Allowed

Hdfc Bank v. Shivang Automobiles Pvt. Ltd.

DRT18 Sept 2024OA/437/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues under Section 19 of the RDB Act. The court relied on documentary evidence and the banker's books evidence act, rejecting no-show defendants by default. It determined the debt and issued a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs. 28,18,564.78 with interest and costs to be realized by the Recovery Officer.

Hdfc Bank versus Shivang Automobiles Pvt. Ltd. — Insolvency and Bankruptcy | DRT (2024)

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OA 437 of 2022 IJ I

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DRT, PATN A

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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 KaushalendraYadav OA Case No. 437of 2022

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HDFC Bank Ltd.. 2nd Floor Rajendra Rama Plaza Exhibition Road. Patna- 1

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.Applicant

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Shivang. Automobiles Pvt. Ltd. 302 Hera Enclave New Dakbunglow Road, Patna-800001

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SangeetaSrivastava302 Hera Enclave New Dakbunglow Road. Patna800001

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Anil Kumar. 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 15.7.2022 against the defendants to recover its debts from defendants of Rs.28.18.564.78 as on 9.5.2022 along with pendente-lite and future interest @ 12% p.a. with monthly rests from 10.5.2022 with costs till realization.

¶17

The application has been filed with the contention that the applicant bank, is a body corporate. under the companies Act. 1956 and also a banking company within the meaning of the banking regulation Act 1949 having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West) Mumbai-400013 and Branch Office at 2nd Floor Rajendra Ram Plaza Exhibition Road. Patna- 1 .

¶18

Defendant no. 1 is a private limited company having its three Directors namely Alok Kumar, Ajit Kumar and Sangeeta Srivastava. Here. Shivang Automobiles Pvt. Ltd. Is the loan applicant along with Sangeeta Srivastavd as the loan co applicant have dvailed the loan facility for Rs.40,19.500/- wherein an amount of Rs.39,95,491,/- has been disbursed in favour of the defendants. Defendants executed the various loan documents.

¶19

After availing the sanctioned credit facilities defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to

' i,\

OA 437 of 2022 1 J 1

DRT, PATN A

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 on30.9.202 1.

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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.28,18.564.78with pendentelite and future interest @ 12% p.a. with monthly rests from 10.5.2022 till the realization.

¶27

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 13.1.202 1. 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 13.3.2024 in "Prabhat Khabar’' newspaper.

¶28

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.

¶29

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

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Sl-No	1Description Documents PhotocoDies of	1Date of Execution	Signaturec Executants	Ann No
	PanCard copy
2	Application	12.1.2018	Defendants	a
	Loanagreement		Defendants
	Di sbursement memo

OA 437 of 2022 IJ I

DRT, PATN A

Statement of	on 1 As	1Rs.28.18,564.7	8Bank
account	9.5.2022
Recall notice	12.5.2022		Bank

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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.

¶39

On the issue of Limitation. to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.9.202 1, whereas the present application has been filed on 15.7.2022. 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.

¶40

Shri Shubham Saurav, Manager of the applicant bank. has Bled 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 / Haq

OA 437 of 2022 1 Jl

DRT. PATN A

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.

¶46

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 lhc provisions t>/ this Act , a certified copy o.f- 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 non' by Icr\t admissible. but not fUrther or otherwise,

¶48

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.

¶49

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.

¶50

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 9.5.2022 has been proved to be Rs.28.18.564.78 only by way of statement of account. There is nothing to prove the amount more than that disclosed in the

OA 437 of 2022 1 Jl

DRT, PATN A

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

¶56

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.28,18,564.78along with pendente-lite and future interest @12% p.a. with compounded monthly rests from 15.7.2022 (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 toRs.28.18.564.78along with pendente-lite and future interest (tQ 12 % p.a. with compounded monthly rests from 15.7.2022(The date of filing of this OA) till realization of the entire sum due and recoverable with costs

¶59

It is made clear that any amount deposited by the defendants. he 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 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 d'““'"=: ,n

DRT, PATN A

OA 437 of 2022 1.J I

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

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Judgment signed. sealed. dated and pronounced in the open court on 18tl'day of September. 2024.

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Dictated &corrected by me

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K a u s IrL e = = [ d a v ] Presiding C)fReer 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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:nd Floor. ( A. B & F Wing) Karpuri ThaI,iur Sad:In. Kendriya Karamchari Parisar (GPOA). Ashiana Digha Road, PatnaS(ltlti:5

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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.

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RC No. 213/2024 iN

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Case No: OA/437/2022

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In the Matter of: (CH- 1) HDFC BANK 2ND FLOOR RAJENDRA RAM PLAZA EXHiBITiON ROAD PATNA .BIHAR -800001

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Applicant(s)

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––-- Versus ---––

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To. (CD- 1) SHIVANG AUTOMOBILES PVT. LTD 302 Hera Enclave .New Dakbunglow Road PaUla .BIHAR

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Defendant( s)

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(CD- 2) SANGEETA SRIVASTAVA (COBORROWER) 302 HERA ENCLAVE NEW DAKBUNGLC)W ROAD PATNA BIHAR 80000 1

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Recovery CertifIcate for Rs 2818564.78 1 Rupees Twenty Eight Lakhs Eighteen Thousands Five Hundred Sixty Four And Paise Seventy Eight Only_1

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In terms of tlnal 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. 2818564.78 along with cost. expenses and interest from the 15/07/2022 i.e. date of filing / with effective date of the OA/437/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certitlcate Debtors, hereinafter referred to as:-

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Sr.n	o CDName	Loa le	Int IT)’pc/Model	Int ;Rate	Effective Date	Order Date	Amount(Rs.)	Liability' fpc	Intc l(aso Order Date)	RC '“ IAmou	''r'"’'T
	HIVANG UTOMOBILES PVT,LTD		:ompound Interest [onthly )	12	15/07/2022f	F 18/09/202.4	f2818564.78	lointly ,nd ESeveral	ntcrest IAs on 1Order FDate	12818564.78
l	-mJFFTX IRIVASTAVA '0 ,ORROWER		jcompound Interest :Monthly )	1 !1 12	5/07/2022:I	18/09/2024:	12818564.78	lointly [ ;IAnd vera11	Fnterest As on IOrder D,Ite	2818564.78

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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 mortgdged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the tlnal order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 1 9(22) of Recovel)' of Debts and Bankruptcy Act 1993 Parties are directed to appear before ASHISH KUMAR . Recovery Ofllcer, DEBTS RECOVERY TRIBUNAL PATNA on 04/ 1 1/2024

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prcscribed under Sections 25 to 28 of the Recovel)' 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 19/09/2024

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f Jh
E) :::1 1::::::1:!! ;a{r i b U n a 1
PaiR&

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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

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2nd Floor, ( A. B & F Wing) Karpuri ThaI(ur Sa(ian, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE ;VIEIVIO OF COSTS

RC No. 213/2024

Case No: OA/437/2022

Applicant(s): HDFC BANK Versus

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Defendant(s): SHIVANG AUTOMOBILES PVT. LTD

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r.No	e	r
	Feeontheapplication	m
?	o	rd
	dvocateFees	ro
4	e	Dc
5	.-iscellaneous Charges
	manfstFiG	mo

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Place: PATNA

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Date: 19/09/2024

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PRESIDIN&<fFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Hdfc Bank v. Shivang Automobiles Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Shivang Automobiles Pvt. Ltd.

Case brief

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