Allowed

Union Bank of India v. M/s Candy Bell

DRT19 Sept 2024OA/576/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Union Bank of India's application under S. 19 of the RDB Act to recover Rs. 45,36,588/- from defaulting borrowers. The defendants appeared only by ex-parte proceedings, and the bank proved its case via affidavits and loan documents. The decree includes principal, interest, and costs.

What did the court decide?

Recovery certificate issued for Rs. 45,36,588/- with interest; defendants directed to pay jointly and severally; assets attached.

Union Bank of India versus M/s Candy Bell — Banking and Recovery | DRT (2024)

¶1

DRT. PATN A

¶2

OA 576 of 2023 IJ I

¶3

Debts Recovery Tribunal, Patna

¶4

Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

¶5

Presiding Officer : Shri Kaushalendra Yadav

¶6

OA Case No. 576 of 2023

¶7

Union Bank of India, Hajipur-3CB Branch, P.S.-Hazipur, District-Vaishali844 10 1 . . . . . . .Applicant.Applicant

¶8

. . . . . . .Applicant.Applicant

¶9

¶10

M/s Candy Bell, situated at Village and Post Office-Sahdullapur, Police Station-Ganga Bridge, District-Hazipur-844102

¶11

Sri Chan(lan Kumar S/o Sri Rambabu Paswan, Proprietor of M/s Candy Bell, Resident of village and post office –Sahdullapur, Police StationGanga Bridge, District-Hazipur-844102 and Badi Yusufpur, Police StationTown Thana, Hajippur, District-Hajipur (Vaishali -844101, PAN no. FCYPKO038P.

¶12

Smt. Sunita Devi W/o Sri Rambabu Paswan, R/o Village and Post OfficeSahdullapur, Police Station-Ganga Bridge, District-Hazipur-844102 PAN no. GBDPD7475 J.

¶13

Sri Lalbabu Paswan S/o Sri Parmeshwar Paswan, R/o Village and Post Office-Sahdullapur, Police Station-Ganga Bridge, District-Hazipur844102,PAN no. BBVPP060 IB.

¶14

. Defendants

¶15

Present:

¶16

For the Applicant : Shri Animesh Ranjan, 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 19.12.2023 against the defendants to recover its debts from defendants of Rs.45,36,588/- as on 15.12.2023 along with pendente-lite and future interest at the contractual rate from 16.12.2023 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 Undertaking) Act 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021 and one of its

OA 576 of 2023 IJl

DRT, PATNA

Nodal Regional Office at Panchwati Complex, LIC building, Mohanpur, Samastipur and one of its Branch Office at Hajipur-3CB Branch, P.S.-Hazipur, District-Vaishali- 844101

¶25

Defendant no. 1 is a proprietorship firm and defendant no. 2 is proprietor and defendant no. 3 & 4 are the guarantors of the bank loan. Defendant no. 1 through proprietor defendant no. 2 approached the bank for grant of cash credit loan of Rs.37 lakh for manufacturing of Ice Cream Factory, which was sanctioned cash credit loan of Rs.5 lakh and term loan of Rs.32 lakh by the bank on 24.8.202 1. Defendant no. 1 through proprietor defendant no. 2 further approached the bank for grant of term loan of Rs.11.40 lakh, which was sanctioned by the bank on 7.1.2022. Defendant no. 1 through proprietor defendant no. 2 further approached the bank for grant of term loan of Rs.3.18 lakh, which was sanctioned by the bank on 10.1.2022. Defendants executed the various loan documents and defendant no. 3 created equitable mortgage to her immoveable property details give at page 14 & 15 in para no. vi of the OA.

¶26

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 30.6.2022.

¶27

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.45,36,588/- with pendentelite and future interest at the contractual rate from 16.12.2023 till the realization.

¶29

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 20.1.2024, 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

OA 576 of 2023 1 Jl

DRT, PATNA

subsequently, substituted service by publication of notice by way of advertisement in newspaper was also made against the defendants on 22.3.2024 in ''Dainik Jagaran” newspaper.

