Allowed

Canara Bank v. M/s Hamara Pump

DRT19 Sept 2024OA/530/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Canara Bank against three respondents under Section 19 of RDB Act. The court determined the recoverable loan amount of Rs. 28.42 lakhs based on bank records and ex-parte evidence due to defendants' non-appearance, and issued a recovery certificate.

What did the court decide?

Debt of Rs. 28,42,671.40 with interest at 9.5% p.a. recovered; Recovery Certificate issued; Assets attached.

Canara Bank versus M/s Hamara Pump — Banking and Recovery | DRT (2024)

OA 530 of 2022 IJI

DRT, PATN A

Debts Recovery Tribunal, Patna

¶5

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶6

Presiding Officer : Shri Kaushalendra Yadav

¶7

OA Case No. 530 of 2022

¶8

Canara Bank, Hilsa Branch, Hilsa, District-Nalanda.

¶9

. . . . . . . Applicant

¶10

¶11

M/s Hamara Pump, Main Road, Dibrapar Hilsa Post –Mai, P.S.-Hilsa, District-Nalanda, through its proprietor Sanju Kumari.

¶12

Mrs. Sanju Kumari W/o Sri Sitaram Chaudhary, R/o Chiksaura Road, Hilsa, P.S.-Hilsa, District-Nalanda, Pin-801302.

¶13

Mr. Ravindra Chaudhary S/o Devnandan Chaudhary, R/o Village Uganbigha, Post-Kawa, P.S.-Hilsa, District-Nalanda-80 1302

¶14

Defendants

¶15

Present:

¶16

For the Applicant : Shri Radhey Shyam Kumar, Advocate For the Defendants : None

¶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 16.9.2022 against the defendants to recover its debts from defendants of Rs.28,42,671.40 as on 13.9.2022 along with pendente-lite and future interest @ 9.5% p.a. with monthly rests from 14.9.2022 with costs till realization.

¶20

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 V of 1970, having its Head Office at 112 JC Road Bangalore-560002 and Branch Office at Hilsa Branch, Hilsa, District-Nalanda

¶21

Defendant no. 1 is proprietorship firm and defendant no. 2 is proprietor and defendant no. 3 is guarantor. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of cash credit loan of Rs.15 lakh on 13.8.2014, ,which was sanctioned by the bank on 13.8.2014. Defendant no. 1 through proprietor defendant no. 2 further approached the bank for extension of

Y,„*\

OA 530 of 2022 [JI

DRT, PATN A

cash credit limit upto Rs.20 lakh on 26.2.2015, which was sanctioned by the bank on 26.2.2015. Defendant no. 1 through proprietor defendant no. 2 further approached the bank for extension of cash credit facility upto Rs.325 lakh, which was sanctioned by the bank on 7.3.2016. Defendants executed the various loan documents.

¶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 on 1.4.2022.

¶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.28,42,671.40 with pendentelite and future interest @9.5% p.a. with monthly rests from 14.9.2022 till the realization.

¶30

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 24.11.2022, 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 6.3.2023 in ''Prabhat Khabar” newspaper.

¶31

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 21.7.2023

OA 530 of 2022 1 Jl

DRT, PATNA

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 Ms. Suman Sharma, Branch

¶37

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

¶38

Sl.No	Description Documents Photocopies of	Dateof Execution	Amount	Signatur Executants	e of	Ex./ Ann No
1	Loanapplication	13.8.2014	Rs.15lakh	Defendant 1 &2	no.	1
	Sanction memorandum	13.8.2014	15 lakh	Bank
	DP note	13.8.2014	15 lakh	Defendant 1&2	no.
4	Cashcreditagreement	13.8.2014	Rs.15lakh	Defendant 1&2	no.	4
5	Application for extension ofcash creditlimit	26.2.2015	Rs.20 lakh	Defendant 1 &2	no.	5
6	Cash creditagreement	26.2.2015	Rs.20 lakh	Defendant 1 &2	no.	6
7	DPnote	26.2.2015	Rs.20 lakh	Defendant 1 &2	no.	7
8	Linkletter	26.2.2015	Rs.20 lakh	Defendant 1 &2	no.	8
9	Application for extension of case credit limit	7.3.2016	Rs.25 lakh			9
10	Link letter	7.3.2016	Rs.25lakh	Defendant 1 &2	no.	IDe Rs.20 lak h
11	Supplemental agreement	7.3.2016	Rs.25 lakh	Defendant 1 &2	no.	11
12	mr	7.3.2016	Rs.5 lakh	Defendant 1 &2	no.	T2
13	Declaration uarantors from	7.3.2016	Rs.25 lakh	Defendant 3	no.	13
14	letter	7.3.2016	Rs.25lakh	Defendant 3	no.	14
15	Guarantee agreement	7.3.2016	Rs.25lakh	Defendant 2&3	no.	15
16	Acknowledgement of debtandsecurity	10.1.2017 2.8.2019		Defendant 2	no.
17	Appraisal memorandum	6	Rs.25 lakh	Bank
18	Sanction memorandum	26.2.2021	Rs.25 lakh	Bank defenda no. I &		19
19	c debt and securit			defendant		20
20	c					21
21	e			Bank adv.		22

{\n

OA 530 of 2022 IJI

DRT,PATNA		OA
22 1Statementofaccount	Ason	Rs.28,29,511.40 1 Bank
	13.9.2022

¶43

Heard arguments and perused the case record.

