Allowed

Canara Bank v. Ms New Singh Jee Hatchery

DRT17 Sept 2024OA/234/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal, Patna allowed Canara Bank's application under Section 19 of RDB Act to recover Rs.25.68.327/- plus interest from borrowers who failed to repay a sanctioned overdraft limit, deeming the evidence sufficient and issuing a recovery certificate.

What did the court decide?

defendants jointly and severally to pay Rs.25,68,327/- plus interest and costs; attachment of mortgaged assets.

Canara Bank versus Ms New Singh Jee Hatchery — Banking and Recovery | DRT (2024)

OA 234 of 2022 IJl

DRT, PATNA

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. 234 of 2022

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Canara Bank. Hazipur. District-Vaishali.

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. . . . . . .Applicant

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M/s New Singh Jee Hatchery through its proprietor Ram Niranjan Singh S/o Sri Ramesh\var Prasad Singh R/o Village Rajput Nagar. Paswan Chow I<. P.O.-Hazipur, P.S.-Industrial Area, District-Vaishali. Pin-844 101

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Ram Niranjan Singh S/o Sri Rameshwar Prasad Singh R/o Village RQjput Nagar. Pas&’an Chc)wk. P.O.-Hazipur. P.S.-Industrial Area. DistrictVaishali. Pin-844101 PAN no. AOAPS2334B. (proprietor and legal heir of Late Tara Singh W/o Sri Ram Niran jan Singh)

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Roshan Kumar S/o Sri Ram Niranjan Singh no Village Rajput Nagar. Pas\van Chc)wk. P.O. P.O.-Hazipur. P.S.-Industrial Area. District-Vaishali. Pin-844101(guarantor and legal heir of Late Tara Singh W/o Sri Ram Niranj an Singh)

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. . . . . . . Defendants

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Present: : Shri Arvind Kumar. Advocate For the Applicant For the Defendants : None

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Dated : 17.09.2024

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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 23.3.2022 against the defendants to recover its debts from defendants of Rs.25.68.327/- as on 28.2.2022 along with pendente-lite and future interest ra 11.7% p.a. with monthly rests from 1.3.2022 with costs till realization.

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The application has been DIed with the contention that the applicant bank. is a body corporate. constituted under banking companies (Acquisition and Transfer of Undertaking) Act 1970 having its Head office at 112. JC Road. Bangalore-560002 and Branch Office at Hazipur. District-Vaishali.

OA 234 of 2022 IJ 1

DRT, PATN A

Defendants approached the bank for grant of OCC limit of Rs. 22 lakh on 1.7.2019. which was sanctioned by the bank on 1.7.2019. Defenddnts executed the various loan documents and defendant no. 3 further created equitable mortgage of property details given at page 16 in Schedule-1 of OA.

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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 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 30.12.2020

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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.

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The total liability in the loan account is Rs.25.68.327/- with pendentelite and future interest @ 11.7 p.a. with monthly rests from 1.3.2022 till the realization 5. This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 14.5.2022 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.

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Despite the registered summons/notices. the defendants have appeared before this Tribunal to contest the case. The suffIcient time has been given to the defendants to file written statement, but theY failed to file WS within statuary period.

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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 Amin(1 Kumar. Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No of 1 Date of Amount Description Signature of 1 Ex./ Documents Execution Executants Ann PhotocoDies No

Van

OA 234 of 2022 1.Jl

DRT. PATN A

Sole proprietorship	1.7.2019		Defendant no. I &2
Loan application	1.7.2019	Rs.22 lakh	Defendant I no.1
Sanction letter	1.7.2019	Rs.22 lakh	Bank
Hypothecation agreement		Rs.22 lakh	Defendant no. I &2
r		Rs.22 lakh	Defendants
Copyofdeed
Acknowledgement of debtsandsecuri	18.6.2021		Defendants
a	Ason 28.2.2022	s

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8 Heard arguments and peruse(i the case record.

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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. It is further submitted that the query made by the order dated 8.1.2024 it has been explained that the hypothecation agreement dated 29.6.2012 has been fIled. In addition to the previous hypothecation and credit agreement loan was renewed several times in including 29.6.2012

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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 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 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. n / V\n\q\

DRT, PATN A

OA 234 of 2022 IJ I

1). On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.12.2020. whereas the present application has been filed on 23.3.2022. 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 Arvind Kumar. 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 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 certitled 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.Subjecl t€] thc provisions of this Acl, a certified COPY of cmT entry in a banker 's book shall in all legal proceedings be received as prinlr.i facie evidence of the existence of such entry. and shall be admitted as evidence of the nlcltters, transactions and accotltrts therein recorded in every case \there, and to the salne extent CIS. the original emIr' itself is no\t bv lcr\t cldnrissible. huI noI fUrther or olherwist'.

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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 corTect statement of account, more so since the entries in the statement of account have not been challenged

nRT_ PATN A

OA 234 of 2022 IJ I

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.

