Allowed

Canara Bank v. Dr. Jitendra Prasad Singh

DRT18 Sept 2024OA/396/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal adjudicated an application filed by Canara Bank to recover a loan of Rs. 65,58,831.07 along with interest from Dr. Jitendra Prasad Singh. The Tribunal allowed the application, determined the debt, and issued a recovery certificate for realization through the Recovery Officer.

What did the court decide?

The defendant is ordered to pay Rs. 65,58,831.07 with interest; a Recovery Certificate was issued for realization.

Canara Bank versus Dr. Jitendra Prasad Singh — Contract and Commercial Disputes | DRT (2024)

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DRT, PATN A

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OA 396 of 2023 1.Jl

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Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri KaushalendraYadav

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OA Case No. 396 of 2023

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Canara Bank. Patna South Gandhi Maidan. Patna- 1

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. . . . . . .Applicant

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Dr. Jitendra Prasad Singh S/o Tribhuwan Prasad Singh C/o GD Singh. C-73. New Patrakdr Nagar. Kali Mandir Road. Hanuman Nagar Kankarbagh. Patna20. PAN no. ARMPS4920J.

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. . . . . . . Defendant

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Present:

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For the Applicant For the Defendant

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Shri Nishant Kashyap. Advocate Shri N.K. Singh. Advocate

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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 ot Debts and Bankruptcy Act. 1993 (here-in-after referred to as Act) on 14.8.2023 against the defendant to recover its debts from defendant of Rs.65.58.831.07 as on 28.7.2023 along with pendente-lite and future interest fil 10.95% p.a. with monthly rests from 29.7.2023with 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 Undertaking) Act 1970 and having its central office at 112. JC Road, Bangalore 560002 and Circle office at Luv Kush Tower, 3"1 and 4th Floor, Exhibition Road. Patna-1 and Branch Office at Patnd South Gandhi Maidan. Patna- 1

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3 . Defendant approached the bank for grant of term loan of Rs.100 lakh on 20.10.2020. which was sanctioned by the bank on 28.10.2020. Defendant executed the various loan documents in favour of the bank. The defendant through a letter dated 29.10.2022 informed the bank that his business is not running as expected and hence requested the bank to restructure his loan account. The bank vide letter dated 16.11.2022 informed the defendant that

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OA 396 of 2023 IJI

DRTI PATNA

presently there is no restructuring scheme in force and advised to get the arrears cleared and then rephrase /reschedule the loan as per the scheme guidelines.

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After availing the sanctioned credit facilities defendant became irregular in repayment of his 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 29.4.2023 .

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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 filed by the bank.

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The total liability in the loan account is Rs.65.58,831.07 with pendentelite and future interest @10.95% p.a. with monthly rests from 29.7.2023 till the realization

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This Tribunal issued summon/notice copy of application & paper book to the defendant by registered/speed post on 23.8.2023. requiring them to showcause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRI [Procedure] Rules. 1993_

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In response of defendants has appeared and filed written statement stated that the bank has not annexed required documents such as loan application. sanction letter. statement of account. It is further stated that the bank has also not furnished the details of debts secured by security interest over properties and assets as contemplated. The rate of interest which was agreed upon by the defendant is evident from sanction memorandum being 8.45% p.a. floating whereas contrary to agreed rate of interest mentioned 8.55% p.d. in hypothecation agreement which is not possible and in actual charged contrary to same which is highly excessive. It is further stated that the in the absence of any document it cannot be assumed that there was no scheme for restructuring the loan account nor the applicant replied to letter dated 17.4.2023 by which the defendant requested to restructure the loan account. In view of the above facts

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and circumstances the present OA is fit to be dismissed with special cost to the defendant .

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However. the defendant in his written statement has not denied the sanction of loan amount. its utilization and further to secure the loan. execution of relevant documents

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Further the defendant has not substantiated the contents made in his written statement by filing their evidence on affidavit

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As per section 19(10B) of the Recovery of Debts and Bankruptcy Act. 1 993

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If any of the facts or pleading in the application or written statement are not verified in the manner provided under sub section ( 10A). a party to the proceedings shall not be allowed to rely on such facts or pleadings as evidence or any of the matters set out therein.

