Allowed

Bank of India v. Mrs. Minta Devi

DRT8 Aug 2024OA/573/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, for recovery of a loan of approximately Rs. 20.45 lakhs. Being an ex-parte proceeding, the Tribunal relied on documentary evidence and the Banker's Books Evidence Act to determine the extent of the debt encumbered by the borrowers and guarantor.

What did the court decide?

Recovery certificate issued for Rs. 20,45,432/- with interest at 12.05% p.a. jointly and severally against the respondents.

Bank of India versus Mrs. Minta Devi — Banking and Recovery | DRT (2024)

DRT. PATN A

OA 573 of 2019 IJl

Debts Recovery Tribunal, Patna Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶7

Presiding Officer : Shri KaushalendraYadav

¶8

OA Case No. 573 of 2019

¶9

HDFC Bank Ltd. 2"d noor. Rajendra Ram Plaza, Exhibition Road. Patna- 1

¶10

. . . '. . . .Applicant

¶11

¶12

Rupesh Kumar S/o Shyamsunder Singh at Rasalpur. Gaya. Near Surya Mandir. Gaya-823003.

¶13

Munni Devi W/o Rupesh Kumar. At Rasalpur. Gaya Near Surya IVlandir. Gaya-823003 . Defendants

¶14

Present:

¶15

For the Applicant Shri Anil Kumar. Advocate For the Defendants None

¶16

Dated: 08.08.2024

¶17

JUDGMENT

¶18

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 20.6.2019 against the defendants to recover its debts from defendants of Rs.20.45.432/- as on 8.3.2019 along with pendente-lite and future interest at the contractual rate from 9.3.2019 with costs till realization.

¶19

The application has been filed with the contention that the applicant bank. A company registered under the companies act 1956 having its registered office at HDFC Bank Ltd. HDFC bank house Senapati Marg. Lower Patel (west) Mumbai-400013 and branch Office at

¶20

Defendants approached the bank for grant of loan of Rs.15.91.500/-. which was sanctioned by the bank on 15.91,500/-. Defendants executed the various loan documents on 4.2.2000

¶21

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 on4.9.2017

¶22

\49

¶23

PnBletIH 681888 eun BtLOV IRt TRIBBBa ea teA

DRT? PATNA

OA 573 of 2019 IJ 1

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.

¶28

The total liability in the loan account is Rs.20.45.432/- with pendentelite and fbture interest at the contractual rate from 8.3.2019 till the realization.

¶29

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 12.9.2019 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 28.12.20 19 in "Dainik Jagaran'- newspaper.

¶30

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 nIe WS, hence. the Tribunal has passed an order to proceed ex-parte against the defendants.

¶31

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

¶32

SI-N'>1Description Documents PhotocoDies	of	IDate of Execution	Signattr Executants	Ann No
Invoice		4.4.2017	Bank
Pancardof borrower
Application		21.1.2017	Defendants
Agreement commercial uitable andPRO	o		Defendants
Disbursal report		4.2.20 1 7	Defendants	5

¶33

\4, p’+9tenW Qt?le+, ©tBYR BtLDVFRt TRIBBZ+ ’$ 7Ba

¶34

OA 573 of 2019 IJ

¶35

nRT_ PATN A

¶36

6	Statementofaccount	As on	Rs.20,45,432/'	6 Defendants
		8.3.2019
7	Recall notice	9.3.2019		Bank adv 7

¶37

Heard arguments and perused the case record.

¶38

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.

¶39

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.

¶40

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.

¶41

On the issue of Limitation. to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 4.9.2017 whereas the present application has been filed on 20.6.2019. 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.

¶42

Shri Ravi Prakash. legal 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

¶43

P'+8tal ItU GtrIeee e£Bn atLrlvIQT fRIBy349 '4 TQa

OA 573 of 2019 IJl

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.

¶48

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.

¶49

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.

¶50

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 qf this Act. a certified copy of any entry in a bcmker's book shall in all legal proceedings be received as prima facie evidence Qf the existence of such entry, and shall be adnlitted as evidence ( if the matters. transactions and accounts therein recorded in every case \'here. and to the same extent as, the original entry itsel_f' is non' by lu\t admissible, but not further or otherwise.

¶51

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.

¶52

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 rnterests 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.

¶53

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

¶54

We fF .JttPPJlt't TflIB&X:3@

OA 573 of 2019 IJI

DRT1 PATN A

and conditions for repayment with interest. The balance amount till 8.3.2019 has been proved to be Rs.20.45,432/- 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

¶59

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.20,45.432/-along with pendente-lite and future interest @ 12.05% p.a. with compounded monthly rests from 20.6.2019 (The date of filing of this OA) till realization. So the final order may be passed accordingly. to meet the ends of justice.

