Allowed

Hdfc Bank Ltd. v. M/s Maa Vaishnaw Laghu Udyog

DRT18 Sept 2024OA/590/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal addressed an application by HDFC Bank for recovery of dues against loan defaulters who failed to appear. The court found the claim proven via documentary evidence and issued a recovery order and certificate.

What did the court decide?

Recovery certificate issued for Rs. 48,70,555.15 with interest at 11% p.a. to be recovered from sale of mortgaged/hypothecated assets.

Hdfc Bank Ltd. versus M/s Maa Vaishnaw Laghu Udyog — Banking and Recovery | DRT (2024)

DRT, PATN A

OA 590 of 2022 IJl

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. 590 of 2022

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HDFC Bank Ltd., Bimla Sadan, Holding No. 801/432, Ward No. 37, Exhibition Road, Patna- 1

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. . . . . . . Applicant

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Vs.

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M/s Maa Vaishnaw Laghu Udyog through its proprietor Dadan Singh having its Principal place of business at Bandipur, Ramgarh DistrictKaimur-82 1 109.

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Dadan Singh S/o Ganga Singh R/o 149 Ch Bandipur, Anchal-Ramgadjh, District-Kaimur-82 1 109.

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Prakash Yadav S/o Dadan Singh R/o Bandipur Ramgarh District – Kaimur-82 1 109.

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Defendants

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Present:

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For the Applicant Shri Bhola Shankar, 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 5.11.2022 against the defendants to recover its debts from defendants of Rs.48,70,555.15 as on 31.7.2022 along with pendente-lite and future interest @ 18% p.a. with monthly rests from 1.8.2022 with costs till realization.

¶21

The application has been filed with the contention that the applicant bank, is a body corporate, under the companies Act 1956 carrying on banking business under License Granted by RBI and registered under banking regulation Act 1949 having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and one of its Branch Office amongst other places at HDFC Bank limited, Bimla Sadan, Holding no. 801/432, ward no. 37 Exhibition Road Patna- 1

bV\

DRT, PATNA

OA 590 of 2022 1 Jl

Defendant no. 1 is a proprietorship concern, defendant no. 2 is the proprietor of defendant no. 1 and defendant no. 2 & 3 are guarantors. Defendants approached the bank for grant of cash credit facility of Rs. 45 lakh on 20.9.2015, which was sanctioned by the bank on 20.11.2015. Defendants further several dates approached the bank for renewal of the said cash credit facility, which was renewed the said credit facility on 17.11.2016, 21.11.2018, 29.11.2019 and 5.2.2021 respectively. Defendants executed the various loan documents in favour of the bank and also defendant no. 2 created equitable mortgage over the property details given at page 20 in schedule- A of OA.

¶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 28.5.2022.

¶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.

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The total liability in the loan account is Rs.48,70,555.15 with pendentelite and future interest @ 18% p.a. with monthly rests from 1.8.2022 till the realization.

¶30

This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 27.12.2022, 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 24.8.2023 in “Times of India’' newspaper.

¶31

Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the

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OA 590 of 2022 IJl

DRT, PATNA

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 opportunity to file written statement stands closed on 8.2.2024

¶37

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

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VDe	of scription Documents Photocopies	1Date of Execution	Amount	Signature of Executants	1Ex./ IAnn. No
1	Loan application	20.9.2015	Rs.45 lakh	e 1 &2
2	Sanction letter	20.11.2015	Rs.45 lakh	Bank	2
3	DPnote	21.11.2015	Rs.45 lakh	e 1&2
4	Letter contrnurng securrt' o		Rs.45 lakh	e 1 &2
5	Letter contrnurng -uarantee o		Rs.45 lakh	e 2&3
6	e hyDothecation		Rs.45 lakh	e 1 &2
7	r indemnit'		Rs.45 lakh	e 1 &2
8	a agreement			e 1 &2
9	ma documents				9
10	Memorandum			e
11	e letter		Rs.45lakh		11
12	1 letter		Rs.45lakh	bank	12
13	w letter		Rs.45 lakh	bank	13
14	<br>letter		Rs.45 lakh	bank	14
	Demand notice	23.8.2022		Bank
	Statementof account	Ason 31.7.2022	m8a

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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

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the loan and utilized the same and also executed the various loan documents to

iv\

OA 590 of 2022 FJI

DRT, PATN A

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.

¶47

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.

¶48

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.

¶49

On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 28.5.2022, whereas the present application has been filed on 5.11.2022. 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.

¶50

Shri Pappu Thakur, 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.

¶51

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

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OA 590 of 2022 IJl

DRT, PATNA

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.

¶58

The rule 12 (11) of the aforesaid Rules. Drovides 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.

¶59

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.

¶60

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.

¶61

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.