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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 Dilip Kumar Sinha. Chief Manager of the applicant bank. The details of documents are as follows:

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Sl-N'1	1 Descriptionof Documents PhotocoDies	T Date of IExecution	Amount	Signature of Executants	Ex./ FAnn No
t			Rs.100 lakh	Defendant	n
2	1Sanctionletter	llm	Rs.100lakh	Bank	a
a -)	proprietorship			11
4	PDR	129.10.2020	Rs. 100 lakh	Defendant	R
5	Letter a undertaking	29. 10.2020	Rs,100 lakh	Defendant	5
6	e undertaking	29. 10,2020		Defendan{	6
7	Particularsof vehicle	29.10.2020		defendant	7
8	Common hypothecation agreement	29.10.2020	Rs.100 lakh	Defendant	8
9	Loan restructuring	16.1 1.2022		Bank	9
10	F	1.12.2022		Bank	10
11	e			defendant	11

DRT. PATN A

OA 396 of 2023 1 .Jl

request letter
e	2.5.2023		Bank
Recallnotice	1 1.5.2023		Bank
Statement mc		s
account	28.7.2023

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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 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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II. 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 on 29.4.2023. whereas the present application has been filed on 14.8.2023. 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 Dilip Kumar Sinha. Chief Manager of the applicant bank. has filed the affidavit in support of contents of application and the documents as

OA 396 of 2023 1.Jl

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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 of proof of entries in bankers’ books.Subject to the pro:isions Qf tllis Act. a cel'tifled copy Qf tnt)? entry in a banker 's book shalt in alt legal proceedings he received as printa facie evidence of The existence of such entrY, and shall be udnriffed cts evidence of the ttrcltters, Ircltrsclclions and accounts therein recorded in ever\’ case \there. and to the sanle ex lent CIS. the original enlr\’ itself is now’ bv lot adntissibte, huI noi further 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 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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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 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

OA 396 of 2023 1 JI

DRT, PATN A

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 28.7.2023 has been proved to be Rs.65,58,831.07 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 realizdtion 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.65.58.831.07 along with pendente-lite and future interest ka 9% p.a. with compounded monthly rests from 14.8.2023( 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.65.58.831.07 along with pendente-lite and future interest kb 9% p.a. with colnpounded monthly rests from 14.8.2023 (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 mortgdged 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 hypothecdted 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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OA 396 of 2023 1.J I

DRT, PATN A

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 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. pl/

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Dictated &corrected by me.

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\X V\ \n!!b/\

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[KaushalendraYddav] 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 SacIan, Kendriya Karamchari Parisar (GPO A), 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. 215/2024

Case No: OA/396/2023

In the Matter of:

(CH- 1) CANAR A BANK

Applicant(s) PATNA SOUTH GANDHI NIAIDAN PATN A .BIHAR -0

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----– Versus ------To

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(CD- 1) DR. JITENDkA PMSAD SINGH S/o Tribhuwan Prasad Singh Defendant(s) C/o - G.D. Singh, C-73, New Patralcdr Nagar, Kali Mandir Road, Hanuman Nagar Kankarbagh, Patna ,BIHAR -80(>020

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Recovery Certificate for Rs 6558831.07 [ Rupees Sixty Five Lakhs Fifty Eight Thousands Eight Hundred Thirty One And Paise Seven Only_1

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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. 6558831.07 along with cost, expenses and interest from the 14/08/2023 i.e. date of filing / with effective date of the OA/396/2023 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.noICDName	Loa Type	Int. ’pc/Mode Ra	iEffective Date	Order Date	mount(Rs.)	Liability }Type	Interest I(asOl Order Date)	RC .mount(Rs.)	Remar
DR NDRA PRASAD INGH		:ompound ;Interest :Monthly )	14/08/2023 :	l18/09/2024	>558831.07	iIFully	Interest FAs on IOrder Date	:6558831.07	J

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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(J/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors.

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The moltgaged 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 . Parties are directed to appear before ASHISH KUMAR . Recovery C)ftlcer. DEBTS RECOVERY TRIBUNAL PATNA on 04/ 1 ’2024

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The Recovery Officer shall realize the amount as per this Certificate in the m,Inner 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 Certificate Debtors,

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This Certificate has been issued under my signature and seal of the Tribunal on this 19/09/2024t/’

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PRESIDING OFFICER DEBTS RECOVERY 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

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

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 215/2024

Case No: OA/396/2023

Applicant(s): CANARA BANK Versus

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Defendant(s): DR. JITENDRA PRASAD SINGH

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Item ofCosts	;/\mount
Feeontheapplication	1000
I
AdvocateFees	ro
o	[)
4iscellaneous Charges	rii
TotalCosts:Rs	F68000

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Place: PATNA

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Date: 19/09/2024

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PREsiDr&} OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Canara Bank v. Dr. Jitendra Prasad Singh

Case brief

What is this about?

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Canara Bank v. Dr. Jitendra Prasad Singh

Case brief

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