/07/2024 V
PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA
FORM NO, 10 [See Regulation 24(2)]
DEBTSRECOVERYTRIBUNALPATNA
2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar
(GPOA), Ashiana Digha Road, Patna-800025.
SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS
RC No. 82/2024 IN
Case No: OAl224/2023
Applicant(s): CANARABANK
Versus
Defendant(s): SRI SANJAY KUMAR SINGH
| Sr. No. | ~mofCosts | Amount in Rs. |
|---|---|---|
| 1. | Fee on the application | 55000 |
| 2. | Process Fees(Inc. Publication) | 0 |
| 3. | Advocate Fees | 0 |
| 14. | CommissionerlReceiverNaluationiSecurity Fee |
0 |
| 5. | Miscellaneous Charges | 0 |
| Total Costs: Rs. | 55000 |
Place: PATNA
Date: 20107/2024
PRES~FFICER DEBTS RECOVERY TRIBUNAL PATNA
Note: Strike out whichever is not applicable
3 issues framed by the court
Whether the Recovery Tribunal has territorial and pecuniary jurisdiction to adjudicate the application.
Whether the application filed under Section 19 of the Act is barred by limitation.
Whether the claim secured by unchallenged documentary evidence and affidavit warrants recovery order ex-parte.
5 provisions across 5 enactments
Canara Bank, branch at Jamuaon
Sri Sanjay Kumar Singh
Sri Ajay Kumar Singh
Kaushalendra Yadav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