¶34

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 10.5.2024.

¶35

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 Vikram Kumar, Senior Manager of the applicant bank. The details of documents are as follows:

¶36

SI.No	Descriptionof Documents Photocopies	1 Date of IExecution	Amount	Signatur Executa	e of nts	1Ex./ IAnn. No
1	o		Rs.40 lakh	Defendant 1 &2	Tr
2	a		TLRs.32 lakh CCRs.5 lakh	Bank		2
3			Rs.37 lakh	e 1 &2
4			Rs.37lakh	e 1 &2
5	Composite hypothecation deed	25.8.2021	Rs.37lakh	e 1&2
6	Term loan agreement	25.8.2021	Rs.32 lakh	e 1 &2
7	I	25.8.2021	Rs.32 lakh	e 3&4
8	Copyofsaledeed					8
9	Rent receipt					9
10	)	7.1.2022	Rs.11.40 lakh	e I &2
11	Sanction letter	7. 1.2022	s	a
12	DP note	10.1.2022	s	a 1&2
13	Letter of continuity	10.1.2022	s	a 1&2
14	Hypothecation agreement	10. 1 .2022	s	a 1 &2
15	)	10.1.2022	s	ma

DRT. PATN A

OA 576 of 2023 IJl

			1 &2
Sanctionletter	13 . 1 .2022	Rs.3.18 lakh	Bank
DPnote	14. 1.2022	Rs.3.18 lakh	Defendantno 1 &2
Letter of continuity	14.1 .2022	Rs.3.18 lakh	Defendantno 1 &2
Term loan agreement	14.1.2022	Rs.3.18 lakh	Defendantno 1&2
a of account	Ason 15.12.2023	Rs.45,36,588/'	Bank
Legal notice	16.11.2023		Bank adv

¶42

Heard arguments and perused the case record.

¶43

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.

¶44

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.

¶45

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.

¶46

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.6.2022, whereas the present application has been filed on 19.12.2023. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the

L' a\

OA 576 of 2023 IJl

DRT, PATN A

case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

¶52

Shri Vikram Kumar, Senior 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.

¶53

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.

¶54

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.

¶55

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.

¶56

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 certiBed 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 adnritted 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.

¶57

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.

¶58

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

OA 576 of 2023 IJl

DRT, PATN A

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.

¶63

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 15.12.2023 has been proved to be Rs.45,36,588/- 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.45,36,588/- along with pendente-lite and future interest @ 8.55% p.a. with compounded monthly rests from 19.12.2023 (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.45,36,588/- along with pendente-lite and future interest @ 8.55% p.a. with compounded monthly rests from 19.12.2023 (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

OA 576 of 2023 1 Jl

DRT, PATNA

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.

¶74

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.

¶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 19th day of September, 2024.

¶77

By“ L/#’ tq'*\ [Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna

¶78

Dictated &corrected by me.

¶79

FORM NO. 9 ISee Regulation 24( 1 )]

¶80

bo’

¶81

DEBTS RECOVERY TRIBUNAL PATN A

¶82

2nd Floor, ( A. B & F Wing) Kdrpur1 Thdkur Sadan. Kcndriya Karamcharl Parisar (GPOA ), Ashiana Digha Road. Patna-800025

¶83

't R\LERUr_KWWM(2)mwaHW(B)£emLBJ£WLNJUWl£Y

¶84

ACI, 1993, AS AbIENDhP FROM TIME TO TIME•

¶85

RC No. 222/2024

¶86

IN Case No: OA/576/2023

¶87

In the Matter of

¶88

((;I1- 1) UNION BANK OF INDIA HAJIPUF< - 3 C.A. BRANCH POLICE s'rA'rI( IN HAZIPUR VA ISH ALI .BIHAR -844 1 02

¶89

Applicant(s)

¶90

¶91

(CD- 1) M/S CANDY BELL situated at Village and Post otncc- Sahdullapur. Police Station - Ganga Bridge. District- Hazipur. Vdishali .BIHAR -8441 02