¶60

ORDER

¶61

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.20.45.432/-along with pendente-lite and future interest rd 12.05% p.a. with compounded monthly rests from 20.6.2019 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs

¶62

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

¶63

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 certincate 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

¶64

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

¶65

¶66

RH In: I ;i I '’I-'+: ’ ' ’,RA

OA 573 of 2019 IJl

DRT, PATN A

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,

¶72

Parties are directed to appear before the Recovery Officer, DRT. Patna on 23.9.2024. The order be communicated accordingly.

¶73

Judgment signed. sealed. dated and pronounced in the open court on 8thday of August, 2024.

¶74

Dictated &corrected by me.

¶75

[KaushalendraYadav] Presiding OffIcer Debts Recovery Tribunal. Patna

¶76

“-... ,I+ br h ri/IWa?d i= == ’ $:?' .’t:1Ir cIVII' '

¶77

L + , . J . 4

¶78

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

¶79

¶80

DEBTS RECOVERY TRIBUNAL PATNA

¶81

2nd Floor, (A. B & F Wing) Karpud Thakur Sadan, Kendriya Karamchari Padsar (GPOA), Ashiana Digha Road, Patna800025 .

¶82

RECOVERY eERTIFICATE UNDER SE(.'TIQN 19(J7 READ WITH $E(,'TIQN 19(B) OF THE RECQVERY OF DEBTS & BANKRUPTCYAC'T, 1993, AS AMENDED FROM TIME TO TIME.

RC No, 137/2024 IN

Case No: OA/573/2019

In the Matter of:

(CH- 1) HDFC BANK 2ND FLOOR RAJENDRA RAM PLAZA EXHIBITION ROAD PATNA ,BIHAR -800001

¶87

Applicant(s)

¶88

¶89

(CD- 1) RUPESH KUMAR S/0 SFIYAMSUNDER SINGH AT RASALPUR GAYA NEAR SURYA MANDIR GAYA Gaya ,BIHAR -823003

¶90

Defendant(s)

¶91

(CD- 2) MUNNI DEVI (GUARANTOR) W/0 RUPESH KUMAR AT RASALPUR GAYA NEAR SURYAMANDIRGAYA GAYA ,BIHAR -823003

¶92

Recovery Certifigate for Rs 2045432.Og 1 Rpp€€$ Twenty Lakh§ FQr£y Five Thousand$ FQur Hundred Thir+y Two OnlyJ

¶93

In terms of final order dated 08/08/2024 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. 2045432.00 along with cost, expenses and interest from the 20/06/2019 i.e. date of filing / with effective date of the OA/573/2019 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

¶94

CD Name	Loa IType:	Int. IType/Mode:I	Int. Rate	Effective Date	„„„w-)H	LT=:	Intc wIg;d' Date)	RC : Ent(Rs.)	ar
		Compound i Interest (Monthly)	I 12.0,	lo/06/201911	08/08/2024112045432.oo	lointly rerally	nterest IS on [	2045432.00
MUNNI DEVI GUARANTOR)		ilCompound iIInterest 1(Monthly)	12.05				lerest on	!045432.00

¶95

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

¶96

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 proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before ASHISH KUMAR , Recovery Ottlcer, DEBTS RECOVERY TRIBUNAL PATNA on 23/09/2024.

¶97

The Recovery 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 Certificate Debtors.

¶98

This Certificate has been issued under my signature and seal of the Tribunal on this 09/08/2024

¶99

Registrar Debts Recbvery TribuR81 Patn8

¶100

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA PteBrqtrrg UH ICeB 8tBTI BttBTIBV THing& eAta+

¶101

FORM NO. 10

¶102

[See Regulation 24(2)]

¶103

DEBTS RECOVERY TRIBUNAL PATNA

¶104

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

¶105

(GPOA), Ashiana Digha Road, Patna-800025.

¶106

SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 137/2024

Case No: OA/573/2019

Applicant(s): HDFC BANK

¶111

Versus

¶112

Defendant(s): RUPESH KUMAR

¶113

Sr. No	[ItemofCosts	IAmount inRs
	ii)	m3
	r	F@
	nc\meHe	ro
	e	rij
5	4iscellaneous 9hargcs	Dc
	TotalCosts:Rs

Place: PATNA

PRESIDINGvOFFICER

Date: 09/08/2024

DEBTS RECOVERY TRIBUNAL PATNA

¶118

Note: Strike out whichever is not applicable

¶119

Pl+91dlt+y atfleet MeTS gILllV+ aT TH4HuaH Pa fIRe

Bank of India v. Mrs. Minta Devi

Case brief

What is this about?

What did the court decide?

Bank of India v. Mrs. Minta Devi

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

All orders in this case

Similar cases

State Bank of India versus Ganesh Jagannath Dhonde

Canara Bank versus Pushpa Kumari

Icici Bank Limited versus Sangeeta Bohra

M/S Sri Sai Agro Composite Mill versus Ellaquai Dehati Bank

Bank of Baroda versus Sri Sumit Kumar

Bank of Baroda versus Ms Asadullah Cold Storage and Others