Allowed

Bank of Baroda v. Ms M and S Printing

DRT18 Sept 2024OA/481/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal decided an ex parte application filed by Bank of Baroda to recover dues from defaulters. Relying on loan documents and statements exhibited in the bank manager's affidavit, the Tribunal confirmed the liability and issued a recovery certificate for approximately Rs. 27.75 lakhs with interest.

What did the court decide?

Issued a recovery certificate for Rs. 27,75,964.72 plus interest and costs, authorizing enforcement against mortgaged assets and personal property through the Recovery Officer.

Bank of Baroda versus Ms M and S Printing — Contract and Commercial Disputes | DRT (2024)

DRT. PATNA

OA 481 of 2023 1 Jl

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. 481 of 2023

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Bank of Baroda, PBB Kankarbagh Branch, at House no. A/ 10, Patrakar Nagar, Kankarbagh, Patna-20

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. . . . . . . Applicant

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M/s M& S Printing and its proprietor Mrs. Shanaz Hussain, Situated at shop no. 10, Ground Floor, Capital Market, Frazer Road, Patna-1.

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Mrs. Shanaz Hussain W/o Mr. Shaid Hussain R/o Flat no. 104, Saket Apartment in front of Montessori School, Boring Road, Patna-13, PAN no. AGAPH5666H.

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. . . . . . . Defendants

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Present:

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For the Applicant : Shri Shatrughan Prasad, 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 3.10.2023 against the defendants to recover its debts from defendants of Rs.27,75,964.72 as on 26.9.2023 along with pendente-lite and future interest at the contractual rate from 27.9.2023 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 banking companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at N4andvi Baroda, Gujrat and corporate office at Baroda Corporate centre C-26, G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office at PBB Kankarbagh Branch, at House no. A/10, Patrakar Nagar, Kankarbagh, PaUla-20

¶22

Defendant no. 1 is a proprietorship firm and defendant no. 2 is proprietor. Defendants approached the bank for grant of over draft limit of Rs.23.50 lakh, which was sanctioned by\ the bpnk on 2.7.2020. Defendants

OA 481 of 2023 IJI

DRT, PATNA

further approached the bank for grant of term loan of Rs.4 lakh, which was sanctioned by the bank on 2.3.2022. 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 8.9.2023

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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.27,75,964.72 with pendentelite and future interest at the contractual rate from 27.9.2023 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 28.10.2023, 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 3.12.2023 in “Prabhat Khabar” 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, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 3 1.1.2024.

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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

Edn

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given evidence on affidavit by way of affidavit by Mrs. Asha Kumari, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	1Description Documents Photocopies of	1Date of Execution	Amount	r Executants	IAnn No
1	)	15.6.2020	Rs.23.50 lakh	Defendants	1
2	Sanction letter	2.7.2020	Rs.23.50lakh	Bank	2
3	e			Bank	3
4	r		a		4
5	o			Defendants	5
6	of Letter undertakin	2.7.2020	s		6
7	lue e securIty	2.7.2020	s		7
8	Declaration	2.7.2020	s		8
9	Composite hypothecation agreement	2.7.2020	s		9
10		2.7.2020		Defendants	10
11	Demand notice	19.8.2023		Bank	11
a	account n	o s 27.9.2023	5a		12

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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.

( kaM

OA 481 of 2023 1 Jl

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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.

¶47

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 8.9.2023, whereas the present application has been filed on 3.10.2023 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.

¶48

Mrs. Asha Kumari, 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 cert Bed 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

Li{\

OA 481 of 2023 IJl

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where, and to the same extent as, the original entry itself is noxv 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 26.9.2023 has been proved to be Rs.27,75,964.72 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.27,75,964.72 along with pendente-lite and future interest @ 7.95% p.a. with compounded monthly rests from 3.10.2023 (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.27,75,964.72 along with pendente-lite and future interest @ 7.95% p.a. with

OA 481 of 2023 1 Jl

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compounded monthly rests from 3.10.2023 (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 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

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= =t :::d o: :r: :::e: :2:: : • ] N}} a:1i]:II: bWt +r

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[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

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FORM NO. 9 [See Regulation 24( 1 )]

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DEBTS RE( TO\’ER\’ TRIBt JN Al. PATN A

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2nd Floor. ( A. B & F Wing) Karpuri Thakur Saclan. Kcndl'iya Karamchari Parisar (GPOA). 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.

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RC No. 203/2024 IN Case No: OA/481/2023

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In the Matter of:

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(CH- 1) BANK OF BARODA

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PBB KANKARBAGH BRANCH, AT HOUSE NO. A/10. PATRAKAR NAGAR, KANKARBAGH PATN A .BIHAR -8(J0020

Applicant(s)

----– Versus -------

(CD- I) MS M AND S PRINTING HUSSAIN Mrs SHAN AZ l-IUSSAIN WIFE MR SHAID HUSSAIN SITUATED AT SHOP NO 10 GROUND FLOOR CAPITAL MARKET Patna .BIHAR -80000

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Defendant(s )

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(CD- 2) MRS. SHANAZ HUSSAIN

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\V/O MR. SH AID HUSSAIN, R/O FLAT BO- 1 0+ SAKET APARTMENT IN FRONT OF MONTESSORI SCHOOL. BORING ROAD

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PATN A- 800013

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Recovery CertifIcate for Rs 2775964.72 1 Rupees Twenty Seven Lakhs Seventy Five Thousands Nine Hundred Sixty Four And Paise Seventy Two OnIY I

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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. 2775964.72 along with cost, expenses and interest from the 03/1 0/2023 i.e. date of filing / with effective date of the OA/481/2023 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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	Loan e	Int FType/Mode	Int. Rate	I Effective Date	Order Date	.mount(Rs.)	Liability Type	Interest (as on Order Date)	RC !Amount(Rs.) ==!	Remark
SM AND PRiNTING		lmpound [Interest I(Monthly)						nterest	1775964.72
4RS HANAZ USSAIN		:ompound nterest /lonthly)		13/10/2023 f	1 8/09/2024:i	2775cJ64.72	lointly ,nd IIly		:775964.72

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

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The mortgage(i or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovel)' proceeding in pursuance of the Recovel)' certificate issued under Section 1 9(22) of Recovery of Debts and Bankruptcy Act 1 993 Parties are directed to appear before MANOJ KUMAR . Recovery Officer. DEBTS RECOVERY TRIBUNAL PATNA on 04,“ 1 1/2024

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The Recovely Officer 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 CertiHt'ate 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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fAg
1:hIII1 = :1:e: : (; % ; b u n 3 1
Patna

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PRESIDINF 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 Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 203/2024

Case No: OA/481/2023

Applicant(s): BANK OF BARODA

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Versus

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Defendant(s): MS M AND S PRINTING

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Sr. No	Item ofCosts	r
	Fee onthe application
	FIaaTTa;FIEld
3	nvocate Fees	[0
4	[CommissionV
	MiscellaneousCharges	Fo
	TotalCosts:Rs	®3

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Place: PATN A

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Date: 19/09/2024

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PRESIDtRGHfFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Bank of Baroda v. Ms M and S Printing

Case brief

What is this about?

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Bank of Baroda v. Ms M and S Printing

Case brief

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