Allowed

Dakshin Bihar Gramin Bank v. M/s P.C. Jewellers

DRT18 Sept 2024OA/350/2023

Case brief

AI extract

What is this about?

The DRT, Patna allowed an application under Section 19 of the RBI Act, 1993 by Dakshin Bihar Gramin Bank against four respondents. The Tribunal determined the debt of Rs. 37.88 lakhs along with interest and costs based on the applicant's affidavit evidence, noting the respondents' absence from proceedings.

What did the court decide?

Order declaring a debt of Rs. 37,88,246.10 along with interest and costs payable by the defendants jointly and severally. Recovery certificate issued under Section 19(22) FF

Dakshin Bihar Gramin Bank versus M/s P.C. Jewellers — Banking and Recovery | DRT (2024)

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DRT. PATN A

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OA 350 of 2023 1,JI

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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 OA Case No. 350 of 2023

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Dakshin Bihar Gramin Bank. Jamui Branch. Jamui

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. . . . . . .Applicant

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M/s P.C. Jewellers through proprietor Chandra Bhushan Prasad Sah Address Near Uco Bank Chc)wk. Mahrajgan j. Jamui-811307.

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Chandra Bhushan Prasad Sah S/o Sri Uday Narayan Sah. Address Near Uco Bank Chowk. Mahrajgani, Jamui-81 1307 PAN no. BZTPS8508M.

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Smt. Puja Devi W/o Chandra Bhushan Prasad Sah. At Purani Bazar, Jamui-8 1 1 307.

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Mr. Ranjeet Kumar Ram S/o Late Rambilas Ram Address at Shivandih. Jamui-8 1 1 307.

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri M.K. Mishra, 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 13.7.2023 against the defendants to recover its debts from defendants of Rs.37.88.246.10 as on 30.4.2023 along with pendente-lite and future interest fri 13.5% p.a. with monthly rests from 1.5.2023 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 regional Rural Bank Act 1976 as subsidiary Bank of Punjab National Bank. having its Head Office at Vishnu Commercial Complex. NH-30 near Highway Petrol Pump and one of its regional office at Jamui. District-Jamui and Branch c)face at Jamui.

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Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of cash credit limit of Rs. 44 lakh on 10.1 .201 8. which was sanctioned

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by the bank on 6.3.2018 and renewed on 16.9.2021. 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 3.1.2023 .

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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 nIe(i by the bank.

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The total liability in the loan account is Rs.37,88.246.10 with pendentelite and future interest @13.5% p.a. with monthly rests from 1.5.2023 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 4.8.2023. 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 17.9.2023 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 nIe WS. hence. the Tribunal has passed an order to proceed ex-parte against the defendants on 10.5.2024.

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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 Jaytantra Kumar.

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

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SI,No	Descriptionof Documents Photocopies	Date of Execution	Amount	Signature of Executants	Ex./ Ann. No
1	Loan application	12.7.2021	Rs.50lakh	Mal I &I
a	Sanction letter	6.3.2019 16.9.2021	Rs.44lakh	a	I
-tj	m;ilMt ion agreement	6.3.2018	Rs.44lakh	Defendantno. I&2	3
4	I	6.3.2018	Rs.44 lakh	Defendantno. 3 &4	F4
rI	PDR	20.9.2021	Rs.44 lakh	B
6	Equitablemortgage of land and building				6
7	e			Bank	7
8	e			Bank	8
9	e confirmationletter			Defendants	9
10	Statement of account	I Ason 30.4.2023	s		10

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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 Tndia.