¶92

(CD- 2) SRI C:HANDAN KUMAR

¶93

SON OF SRI RAMBABU PAS\VAN. PROPRIETOR OF M/S CANDY BELL. RESIDENT OF VILLAGE AND POST OFFIC-E- SAHDULLAPUR. POLICE STATION - GANGA BRIDGE. DISTRICT- HAZIPUR- 8444102 AND RESIDENT OF BADJ YUSUFPUR, POLICE STATION - TOWN THAN A- HAJIPUR. DISTRICT- HAJIPUR (VAISHALI ) 844 1 0 1

¶94

Defendant( SI

¶95

(CD- 3) SMT. SLrNITA DEVI WIFE OF SRI RANIBABU PASWAN. RESIDENT QF VILLAGE AND POST OFFICE - SAHDULLAPUIt, POLICE STATION- GANGA BRIDGE. DISTRICTHAZIPUR- 844 1 02

¶96

(CD- 4) SRI LALB ABU PASWAN SON QF SRI PARMESH WAR PASWAN. RESIDENT UP VILLAGE AND POST OFFICE - SAHDULLAPUR. POLICE STATION- GANG A BRIDGE. DISTRICTHAZIPUR- 844 1 02

¶97

RFCQVFrv Certificate for Rs 4536588.00 [ Rupees FQrty Five Lakh s Thjrty Six Thousands Five Hundred EigUyJIgbt Onjy_I

¶98

In terms of tlnal order dated 19/09/2024 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. 4536588.00 along with cost, expenses and interest from the 19/12/2023 i.e. date of filing / with effective date of the OA/576/2023 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors. hereinafter referred to as:-

¶99

) C ][) N : 1 1 1 1 c	Int.Type/1\lode	Effective I)at	Order Date	AIn ount( Rs.			RC Amount(Rs.)
M/S CANDY BELL	’OID Interest (Monthly	19/12/2023		36588.00			.536588.00
I CHANDAN KUMAR	'ompound 1lnterest(Monthly	9/1:/20:3	9/09/2024	536588.00	lointly And Iv	;Interest As on lcr Date	.536588.0CJ
SUNITA	Ipc)und Interest (Monthl)	9/12/3023	19/f)9/2024	536588.00	IJolntly And /erally	Interest As on Irdcr Date	b658S,00
Rl LALBABU PASWAN	d Interest (Monthly	19/12/2023	19/09/2024	L536588.00	Alrd ly	on

¶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 person,11 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 celliHcate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993 .

¶102

Parties are directed to appear before MANOJ KUMAR . Recovery OHIccr, DEBTS RECOVERY TRIBUNAL PATNA on 04/ 11/2024.

¶103

The Recovery OHlcer shall realize the amount as per this CertifIcate in the manner and mode prescribed under Sections 25 to 28 of the Recover/ 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 llas been issued under my signature and seal of the Tribunal on this 20/09/2024

¶105

PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶106

Registrar Debts Recovery Tribunal Patha

¶107

FORM NO. 10

¶108

[See Regulation 24(2)]

¶109

DEBTS RECOVERY TRIBUNAL PATNA

¶110

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

¶111

Ashiana Drgha Road. Patna-800025.

¶112

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COSTS

RC No. 222/2024

Case No: OA/576/2023

Applicant(s): UNION BANK OF INDIA

¶118

Versus

¶119

Defendant(s): M/S CANDY BELL

¶120

	Item ofCosts	r
	'eeontheapplication	m4
2	1
	v
	iCommissioner/Receiver/Valuation/SecurityFee
5	s
	-otalCosts:Rs	-8000

¶121

Place: PATNA

¶122

Date: 20/09/2024

¶123

PRESIDIN§rfFFICER DEBTS RECOVERY TRIBUNAL PATNA

¶124

Note: Strike out whichever is not applicable

Union Bank of India v. M/s Candy Bell

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/s Candy Bell

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