Allowed

Idbi Bank Ltd. v. Rajiv Kumar

DRT17 Sept 2024OA/485/2023

Case brief

AI extract

What is this about?

In an ex-parte application for debt recovery, the tribunal determined the claim of IDBI Bank Ltd. against the defendants for an NPA loan. Adjudicating the debt at Rs. 20,18,708 along with interest, the court issued a recovery certificate under Section 19 of the RDB Act.

What did the court decide?

Debt determined at Rs. 20,18,708/- with interest; Recovery Certificate issued for realization from mortgaged assets and other personal assets; prohibition on transferring property.

Idbi Bank Ltd. versus Rajiv Kumar — Contract and Commercial Disputes | DRT (2024)

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DRT. PATN A

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OA 485 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 KaushalendraYadav

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OA Case No. 485 of 2023

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IDBI Bank Ltd., 3fd Floor. Sai Corporate Park. Rukunpura. P.S.-Rupaspur. District-Patna .

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. . . . . . .Applicant

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Rajiv Kumar S/o Arjun Kumar. Tarachak. Anand Bazar. Danapur Cantt.. Danapur. Patna-801503

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Smt. Rabita Kumari W/o Arjun Kumar. Tarachak. Anand Bazar. Danapur Cann.. Danapur. Patna-801503

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. . . . . . . Defendants

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Present:

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For the Applicant Shri A.C. Prasad. Advocate For the Defendants None

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Dated: 17.09.2024

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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.20.18.708/- as on 24.8.2023 along with pendente-lite and future interest @ 9.50% p.a. with monthly rests from 2,5.8.2023 with costs till realization.

¶18

The application has been filed with the contention that the applicant bank. is a body corporate. constituted under the banking companies Act 1956 having its head Office at IDBI Tower. WTC Complex. CIIffe Parade. Mumbai400005 and Branch office at Retail Recovery Branch at Patna.

¶19

Defendants approached the bank for grant of financial assistance of Rs.21.60 lakh and insurance premium Rs.55.870/- on 2.11.2019. which was sanctioned by the bank on 28.12.2019. Defendants executed the various loan documents and defendant no. 2 also mortgaged the property details given at page 4 in schedule-A of OA.

¶20

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

V.,a

OA 485 of 2023 IJI

DRT. PATN A

the financial norms of the bank and dvoiding 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 11.5.2023 .

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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.

¶27

The total liability in the loan account is Rs.20.18.708/- with pendentelite and future interest @ 9.50% p.a. with monthly rests from 25.8.2023till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 18.10.2023. 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 20.1.2024 in "Dainik Bhashkar" newspaper.

¶29

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 15.3.2024

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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 given evidence on affidavit by way of affidavit by Md. Irfan Azam Khan. Assistant General Manager of the applicant bank. The details of documents are as follows:

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SI'N(’IDescription of	FDate of	Amount	of Signature	1Ex./
Documents	Execution		Executants	Ann
Photocopies				No
'lication Loan	22.11.2019	Rs.22 lakh	Defendants

v.a

DRT. PATN A

OA 485 of 2023 IJ I

D	Sanction letter		s		a
a )	Home loan agreement		s		a I
4			s		4
5	Declaration and undertaking			Defendants	5
6	IDBINeev			Defendants	6
7	Copyof titledeed				7
8	Valuationreport				8
9	Memorandumof entr			Defendants	9
10	e			Bank	10
11	e			Bank	11
12	Statement account no	24.8.2023	s		12

¶36

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 dccounts 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

¶38

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.

¶39

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.

DRT_ PATN A

OA 485 of 2023 IJ I

19 On the issue of Limitation. to prove it. the applicant bank has submitted that the applicant bank has declared the account as NPA on 1 1.5.2023. 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.

¶44

13 Md. Irfan Azam Khan. Assistant General 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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14 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.

¶47

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.

¶48

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 ( if this Act, a certified cop\ of an v entrY in a bcmker's hook shall in all legal proceedings he received as prinra facie evidence of the existence of such entrY. and shall be cldnliffed as evidence of the nratters, transactions and accounts therein recorded in every case u’here, and to the satIre extent as, the original entrY itself is no\' bv Icr\ adnrissible. bIlt noI ftlrlher or other\:ise.

¶49

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.

DRT. PATN A

OA 485 of 2023 IJl

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 24.8.2023 has been proved to be Rs.20.18.708/- 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.

