Allowed

Indian Bank (Allahabad Bank) v. M/s Maa Laxmi Rice Mill

DRT19 Sept 2024OA/428/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application filed under Section 19 of the RDB Act, determining the debt owed by the borrowers and guarantors based on documentary evidence submitted since the defendants did not appear to contest.

What did the court decide?

Defendants ordered to pay Rs. 2,10,46,743 with interest and costs; Recovery Certificate issued; mortgaged/hypothecated assets attached.

Indian Bank (Allahabad Bank) versus M/s Maa Laxmi Rice Mill — Banking and Recovery | DRT (2024)

OA 428 of 2023 IJl

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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

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OA Case No. 428 of 2023

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Indian Bank, SAMV Branch, Patna

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. . . . . . . Applicant

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Vs.

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M/s Maa Laxmi Rice Mills through proprietor Usha Devi W/o Late Gajendra Kumar, R/o Khushalpur, P.O.-Chipura Khurd, Sampatchak, District-Patna-804453 PAN no. CBPPD 106 IA.

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Usha Devi W/o Late Gajendra Kumar R/o Khushalpur, P.O.-Chipura Khurd, Sampatchak, District-Patna-804453

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Ranjeet Kumar S/o Rameshwar Prasad Singh R/o Village-Alampur, P.O.Kachhi Dargah, P.S.-Didarganj , District-Patna-803201

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Rajesh Kumar S/o Late Gajendra Kr. Singh, R/o Khushalpur, P.O. Chipura Khurd, Sampatchak, District-Patna-804453

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Suresh Singh R/o Bahuara , P.O.-Sonagopalpur, P.S.-Gaurichak, DistrictPatna.

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Arti Kumari D/o Gajendra Kumar Singh R/o Khushalpur, P.O.-Chipura Khurd, Sampatchak, District-Patna- 804453

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Nikhil Raj S/o Gajendra Kumar Singh R/o Khushalpur, P.O.-Chipura Khurd, Sampatchak, District-Patna- 804453

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. . . . . . . Defendants

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Present:

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For the Applicant : Dr. B.K. Jha, Advocate For the Defendants : None

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Dated:19.09.2024

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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 1.9.2023 against the defendants to recover its debts from defendants of Rs.2,10,46,743/as on 13.7.2023 along with pendente-lite and future interest at the contractual rate from 14.7.2023 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 companies (Acquisition and

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Transfer of Undertaking) Act 1970, having its Head Office at 254-260 Awai Shanmugham Salai, Royapettah, Chennai-600014 and Zonal office at Kotwali Patna and one of its Branch Office at Patliputra Colony Branch from where the account migrated to SAMV Branch Patna.

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Defendant no. 1 is proprietorship firm and defendant no. 2 is proprietor and defendant no. 3 to 7 are guarantors of the said firm. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of term loan of Rs.120 lakh and cash credit limit of Rs.60 lakh on 27.3.2017, which was sanctioned by the bank on 31.3.2017. Defendant no. I & 2 further approached the bank for grant of GECL loan of Rs. 31 lakh on 28.10.2020, which was sanctioned by the bank on 31.10.2020. Defendants executed the various loan documents and defendant no. 1 & 2 created equitable mortgage of his property details given at page 19 in schedule-B of OA. After death of Gajendra Kumar Singh legal heirs of deceased Usha Devi and Two sons Rajesh Kumar & Nikhil Raj executed the regd. mortgage of his property in favour of the bank.

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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 28.4.2022

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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.2,10,46,743/- with pendentelite and future interest at the contractual rate from 14.7.2023 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 21.9.2023 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

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subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 7.3.20245 in “Dainik Bhashkar” 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.

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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 Mritunjay Prasad Singh, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.N')	IDescription Documents Photocopies of	1 Date of Execution	Amount	Signature of Executants	1Ex./ IAnn. No
1	)	27.3.2017	s CCRs.60lakh	I no.1&2	1
2	Sanction letter	31.3.2017	s		2
3	Acknowledgement letter	31.3.2017		Defendant no.1&2	Plj
4	DP note	31.3.2017	Rs. 180 lakh	Defendant no.1&2	4
5				Defendant no. I &2	5
6				Defendant no.1&2	6
7	t			Defendant no. I &2	7
8				Defendants	8
9	P		Rs.180lakh	e no. I &2
10	PDR	31.3.2017	Rs. 180 lakh	e
11	Copyofsaledeed				11
12	Regd. mortgagedeed
13	Legalopinion
14	Deathcertificateof Gajendra M Singh				14
15	arrangement				15
16	Copyofmutation				16

DRT. PATNA

OA 428 of 2023 IJI

17	1LPCcertificate				17
18	NEC				18
19	Loanapplication	28. 10.2020	Rs.31 lakh	e no.1&2
20	Sanction letter	31 .10.2020	Rs.31 lakh	a
21	Acknowledgement and DPnote	31 . 10.2020		e no. I &2
22	Agreement of hypothecation documents	31 .10.2020	Rs.31 lakh	e no. I &2
23	Confirmation extensionof EM				23
24	Termloanagreement	28.1.2022	s	na no.1&2
25	Agreement of hypothecation agreement	28. 1.2022	s	na no.1&2
26	) deed				26
27	Demand notice U/s 13(2) of SARFAESI Act	6.5.2022		Bank	27
28	Possession notice 13(4) of SARFAESI Act	13.10.2022		Bank	28
29	Publication of bossessionnotice	19. 10.2022		ma	29
30	o	Ason 13.7.2023	s		30

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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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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 28.4.2022, whereas the present application has been filed on 1.9.2023 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 Mritunjay Prasad Singh, 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 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 provisions of this Act, a certifIed copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be adnritted as evidence of the matters, transactions and accounts therein recorded in every case

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where, and to the same extent as, the original entry itself is now by law admissible, but not 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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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 13.7.2023 has been proved to be Rs.2,10,46,743/- 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.2,10,46,743/- along with pendente-lite and future interest @ 7.50% p.a. with compounded monthly rests from 1.9.2023 (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.2, 10,46,743/- along with pendente-lite and future interest @ 7.50% p.a. with

OA 428 of 2023 1 Jl

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compounded monthly rests from 1.9.2023 (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 debaned 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 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 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 lgth day of September, 2024.

