Allowed

Bank of Baroda v. Mr. Naman Raj

DRT18 Sept 2024OA/231/2023

Case brief

AI extract

What is this about?

In an ex-parte application under the RDB Act, the Debts Recovery Tribunal determined the debt of the defendant to the applicant bank based on documentary evidence and barred the transferee assets, issuing a recovery certificate.

What did the court decide?

Recovery certificate drawn for Rs. 27,62,231.88 with interest; defendant debarred from dealing with assets; attachment of mortgaged/hypothecated assets ordered.

Bank of Baroda versus Mr. Naman Raj — Banking and Recovery | DRT (2024)

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DRT, PATN A

OA 231 of 2023 1 Jl

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 231 of 2023

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Bank of Baroda, Fatwah Branch, Station Road, Fatwah, Patna-803201.

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, Applicant

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Mr. Naman Raj S/o Mr. Kanahaiya Sharma. R/o Ahmadpur. Near Hanuman Mandir, Railway Gumatipar, Bakhtiarpur District-Patna-803212

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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: 18.09.2024

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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 2.5.2023 against the defendant to recover its debts from defendant of Rs.27.62.231.88 as on 28.2.2023along with pendente-lite and future interest at the contractual rate from 1.3.2023 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 Mandvi Baroda. Gujrat and Corporate office at Baroda Corporate Centre. C-26. G-Block. Bandra Kurla Complex. Bandra (East) Mumbai-400051 and Branch office Fatwah Branch, Station Road. Fatwah, Patna-803201

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Defendant approached the bank for grant of cash credit loan of Rs.3.33 lakh, which was sanctioned by the bank on 17.2.2021. Defendant further approached the bank for grant of cash credit loan of Rs. 3.15 lakh. which was sanctioned by the bank on 18.2.2021. Defendant further approached the bank for grant of cash credit loan of Rs.6.40 lakh, which was sanctioned by the bank on 23.2.2021. Defendant further approached the bank for grant of cash credit loan of Rs.7.70 lakh. which was sanctioned by the bank on 25.2.2021 Defendant further approached the bank for grant of 2.20 lakh for gold loan

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OA 231 of 2023 IJl

DRT, PATN A

which was sanctioned by the bank on 28.7.2021. 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 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 20.5.2022.

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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 hds been filed by the bank.

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The total liability in the loan account is Rs 27.62.23 1.88 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 copies 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 on 6.9.2023 in "Dainik Bhashkar" 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 suftlcient 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 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 ds follows:

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OA 231 of 2023 IJI

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DRT, PATNA

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SI,No	Description Documents Photocopies of	Dateof Execution	Amount	Signature of Executants	1Ex./ Ann. No.
I	Application form with sanction	17.2.2021	Rs.3.33 lakh	Defendant andbank	1
2-	redemptionof jewels	17.2.2021	Rs.3.33 lakh	Defendant	9
3	Goldloanappraisal	17.2.2022	Rs.3.33 lakh	Bank	3
4	DPnote	17.2.2022	Rs.3.33 lakh	Defendant	4
5	Letter ofpledge	17.2.2022	Rs.3.33 lakh	Defendant	5
6	Takedelivery	17.2.2022	Rs.3.33lakh	Defendant	6
7	Goldprove				7
8	IDprove				8
9	Application form with sanction	18.2.2021	Rs.3.15lakh	Defendant andbank	9
10	Redemptionof jewels	18.2.2021	Rs.3.15 lanl	defendant	10
11	Gold loan appraisal	18.2.2021	Rs.3.15 lakh	Defendant	11
12	DPnote	18.2.2021	Rs.3.15 lakh	Defendant	12
13	Letter of pledge of government securIty	18.2.2021	Rs.3.15 lanl	Defendant	1 3
14	Takedeliveryletter	18.2,2021		Defendant	14
15	mi prove bygod smith andjewel loancard				15
16	Application	23.2.2021	Rs.6.40 lakh	Defendant	16
17	Redemption jewels of	23.2.2021		Defendant	17
18	Gold loanappraisal	23 .2.2022	Rs.6.40 lakh	Bank	18
19	DPnote	23.2.2022	Rs.6.40 lakh	Defendant	19
20	Letter of pledge government	o3.2.2021	Rs.6.40 lanl	Defendant	20
	takedeliveryletter	23 .2.2021	Rs.6.40 lakh	Defendant
	Gold prove bygod snrith
23	Loanappraisal	25.2.2021	Rs.7.70lakh	Defend,Int	23
24	Application form with sanction				24
25	Redemptionof jewels	25.2.2023		Defendant	25
26	Goldloanappraisal				26

