Allowed

Union Bank of India v. Ms Ananya Enterprises

DRT18 Sept 2024OA/331/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Union Bank of India's application under S. 19 RDB Act 1993 for recovery of Rs. 25.19 lakh debt. The bank proved its case via documents and affidavit. Since defendants did not appear, the tribunal proceeded ex-parte, declared the debt due, and issued a recovery certificate directing the Recovery Officer to realize the amount.

What did the court decide?

Recovery certificate issued for Rs. 25,19,127.89 jointly and severally, along with interest and costs, recoverable from defendants via sale of mortgaged/hypothecated assets.

Union Bank of India versus Ms Ananya Enterprises — Contract and Commercial Disputes | DRT (2024)

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OA 331 of 2023 IJl

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. 331 of 2023

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Union Bank of India. BRB College Branch, Mohanpur Road. Samastipur848 10 1

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. . . . . . . Applicant

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Vs.

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M/s Ananya Enterprises. Nayak Complex. Mohanpur Road. DistrictSamastipur. Pin-848101.

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Smt. Premlata Devi W/o Sri Vidya Shankar Yadav. R/o Ward No, 4. Musapur. District-Samastipur. Pin-84810 1

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Sri Vidya Shankar Yadav S/o Sri Ram Chandra Ray R/o Ward No. 4. Musapur, District-Samastipur-848 101

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri A.K. Sinha. Advocate For the Defendants : 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 30.6.2023 against the defendants to recover its debts from defendants of Rs.25.19.127.89 as on 24.5.2023 along with pendente-lite and future interest @9.25% p.a. with monthly rests from 25.5.2023 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 239. Vidhan Bhawan Marg. Nariman Point. Mumbai-400021 and regional offIce at 1“ floor of Panchwati Complex. at Mohanpur Road. Samastipur848101 and Branch Office at Mohanpur Road, Samastipur-848101.

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Defendant no. 1 is proprietorship firm and defendant no. 2 is proprietor. Defendants approached the bank for grant of cash credit facility of Rs. 20 lakh. which was sanctioned by the bank on 14.12.2017. Defendants further

OA 331 of 2023 IJ1

DRT, PATNA

approached the bank for grant of additional loan of Rs. 4 lakh on 22.7.2020. which was sanctioned by the bank on 3.70 lakh on 4.8.2020. Defendants executed the various loan documents and defendant no. 3 had created equitable mortgage of property details given at page 18 to 20 in schedule-A 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 21.6.2022.

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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.25.19,127.89 with pendentelite and future interest @ 9.25% p.a. with monthly rest from 25.5.2023 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 31.7.2023. 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 w,ly of advertisement in newspaper was also made against the defendants on 28.10.2023 in "Prabhat Khabar" 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 dn order to proceed ex-parte against the defendants on 29.1.2024.

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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

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given evidence on affidavit by way of affidavit by Shri Saurabh Kashyap. Branch Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptionof Documents PhotocoDies	Date of Execution	Amount	Signature of Executants	Ex./ Ann No
1	Loan application	10.12.2017	Rs.20 lakh	Defendant mD/1&2	1
a	Sanction letter	14.12.2017	Rs.20 lakh	Bank	a
3	DPnote	15.12.2017	Rs.20lakh	Defendantno. 1 &2	3
4	Letterof continuity	15.12.2017	Rs.20lakh	Defendantno. 1 &2	4
5	Hypothecation agreement	15.12.2017	Rs.20 lakh	Defendantno. 1 &2	5
6	e undertaking	15.12.2017	Rs.20 lakh	Defendantno. I&2	6
7	r	15.12.2017		Defendantno. 9	7
8	Letterofguarantee	15.12.2017	Rs.20lakh	Defendants	8
9	Memorandum	14.12.2017		Defendants	9
10	Titledeed				10
11	Titledeed				11
12	Titledeed				10
13	Titledeed				13
14	Titledeed				14
15	Titledeed				15
16	Land revenue receIpt				16
17	LPC				17
18	Declaration	14.12.2017			18
19	Affidavit				19
20	Letter of confirmation	15.12.2017		Defendant no. I&2	20
21	Letter of general lien	15.12.2017		Defendantno. I&2	21
al	Loan application	22.7.2020	Rs.4 lakh	Defendantno. 1 &2	DO
23	Sanction letter	4.8.2020	Rs.3.70 lakh	Bank	23
24	DPnote	5.8.2020	Rs.3.70 lakh	Defendantno. I&2	24

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25	e	0	Rs.3.70lakh	Defendantno 1 &2
26	e agreelrr ent		Rs.3.70 lakh	e I&2
27	t		Rs.3.70lakh	e 1 &2
28	e lien		Rs.23.70lakh	e I&2
29	A' guarantee	5.8.2020	Rs.23.70 lakh	e 3
3 C)	Memorandum	26.9.2020		Bank	n
31	e			Defendant no. 3	131
[	Affidavit				3 2
fI	RecallrMI	22.6.2022		Bank	B
e	account no	24.5.2023	s		3 4

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8 Heard arguments and perused 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.