¶62

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 31.7.2022 has been proved to be Rs.48,70,555.15 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

DRT, PATN A

OA 590 of 2022 1 JI

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.48,70,555.15 along with pendente-lite and future interest @ 11% p.a. with compounded monthly rests from 1.8.2022 (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.48,70,555.15 along with pendente-lite and future interest @ 11% p.a. with compounded monthly rests from 1.8.2022 (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

DRT. PATNA

OA 590 of 2022 IJI

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 18th day of September, 2024.

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CV/r'

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L- ,' JA

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Dictated &corrected by me.

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¶82

[KaushalendraYadav] Presiding Officer Debts Recovery Tribunal, Patna

FORM NO. 9

V \

DEBTS RECOVERY TRIBUNAL PATNA

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[See Regulation 24( 1 )]

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2nd Floor. ( A. B & F Wing) l';drpuri ThaI<ur Sadan. Kendriya Karalnchari Parisar (GPOA), Ashiana Digha Road, Patna-800025

¶89

RECOVERY CERTIFICATE UNDER SECTION 19(7) READ WITH SECTION 19(B) OF THE RECOVERY OF DEBTS & BANKRUPl-C\ ACT, 1993, AS AMENDED FRONt TIME TO TIME.

RC No. 199/2024 IN

Case No: OA/590/2022

In the Matter of

(CH- 1) HDF C' BANK LTD

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BIMLA SADAN HOLDING NO 801/432 WARD NO 37 EXI-IIBITION ROAD PATNA .BIHAR -80000 1

Applicant( s )

––-- Versus ---–--

(CD- 1) MS MAA VAISHN AW LAGHU UDYOG through its Proprietor Dadan singh having its Principal place of brlsiness at- Bandipur . Ramgarh Kainlur (Bhablla ).BIH AR -82 1 1 09

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(CD- 2) DADAN SINGH

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S/0 GANGA SINGH R/0 149 CH. BANDIPUR

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ANC-HAL- RAMGADH DISTRICT- KAINIUR, PIN CODE- 821109 BIHAR

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Defendant(s)

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(CD- 3) PRAKSH TAD A\

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S/O DADAN SINCiH R/o BANDIPUR RAM(; ADII RAMGARH DISTRICT- KAIMUR- 82 1 1 09

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Rccovcry C-crtiHcate fur Rs 4870555.15 1 Rupees Forty Eight Lakhs Seventy Thousands Five Hundred Fifty Five And Pajge Fifteen OnI}LI

¶106

In terms of tlnal order dated 18/09/2024 passed bY this Tribunal in the above mentioned case, it is ordered that the Applicant Cel'tiHcate Holder Bank is entitled to recover a sum of Rs, 4870555. 15 along with cost, expenses and interest from the 01/08/2022 i.e. date of filing / with cffective date of the OA/590/2022 and future interest from order date till the date of realisation in full, jointly or severally from the CertifIcate Debtors, hereinafter referred to as:-

¶107

CDName	Int. Type/Mode	Effective Date	Order Date	Amount(Rs.)	LiabilitY Type	Interest (ason Order Date)	RC i Amount(Rs.)
ISMAA VAISHNAW LAGHU UDYOCr	icolnpound Ilrtcrcst .Monthjy )	I/08/20::	1 18/09/2024	14870555.15	lolntly ;everally	lterest As Order kte	-l4870555.15
DADAN SINGH	Compound Interest i(Monthly)	/08/30==	f18/09/ 2024,	14870555.15		Intel-est As Order	r0555.15
PRAKS YADAV						lerest mQrder	:l4870555.15

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

¶109

The mortgaged 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 19(22) of Rccovely of Debts and Bankruptcy Act 1 993. Parties are directed to appear before NIANOJ KUMAR . Recovery Oftlcer. DEBTS RE( 'C}VERY TRIBUNAL PATNA on 04/ 11/2024

¶110

The Recovery Oftlcer shall realize the amount as per this Ccnificatc in the manner and mode prescribed undo Sections 25 to 28 of the Recovely of Debts Due to Banks and Financial Institutions Act, 1993 (as amended ham time to time) from the above named Certificate Debtors.

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This CertifIcate has been issued under my signature and seal of the Tribunal on this 1 9/09/2024

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F,/ R\ 'tr av
Debts Recovery Tribunal
Patna

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PRESIDING 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

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(GPO A), Ashiana Digha Road. Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 199/2024

Case No: OA/590/2022

Applicant(s): HDFC BANK LTD. Versus

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Defendant(s): M/S MAA VAISHNAW LAGHU UDYOG

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	ternofCosts	iAmountinRs
	Feeontheapplication	ml
2	c	ro
	AdvocateFees	Dc
4	o	10
5	:iscellaneous Charges	bc
	a	m5

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Place: PATNA

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Date: 19/09/2024

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PRESIDI&(fOFFrCER DEBTS RECOVERY TRIBUNAL PATNA

¶129

Note: Strike out whichever is not applicable

Hdfc Bank Ltd. v. M/s Maa Vaishnaw Laghu Udyog

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. M/s Maa Vaishnaw Laghu Udyog

Case brief

What is this about?

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What the court decided

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