OA 231 of 2023 IJ 1

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27	DPnote	25.2.2021		Defendant	127
28	Letterofpledge	25.202016		Defendant	28
29	Takedeliveryletter	25.2.2021		Defendant	29
3 0	Gold prove bygod smith	28.7.2021			3 ()
31	Jewelloancard	28.7.2022	Rs.2.20 lakh	a defendant
3)	Application form withsanction				11 '
an ii	Goldloanappraisal				la ))
3 4	DPnote				34
35	Letter of pledge of government securIty	28.7.2022		Defendant	35
36		28.7.2022		defendant	36
3 7	Gold prove bygod smith andjewel loancard				37
3 8	Jewel loancard				3 8
39	Statement account n	o s 28.2.2023	2a		39

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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 carTying 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 1,ICS. The

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OA 231 of 2023 1.Jl

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 20.5.2022. whereas the present application has been filed on 2.5.2023 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.

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13 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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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 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 underS.4. Mode of proof of entries in bankers’ books.–Subject to tIle provisions (if this Act. a certi.fled copv c)f cmx emIr' in a hcmker's book shall in all legal proceedings he received as prinlcl .fZrcie evidence t)f- the existence of such enfr'. curd shall be adnlitted cls evidence of the nIclllers, transactions and accounts therein recorded in everY case \there, and to the same extent as, the original entry itself is non’ by Icr\t adnrissible. but noI f'urlher 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 ol

OA 231 of 2023 1.Jl

DRT, PATN A

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.27,62,231.88 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.27.62.23 1.88 along with pendente-lite and future interest lb 7.40% p.a. with colnpounded monthly rests from 2.5.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justlce.

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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.27.62.231.88 along with pendente-lite and future interest @ 7.40% p.a. with compounded monthly rests from 2.5.2023 (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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OA 231 of 2023 IJI

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 mortgage(i or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal 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 Oftlcer shall realize the amount as per the certificate in the m,inner 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 1811' day of September. 2024.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Pdtna

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

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor. ( A. B & F Wing) Kdrpuri Thakur Sadan, Kendriya Karamchari Parisar (GPO A), Ashiana Digha Road, Patna-800025

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RECOVERY CEiTriFICATE 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. 205/2024 IN Case No: OA/231/2023

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In the Matter ot (CH- 1) BANK OF BARODA FATWAH BRANCH STATION ROAD FAT\VAH PATNA ,BIHAR -803201

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Applicant(s)

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-–-– Versus -–--–

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To (CD- I) MR. NAMAN RAJ son of Kanahaiya Sharnla Defendant(s) R/o At Ahmadpur. Near Hanuman Mandir.Railway Gumatipur. Bakhtiarpul Patna .BIHAR -803212

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Recovery Certificate for Rs 2772231.88 [ Rupees Twenty Seven Lakhs Seventy Two Thousands Two Hundred Thirty One And Paise EigUy Eight Only_]

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In terms of final order dated 18/09/2024 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. 277223 1.88 along with cost, expenses and interest from the 02/05/2023 i.e. date of filing / with effective date of the OA/231/2023 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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r.no	CD Name	Loa Type	Int !Type/Mode	Int IRate	Effective Date	Order Date	"„.„„„“, B	";:iT	Interest ’ (as0	RC IAmount(Rs.)	Remar
	MR rAMAN FRAJ		1Interest lonthly )	7.40: I	l02/05/2023	1 18/09/2024	i2762231.88	?ully	Interest !Ason 1Order Date	12762231.88

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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 moltgaged/hypothecated assets as well as other personal movable/ Immovable assets of the celtificate 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 final order under the recovery proceeding in pursuance of the Recovely certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 . Parties are directed to appear before MANOJ KUMAR . Recovery Officer, DEBTS RECOVERY TRIBUNAL PATNA on 04/ 1 1/2024

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The Recovery Officer shall realize the amount as per this Cenincate in the manner and mode prescribed under Sections 25 to 28 of the Recovely of Debts Due to Banks and Financial Institutions Act, 1993 (as amended fron1 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 19/09/2024

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G. FoI Regist^raT Debts Recovery Tribunal Paula

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/ PRESIDhe6FFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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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

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 205/2024

Case No: OA/231/2023

Applicant(s): BANK OF BARODA Versus

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Defendant(s): MR. NAMAN RAJ

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Sr. No	Fltem of Costs	iAmountinRs
	Feeonthe application	B
	Process Fees(Inc.Publication)	[ii
	AdvocateFees
4	o	ro
	iscellaneousCharges	[0
	o

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Place: PATNA

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Date: 1 9/09/2024

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PRESIDIM OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of Baroda v. Mr. Naman Raj

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr. Naman Raj

Case brief

What is this about?

What did the court decide?

What the court decided

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