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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.

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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 on2 1.6.2022. whereas the present application has been filed on 30.6.2023. Even. it is counted for the purpose of Limitation. then it is established that the applicant bank has Bled 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 Saurabh Kashyap. Branch 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 qf entries in bankers’ books.–Subject to thc pro\isions Qf this Act, a cerli.f'ied COPY of cory emIr' in a banker's book shall in all legal proceedings he received as prima .facie evidence t)f I llc existence of such entry. tmd shall he adnlitted cls evidcrrcc t)f I IIe mc IIters, trcmsacli(nls clrrcl clccoutrts thereill recc)rded in cverv case \there, and to the same extent as. the original entrY itself is //(2rr' by law cldnlissihlc, bIll not further or other\rise.

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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 ghall be taken as the correct statement of account. more so since the entries in the statement of account have not been challenged

OA 331 of 2023 IJI

DRT, PATNA

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 advdnced 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 24.5.2023 has been proved to be Rs.25.19.127.89 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 anal 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.25.19.127.89 along with pendente-lite and future interest aD 7.50 % p.a. with compounded monthly rests from 30.6.2023 (The date of filing of this OA) till realization. So the anal 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.25.19.127.89 along with pendente-lite and future interest at 7.50 % p.a. with compounded monthly rests from 30.6.2023 (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 mortgage(1 or hypothecated or any

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OA 331 of 2023 1.Jl

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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 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 defendants. by sale of mortgaged/ 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 Oftlcer. 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 18111 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

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B & F Wing) Karpuri Thakur Sadan. Kenckiyd Kdramchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(2) 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. 217/2024

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IN Case No: OA/331/2023

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in the Matter of

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(CH- 1) UNION BANK OF INDIA B.R.B. COLLEGE BRANCH. MC)HANPLTR RUAD SANIASTIPLJR .BIHAR -848 101

Applicant( s)

----– Versus -–----

(CD- 1) MS ANANYA ENTERPRISES Nayak Complex, Mohanpur Road, Samastipur .BIHAR -848 1 0 1

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(CD- 2) SMT. PREN[LATA DEVI (PROPRIETOR

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/BORROWER I

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WIFE OF SRI VIDYA SHANKAR YADAV, RESIDENT OF WARD NO.4. MUSAPUIt.

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DISTRICT- SAN4ASTIPUR. PIN- 848 101

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Dcfendant(5)

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(CD- 3) SRI VIDYA SHANKAR YADAV (GUARANTOR/MORTGAGOR) SON OF SRI RAM CHANDRA RAY. RESIDENT OF WARD NO.4. MUSAPUR. DISTRICTSAMASTIPUR, PIN- 848 101

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Recovery Certificate for Rs 2519127.89 1 Rupees Twenty Five LaI ihs Nineteen Thousands One Hundred Twenty Seven And Paise ngLty Nine OnI)=I

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In terms of final 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. 2519127.89 along with cost, expenses and interest frol-n the 30/06/2023 i.e, date of filing / with effective date of the OA/331/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certitlcate Debtors. hereinafter referred to ds:-

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CDName	Int. Type/Mode,	Int. iRate	iEffective Date	rdcr Date	,mount(Rs.	Liabnity Type	RC ,mount(Rs.)
AN ANYA ENTERPRISES	pound (Monthly)	}7.50	}30/06/2023il	18/09/2024	.i2519127.89	ly ’IAnd ISeverally	19127.89
MT. PREMLATA DEVI PROPRIETOR /BORROWER)	lpound Monthly )	r,50i	l3	18/09/202	4:E2519127.89	lointly iIAnd	519127.89
Rl VIDYA SHANKAR YADAV (GUARANTOR/MORTGAGOR)	Intcrcs :Monthly)	F7.50	130/06/2023:I	18/09/2024	12519127,89	!Jointly :IAnd	9127.89

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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 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 Recovel)' of Debts and Bankruptcy Act 1 993

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

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The Recovelv 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, 1 993 (as amended from 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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bW DJ:::8 !!! :aif: La4 t i b u n a 1 PataB

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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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 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 COS TS

RC No. 217/2024

Case No: OA/331/2023

Applicant(s): UNION BANK OF INDIA Versus

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Defendant(s): MS ANANYA ENTERPRISES

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Item ofCosts	lountinRs
'eeon the application	b8000
r	Fi
AdvocateFees	He
e	Dc
iscellaneous Charges	[0
o	128000

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Place: PATNA

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Date: 19/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Union Bank of India v. Ms Ananya Enterprises

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ms Ananya Enterprises

Case brief

What is this about?

What did the court decide?

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