Allowed

State Bank of India v. Ms Mahaveer Automobiles

DRT19 Sept 2024OA/435/2023

Case brief

AI extract

What is this about?

In this OA, the Debts Recovery Tribunal adjudicated the claim of the State Bank of India against borrower-defendants for an agricultural loan. The bank established its claim via documentary evidence and an affidavit. The Tribunal determined the debt amount, ordered payment with future interest, issued a recovery certificate, and attached mortgaged assets.

What did the court decide?

Recovery of Rs. 52,36,278.47 with future interest at 9% p.a., issuance of Recovery Certificate under Section 19(22), and attachment of assets.

State Bank of India versus Ms Mahaveer Automobiles — Contract and Commercial Disputes | DRT (2024)

DRT, PATN A

OA 435 of 2023 1 Jl

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sa(lan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 435 of 2023

¶8

State Bank of India, SARB, 2ndFlor, Patna Main Branch Building, West of Gandhi Mai(ian, Patna- 1

¶9

. . . . . . .Applicant

¶10

¶11

M/s Mahaveer Automobiles, Business at NH 31, Near Ford Company Chowk, Purnea, District-Purnea-854301 .

¶12

Dashrath Kamti Suman S/o Mahaveer Kamti M/s Mahaveer Automobiles, R/o Prabhat Colony, Near Mount Carmel School District-Purnea-854301

¶13

Manyu Kumar S/o Dashrath Kamti Suman M/s Mahaveer Automobiles R/o Prabhat Colony, Near Mount Carmel School District-Purnea-854301.

¶14

. . . Defendants

¶15

Present:

¶16

For the Applicant : Shri A.K. Sharan, Advocate For the Defendants : Shri Vikas Kumar Jha, Advocate

¶17

Dated: 19.09.2024

¶18

JUDGMENT

¶19

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 4.9.2023 against the defendants to recover its debts from defendants of Rs.52,36,278.47as on 31.7.2023 along with pendente-lite and future interest @ 13.40% p.a. with monthly rest from 1.8.2023 with costs till realization.

¶20

The application has been filed with the contention that the applicant bank, is a body corporate, constituted under the State Bank of India Act 1955 having its corporate Centre at Madam Cama Road, Mumbai-40002 1 and one of its Local Head Office at West Gandhi N4aidan, Patna and one of its Branch from where the loan proposal was originally sanctioned by Purnea Bazar Branch, Patna and present account transferred /migrated to the SARB, Patna.

¶21

Defendant no. I represented through its partners defendant no. 2 & 3 approached the bank for grant of loan of Rs.24 lakh on 20.12.2018, which was sanctioned by the bank on 31.12.2018. Defendants executed the various loan documents. The rate of interest was agreed @3.60% above the MCLR which is presently 12.15% p.a. with monthly rest on cash credit limit subject to rise and fall in PLR according to RBI guidelines issued from time to time. Defendant

A\n

OA 435 of 2023 1 Jl

DRT, PATN A

no. 2 & 3 hypothecation of stock and book debts current as primary security present and future. Defendants further approached the bank for enhancement of loan upto Rs.45 lakh on 29.1.2020, which was sanctioned by the bank on 3.3.2020.The rate of interest was agreed @4.75% above the MCLR which is presently 8.55% p.a. present effective rate 12.80% pa. monthly rests on cash credit limit subject to rise and fall in PLR according to RBI guidelines issued from time to time.

¶27

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 on29.10.2022

¶28

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.

¶29

The total liability in the loan account is Rs.53,36,278.47with pendentelite and future interest @13.40% p.a. with monthly rests from 1.8.2023 till the realization.

¶30

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 26.9.2023, 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 appeared.

¶31

Despite the registered summons/notices, the defendants have appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to file written statement, but they failed to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 24. 1 1.2023 .

¶32

IA Diary no. 215/2024

¶33

This IA has been filed on behalf of the defendants for recalling the order dated 12.3.2024 passed by this Hon’ble Tribunal in OA 435/2023. It is also submitted that the IA no. 56/2024 has been dismissed without proper assistance from the side of defendants as the counsel of defendants could not appear in virtual court due to technical issue. In view of the above facts and [ ] (oI

OA 435 of 2023 1 Jl

DRT1 PATN A

circumstances this IA is allowed to recall the order dated 12.3.2024 passed in OA no. 435/2023.

