Allowed

Central Bank of India v. M/s Jay Mata Di Poly Packs

DRT18 Sept 2024OA/297/2023

Case brief

AI extract

What is this about?

The DRT Patna allowed an ex-parte application filed by Central Bank of India against two defendants for recovery of dues amounting to Rs. 44,31,943/- with interest. The court determined the debt based on documentary evidence and rules of the Act, issuing a recovery certificate.

What did the court decide?

Recovery certificate issued directing Recovery Officer to realize Rs. 44,31,943/- with interest from the defendants jointly and severally.

Central Bank of India versus M/s Jay Mata Di Poly Packs — Banking and Recovery | DRT (2024)

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DRT, PATN A

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OA 297 of 2023 IJI

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Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digh,I Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 297 of 2023

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Central Bank of India. Budh Marg Branch. Biharshariff. P.S.-Kotwali. Town and District-Patna-800001 .

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. . . . . . .Applicant

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M/s Jay Mata Di Poly Packs. Situated at Satyd Narayan Path. Yogipur. Hanuman Nagar Lohiya Nagar. Police Station-Patrkar Nagar. DistrictPatna-800020

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Sri Mukti Prakash Gupta S/o Late Yamuna Prasad Gupta. R/o Satya Narayan Path. Yogipur. Hanuman Nagar. Lohiyd Nag,Ir. Police StationPatrkar Nagar. District-Patna-800020 and R/o C/o Amarjit Kumar, Azad Nagar. Road No. 2. Chandmari Road. Kankarbagh. District-Patna-800001 PAN no. AMDPG2470K.

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Neeraj Kumar Singh. Advocate For the Defendants : None

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Dated: 18.09.2024

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JUDGMENT

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1 . 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 7.6.2023 against the defendants to recover its debts from defendants of Rs.44.31.943/as on 12.4.2023 along with pendente-lite and future interest @11.25% p.a. with monthly rests from 13.4.2023 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 V of 1970 having its Centrdl offIce at Chander Mukhi. Nariman Point, Mumbai-400021 and Branch Office at Budh Marg Branch. Biharshariff. P.S.-Kotwali. Town and District-Pdtna800001. \ .

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OA 297 of 2023 1 Jl

DRTI PATN A

Defendant no. 1 is proprietorship Hrm and defendant no. 2 is proprietor. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of overdraft limit of Rs.35 lakh on 12.2.2014. which was sanctioned by the bank on 13.3.2014. Defendants executed the various loan documents.

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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 24.11.2021.

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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.44.31.943/- with pendentelite and future interest @11.25% p.a. with monthly rests from 13.4.2023 till the realization .

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 23.6.2023. 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. 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 17.8.2023 in "Hindustan" newspaper.

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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 7.12.2023

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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

OA 297 of 2023 1.II

DRTT PATN A

given evidence on affidavit by way of affidavit by Shri Jyoti NaraYan. Chief

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Manager of the applicant bank. The details of documents are as follows:

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SI.No	Description Documents Photocopies of	Date of Execution	Amount	Signatureof Executants	Ex./ Ann No
1	Loan application	12.2.2014	is.35lakh	Defendants	1
a	Sanction letter	13.3.2014	Rs,35 lakh	Bank	l
a -1	DPnote	m4	Rs.35lakh	Defendants	3
4	not &)ntinuity	14.3.2014	–Rs.35lakh	Defendants	4
5	–iiieiofwaiver	14.3.2014	Rs.35lakh	Defendants	5
6	Letter of interest varIatIon	114.3.2014	1 ...	1Defendants Defendants	I 6
7	Letter of	14.3.2014	[TG]M]lit Rs.35lakh	iMMi–l	7
8	c	14.3.2014		Defendants	8
9	Supplementary aqreenrent	14.3.2014	Rs.35lakh	Defendants	9
10	ml	22.3.2017	Rs.35lakh	Defendants	10
11	Letterof continuity	22.3.2017	Rs.35lakh	Defendants	11
10	Letterofwaiver	22.3.2017	Rs.35 lakh	Defendants	12
1 3	Letter of interest varIatIon	22.3.2017		defendants	1 3
14	Letter of hypothecation	22.3.2017	Rs.35 lanl	Defendants	14
15	DPnote	11.9.2020	Rs.35 lakh	Defendants	15
16	Letter of continuity	11.9.2020	Rs.35 lakh	e	16
17	Letter ofwaiver	11.9.2020	Rs.35 lakh	Defendants	17
18	Letter of interest varlat lon	1 1.9,2020		Defendants	18
19	Letter of	1 1.9.2020	Rs.35lakh	Defendants	19
20	Supplementary agreement	11.9.2020	Rs.35lakh	Defendants	20
al	a it	Ason 12.4.2023	–Rs.44.31.943/--	Bank	91
al	Legalnotice	30.8.2022		Bank	al

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8 Heard arguments and perused the case record.