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Dictated &corrected by me.

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

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tORI\1 NO. 9 [See Regulation 24(1)]

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DEBTS RECO\’ ERY TRIBUNAL PA’rNA

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Sadan, Kcndrlya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(2) READ \-ITN SECTION 19fU) OF THE RECOVERY OF DEBTS & BANKRUPTCYAC:T7 IPmIAS

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ANIENDEID FROM TINIE TO TIME.

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RC No, 226/2024

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IN Case No: OA/428/2023

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In the NClatter ot (CH- I) INDIAN BANK ( ALLAHABAD BANK) SAMV BJ{ANC'H PATEL NAGA R PATN A .BIHAR -8000( II

Applicant( s )

.––- Versus

(CD- I ) M/S MA A I.AXNll RICE NlILL Through its Prupriclur Uslla Devi \V/o- Lille Gajendm Kumnr R/uKhushalpur. P.C)- (_-hlpunl I<hurd. Salnpatchak Patnit .BIHAR -Rf 14453

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(CD- 2) USH A DEVI (PROPRIETOR/BORROWER)

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\V/O-LATE (;AJENDRA KUMAR R/O- KHUSHALPUR. P.O.CHIPURA KHURD, SAMPATC'H AK DISTRICT- PATNA -804453

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(CD- 3) RANJEET KUMAR

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S/O- RAMESH\VAR PRASAD SINGH R/O- VILLAGE

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ALAblPUR. P.0.- K AC-HHI DARGAH P.S.- DIDARGANJ, DISTRICT- PATN A 80320 1

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(CD- 4) RAJESH KUMAR S/O- LATE GAJENDRA KR SiNGH. IUC)- KHUSHALPUI{, P.C).CHIPURA KHURD. SAMPATCH AK DiSTRICTPATNA-8(J4453

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Defendant(s)

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(CD- 5) SLIRESH SIN(iH

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R f)- BAH U ARA. P o - St )NAGt-)PALPUR, P.S.- GAURIC_'H AK DISTRICT’T- PATN A

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(CD- 6) ARTI KURT ARI

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D/O- GAJENDRA KUMAR SINGH R/O- KHUSHALPUR. P.Q.-

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C-HIPURA K HURD. SAM PATCH AK. DISTRICTPATN A 8(H+53

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((''D- 7) NIKHIL RAJ

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S/O- GAJENDR A KUMAR SINGH R/O- KHUSHALPU R, P.o

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t.:HI PU RA K HURD. S AIM PATCH AK. DISTRIC'T- PATN A 804+53

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Recu\Try Ccrtificatc for Rs 21046743.til) I Rupees Two (_’rurc Ten Lakhs Forty Six Thousands Seven Hundred Forty Three OnI=1

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In terms of final order dated 19/09/2024 passcd 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. 21046743.00 along with cost. expenses and interest from the 01/09/2023 i.e. date of fIling / with etTective date of the OA/428/2023 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶109

CDNanre IIIO
/SMAALAXMIRIC-EMILL
HADEVI
,OPRIETO R/BORROWER)
SHKUMA
t-ISINGH
RTIKLINIARI
KHILRAJ

¶110

In casc of failure to pay the atbrcmcntioncd 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 nlortgagcd or Irypothccatcd assets to secure the loan in question are hereby attached and shall be subject to the fInal OI'dcr under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 Panics are directed to appear before MANOJ KUMAR . Recovery OtHccr. DEBTS RECOVERY TRIBUNAL PATN A on 04/ 1 1 /2024

¶112

The Recovery 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. 1993 (as amended from time to time) from the above named Certificate Debtors.

¶113

This Certitlcate has been issued under my signature and seal of the Tribunal on this 20/09/2024

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PRESIDING QFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶115

\W'
]E) e b t I I Eg: : 1% b B R a 1
Patni

¶116

FORM NO. 10

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,/--–

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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 Thdkur Sadan, Kendriya Karamchari Parisar (GPOA),

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Ashiana Digha Road. Patna-800025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 226/2024

Case No: OA/428/2023

Applicant(s): INDIAN BANK (ALLAHABAD BANK) Versus

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Defendant(s): M/S MAA LAXMI RICE MILL

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ISr.No	PltemofCosts	iAmount inRs
	Feeon the application	150000
l	e	liT
	AdvocateFees	D(
		IFo
5	IMiscellaneousCharges	[6
	Total Costs:Rs.	150000

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Place: PATNA

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Date: 20/09/2024

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PRESIDING%FFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Indian Bank (Allahabad Bank) v. M/s Maa Laxmi Rice Mill

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/s Maa Laxmi Rice Mill

Case brief

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What did the court decide?

What the court decided

A compact analysis

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