¶55

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.20,18.708/- along with pendente-lite and future interest eP,9.50% p.a. with compounded monthly rests from 25.8.2023 (The date of Bling 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.20.18.708/- along with pendente-lite and future interest a9.50% p.a. with compounded monthly rests from 25.8.2023 (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

a B

OA 485 of 2023 IJ 1

DRT. PATN A

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 mortgage(1 or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the anal order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Banlduptcy Act 1993. The applicant may submit the certined 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 17th day of September. 2024.

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Dictated &corrected by me.

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[KaushalendraYadav] Presiding OfReer Debts Recovery Tribunal. Patna

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FORM NO. 9

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DEBTS RECO\’ER' TRIBUNAI. PATNA

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[See Regulation 24( 1 )]

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:nd Floor, ( A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchal-i Parisar (CPC)A). Ashiana Digha Road, Patna-800025

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RECOVERY CERTIFICATE UNDER SECTION 19(Z) READ WITH SECTION 19(12) OF THE RECOVERY OF DEBTS & BANKRUPTCY ACTq 19931 AS AMENDED FROM TIME TO TIME,

RC No, 195/2024

Case No: OA/485/2023

111 tIle Matter i )t (CH- 1 ) 1 DBI B .'\ N K LTD 3RD FL(-)OR SAI CORPORATE PARK. RUKUNPL,TRA P.S.- RUPASPtJR PATN A ,BIHAR -800014

Applicant(s)

–-–- Versus -–--–

(CD- I ) RAJ:' KL'V AR O So Arjun Kumar Turachal,. Anand Buzar. Danapur cann., Danapur Patna ,Bl HAR -Sf) 1 :Sf)3

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Defendant(s)

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(CD- 2) SMT. RABITA KUMAR ( BORROWER/GUAR.ANI 'OR) w,’O- ARJUN KUMAR. TARACH AK. ANAND BAZAR. DANAPUR CANTT- DANAPUR PATN A - 80 1 503

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Recovery CertifIcate for Rs 2018708.00 1 Rupees Twenty Lakhs Eighteen Thousands Seven Hundred Eight OnI)LI

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In terms of fInal order dated 17/09/2024 passed by this Tribunal in the above mentioned casey it is ordered that the Applicant CertifIcate Holder Bank is entitled to recover a sum of Rs. 2018708.00 along with cost, expenses and interest from the 25/08/2023 i,e, date of filing / with effective date of the OA/485/2023 and future interest from order date till the date of realisation in full, jointly or severaljy from the Certificate Debtors. hereinafter referred to as:-

¶86

CDName r.no	Type	Int. rpc/Mod	Effective Date	Order Date	Amount(Rs.)	Liability Type	ntt’res ^(as01 -der D'tQ	t RC 'IAmount(Rs.) .i	Rerun
RAJIV KUMAR		Interest Monthly)	:023 f	l 7/09/202.	18708,00	;Severally		:018708.00
SMT.RABITAKUMAR (BORROWER/GUARANTOR) i		Interest 4onthly )	!0231	]7/09/2024	il2018708.00	lointly IAnd	nterest	18708.00

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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/ Inrmovable assets of thc certifIcate debtors.

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The morlgaged 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 1 9(22) of Recovery of Debts and Bankruptcy Act 1993.

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Parties are directed to appear before ASHISH KUMAR . Recovery Oftlt-cr. DEBTS RECOVERY TRIBUNAL PATN A on 04/ 1 1 /2024

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Fhe Recovery Oftlcer shall realize the amount as per this Certificate in the mariner 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 (_-ertincate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 17/09/2024

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PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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I) e :: 9 !!!c!1 11: Et:1CTr i b u n a 1 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) KaII)uri Thakur Sadan. Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road. Patna-800025.

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 195/2024

Case No: OA/485/2023

Applicant(s): IDBI BANK LTD.

¶103

Versus

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Defendant(s): RAJIV KUIVIAR

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Item ofCosts	.mount inRs
Feeon the application	m
ProcessFees(Inc. Publication)	kj
AdvocateFees	Fo
Commissioner/Receiver/Valuation/SecurityFee	ro
MiscellaneousCharges	ro
TotalCosts:Rs	m2

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Place: PATNA

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Date: 17/09/2024

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PRESID®JZ/OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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Note: Strike out whichever is not applicable

Idbi Bank Ltd. v. Rajiv Kumar

Case brief

What is this about?

What did the court decide?

Idbi Bank Ltd. v. Rajiv Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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