OA 297 of 2023 IJI

DRT, PATN A

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 dt 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 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 ds 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 24.1 1 .2021 whereas the present application has been filed on 7.6.2023 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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Shri Jyoti Narayan. 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.

DRT. PATN A

OA 297 of 2023 1.Jl

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 Ki tIte I)ro\isi011s of' this AcT , a certifIed copy Qf- any entrv in a hcrnker's hook shall in all legal proceedings he received as prinla facie evidence of the existence of such enrr\’, and sllcllt he cldnritfed cls evidence of the ltrclltel's, lrcllrsclclions and accounts therein recorded in c’ I’c’/I ' case \there, and to the same extent CIS, the original emIr' itself is no\t h\’ Ict\t udillissible. huI ntH further or c)then\’ise.

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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 dppIication. 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 eITor 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 12.4.2023 has been proved to be Rs.44.31.943/- only by way of statement of account. There is nothing to prove the amount more than that disclosed in the

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OA 297 of 2023 IJ I

DRT, PATN A

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.44.31,943/- along with pendente-lite and future interest @ 11.25% p.a. with compounded monthly rests from 7.6.2023 (The date of filing of this OA) till realization. So the fInal order may be pdssed 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.44.3 1.943/- along with pendente-lite and future interest @11.25% p.a. with compounded monthly rests from 7.6.2023 (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 defendants. be deducted in the claim amount. if not deducted.

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Defendants are debarred from transferring. alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or dny other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecdted assets to secure the loan in question dre 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 chdrge 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 mortgaged/

DR’r_ PATN A

OA 297 of 2023 1.II

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 04.1 1 .2024. The order be communicated accordingly.

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Judgment signed. sealed. dated and pronounced in the open court on 18tl' 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 RECOVERY TRIBUNAL PATNA

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2nd Floor, ( A. B & F Wing) Karpuri Thakur Sa(lan. Kendriya Karamchari Parisdr (GPOA). Ashiana Digha Road, Patna-800025

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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.

RC No. 218/2024

Case No: OA/297/2023

In the Matter of:

(CH- 1 ) CENTRAL BANK OF INDiA

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BUDH M ARG BRANCH,BIHARSHARIFF, P.S.KOTWALI. TOWN PATNA PATN A ,BIHAR -80000 1

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Applicant(s)

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(CD- 1) M/S JAY MATA DI POLY PACKS Situated at Satya Nara)'an Path, Yogipur, Hanuman Nagar Lohiya Nagar, Police Station- Patrkar Nagar Patna .BIHAR -80002CJ

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(CD- 2) SRI MUKTI PRAKASH GUPTA

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SON OF LATE YAMUN A PRASAD GUPTA, RESIDENT OF SATYA NARAYAN PATH. YOGIPUR, HANUMAN NAGAR, LOHIYA NAGAR, POLICE STATION - PATRAKAR N AGAR, DISTRICT- PATNA PIN NO- 800020 AND

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Defendant(s)

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RESIDENT OF C/0 AMARJIT KUMAR, AZAD NAGAR. ROAD NO. 2. CHANDMARI ROAD, KANKARBAGH. DISTRICT- PATN A 800001

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Recovery Ccrtincatc for Rs 4431943,Ot) 1 Rupees Forty Four Lakhs Thirty One Thousands Nine Hundred Forty Three Only_I

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Tn terms of Hnd order dated 1 8/09/2024 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. 4431943,00 along with cost. expenses and interest from the 07/06/2023 i.e. date of filing / with effective date of the OA/297/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Celtificate Debtors. hereinafter referred to as:-

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CDName	Loan	Int Type/Mode	Int. iRate	IEffective Date	Order Date	.mount(Rs.)	Liability Type	Interest (asa Order Date)	RC Amount(Rs.)	Remar
		ompt.lund nterest Monthly)	"'='	=' :”'T--'		-31943 .00		-iii:“FC;iii in Order Date	131943.00
		, nterest Monthl	I1.25 ;	f07/06/2023	18/09/2024	l31943,00			[31943.00

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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 certificate debtors

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The mollgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993.

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

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The Recovely Oftlcer 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. 1 993 (as amended from time to time) frI)m the above named C6rtitlcate 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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PRES OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Per ’aT Debts iec'ivery Tribunal Patna

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FORM NO. 10 [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 Digha Road, Patna-800025 .