¶38

In view of the above fact and circumstances an opportunity granted to defendants to argue the case. Accordingly the IA Diary no. 215/2024 is disposed off

¶39

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 Shashi Ranjan Choudhary, Chief Manager of the applicant bank. The details of documents are as follows:

¶40

SI.No	of Description Documents Photocopies	Dateof Execution	Amount	Signatureof Executants	Ex./ Ann No
1	)	20.12.2018	Rs.24 lakh	Defendants	1
2	Sanctionletter	31.12.2018	Rs.24 lakh	Bank	2
3	Agreement ofloan cumhyDothecation	31.12.2018	Rs.24 lakh	Defendants	3
4	r	31.12.2018	Rs.24 lakh	Defendants	4
5	PDR	31.12.2018	Rs.24 lakh	Defendants	5
6	PDR	31.12.2018	Rs.24 lakh	Defendants	6
7	Simple mortgage deed				7
8	NEC				8
9	LPC				9
10	Loanapplication	29.1.2020	Rs.45 lakh	Defendants	10
11	Sanctionletter	3.3.2020	Rs.45 lakh	Bank	11
12	Supplemental agreement ofloan cumhyDothecation	3.3.2020	Rs.45lakh	Defendants	12
13	r	3.3.2020	Rs.45lakh	Defendants	13
14	PDR	3.3.2020	Rs.45lakh	Defendants	14
15	Simpledeed				15
	Revival letter	16.2.2023		Defendants	16
	Statementofaccount	As on 3 1.7.2023	Rs.52,36,278.47	Bank	17& 18
18	Notice	2.9.2022 23.9.2022 6.10.2022		bank	19to 23

OA 435 of 2023 1 Jl

DRT, PATN A

	21.10.2022 2. 1 1 .2022
Letter	5.7.2023
Legal notice	7.7.2023	Bank adv
Demand notice	10.8.2023	Bank

¶45

Heard arguments and perused the case record.

¶46

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.

¶47

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.

¶48

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.

¶49

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 29.10.2022, whereas the present application has been filed on 4.9.2023 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.

¶50

Shri Shashi Ranjan Choudhary, 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. n / \n\I

DRT. PATN A

OA 435 of 2023 1 Jl

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.

¶55

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.

¶56

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.

¶57

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 admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.

¶58

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.

¶59

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.

¶60

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 31.7.2023 has been proved to be Rs.52,36,278.47 only by way of statement of account. There is nothing to prove the amount more than that disclosed in the

<\\N

r I

OA 435 of 2023 1 Jl

DRT, PATNA

aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

¶67

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.52,36,278.47along with pendente-lite and future interest @9% p.a. with compounded monthly rests from 4.9.2023 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶68

ORDER

¶69

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.52,36,278.47along with pendente-lite and future interest @ 9% p.a. with compounded monthly rests from 4.9.2023(The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶70

It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

¶71

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 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.

¶72

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. n / b(,\ q\q

1 q

DRT, PATN A

OA 435 of 2023 1 Jl

Parties are directed to appear before the Recovery Officer, DRT, Patna on 4.11.2024. The order be communicated accordingly.

¶78

Judgment signed, sealed, dated and pronounced in the open court on lgthday of September, 2024.

¶79

Dictated &corrected by me.

¶80

[Kaushalendra Yadav] Presiding Officer

¶81

Debts Recovery Tribunal, Patna

¶82

FORM NO. 9

¶83

¶84

DEBTS RE(:O\7E R\’' TRI BU NA 1, PATN A

¶85

[See Regulation 24( 1 )]

¶86

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

¶87

RECOVERY CERTIFICATE UNDER SECTIQX 19(Z) READ \ II-H SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACTS 1993, A$ A\IEXbED FROM TIME TO TIME.

¶88

RC No. 225/2024

¶89

IN Case No: OA/435/2023

¶90

In the Matter tif.