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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 28.2.2022 has been proved to be Rs.25.68.327/- 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 defendants jointly and severally of Rs.25.68.327/- along with pendente-lite and future interest @ 11.7% p.a. with compounded monthly rests from 23.3.2022 ( 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 defendants. The defendants are hereby jointly and severally. ordered to pay the applicant bank its debt amounting to Rs.25,68.327/- along with pendente-lite and future interest @11.7% p.a. with compounded monthly rests from 23.3.2022 (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 defendants. be deducted in the claim amount, if not deducted

OA 234 of 2022 IJl

DRT, PATN A

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

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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 17th 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

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._ /g

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DEBTS RECO\’ER- TRIBUNAL PA'l'NA

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[See Regulation 24( 1 )]

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

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RE(-OVERY CERTIFICATE UNDER SECTION 19(Z)E£IKWW(a)£&

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BANKRUPTC\ ACT, 1993, AS AMENDED FROM TIME TO TIME.

RC No. 183/2024

Case No: OA/234/2022

In the Matter of (CH- 1) CAN ARA BANK HAZIPUR.

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Applicant(s)

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VAISH ALI ,BIHAR -844 IOI

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(CD- 1) MS NEW SINGH JEE HJVCHER\

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Thu)tIgh its Proprietor Ram NiranjgsSingh Stln of Sri Rameshwar Prasad SinghR/o Village Rajput Nagar. Pas\'an Chc>wk. P.O Hazipur

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P.S.- Industrial Area.

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Valshali ,BIHAR -844 IOI

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(CD- 2) RAM NIKANJAN SINGH

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S/O- SRI RAM F.SH\VAR PRASAD SINGH R 'OVILLAGE RAJPUT NAG AR, PASWAN CHOWK. P.O.HAZTPUR. P.S.- INDUSTRI AL AREA, DISTRICTVAISH ALI PIN-844 101 PAN NO-AOAPS3334B. (PROPRIETOR AND LEGAL HEIR OF LATE TARA SINGH W/0- SRI RAM NIRANJAN srNGH)

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Defendant( s )

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(CD- 3) ROSH AN KUMAR

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S/O- SRT RAM NIRANJ AN SINGH. R/O- VILLAGE RAJPUT NAG AR. PAS\VAN CHOWK. P.0.P.0 H AZIPUl{. P.S.- INDUSTRIAL AREA. DISTRIC'T-

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VAISH ALI. PIN-844 1 o I (GUARANTOR AND LEGAL HEIR OF LATE TARA SINGH W/C)- SRI RAM NIRANJAN SINGH)

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Recovery Certificate for Rs 2568327.00 1 Rupees Twenty Five Lakhs Sixt}Hght Thousands Three Hundred Twenty Seven t)nI)=I

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In terms of Rna I order dated 1 7/09/2024 passed by this Tribunal in the above mentioned case. it is ordered that the Applicant Certitlcate Holder Bank is entitled to recover a sum of Rs. 2568327.00 along with cost. expenses and interest from the 23/03/2022 i.c. date of filing / with effective date of the OA,234/2022 and future interest from order date till the date of realisation in full. jointly or severally from the Certitlcdte Debtors. hereinafter referred to as:-

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	Loa Type	Int.Type/Mode	Int. Rate	Effective Date	IOrder Date	In1o u nt( Rs+)	1 1LJ? biIity	Interest (as on Order Date)	RC it(Rs,) A
MSNEWSINGH JEEHATCHER\|	1Interest :Monthly		!022	Fl7/09/2024	i(18327,00	lly	Interest,\s Order Date	127.00
RAMNIRANJAN INGH		[Compound Interest Monthly)		)22	117/09/2024	!7.00			;27.00
ROSHAN KUMAR		'om Interest :Monthly)				18327.OO	lointly And	InterestAs Order [Date	;68327.00

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In case of failure to pay the aforementioned : Itljndicated illnount u'ithin 30 days. same shall be recovered from the sale of the mortgagecYhypothecated assets as well as other pcrsonul muvable/ Inunuv;lble assets of the certificate debtors.

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The mongaged 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 Recovely of Debts and Bankruptcy Act 1993

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Panics are directed to appear before MANOJ KUNI AR . Recovery Officer. DEBTS RECOVERY TRIBUNAL' PATN A on 04/11/2024,

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The Recovery Officer shall realize the amount as per this Cerdflcate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, ] 993 (as dnrended from time to time) from the above named Certificate Debtors

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This Cellitlcate has been issued under my signature and seal of the Tribunal on this 18/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Dei: {!!g:je:Ya4f\bund p atna

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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 Thalarr Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

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RC No. 183/2024 IN

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Case No: OA/234/2022

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Applicant(s): CANARA BANK Versus

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Defendant(s): M/S NEW SINGH JEE HATCHERY

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Sr.No	Item ofCosts	I Amount inRs.
	Feeon the application	F28000
2	r	ro
3	lvc>cate Fees	[0
	c Mmm&alitjT	ro
	Miscellaneous Charges	Dc
	Total Costs:Rs	m8

Place: PATNA

Date: 18/09/2024

Note: Strike out whichever is not applicable

Canara Bank v. Ms New Singh Jee Hatchery

Case brief

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Canara Bank v. Ms New Singh Jee Hatchery

Case brief

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