Allowed

Bank of Baroda v. Nitu Devi

DRT19 Sept 2024OA/228/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Patna, adjudicated a recovery application filed by Bank of Baroda against a borrower for a defaulted gold loan. Following the defendant's ex-parte absence, the tribunal accepted the bank's documentary evidence and determined the debt amount along with interest and costs.

What did the court decide?

The order determines the debt of ₹23,88,513.22 along with pendente-lite and future interest at 8.50% p.a.; the defendant is directed to pay the amount with costs; assets are attached and a recovery ce

Bank of Baroda versus Nitu Devi — Banking and Recovery | DRT (2024)

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DRT, PATN A

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OA 22$ of 2023 1 Jl

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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. 228 of 2023

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Bank of Baroda, Fatwah Branch Station Road, Devi Chowk, Fatwah, P.S.Fatwah, Patna-80320 1 .

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. . . . . . . Applicant

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Vs.

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Mr. Nitu Devi W/o Mr. Rajeev Singh At Serpur Harnaut, Nalanda-803 110. PANno. DZOPD5685N

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. . . . . . . Defendant

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Present:

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For the Applicant : Shri Shatrughan Prasad, Advocate For the Defendant : None

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Dated : 19.09.2024

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JUDGMENT

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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 1.5.2023 against the defendant to recover its debts from defendant of Rs.23,88,513.22 as on 28.2.2023 along with pendente-lite and future interest at the contractual rate from 1.3.2023 with costs till realization.

¶17

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 Mandvi Baroda Gujrat and Corporate office at Baroda Corporate centre, C-26 G Block Bandra Kurla Complex, Bandra (East) Mumbai-400051 and Branch Office at Fatwah Branch Station Road, Devi Chowk, Fatwah, P.S.-Fatwah, Patna-803201 and Bakhtiyarpur Patna situated at Naya Tola Madhopur Old Bypass Bakhtiyarpur Patna-803212.

¶18

Defendant approached the bank for grant of loan of Rs.4.75 lakh gold loan, which was sanctioned by the bank on 10.5.2021. Defendant further approached the bank for grant of loan of Rs.5.80 lakh for gold loan, which was sanctioned by the bank. Defendant further approached the bank for grant of loan of Rs.5.55 lakh for gold loan, which was sanctioned by the bank on 13.5.202 1. Defendant further approached the bank for grant of loan of Rs.4.45

q/;\

OA 228 of 2023 1 Jl

DRT, PATN A

lakh for gold loan, which was sanctioned by the bank on 3.3.202 1. Defendant executed the various loan documents in favour of the bank. After availing term/cash credit/over draft loan facilities, defendant expanded his desire and other activities satisfactory but after that the defendant became irregular then the applicant bank sent number of notices itself and requested to regularize the account but the defendant always promised but did not regularize the account, then the plaintiff tried to sale out the pledge articles and recovered the loan amount but surprisingly that the said pledge articles has been gold turned out wrong i.e. spurious gold then the plaintiff bank informed the concerning office to lodged FIR but the according to said FIR the plaintiff back could not recover the loan amount with interest then the plaintiff bank to advice to file OA hence the suit has been filed.

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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 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 30.4.2022.

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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.23,88,513.22 with pendentelite and future interest at the contractual rate from 1.3.2023 till the realization.

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This Tribunal issued summon/notice copy of application & paper book to the defendant by registered/speed post on 22.6.2023, 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.

¶28

Despite the registered summon/notice and publication of notice in newspaper, the defendant has not appeared before this Tribunal to contest the

OA 228 of 2023 1 Jl

DRT, PATNA

case. The sufficient time has been given to the defendant to defend his case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendant on 5.1.2024.

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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 also given evidence on affidavit by way of affidavit by Shri Baidnath Yadav, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents Photocopies	Dateof Execution	Amount	Signature of Executants	Ex./ Ann No
1	Loan applicati and sancti letter	10.5.2021	Rs.4.75 lakh	Defendantand bank	1
2	Redemption ewelr'	10.5.2021		Defendant	2
3	)	10.5.2022		Defendant	3
4	DPnote	10.5.2021	Rs.4.75 lakh	Defendant	4
5	Letter ofpledge	10.5.2021	Rs.4.75 lakh	Defendant	5
6	Takedelivery letter	10.5.2021	Rs.4.75 lakh	Defendant	6
7	Undertaking	10.5.2021	Rs.4.75 lakh	Defendant	7
8	Gold loan agreement	10.5.2021	Rs.4.75lakh	Defendant	8
9	e				9
10	Application form withsanction	12.5.2021	Rs.5.80lakh	Defendantand bank	10
11	Redemptionof ewelr'	12.5.2021	Rs.5.80lakh	defendant	11
	)	12.5.2021	Rs.5.80 lakh	defendant
	DPnote	12.5.2021	Rs.5.80 lakh	Defendant
14	Letterofpledge	12.5.2021	Rs.5.80 lakh	Defendant	14
15	Takedeliveryletter	12.5.2021	Rs.5.80 lakh	Defendant	15
	Undertaking	12.5.2021	s	defendant
	Gold loan agreement	2	Rs.5.80lakh	defendant
18	Jewelerloancard				18
19	Application form withsanction	13.5.2021	Rs.5.55lakh	Defendantand bank	19
20	Redemptionof ewelry	13.5.2021	Rs.5.55 lakh	defendant	20
21	Gold loanappraisal	13.5.2021	Rs.5.55 lakh	Defendant	21