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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 cl,tim on the date of filing of application exceeded Rs.20 lacs. The

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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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12 On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 3.1.2023. whereas the present application has been filed on 13.7.2023. Even, it is counted for the purpose of Limitation. then it is established that the applicant bank has DIed 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 Jaytantra Kumar. 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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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 tIf proof of entries in bankers’ books.–Subject to tIre prcnisi(wls ( if this Act. a certifIed copy tIf ally t'Irlr)’ iII cl bcnlkcr’s book shall in tIll legal proceedings he rccci xed CIS Iwilma .fZwie evidence tIf tIte existence of stlcII entrY. and shall be aclnlitted cls evidence of fIle nrcltters. trclnsclctiolrs cmd accounts therein recorded in everY cclsc \vlrere, and to the scmre extent CIS. The original entrY itsejf is non’ by Icr\v cldnlissible, bIlt not further or otllel-\vise.

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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

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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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15 . 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 lo,in amount with interests etc.. the defendants have executed vdrious loan documents. as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicdnt 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 30.4.2023 has been proved to be Rs.37.88.246.10 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.37.88.246.10 along with pendente-lite and future interest kF 13.5% p.a. with compounded monthly rests from 13.7.2023 (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.37.88.246.10 along with pendente-lite and future interest rZ4 13.5% p.a. with compounded monthly rests from 13.7.2023 (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 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 anal 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 cenincate of recovery be drawn up forthwith and put up for signatures in terms of provisions cont,lined 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(1/ hypothecated assets as well as other personal movable/immovable assets of the defendants

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Pdrties 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 1 8th day of September. 2024.

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,/r / t a (aVt ' {- [KaushalendraYadav] Presiding Officer Debts Recovery Tribunal. Patna

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Dictated &corrected by me.

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FORM NO. 9

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V / a

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DEBTS RE('’OVER\’ TRIBUNAL PATN A

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[See Regulation 24( ! )]

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2nd Floor. ( A. B & F Wing) Kdrpurt Th,rkur Sad,in. Kendr-iya Karamchdri 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 & BANKRUPTC- ACT, 1993. AS AMENDED FROtH TIME TO TIME.

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RC No. 216/2024 iN

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Case No: OA/350/2023

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In the Matter of (CH- 1) DAKSHIN BIHAR GRAMIN BANK BRANCH JAMUI JAN’It_ Ji, BIHAR -o

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Applicant(s)

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(CD- 1) M/S P.C. JEWELLERS through its sole proprietor Chandra Bhushan Prasad SaIl, Address- Near Uco Bank Cho\wk. Mahrajganj, Jamui.BIH AR -8 1 1 307

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(CD- 2) CHANDRA BHUSHAN PRASAD SAH S/0- SRI LIDAY NARAYAN SAH ADDRESS- NEAR LICO BANK (-FIOWK. MAHRAJGANJ. JAMUJ - 811307

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Defendant(s)

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(CD- 3) SMT. PUJA DEVI (GUARANTOR)

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W/0 - CI-IANDR A BHUSH AN PRASAD SAH AT. PURAN I BAZAR JAM Ul- 8 ll 3fy7

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(CD- 4) MR. RANJ EFT K L 1 MAR RAM ( GUARANTOR)

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S,’O- LATE- R AMBll,AS RAM ADDRESS- ATSHIVANDIH JAMUI- 8 ll 307

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Recovery Certificate for Rs 3788246.10 1 Rupees Thirty Seven Lakhs EigUy Eight Thousands Two Hundred Forty Six And Paise Ten Only

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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. 3788246.10 along with cost, expenses and interest from the 13/07/2023 i.e. date of filing / with effective date of the OA/350/2023 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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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgage(i/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 final order under the recovery proceeding in pursuance of the Recovery certifIcate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1 993

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Parties air directed to appear bcf'orc ASHISH KUMAR . Recovery OHlccl'. DEBTS RECOVERY TRIBUNAL PATNA on 04/1 1/2024.

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The Recovery Officer shall realize the amount as per this Certitlcate 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 Ccrtitlcate Debtors

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This CertifIcate has been issued under my signature and seal of the Tribunal on this 1 9/09/2024

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a c /
B+:E: ;IIJI!if : La{ \ r i b u n a 1
pata8

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L/ 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