¶44

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.

¶45

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.

¶46

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 1.4.2022, whereas the present application has been filed on 16.9.2022 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.

¶48

Ms. Suman Sharma, Branch 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. I / '\qU\

OA 530 of 2022 1 Jl

DRT, PATNA

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.

¶53

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.

¶54

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.

¶55

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.

¶56

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.

¶57

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.

¶58

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 13.9.2022

OA 530 of 2022 1 Jl

DRT, PATNA

has been proved to be Rs.28,42,671.40 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.

¶64

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.28,42,671.40 along with pendente-lite and future interest @ 9.5% p.a. with compounded monthly rests from 16.9.2022 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

¶65

ORDER

¶66

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.28,42,671.40 along with pendente-lite and future interest @ 9.5% p.a. with compounded monthly rests from 16.9.2022 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

¶67

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

¶68

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.

¶69

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 \4„

OA 530 of 2022 [JI

DRT, PATN A

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.

¶75

Parties are directed to appear before the Recovery Officer, DRT, Patna on 04.11.2024. The order be communicated accordingly.

¶76

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

¶77

Dictated &corrected by me.

¶78

{+/T"* [Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

¶79

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

¶80

DEBTS RECO'ER' TRIBUNAL PATNA

¶81

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

¶82

RECO\’ERV CERTIFICATE UNDER SECTION 19(2) READ WITH SECTION 19(12) OF THE RECOVERY OF DEBTS &

¶83

BANKRUPTC- ,-\CT, 1993, ,'\S A)'IENDED FROM TII\IE TO TIME,

¶84

RC No. 223/2024 IN Case No: OA/530/2022

¶85

In the Matter of (CH- 1) CANARA BANK HILSA BRANCH HILSA NALANDA .BIHAR -80 1302

Applicant( s)

-–--- Versus -–-–-

(CD- 1) M/S HAMARA PUMP Through Its ProprIetor Mrs. Sarliu Kumari

¶90

Main Road Dibrapar Hilsa. .P.S.- Mai. P.S.- Hilsa.

¶91

Nalanda .BIHAR -80 1 302

¶92

(CD- 2) MRS. SANJU KUNI ARI WIFE OF SRI SITARAM ('HAUDHARY, RESIDENT OF CHIKSAURA ROAD. HILSA. P.S.- HILSA

¶93

Defendant(s)

¶94

DISTRICT- NALANDA PIN 80 1 302

¶95

(CD- 3) SRI RAVINDRA CI]AUDHARY SON OF SRI DEVNANDAN CHAUDHARY RESIDENT OF VILLAGE - UGANBIGH A, POST - KAWA. P.S.- HILSA. DISTRICT- - NALANDA. PIN-

¶96

80 1 302

¶97

Recovery CertifIcate for Rs 2842671.40 1 Rupees Twenty Eight Lakhs Forty Two Thousands Six Hundred Seventy One And Pajge I MyjMy

¶98

In terms of final order dated 19/09/202+ 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. 2842671.40 along with cost, expenses and interest from the 16/09/2022 i.e. date of filing / with effective date of the OA/530/2022 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶99

CDName	Int. Type I Type/Mode	Int I Rate	Effective Date	Order Date	It(Rs.) Amo	Liability Type	Interest (as0 lrder Date)	RC kIlt(Rs.)
M/SHAM ARA PUMP	lmF)OLI Interest Mont	}-5	1 6/09'2021	1 1 9/09/2024	1284267 1 .40	verally	Interest IonOrder	!842671.40
MRS. SANJU KUNIARI		1.5	1 6/09/2022	rl 1 9/09/2024El28426	7 1 .40		)nOrder	12842671.40
SRI RAVINDRA UDHAR\’	Interest I(Monthly)		6/09/2022 :	1 19/09/2024	12842671.40	0 1) veralI	Date	:671.40

¶100

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.

¶101

The mortgaged 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 19(22) of Recovery of Debts and Bankruptcy Act 1993

¶102

Parties are directed ttl appear bell)re biANOJ KU XI AR . Rcco'cr> Ot'tlcer. DER'l'S REC'OVERY TRIBUNAL PATN A oil 04/ I1 ' 2024,

¶103

The Recovery Oftlcer shall realize the amount as per this C'ertitlcate 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

¶104

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

¶105

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶106

IRL. Registrar Debts Recovery Tribunal Patna

¶107

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

¶108

DEBTS RECOVERY TRIBUNAL PATNA

¶109

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

¶110

SCHEDULE TO RECOVERY CERTIFICATE )'IEMO OF COSTS

RC No. 223/2024

Case No: OA/530/2022

Applicant(s): CANARA BANK

¶115

Versus

¶116

Defendant(s): M/S HAMARA PUMP

¶117

Item ofCosts	r
Feeon the application	m3
ProcessFees(Inc. Publication)	ro
AdvocateFees	bc
c	[ii
MiscellaneousCharges	b
Total Costs:Rs	m3

¶118

Place: PATNA

¶119

Date: 20/09/2024

¶120

PRESIDINGYFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶121

Note: Strike out whichever is not applicable

Canara Bank v. M/s Hamara Pump

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/s Hamara Pump

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