DRT. PATN A

OA 228 of 2023 IJl

			s	nr
23	t		Rs.5.55 lakh	Defendant	23
24	a		Rs.5.55 lakh	defendant	24
25	r		Rs.5.55 lakh	defendant	25
26	o agreement		Rs.5.55lakh	defendant	26
27	Jewelerloancard				27
28	t		Rs.4.45 lakh	e bank
29	o		Rs.4.45 lakh	c
30	e		Rs.4.45 lakh	)
31	I		Rs.4.45lakh	defendant	31
32	Letter ofcontinue securrt'	3.3.2022	Rs.4.45 lakh	defendant	32
33	Letter ofpledge	3.3.2022	Rs.4.45 lakh	defendant	33
34	Takedeliveryletter	3.3.2022	Rs.4.45 lakh	defendant	34
35	Redemption	3.3.2022	Rs.4.45 lakh	defendant	35
36	Goldappraisal	2.3.2022		defendant	36
37	Goldsmith report				37
38	Recall notice	16.5.2022		Bank	38
39	Statement account Go	28.2.2023	s		39

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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.

OA 228 of 2023 1 Jl

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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.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.4.2022, whereas the present application has been filed on 1.5.2023. 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.

¶48

Shri Baidnath Yadav, 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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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 under-

OA 228 of 2023 1 Jl

DRT, PATNA

S.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a certified copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be adnrhted 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 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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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 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 28.2.2023 has been proved to be Rs.23,88,513.22 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.23,88,513.22 along with pendente-lite and future interest @ 8.50% p.a. with compounded monthly rests from 1.5.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of Justrce.

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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 then defendant. The defendant is hereby

OA 228 of 2023 IJ I

DRT, PATNA

ordered to pay the applicant bank its debt amounting to Rs.23,88,5 13.22 along with pendente-lite and future interest @ 8.50 % p.a. with compounded monthly rests from 1.5.2023 (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 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 Officer, 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 lgth day of September, 2024.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RECO\’ERY TRIBUNAL PATNA

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar fGPOA). Ashiana Digha Road, Patna-800f)25

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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.

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RC No. 231/2024 IN Case No: OA/228/2023

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In the Matter of:

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(CH- 1) BANK OF BARODA FATWAH BRANCH STATION ROAD. DEVI CHOWK. FATWAH. P.S- FATWAH PATN A .BIHAR -803:o I

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Applicant(s)

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To,

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(CD- 1) NITU DEVI Son ofRajeev Singh Defendant(s) Residing at Serpur, Harrnaut Nalanda .BIHAR -803 1 10

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Recovery Ccrtincate for Rs 2388513.22 1 Rupees Twenty Three Lakhs EigU)- Eight Thousands Five Hundred Thirteen And Pajge Twenty Two OnI}LI

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In terms of final order dated 19/09/2024 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. 2388513.22 along with cost, expenses and interest from the 01/05/2023 i.e. date of filing / with effective date of the OA/228/2023 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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ren	CD IName'l	ELoan Type	Int. ,pe/Mode	Int iRat	Effective Date	Order Date	,mount(Rs.) ,:	Liability ,pe	nterest 1(ason FOrder Date)	RC \mount(Rs.)	Remar
	NITU DEVI		iCompound Interest I(Monthly) I	8.50	1/05/2023	1 19/09/2024	b885 13.22	Fully	:11terest IAson IOrder !Date	,885]3.22

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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 celtificate debtors.

¶88

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. Parties are directed to appear before ASHISH KUMAR . Recovery Offlcer. DEBTS RECOVERY TRIBUNAL PATNA on 04/11/2024.

¶89

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 amended from time to time) from the above named Certificate Debtors.

¶90

This Certificate has been issued under my signature and seal of the Tribunal on this 20/09/2024

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PRESIDh3G OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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..„q@{:.M,

¶93

FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digh,1 Road. Patna-800025,

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 231/2024

Case No: OA/228/2023

Applicant(s): BANK OF BARODA Versus

¶102

Defendant(s): NITU DEVI

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	Item ofCosts	mr
	Feeontheapplication	-1m6
	r	b
3	/	ro
	[	[0
	M iscellaneous Charges	Dc
	-otalCosts:Rs	m2

¶104

Place: PATNA

¶105

Date: 20/09/2024

¶106

PRESIDING\CfFIC£R DEBTS RECOVERY TRIBUNAL PATNA

¶107

Note: Strike out whichever is not applicable

Bank of Baroda v. Nitu Devi

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Nitu Devi

Case brief

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