¶91

(CH- 1 ) STATE BANK ( )F INDIA STATE BANK OF INDIA SARB STRESSED ASSETS RECOVERY BRANC'1] 2ND FLOOR OF PATN A MAIN BRANCH BUILDING WEST OF GANDHI M AIDAN PATNA

Applicant(s )

PATNA .BIHAR -o

-––- Versus

(CD-. 1) M/S MAHAVEER AUTOMOBILES

¶97

Business at NH- 3 1. Ncilr Ford C'uml)any Chou’k Purnla ,BIHAR -8543(II

¶98

(CD- 2) DASHR ATI-I KAMTI SUMAN . PARTNER/GUARANTOR/MORTGAGOR S/O- MAHAVEER KAMTI M/S MAHAVEER AUTQMOBILES RESIDENT OF- PRABHAT COLONY, NEAR MOUNT CARMEL SCHOOL DISH- PURNEA

¶99

Defendant(s )

¶100

-854301 BIHAR

¶101

(CD- 3) MAN\’( 1 Kt JNIAR PARTNER/GLJAILANTOR

¶102

S/O- DASHRATII KANITI SUM AN M/S MAI-IAVEER

¶103

AUTOMOBILES RESIDENT OF- PRABHAI' COLONY, NEAR MOUNT CARMEL SCHOOL DISTT- PURNEA

¶104

-85430] BIHAR

¶105

Recovery (crtincatc for Rs 5236278.47 1 Rupees Fifty T\yo Lakhs Thirty Six Thousands Two Hundred Sc\ent}Bght And Pnise Forty Seven Only

¶106

In terms of final order dated 19/09/2024 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. 5236278.47 along with cost. expenses and interest from the 04/09/2023 i.e, date of filing / with effective date of the OA/435/2023 and future interest from order date till the date of realisation in full. jointly or severally from the Certificate Debtors. hereinafter referred to as:-

¶107

CDName	Loan Type	Int. nt. IType/ModegRate	IEffective } Date	Order Date	B	!
4/SMAHAVEER AUTOMOBILES		Iv) M	F/09/2033	1 19/09/2024	.47	}lntly ly	>6278.47
KAM TI v/IAN 'MORTGAGaR ARA			F/09/2023'	I19/09/2024;	l5236278.47
IANYU KUMAR ARANTC)R	I	Ipc)und I nterest INlunlltlv t	’09/2023	1 19/09/20:4	,378.47

¶108

In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgagett/hypothec,IIed assets as well as other personal movable/ Immovable assets of the certificate debtors.

¶109

The mortgaged or hyputhecated assets to secure the loan in question are hereby attached and shall be subject to the fLnal order under the recovery proceeding in pursuance of the Recovely certitlcate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993

¶110

Pill'tics ilre directed to appeilr before 1\IANOJ KUMAR . Reco'cl'} Ot11ccr. DEBTS RECOVERY TRIBUNAL PATN A on 04/ I1/2024,

¶111

The Rccovcrv 0111cer shall realize the amount as per this C’cl'tillcate in the mair11er and nludc pI'cscribed 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

¶112

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

¶113

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶114

AT
Registrar
Deb a
Recovery
Paau

¶115

FORM NO. 10 [See Regulation 24(2)]

¶116

die

¶117

DEBTS RECOVERY TRIBUNAL PATNA

¶118

2nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA),

¶119

Ashiana Dighd Road. Patna-800025.

¶120

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 225/2024

Case No: OA/435/2023

Applicant(s): STATE BANK OF INDI A Versus

¶126

Defendant(s): M/S MAHAVEER AUTOMOBILES

¶127

Sr.No	Item ofCosts	r
	Feeon the application	m5
2	i	[ii
3	FAdvocateFees	6
4	IC'ommissioner/Receiver/Valuation/SecurityFee	to
	MiscellaneousCharges	ro
	Total Costs:Rs	m6

¶128

Place: PATNA

¶129

Date: 20/09/2024

¶130

PRESIDING &fFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶131

Note: Strike out whichever is not applicable

State Bank of India v. Ms Mahaveer Automobiles

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Mahaveer Automobiles

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Farhana K C versus Canara Bank

Bank of Baroda (E-Vijaya Bank) versus Sh.Sukhavinder Singh

Union Bank of India (E-Andhra Bank) versus M/S Jmb Steel

Punjab National Bank versus Paramdeep Singh

Bank of Baroda versus Nitu Devi

Union Bank of India versus Ms Sunita Enterprises